Amazon launches AI-powered video ad generator ahead of holidays
Amazon is also developing a new live image capability for its existing image generator, furthering the development of artificial intelligence in marketing. Amazon unveiled a new solution that uses generative artificial intelligence (AI) to quickly convert product images into video ads, as detailed in a blog post.
The video generator, which is currently in beta, is free to ad partners and is part of Amazon's Sponsored Brands campaign suite. The French skincare company Gellé Frères has been testing the product ahead of the Black Friday rush. Amazon also announced a new live image capability for its existing image generator feature that allows brands to add flourishes, like steam rising from a coffee cup, to what were previously static pictures. These tools come as large digital platforms go all-in on generative AI to attract more advertising spend.
Dive Knowledge: The new AI-powered video generator from Amazon aims to give more people access to an upper-funnel channel that can be expensive for small and medium-sized marketers. The videos themselves are pretty basic because they are based on product images. However, the technology's one-click feature, which is free for advertisers who use Sponsored Brands, might pique interest. Amazon made the announcements as part of its Accelerate event last week.
As holiday marketing campaigns begin, Gellé Frères has already been experimenting with the video generator. In a press statement, a spokesperson for the French skincare company said that the solution “significantly reduced the time required to produce a video ad” and has opened the door to video advertising for a wider range of products in its portfolio.
A marketer on the Sponsored Brands platform can submit their product page and select "choose an AI-generated video" from a drop-down menu to use the video generator. The tool will then present the marketer with a selection of editable video options from which to choose. A lavender-scented lotion is fed through the video generator in a demonstration video, resulting in advertisements depicting vast fields of the flower. The user then adds additional copy to emphasize the features of the product. The video generator and live image capability will initially be limited in availability, and Amazon will refine the technology in response to feedback from advertisers. An AI-powered image generator marked the beginning of the e-commerce giant's expansion of its generative AI offerings for advertisers in the autumn of 2017. Appliance maker Whirlpool leaned on the image generator for its holiday marketing last year with a campaign that drove more than 2 million impressions and a click-through rate of 2%, above category benchmarks. Amazon is attempting to increase spending on advertising in the upper funnel by expanding the concept to video. With a focus on scale and production efficiency, other digital platforms, such as Meta and Google, have focused on generative AI. In the second quarter, revenue from Amazon's advertising business increased by 20% year over year to $12.77 billion, which was lower than Wall Street's estimates and a decline from previous quarters.