Willie Pang.
Since the beginning of the digital revolution in media, marketers and agencies have been chasing the holy grail of delivering the right ad, with the right message, to the right person, in the right context, at the right time. The good news is that the advertising industry is in the midst of a seismic technological evolution and generative artificial intelligence (AI) is fast becoming a central tool to enable the modern marketer to achieve this ambition. Recent developments in AI have offered new and exciting ways for advertisers to simplify ad tech complexity and maximise their budget and performance.
AI is a promising marketing partner that has already demonstrated its value. According to the 2023 CMO Survey, marketing leaders report that AI has decreased marketing overhead costs by 7.2% . Despite these promising early results, only one-third of marketing organisations use AI for these purposes, and there are many more efficiencies on the table.
Marketers need a reliable campaign analysis loop to deliver relevant ads with speed
AI-driven remarketing can accelerate campaign planning by uncovering patterns less obvious to human analysis, helping advertisers to reach audiences likely to engage in specific behaviors. Additionally, AI can analyse campaign outcomes continuously, using insights to refine future efforts and establish a positive feedback loop of improvement and success.
In addition, AI can streamline budget allocation by automatically directing funds to the most effective areas, which reduces manual labour. This efficiency allows marketers and agency partners to focus more on strategy and creativity. From understanding consumer insights and refining brand messaging, to exploring innovative campaigns.
But while AI holds immense potential to achieve ad relevance, it's not enough for marketers to rely solely on simplified campaign metrics to grasp customer insights with little to no line of sight on how recommendations are generated. Marketers require transparency to understand how AI aligns with their goals and the control to set guardrails that help them reach their business objectives.
Human oversight is critical in maintaining ethical AI practices and ensuring brand safety
In the hands of responsible and ethical users, AI can be a force for good, saving time and unlocking amazing capabilities that were previously impossible. However, AI becomes particularly concerning when it's used to conceal data, obscure value drivers, or unfairly extract value from the relationship between advertisers and publishers.
That's why advertisers are increasingly advocating for solutions that provide transparency and offer controls that incorporate human expertise into the implementation process allowing for greater control in areas like brand safety, inventory management, creative optimisation and audience overlap analysis.
Faster campaign optimisations with AI and human oversight
Amazon Ad's generative AI Performance+ solution was built with these challenges in mind. Designed for businesses that sell beyond the Amazon store, Performance+ is a new simplified one-click campaign type in Amazon DSP focused on driving performance towards specific goals.
Advertisers start by bringing in their first-party signals, which are enhanced with Amazon's billions of unique shopping, streaming and listening signals, and predictive AI helps to automated campaign setup and create optimisations. At the same time, the DSP preserves advertiser control over key elements like inventory selection, block-lists and audience suppression, effectively balancing automation with strategic oversight.
Across industries and verticals, advertisers consistently witnessed 30%-90% lower CPAs, from those who aim to drive high-value actions on their own website to those who sell on Amazon. Plus, Performance+ works across Amazon-owned-and-operated inventory and third-party inventory, including display, online video and streaming TV ads.
As advertisers continue to adopt AI-powered solutions that support a wide variety of brand and performance goals, the future of advertising holds endless possibilities for innovation, efficiency and success.
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