🚀 AI Drives Higher Click Rates
Amazon has announced that its AI tool can create ads, leading to a 20% increase in click-through rates. Dharmesh Mehta, Amazon's VP, confirmed the news while visiting Munich. The AI tool is currently utilized by 30,000 sellers across Europe. "The ads created by our AI tool have on average a 20 percent higher click-through rate," said Mehta. This metric, which divides the number of clicks by ad impressions, indicates how persuasive the ads are.
📊 Reducing Dependence on Agencies
Traditionally, creating marketing materials has been seen as a human-driven creative process. Agencies specializing in Amazon ads often handled these tasks. However, with the new AI capabilities, Amazon is reducing the need for these agencies. The AI tool allows sellers to create listings based on images or a few keywords, and now, it can design entire ads. These ads are discussed with clients before publication, similar to the agency process.
🌍 Expansion of AI Tools
The expansion of AI tools by Amazon is not limited to ad creation. On June 20, the company announced new generative AI functions in Europe, enhancing the creation of product listings. Sellers benefit from AI tools for keyword research, product text writing, and image optimization. Additionally, an AI-based pricing tool helps sellers find the best prices for their goods, making their operations more efficient.
💡 Future of AI in Advertising
The introduction of AI-generated ads raises questions about the future of advertising agencies. With AI handling more creative tasks, the role of human creativity in marketing might shift. While AI tools handle routine tasks, agencies might focus on more strategic and high-level creative work. As AI technology continues to advance, the advertising landscape is set to evolve, with a blend of human and AI collaboration shaping the future.
Will AI replace advertising agencies soon?
