Amazon Ads is looking ahead to what the new year will bring and has isolated five trends to watch. It expects 2024 to be a defining year of change for advertisers.
The first trend is the one everyone has been talking about – generative AI. According to Gartner, 63% of marketing leaders plan to invest in generative AI solutions in the next two years. Amazon expects generative AI to become a tool used daily by advertisers.
The second trend marketers need to follow is streaming TV advertising. Amazon predicts it will grow beyond large brands this year to become a standard advertising tool for small and medium-sized businesses, thanks to the growing availability of self-service ad buying options.
The use of clean rooms to help plan, optimize and measure the impact of ad campaigns is trend number three. Amazon Ads says with clean room tech, brands are able to uncover new audiences and insights. This year it expects adoption of this tech to increase as advertisers look for ways to safely combine and analyze data from disparate sources, since 64% of companies using privacy preserving technology are already using clean rooms. Amazon only expects this number to go up as 85% of advertisers are already considering using this technology.
Trend number four is the use of machine learning solutions that help brands remain relevant in a world without third-party cookies. It says advanced machine learning models and optimized campaign control systems enhance programmatic bidding helping advertisers reach relevant audiences more cost effectively. Its internal analysis of U.S. campaigns shows that modeled audiences provide higher delivery and engagement rates up to 25%, with a 12% decrease in cost per click.
The final trend is about how interactive advertising will give brands opportunities to engage audiences in new ways. Available across both streaming TV and audio ads, interactive ads enable consumers to easily add items to a shopping cart or receive more information about a product by using their remote, scanning an onscreen QR code, or speaking to a connected device that delivered the ad.
