Amazon is to utilise Generative AI as part of its Christmas advertising strategy.
The tech giant - which sells everything from electronics, and books to clothing and beauty products as well as grocery items - will use artificial intelligence to tailor ads for custoemrs ahead of the holiday season in an attempt to improve ad targeting and allow merchants to produce promotions quickly.
CEO Andy Jassy said during a call: "When (advertisers) have to think about budget decisions, they're going to choose (ads) that have large volume and perform better. I think both of those are real advantages in our advertising area right now."
According to Swiftly Chief Revenue Officer Andy Friedland, a former ad executive at Amazon, the main benefit of AI will be to have the "ability to show dozens, if not thousands, of variations of your ad personalized to the user".
Brendan Witcher, a principal analyst at Forrester, added that that Amazon's generative AI ad tool will be "good for attracting and keeping a segment of third-party sellers and brands advertising on Amazon."
