|
|
|
What happened:;In an effort to boost its already-growing;ad business, Amazon is investing in generative AI tools that can create photos and videos for merchants to use in their ad campaigns, according to;The Information. What the numbers say:;Since it began breaking out its ad segment revenue in 2021, Amazon's advertising business has grown by double digits every quarter when compared to the same time the year before. While the business brought in $38B last year, it's currently only focused on ads that enhance merchant search results. Why it matters:;Amazon's generative AI is expected to simplify the creation and production of photos and videos for advertising. The tools could make ad formats more accessible to smaller sellers, many of which find video ad spots too costly or time-consuming, according to The Information. The bigger picture:;Despite its mass layoffs and other cost-cutting measures, Amazon is jumping on the generative AI bandwagon. The move is another way for Amazon to diversify its ad business, which is already projected to grow;by 70%;through 2026.
|
