How Amazon's AI and AMC Tools Empower Advertisers-Unboxed 2024

During unBoxed 2024, Amazon anounced new innovations in AI-powered advertising and localization which help brands connect with audiences around the globe. These advancements are tailored to help brands optimize ad effectiveness and engage international markets by providing tools that recognize and respect cultural nuances. With new features like Product Performance Spotlight, optimized ad placements, and advanced audience segmentation, Amazon empowers sellers—from small brands to large enterprises—to deliver personalized, relevant content across multiple countries and platforms.

We greatly applaud Amazon’s push to empower advertisers with intuitive tools that align perfectly with m19 shared goal: making e-commerce straightforward and effective. As Amazon ad partners, our co-founders — Tarik and François were invited to share deep insight about how can brand grow globally with these new tools. Here we will also cover the top announcements from Amazon unBoxed 2024, where these innovations took center stage.

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If you want to listen the complete podcast, check it out for more insights!

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Table of Contents

• How AI in Amazon Advertising Works?
• Empower Small Sellers with Advanced Tools
• Audience-Based Targeting for Amazon Ads
• Amazon Marketing Cloud: The Key to Future Advertising
• Conclusion

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How does AI in Amazon Advertising work?

Amazon Ads is setting new standards with their latest AI-powered tools. It is designed to make high-quality creative content accessible and effortless for advertisers of all sizes and formats. For the first time, brands—including small businesses—can generate advanced content like videos and sound within Amazon’s self-service creative studio. This tool not only democratizes creative power at zero additional cost but also radically simplifies the ad creation process, which cut down time by 75% for DSP (Demand-Side Platform) tasks.

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Product Performance Spotlight

One of the most promising AI developments announced by Amazon is the Product Performance Spotlight. It is designed to use machine learning to optimize ads across various markets. This feature utilizes data to highlight which products perform best under specific conditions, allowing for precise targeting and cost-effectiveness. For international sellers, this means a significant enhancement in ad performance, with AI analyzing and adjusting ads based on local consumer behavior.

Amazon’s AI can also identify unexpected consumer trends, such as the tendency for ice cream sales to rise not just on hot days but also on stormy ones. By using predictive analysis, brands can serve ads at the right time, helping them anticipate and meet local demand patterns in diverse markets. This form of hyper-localized, data-driven advertising not only improves conversion rates but also reduces ad spend waste, allowing brands to use resources effectively.

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Localised Content Creation with AI-Powered Video Tools

Amazon's AI-powered video tools are enabling sellers to create localized video content at scale—a crucial factor for brands expanding internationally. By adapting content to specific markets, brands can make adjustments in language, cultural references, and even visual cues. This localized approach can make campaigns resonate more deeply with audiences, boosting engagement and building brand loyalty in new markets.

What’s remarkable is that Amazon’s video tools are accessible to all sellers, even those on smaller budgets. Currently in beta, these self-serve video capabilities allow sellers to create engaging content for free, making high-quality localized content available to brands of all sizes. Sellers can further personalize their video content to align with regional preferences, helping them establish a more authentic connection with local audiences without incurring high production costs.

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AI in Translation and Advanced Localization

Localization can be costly, particularly for brands entering markets with diverse languages and cultural sensitivities. Amazon’s translation and content customization features offer a cost-effective alternative, making it easier for brands to reach European markets without sacrificing cultural relevance. Unlike basic translation tools, Amazon's AI goes beyond mere text and audio translation by also localizing visuals and imagery, ensuring content feels authentic and relatable to the target audience.

This tool is invaluable for brands that wish to expand into Europe, where the primary markets include Germany, the UK, France, Spain, and Italy, alongside growing markets like Belgium, Sweden, and Poland. High-quality localization typically requires professional services, especially for premium products where nuanced language is crucial. Amazon’s AI, however, provides a more affordable option that still allows brands to tailor their message appropriately. For agencies that produce market-specific content, AI’s efficiency and accuracy can reduce the time and costs associated with localization.

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AI Empowers Small Sellers with Advanced Tools and Agility

Amazon’s commitment to making its tools accessible to small and medium-sized businesses is transforming how these sellers compete. While larger brands may face internal challenges with agility and resource allocation, smaller brands often adopt Amazon’s tools swiftly, benefiting from new advertising formats and streamlined processes. Features like Amazon’s advanced audience segmentation allow these nimble brands to launch targeted campaigns that would otherwise require a large team or budget.

A recent hackathon at the Prosper Show in New York demonstrated the power of these tools: participants used AI to develop a fully-fledged product, including concept, visuals, and story, within just three hours. This level of accessibility enables small brands to achieve results on par with larger, more established companies, fostering competition and diversity within Amazon’s marketplace.

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A Unified Vision for Global E-Commerce Growth

With these AI-powered features, Amazon is equipping brands with the tools they need to expand across borders effectively. Amazon’s new solutions enable sellers to seamlessly connect with local audiences through content that’s relevant, relatable, and respectful of cultural nuances. Sellers, particularly those looking to expand internationally, are thrilled by Amazon’s strategic direction, which simplifies operations, reduces costs, and ultimately fosters sustainable growth.

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Audience-Based Targeting for Amazon Ads

Amazon's Advanced Audience Segmentation is a game-changer for brands managing multiple international campaigns. This tool enables sellers to create precise audience segments, tailored to specific countries or customer groups. With audience-based targeting, brands can now go beyond keyword-focused ads and reach users at various points in their shopping journey, resulting in campaigns that better resonate with intended audiences. Sellers can even use this tool to exclude certain segments—like those who have recently made a purchase—from new ads, effectively preventing ad fatigue and enhancing customer experience.

The integration of AMC into Sponsored Products and Brands allows brands to draw insights from customer data across Amazon and external platforms. For example, a brand selling on both Amazon and TikTok can track customer behavior across both channels, building cross-platform segments that refine targeting further. This integration is invaluable for brands that want to ensure their messaging is relevant, avoiding the pitfalls of overlapping or repetitive ads in different regions. 

This seamless backend integration of AMC insights allows advertisers to utilize these audience data points without needing SQL knowledge or data management expertise. The automation layer is a strategic advantage, allowing advertisers to gain audience insights without technical intervention.

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Amazon Marketing Cloud is Key to the Future of Ads

Amazon Marketing Cloud (AMC) is a powerful tool for analyzing and using cross-channel insights within Amazon’s ecosystem. By providing granular data on shopping behavior and audience characteristics, AMC enables advertisers to tailor their campaigns based on real-time insights, so as to enhance their targeting effectiveness and boost ROI.

Until now, many brands and agencies have underutilized AMC, often due to the SQL knowledge required to tap into its insights or the technical complexity of setting up AMC instances. A smaller number of tech-savvy brands and agencies have leveraged AMC, but many still face a "glass ceiling," limited by access or technical challenges.

With recent updates, including an API for programmatic integration, Amazon has lowered the barriers to entry, encouraging more advertisers to adopt AMC. The ability to programmatically set up and manage AMC instances removes many technical hurdles. It has higher possibility for more brands to access and leverage AMC’s insights without requiring extensive SQL knowledge.

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AMC: From Manual Set-Up to Seamless Integration

A key challenge with AMC has been the manual process required to initiate instances, query data, and interpret results. This was often time-intensive and posed a significant barrier, especially for smaller brands lacking technical expertise or SQL-savvy teams. With Amazon's announcement that AMC is now free for all advertisers and offers programmatic API integration, the playing field is leveling. Even small, agile brands can now compete on a data-driven level without the previously required technical resources.

The API integration allows tool providers and brands to automate AMC processes, removing the need for time-consuming manual setup. This is a significant step toward democratizing access to data insights, empowering brands to make smarter, faster, and more accurate decisions. Amazon’s approach reflects a larger trend toward simplifying complex data tools, enabling businesses to gain the insights they need without burdensome technical obstacles.

Brands that have embraced AMC are already seeing tangible benefits. For example, brands like ELF, which have harnessed AMC’s data insights to drive substantial growth in ad performance and customer acquisition. By understanding their audiences on a deeper level, these brands can create highly relevant, targeted ads that resonate with shoppers and boost conversions. These early adopters exemplify the potential AMC holds, not just for large enterprises but for brands of all sizes aiming to make data-driven decisions.

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Conclusion

In wrapping up, Amazon's AI-powered tools are changing the game for brands everywhere, making it easier than ever to reach and connect with customers across the globe. From creating localized videos to understanding what products work best in different markets, Amazon is putting powerful tools into the hands of all sellers—big and small. With resources like the Amazon Marketing Cloud, brands can now gain valuable insights without needing technical expertise, helping them run smarter, more targeted ads that feel relevant to each audience. As Amazon keeps refining these tools, it’s exciting to see how brands can grow and succeed by making deeper connections with customers worldwide.

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