With the rapid advancement of artificial intelligence (AI), Amazon has introduced a powerful AI-driven tool called Video Generator aimed at revolutionizing the digital advertising landscape. Designed to cater to businesses both large and small, these tools make it easy for Amazon merchants to develop creative, effective ad campaigns without extensive resources.

What is Amazon's AI Advertising Tool?
The Amazon Ads AI tool leverages generative AI technology to automatically generate video and image-based ads from simple product photos. By doing this, the tool allows advertisers to create high-quality, engaging ad content in minutes, eliminating the need for lengthy and expensive creative processes. The tool could be particularly beneficial for businesses creating campaigns or promotions under tight deadlines.

The videos are simple (6 to 9 seconds long) and are generated using a product image provided by the user. Video Generator creates four video variations for the user to pick from, each including a basic headline, background music, a call to action, and the product’s brand logo. There are also live image effects that can be added such as steam wafting up from a coffee mug.

Amazon's AI tool utilizes deep learning algorithms and real-time data analysis to optimize ad creation and performance. This system allows marketers to create, tweak, and refresh content quickly.

Benefits of Using AI in Advertising
Amazon’s AI advertising tool is designed to serve a broad spectrum of businesses, from large brands with established marketing teams to small businesses that lack the resources for extensive ad campaigns. Traditionally, developing ad content requires collaboration with agencies and weeks of production time. With Amazon’s AI tool, brands can bypass these processes, creating ads in a matter of minutes. This not only saves time but also reduces costs significantly.

Moreover, as AI technology evolves, the tool is expected to expand its capabilities, with features like real-time optimization and performance tracking becoming integral for businesses seeking to maximize their advertising outcomes.

The AI-generated content is fully customizable. Advertisers can tweak the generated ads to align with their branding and marketing goals. Additionally, the tool can scale the production of ads, making it easy for companies to generate multiple variations for different audience segments or product lines.

The Human Element
According to IBM’s AI in Action Report, AI success in an organization depends more on human factors not just technical knowledge. While Amazon’s AI tools are powerful, the marketers that utilize these tools are just as important. AI success requires leadership, experimentation, and persistence. Generative AI outputs are only as good as the user’s prompts.

Future of AI in Advertising
The future of AI in advertising looks promising. With continuous advancements, such as the ability to create video ads through simple text prompts, advertisers will be able to explore new creative possibilities and experiment with various campaign strategies. As AI tools become more accessible and efficient, businesses will be better equipped to navigate the competitive digital marketing landscape, ultimately driving better customer engagement and business outcomes.


In the Classroom
This article can be used to discuss advertising (Chapter 12: Dimensions of Marketing Strategy).

Discussion Questions

  1. How does Amazon’s AI tool change the traditional ad creation process for businesses?
  2. In what ways can small businesses benefit from using Amazon’s AI advertising tool?
  3. Explain why the human element is important for AI success in organizations.

This article was developed with the support of Kelsey Reddick for and under the direction of O.C. Ferrell, Linda Ferrell, and Geoff Hirt.