Amazon lets AI generate advertising
The U.S. company Amazon is now using artificial intelligence to generate services for the many sellers on its global online marketplace. In addition to AI-generated product descriptions, this includes marketing copy, images, and advertisements. This was announced by Dharmesh Mehta, Amazon’s vice president in charge of the marketplace.
"We are only at the beginning, but in the short time since the launch of these features, we already have 30,000 sellers here" (in Europe) "using these offers", the US manager told DPA during a visit to Munich. According to Mehta, photos of the products in question are now sufficient for an AI-generated suggestion of an item description in a number of cases.
According to Mehta, Amazon AI can also take on creative tasks that were previously the domain of humans: "So many sellers don't just create product descriptions, they also want to advertise them. And so we create ads for them." For certain ads that Amazon generates in this way, click-through rates (CTR) can be up to 20 percent higher than for advertising based on standard product images.
The CTR is an indicator that measures the success of online advertising based on the number of clicks. According to Mehta, before a computer-generated ad is activated, it is presented to the sellers and checked by them: "In effect, we generate a proposal for the seller."
Two million retailers
Two million retailers are now represented on the Group's online marketplace worldwide, including 47,500 in Germany and 125,000 in the EU. According to the US parent company's annual report, Germany was the second-largest market after the US in 2023 with sales of almost 37.6 billion dollars, albeit with a huge gap: US sales were more than ten times higher at 395.6 billion dollars. In addition to online retail, these consolidated sales figures also include other Amazon services such as streaming subscriptions and the operation of cloud data centers. (SDA)
