Home Commerce Amazon Is The Latest Major Ad Platform Going All-In On Machine Learning Tech

Amazon Is The Latest Major Ad Platform Going All-In On Machine Learning Tech

SHARE:
Comic: A.I. Ad Campaign

The new hot trend in platform advertising is to put the machines in charge of everything.

It’s true of Google, true of Meta and, even more so as of this week, it’s true of Amazon.

On Thursday, the Amazon DSP rolled out a system-wide upgrade to its machine-learning and predictive algorithms, Neal Richter, the group’s director of data science engineering, told AdExchanger.

Richter said the upgrades include new capabilities with data fed by large language models (Mmmm … that’s some yummy jargon), which are in turn built on prior machine learning-based tech developed for the Amazon ad business. These models were already in use to expand online advertising addressability, but will now also support predictive analytics and campaign planning.

The upgrades were in development for a year and a half, and this is the first major overhaul of Amazon’s predictive algorithm in that time.

But the new machine learning ad products are not Amazon’s answer to Performance Max, Google’s black box AI buying tools, or Meta Advantage+ Shopping Campaigns.

Other walled garden platforms with machine learning-based ad products “withdraw control and transparency” for the advertiser, Richter said.

Amazon’s machine learning upgrade will now be a core function of the DSP for all advertisers, which means the product enhancements will not pull back on campaign transparency or analytics reporting.

The ability to bake predictive conversion analytics into its machine learning algorithm is a big advantage for Amazon. Google’s PMax and Meta’s Advantage+, which Richter is nodding at without naming, are both attempting the same trick, which is to connect ad impressions to sales. But those products include drastic reductions to campaign controls. Advertisers, for example, don’t choose their media, bid prices or creative, and also have no transparent attribution. This is because Google and Meta must preserve their own first-party data while combining it with someone else’s purchase data.

The Amazon DSP isn’t combining purchase data with anyone. It’s simply Amazon.

“The backbone of our performance is how we measure ROAS and CPA, in real terms, on the store,” Richter said. “We have a direct connection with the cash register, so to speak.”

And don’t expect another 18-month wait before the Amazon DSP puts out its next piece of machine learning-related news.

More announcements will be coming this year, Richter said. “I think of this as just the starting gun.”

Must Read

TikTok On Why Brands Can’t Buy Its New Ad Formats Programmatically

Not unlike last year, the mood during TikTok’s NewFronts presentation last week felt like cautious optimism, if not outright relief.

Meta’s NewFronts Message To Advertisers: Embrace The Noise

Can a good sales presentation offset the impact of a very bad news week? That’s a question for Meta, which collected two guilty verdicts in court this week for failing to protect children and creating additive products.

AI Helps Manscaped Trim Social Chatter Down To The Bare Essentials

Meet Clamor, a new social listening product that pulls cultural insights from online conversations in real time. Clamor helped Manscaped freshen up its marketing, including for this year’s Super Bowl.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
A man talking to a robot

How Red Roof Is Bringing In More Customers With Zeta’s Voice-Activated AI Agent

Hotel chain Red Roof is using Zeta’s new voice-activated AI agent to guide its campaign creation, deployment timing and audience development.

Jean-Paul Schmetz, Chief of Ads, Brave

Why Ad-Blocking Browser Brave Introduced Its Own Ads

Brave’s chief of ads Jean-Paul Schmetz on competition in the search and browser markets, the fallout from the Google Search antitrust ruling and whether AI search will help smaller upstarts compete with Big Tech.

Vizio Helps Walmart Cut A Bigger Slice Of The CTV Ad Pie

Walmart and Vizio announced at NewFronts that unified account logins are coming to smart TVs using Vizio’s operating system.