Amazon has made a big move in the world of AI-driven ad automation with the launch of its new ad product called Performance+. This puts Amazon in direct competition with internet giants Google and Meta for ad budgets. Performance+ offers advertisers the opportunity to diversify their ad spending and not rely solely on Google and Meta for AI-driven campaigns.
One of the main advantages of Performance+ is that it provides advertisers with more control compared to Google and Meta. It is housed within Amazon’s demand-side platform and uses an AI model to predict the likelihood of users converting on an hourly basis. Advertisers can set target cost-per-acquisition goals, and Amazon’s algorithms handle campaign setup, audience targeting, and optimization.
Performance+ campaigns can run across Amazon’s owned-and-operated properties as well as external publisher inventory. It offers brand safety, pacing, frequency, and viewability controls, as well as custom attribution settings and reporting. It is specifically designed for brands that are not currently selling on Amazon’s e-commerce platform.
Amazon claims that most Performance+ campaigns have achieved 30-90% lower cost-per-acquisition (CPA) compared to standard Amazon DSP ad buys with the same goals and formats. This is a significant claim and could be enticing for advertisers looking to optimize their ad spend.
An Amazon spokesperson explained that the goal of Performance+ is to offer advertisers and agencies AI-powered efficiency with clear oversight. It simplifies programmatic buying while providing visibility into effective creatives, placements, and audiences reached. The spokesperson highlighted the range of controls available to ensure ads reach the advertiser’s desired audience.
With Performance+, Amazon aims to leverage its valuable shopping data to attract more ad dollars. By offering an automated ad product comparable to Google and Meta’s AI ad offerings, Amazon is positioning itself as a strong contender in the AI-driven ad automation space.
Overall, Performance+ provides advertisers with an alternative option for AI-driven campaigns, allowing them to diversify their ad spending and potentially achieve lower CPAs. With its advanced AI capabilities and access to valuable shopping data, Amazon is making a bold move into the world of automated advertising. It will be interesting to see how advertisers respond to this new offering and whether it can truly rival the offerings of Google and Meta.
