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Amazon is currently experimenting with new ad formats on Rufus, their generative AI-powered expert shopping assistant. That strategy accompanies their recent tests of ads to the “Frequently Bought Together” Amazon product pages. By doing so, the online-selling giant is continuing to redefine what e-commerce advertising might look like in 2025.

Just a few months ago, Amazon began testing ads within the “Frequently Bought Together” section on brand product pages, signaling a major shift in how ads are integrated into the consumer journey.

Now, Amazon is expanding its scope, turning its attention to AI-powered advertising. According to a changelog released by Amazon this week, sponsored ads will soon be featured for U.S. users of Rufus, Amazon’s AI shopping assistant, offering dynamic ad placements based on search queries and conversational context. In some instances, Rufus may even generate additional copy to enhance the existing ad.

This move parallels Microsoft’s integration of ads in its AI assistant, Copilot, across platforms like Bing and Windows. With the mounting costs of AI development, companies like Amazon are leveraging new ad formats to drive revenue and offset investment.

Historically, Amazon has been successful in launching innovative advertising strategies. For example, shoppable carousel ads on Prime Video allow viewers to explore products mid-stream and seamlessly add them to their cart, while interactive pause ads provide non-intrusive opportunities for engagement.

These precedents suggest Amazon’s latest ad strategy could unlock similar success for both the platform and its partners.

What Amazon’s “Frequently Bought Together” Ads Mean for Brand Leaders

For enterprise-level brands, the introduction of these ads presents both a strategic advantage and a challenge. While they offer the potential to increase AOV through curated product pairings and greater visibility for complementary items, they also raise questions about the cost-effectiveness of paying for ad space on a brand’s own product page. Striking the right balance between promotion and customer experience will be key.

Amazon, for its part, stands to gain a lucrative new revenue stream, while brands may enjoy enhanced product discovery and increased cross-selling opportunities. However, the success of this initiative will largely depend on the ROI for participating brands, the effectiveness of the ad format in driving sales, and the overall impact on the shopping experience.

Amazon’s Next Frontier: AI-Powered Advertising with Rufus

By integrating ads into its AI assistant Rufus, Amazon is pushing the boundaries of e-commerce advertising. This advanced approach promises to create new opportunities for brand visibility and more targeted advertising based on real-time customer interactions.

Rufus’s ability to personalize ad content opens the door for brands to connect with consumers in a highly relevant way. Yet, this new model also presents challenges. Sellers will need to navigate the fine line between AI-driven product recommendations and paid advertisements, which could potentially blur the distinction for consumers. Additionally, the lack of specific metrics to measure Rufus-driven campaigns will make it harder for brands to assess performance effectively.

The success of AI-integrated ads will be a key factor in determining the future of Amazon’s advertising landscape, and it will require ongoing attention to transparency, customer trust, and measurable results.

How Canopy Management Can Support Your Brand

As Amazon continues to innovate, the impact on consumer behavior and e-commerce strategies will be closely watched by industry leaders. This new frontier in digital advertising could dramatically reshape the landscape for both brands and the platform.

At Canopy Management, our team is at the forefront of these developments, helping everyone from solopreneurs to enterprise-level brands navigate and capitalize on the ever-evolving world of e-commerce.

If you’re looking to enhance your Amazon or Walmart strategy, our experts are here to support you every step of the way.