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Amazon unBoxed 2024 just wrapped up and the Canopy Management leadership team was on the ground in Austin to connect, and to catch up on the latest on Amazon’s advertising.

Amazon unveiled a number of new advertising capabilities at unBoxed 2024, focusing on enhancing full-funnel performance for advertisers.

It’s not at all surprising that the bulk of the updates were made possible through recent advancements in artificial intelligence. To do that, Amazon is doubling down on their use of data clean rooms to supply the information needed to fuel this avalanche of advertising innovation.

Here’s the Canopy Management team’s summary of the key updates:

1. Data “Clean Rooms” Helping Amazon Level Up Advertising 

Data clean rooms are technology services, or software that help content platforms keep first-person user data private when interacting with advertising providers. 

Data clean rooms enable advertisers to analyze first-party data securely and in compliance with privacy regulations, making them crucial in a cookieless advertising environment.

They provide aggregated data from anonymized user sets that makes it possible for the clean room to furnish advertisers with valuable (non-identifiable) information allowing them to target a specific demographic or audience. 

Now, Advertisers using Amazon Marketing Cloud clean room technology can adjust their Sponsored Brands and Sponsored Products bids specifically for audiences who have seen their streaming TV ads and also visited their website.

Here’s how that will play out for advertisers: 

Amazon Marketing Cloud (AMC) Solutions

The first two solutions that the AMC, Amazon Ads secure clean room will make possible for brand entrepreneurs are:

• High value audience analysis in AMC will allow brand entrepreneurs to quickly visualize how their customer base is distributed by spend levels over time, create audience segments, and use them in future campaigns.
• Optimal frequency analysis helps advertisers track KPIs like conversion rate and return on ad spend as ad interactions increase, enabling them to set efficient frequency caps for their campaigns.

2. Creative AI Integrations 

Amazon unveiled the AI Creative Studio beta that promises the ability to manage everything in one seamless workflow—create images, refine your creatives, save your top picks, and explore diverse concept ideas. 

At unBoxed, Amazon revealed that alongside images and videos, brands will now be able to create audio ads using generative AI.

The new feature allows advertisers to generate AI-powered audio ads for Amazon Music and Alexa-enabled devices. These ads are particularly effective for brands already selling on Amazon. Advertisers can connect the Audio Generator to their product listing, which will create a 30-second audio ad based on the product description.

For brand entrepreneurs of all sizes, these tools could help make creating high-quality content faster, easier, and more affordable than ever before.

3. Full-Funnel Measurement and Attribution 

Amazon quoted from a study by Boston Consulting Group that reported that on average, advertisers need to reach customers at least 20 times before they make a purchase. 

That’s probably not a surprise to veteran marketers and a big part of the reason why there’s such a big push right now for full-funnel transparency.

Here’s the latest from unBoxed:

• Multi-touch Attribution Model: This new model analyzes the relative contribution of marketing touchpoints to conversions, going beyond last-touch attribution. It’s set to be tested later this year, with a full rollout planned for 2025.
• Conversion Path Reporting: Shows advertisers their top-converting paths to purchase from the previous 30 days. That helps them understand how different ad types contribute to sales.
• Long-term Sales Insights: This feature estimates sales generated over the next year based on campaign effectiveness. By doing so, advertisers can better measure the long-term impact of upper-funnel tactics.

These new features aim to simplify ad optimization and measurement for advertisers of all sizes, making Amazon’s powerful insights and ad tech more accessible. The focus is on providing full-funnel insights to help brands optimize their media investments across various Amazon advertising products.

At unBoxed, Amazon also released:

New Product Launch Solutions 

It’s well known by veteran Amazon sellers that once a product is launched the real work begins. Advertisers need a way to continue to acquire new customers as well as engage potential customers as they move through the marketing funnel. 

To do that, Amazon has introduced a managed service for launching new products within 90 days, which compared to those launching without the service has shown a 9% increase in weekly sales growth. This service aims to simplify the product launch process for brands.

Prime Video Advertising Expansion 

Amazon announced the expansion of Prime Video ads to Brazil, India, Japan, the Netherlands, and New Zealand in 2025. This expansion offers brands more opportunities to engage with Prime Video audiences in new countries.

What Amazon’s unBoxed Updates Mean for Sellers

These new Amazon advertising and AI capabilities could have significant implications for Amazon sellers. Here’s an analysis of what these changes might mean:

– Enhanced Product Visibility

The new advertising tools, particularly audience bid boosting and the multi-touch attribution model, could help sellers increase their product visibility across Amazon’s ecosystem. By re-engaging shoppers who have seen streaming TV ads through Sponsored Brands and Sponsored Products, sellers can create multiple touchpoints with potential customers, potentially increasing conversion rates.

– Democratized Analytics

The capabilities of Amazon Marketing Cloud (AMC) will make sophisticated analytics accessible to sellers of all sizes. By facilitating better informed, data-driven decisions, it levels the playing field. Ultimately, it could end up allowing smaller sellers to compete more effectively with larger brands – or even Amazon itself.

– Improved Ad Optimization

The new multi-touch attribution model and conversion path reporting will give sellers a more comprehensive view of how their various ad types contribute to sales. This could lead to more informed budget allocations and improved return on ad spend (ROAS).

– Expanded AI-Powered Creative Capability

The expansion of generative AI for product listings could significantly reduce the time and effort required to create high-quality product pages. This could be particularly beneficial for sellers with large catalogs or those frequently adding new products.

The Video Generator tool could make it easier and more cost-effective for sellers to create engaging video ads, potentially increasing their ability to stand out in a crowded marketplace.

While these innovations offer exciting opportunities, they may also intensify competition on the platform. Sellers who quickly adopt and master these new tools could gain a significant advantage.

How Can Canopy Management Help?

There is however, one big issue with all these “advancements.” 

The increased accessibility of advanced advertising and analytics capabilities could lead to higher ad costs as more sellers compete for visibility. That’s because of the fact that the democratization of Amazon ad capabilities means everyone gets a little bit better, all together. 

To stand out from the competition, reach out to the Amazon advertising experts at Canopy Management. We’ve seen these changes on the e-commerce horizon, and have strategies that continue to propel our partners to results like these: 

• 84% Average Year-Over-Year Profit Growth
• 2.7 Billion in Revenue Managed
• 99.1% Partner Retention Rate

Canopy Management is a full-service marketing agency for Amazon, Walmart, and TikTok sellers. Our team consists of multi-million dollar, omni-channel entrepreneurs, industry leaders, and award-winning experts.