Artificial intelligence (AI) is reshaping how brands advertise on Amazon. With Amazon’s recent announcement of Alexa+, AI’s role in ecommerce and digital advertising is expanding faster than ever.
If you’re an established brand on Amazon, you already know that manual ad management can only take you so far. The competition is fierce, ad costs are rising, and consumer behavior keeps changing. AI-driven advertising strategies take the guesswork out of optimization and help you maximize your return on ad spend (ROAS).
In this blog, we’ll break down exactly how AI is changing advertising on Amazon and highlight the most effective AI-driven strategies you should be using.
The Evolution of Amazon Advertising: From Manual to AI-Driven
The days of manually adjusting bids, selecting keywords, and constantly tweaking campaigns are fading. While these elements still matter, AI has introduced automation and intelligence that take performance to a new level.
Amazon has been integrating AI into its advertising platform for years, but the technology has become even more sophisticated. Advertisers can now use machine learning to analyze massive amounts of data, predict consumer behavior, and optimize ad performance in real-time.
Some of the most powerful AI-driven advertising tools on Amazon include:
- Amazon Marketing Cloud (AMC): Offers deep data insights and advanced audience segmentation. Brands can access AMC through Amazon Advertising’s advanced analytics platform.
- Amazon DSP (Demand Side Platform): Uses AI to automate ad placements across Amazon and third-party sites. Advertisers can manage these campaigns via Amazon Advertising Console.
- AI-Driven Bid Management: Adjusts bids based on competitor activity, shopper intent, and historical data. Brands can activate this feature within Sponsored Ads settings or DSP campaigns.
- AI-Powered Demand Forecasting: Helps predict future product demand using sales trends and external factors. Available in Seller Central’s demand planning tools.
- AI-Integrated Inventory Management: Automates stock replenishment to prevent overselling or stockouts. Found within Amazon Supply Chain tools and select third-party platforms.
- Generative AI for Content Creation: Streamlines the development of product listings, enhanced imagery, and engaging descriptions. Accessible through Seller Central and the Advertising Console.
- AI-Driven Selling Assistant (Project Amelia): Provides personalized sales insights, business recommendations, and operational support. Found in Seller Central’s AI-driven insights section.
How to Use AI-Driven Strategies for Maximum Impact
AI isn’t just about automating tasks. It’s about making smarter, data-driven decisions that can transform the way you advertise on Amazon. AI makes it easier to refine audience targeting, enhance ad creatives, optimize bidding strategies, and improve inventory management with unprecedented accuracy. In the following sections, we’ll explore specific AI tools, how they function, and how you can use them to stay ahead of the competition.
1. Amazon Generative AI and Video Generator: Creating High-Impact Content
Amazon’s generative AI tools, including the AI-powered Video Generator and Amazon Creative Studio, make it easier to create compelling content for your product listings and ads. With the Video Generator, you can produce professional-quality video ads without hiring an expensive production team. These videos can be used in Sponsored Brands Video Ads, A+ Content, and product pages to boost engagement and conversions.
With Amazon’s Generative AI for Product Listings, you can automatically generate optimized product descriptions, bullet points, and A+ Content. Amazon Creative Studio helps you enhance your visual content with AI-generated images and videos to create high-quality ads without extensive design experience.
To start using these tools, log into Seller Central > Advertising Console > Content Tools or explore Amazon Creative Studio within the Amazon Advertising Console.
2. Predictive Bidding: Let AI Optimize Your Ad Spend
One of AI’s biggest advantages in Amazon advertising is predictive bidding. Instead of manually adjusting bids, AI continuously analyzes real-time data to determine the optimal bid amounts. This helps control costs while keeping ads visible to the right audience.
To activate predictive bidding, go to Amazon’s Advertising Console > Sponsored Ads > Bidding Strategies and select automated bid adjustments. For more advanced AI-driven bidding, Amazon DSP provides programmatic ad solutions that dynamically adjust bids.
While AI handles much of the analysis, it’s still important to monitor bid recommendations and adjust based on profit margins and sales goals.
3. Dynamic Ad Creatives: Personalization at Scale
AI is transforming the process of creating display ads. Instead of using static images and generic messaging, AI-driven dynamic ads adjust based on browsing behavior, past purchases, and engagement patterns.
To access these AI-powered creative tools, you can use Amazon DSP > Creative Management, which provides automated testing and recommendations for optimizing images, headlines, and descriptions. Regularly reviewing engagement data helps ensure AI-generated ads remain aligned with brand messaging and audience expectations.
4. Amazon DSP Performance+: Enhancing Ad Performance with AI
Amazon DSP Performance+ is an AI-powered solution that enhances the performance of video and display ads both on and off Amazon. Unlike “regular” Amazon DSP, which requires manual setup and ongoing adjustments, Performance+ leverages AI to automate key aspects of campaign management. It dynamically creates audience segments based on Amazon’s deep shopper insights, optimizing campaigns in real-time to improve efficiency and maximize ROAS.
While traditional DSP provides performance reporting that requires manual adjustments, Performance+ continuously refines bidding strategies and ad placements using AI-driven recommendations. This AI-powered enhancement streamlines DSP campaign setup, making it easier for brands to scale their advertising efforts without requiring deep expertise in programmatic advertising.
To start using this tool, visit the Amazon Advertising Console and navigate to DSP Performance+.
5. AI-Powered Audience Targeting: Reaching the Right Shoppers
Finding the right audience is one of the most important components of advertising. AI simplifies this process by analyzing vast amounts of shopper data, identifying high-converting segments, and automatically refining targeting strategies.
Use Amazon DSP and AMC > Audience Insights to unlock deep insights into customer demographics, interests, and shopping behaviors. AI also powers retargeting campaigns to re-engage past visitors and cart abandoners with personalized messaging. These features can be turned on directly within DSP campaign settings.
6. Automated Keyword Harvesting: Discovering High-Performing Keywords
Keyword optimization is a fundamental part of Amazon advertising. Instead of manually searching for keywords, AI continuously analyzes search trends and shopper queries to identify high-performing keywords.
To use this feature, navigate to the Amazon Advertising Console > Keyword Management or integrate third-party AI tools like Helium 10 and Jungle Scout for more advanced keyword insights. AI-driven keyword harvesting continuously updates lists and can be automated with one-click implementation directly into ad campaigns.
7. AI-Powered Demand Forecasting: Smarter Inventory Management
AI-powered demand forecasting helps you predict future product demand based on historical sales data, seasonal trends, and external factors like market shifts.
Amazon’s Demand Forecasting Tools, available within Seller Central and Amazon Supply Chain, analyze data to help brands plan inventory levels more accurately. These insights reduce the risk of stockouts or overstocking, helping you maintain a steady supply and optimize fulfillment efficiency.
You can use AI-powered forecasting to align your advertising strategies with expected demand. For example, you can increase ad spend on high-demand products before peak seasons while reducing investment in slower-moving inventory. AI also helps you prepare for unexpected demand spikes, ensuring products remain available when customers need them most.
Go to Seller Central > Inventory Planning to review AI-generated demand forecasts and optimize stock levels accordingly.
8. Project Amelia: AI-Powered Selling Assistant
Amazon’s Project Amelia is a generative AI assistant designed to support brands by offering sales insights, business recommendations, and operational assistance.
Project Amelia helps you track performance, optimize pricing, and identify sales trends. Brands can access this AI-powered assistant within Seller Central, where it provides customized suggestions based on sales patterns and advertising data. The assistant can highlight underperforming products, suggest ad optimizations, and recommend pricing adjustments, allowing sellers to make informed decisions quickly.
Beyond analytics, Project Amelia also offers customer service enhancements by automating responses to common seller inquiries, saving time and streamlining operations. As Amazon continues to refine AI-driven seller support, Project Amelia is expected to play a larger role in helping you manage your businesses more effectively.
Channel Key Takeaway
AI-driven advertising is no longer optional. It’s the key to staying competitive on Amazon. Machine learning and automation help optimize bidding, personalize ad creatives, and refine audience targeting, all while improving efficiency and scaling growth.
Now is the time to embrace these AI-powered tools and integrate them into your Amazon Advertising strategy. By leveraging advanced automation, you can unlock stronger performance, maximize ROI, and future-proof your Amazon business.
Ready to take your advertising to the next level? Contact us today to learn how AI can help you achieve smarter, more effective campaigns on Amazon.
