Amazon is using deep-learning models based on algorithms to improve on the sponsored product ads that serve up at the top of the query page, said Brian Olsavsky, Amazon CFO, during the company’s first-quarter 2021 earnings call, reports MediaPost.
“We continue to improve the relevancy of the ads being shown on the product detail pages,” he said. “And we’ve seen rapid adoption of the video creative format for sponsored brands, among other things.”
This not only helps consumers find products more easily, he said, but helps them discover new brands.
Amazon’s advertising business — part of its “Other” unit, but primarily made up of advertising — grew revenue by 77% year-on-year to $6.9 billion in the first quarter as the company continued to leverage its first-point position to search for millions of products, reports MediaPost.