Certainly, here’s the rephrased version:
- Amazon introduced an ad-targeting solution called Ad Relevance that does not depend on cookies or third-party identifiers, as announced in a blog post. This announcement was also made at the Cannes Lions International Festival of Creativity this week.
- Ad Relevance, accessible via Amazon’s demand-side platform, leverages artificial intelligence (AI) to analyze billions of browsing, purchasing, and streaming data points from Amazon’s various properties. It matches these insights with the content a consumer is currently viewing in real-time.
- Developed over several years, Ad Relevance has been tested on Amazon’s Audiences, Contextual Targeting, and Performance+ offerings. Amazon claims the product can improve addressability for previously anonymous impressions and reduce CPMs by up to 34%.
- Although cookie deprecation is ongoing, Amazon is advancing its ad-targeting solutions that do not rely on third-party identifiers, traditionally essential for digital marketing. At Cannes Lions, a major industry event focusing on advertising creativity and tech platforms, Amazon outlined its plans for Ad Relevance. The company also showcased its progress with a generative AI-powered image generator for campaign assets, part of its strategy to bring emerging technology to more advertisers.
- Ad Relevance benefits from Amazon’s extensive first-party shopper, browsing, and streaming data, using advanced AI to quickly identify consumers at different stages of the purchasing journey. It can deliver ads across various devices, channels, and content types and has been piloted on existing Amazon Ads products, including the Performance+ ads launched in March.
- Early results indicate that Ad Relevance can extend addressability to up to 65% of impressions that were previously anonymous under different targeting tactics. CPMs were reduced, and cost-per-click improved by 8.8%, with Amazon reporting 100% budget delivery.
- Amazon’s promotion of ID-free targeting capabilities comes as the timeline for cookie deprecation remains uncertain. Google had planned to phase out cookies in Chrome in the latter half of this year but delayed this to 2025 due to regulatory challenges and industry pushback against its Privacy Sandbox alternative.
- Marketers are actively seeking viable cookie replacements, and Amazon sees a significant opportunity to strengthen its booming ad business. Amazon’s advertising revenue grew 24% year-over-year to $11.82 billion in Q1, driven by the demand for sponsored product ads. The introduction of commercials to Prime Video is expected to further boost this momentum in the coming months.