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What’s the role of AI in retail media advertising?

What’s the role of AI in retail media advertising?

Xmars team

Over the last year, the eCommerce sector has seen a significant transformation, driven by advancements in artificial intelligence (AI) and machine learning, as well as changes in consumer behavior. In a competitive market where customer expectations are always on the rise, brands are realizing the importance of growing their market share and adapting to these evolving demands.

To succeed in this changing environment and spur growth, advertisers are rapidly adopting the latest AI-driven advertising technologies. This shift towards offering more personalized, efficient, and engaging customer experiences is a key development in the evolution of retail media advertising.

Streamlining advertising With AI

Retail Media Networks (RMNs) are leading the way in operational changes, achieving smoother ad delivery and more efficient eCommerce logistics through AI-driven automation. A growing number of retail brands are now making use of advanced platforms and partnering with marketplace advertising solution providers for both programmatic and native advertising. They're employing AI and real-time bidding to effectively secure ad space across various channels.

AI-powered systems are skilled at creating a range of ad formats, accurately targeting audience segments, optimizing campaigns in real-time, and providing useful insights and analytics. This reduces the reliance on manual labor, enhancing both efficiency and effectiveness for retailers and their brands.  

During the Amazon Unboxed event in October, Colleen Aubrey, Senior Vice President at Amazon Ads Products and Technology, discussed how AI is making a significant difference in advertising services like Amazon's Sponsored Products, where they've seen a 34% increase in return on ad spend and have been able to reach 20% increase in addressability of previously untargetable inventory.

An article by Forbes earlier this year also underscored the key role of AI in boosting online sales with personalized product recommendations, targeted marketing, and content creation. Additionally, a study by Nvidia reveals an increase in retailers investing in AI technology, with 64% planning to increase their spending on AI infrastructure in the next 18 months. The study also found that these investments have led to positive outcomes: 69% of retailers reported revenue growth, and 72% observed a decrease in operating costs thanks to AI.

Xmars’ AI powered Amazon advertising solutions

Brands and sellers are rapidly recognizing AI's vital role in retail media, particularly for campaign optimization, audience targeting, and measuring performance. An AI-driven strategy is key for staying ahead in competitive marketplaces like Amazon, where precision and efficiency are a must.

At Xmars, we use AI-driven solutions to improve the efficiency and effectiveness of Amazon advertising. Our technology not only makes campaign management easier but also offers deeper insights into consumer behavior. This enables the creation of highly targeted advertising strategies, helping our clients achieve and even surpass their marketing goals with greater accuracy and less effort.

Tailored audience insights and segmentation

Xmars utilizes AI to analyze vast data sets, uncovering trends and patterns for precise audience segmentation. This method greatly improves ad relevance by dynamically adjusting segmentation strategies with AI and ensuring ads consistently reach the most relevant audiences. This level of personalization boosts campaign effectiveness and efficiency, ultimately maximizing ROI.

Real-time bidding and strategic keyword optimization

Our predictive capabilities in real-time bidding provide a competitive advantage by enabling early bid adjustments based on analyses of market trends and competitor activity.

Furthermore, our emphasis on strategic content and keyword optimization ensures ads deeply connect with your target audience, increasing engagement and conversion rates. By analyzing search trends, user behavior, and interaction data through AI, we pinpoint the optimal keywords and their context within the ad.

Market trend analysis and creative asset management  

Xmars’ proactive market trend analysis and strategic planning helps advertisers stay ahead of market shifts. Our analytics extend to determining which visual elements, messaging tones, and content formats best engage different audience segments. This detailed analysis ensures every part of your campaign, from visuals to messaging, is optimized for the best performance.

Xmars offers a comprehensive set of AI-driven tools to tackle the challenges of Amazon advertising, providing a competitive edge that leads to better ad performance, increased engagement, and higher return on ad spend (ROAS). With the help of AI, Xmars transforms data into actionable insights, empowering advertisers to devise highly effective, data-driven strategies that truly resonate with their audience and achieve impactful results.

Ready to boost your ad performance? Contact us for a free consultation and begin optimizing your advertising strategies for better results!

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