Amazon’s CEO Andy Jassy highlighted AI’s role in the company’s consumer strategy and ad growth. One way of getting on top of the market is that Amazon decided to roll out advanced AI technologies and the booming advertisement business.
Amazon boosts consumer experience with AI Strategy
In an interview on CNBC’s ‘Squawk Box’ with Andrew Ross Sorkin about how the company intends to make things further reiterated that AI is one of the highly instrumental applications in studying and responding to consumer behavior, not excluding economic uncertainty situations.
Sources: CNBC
He stressed that this new reality compels consumers to sacrifice value, buying rather low-priced goods. This change has changed how the company operates, as they have started to pay more attention to essential products, and these products saw a big 20% boost in the fourth quarter of 2023.
The company is using AI to better its target markets and for the infrastructure needed to bring AI into shape. During his speech, Jassy announced the latest Watson chip, specifically created for the training and inference stage processes, thus giving a faster run to improve efficiency and cut costs. Building on its mission to deploy AI throughout the customer journey, this technological advancement is at the heart of The company’s AI strategy to provide fast and relevant solutions to consumers.
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The company’s prosperous advertising growth should be highlighted as a 24% increase yearly, from $38 billion in 2022 to $47 billion in 2023.
Advertising on Amazon is not about making ads look like ads. Still, rather, it is about developing smooth shopping experiences for consumers, and ads often look natural and quite similar to search results.
It is an approach that enhances the consumer experience and assists brands in positioning their products perfectly in front of or within the time frame where the targeted audience is to reach in the buying process.
Amazon has transcended the realm of marketing services from only promoting physical objects to streaming. It’s amazing how Amazon introduced sponsored TV and advertisements throughout Prime Movies and shows. These new ad strategies signify the latest era in Amazon’s marketing rails.
Amazon’s strategic AI and advertising drive robust growth
Jassy is different by putting a lot of concentration on AI and advertising, but he is creating a rivalry in the streaming services industry. The bigger boon that the streaming service Prime Video has turned out to be in the place of Amazon in the structure of the business is that it has provided a substantial amount of profit and support for the obligatory service.
The service indeed impacts an increasing number of Prime members, who, over time, are becoming more dependent on Amazon products.
Amazon’s 22% stock gains so far this year prove it to be a robust and innovative company. The company’s intent on artificial intelligence (AI) and adapting to the latest advertising trends is sure to keep it on top of technology and shape future ways consumers shop and businesses operate.
Amazon, which has been around for a while, has grown up with the ever-changing topography of the space. The company is supposed to keep fueling its growth and success by maintaining and enhancing its AI-driven and customer-oriented advertising strategies.
The industry is benefiting greatly from this tech giant’s relative success in intimately integrating modern technologies’ data mining features with consumer and advertising insights. This benchmarking is possible in both the retail and digital advertising sectors.
News sourced from an interview of Amazon CEO on CNBC
