Amazon AI Images Boost Ad ROAS by 48%!

One-Line Summary By leveraging Amazon's AI-powered image generation tool, ad creative development time was dramatically reduced, leading to significant improvements in ad performance, including a 48% increase in ROAS and a 50% rise in CTR.

What's This About? Hisense Mexico, a leading home appliance brand, and its advertising agency, EPA, faced challenges in quickly and efficiently producing high-quality ad images tailored for the local market. Ad creatives provided by the global headquarters often failed to resonate with Mexican buyers. Developing new creatives and launching campaigns could take up to a month, leading to ad fatigue and missed opportunities during key seasonal events like Prime Day.

To tackle these issues, Hisense and EPA integrated Amazon Ads' AI-powered image generation tool into their Sponsored Brands Display ads campaigns. This tool allowed them to rethink assumptions about their core customer base and rapidly create personalized ad creatives for various lifestyle clusters. As a result, they exceeded all their goals, achieving a 50% increase in Click-Through Rate (CTR), a 48% rise in Return on Ad Spend (ROAS), and a 32% reduction in Advertising Cost of Sales (ACOS). Notably, ad creative production time was slashed from four weeks to under an hour, leading to significant time and cost savings.

Implications for Korean Sellers 1. Rapid Creation of Localized Ad Creatives: When Korean sellers expand into international Amazon markets (especially the US), the AI-powered image generation tool enables them to quickly create and test ad images that align with local culture and consumer lifestyles. This flexibility allows them to adapt to specific market characteristics without being constrained by global headquarters guidelines, significantly maximizing ad effectiveness. 2. Manage Ad Fatigue and Enhance A/B Testing: Leveraging AI allows for the mass production of up to seven different image versions per product, effectively reducing ad fatigue. Furthermore, by A/B testing multiple creatives simultaneously, sellers can quickly identify and implement data-driven insights on which creative performs best, continuously improving ad efficiency. 3. Discover and Expand Beyond Core Customer Segments: AI's diverse image ideas enable the creation of ads that appeal to new customer segments (lifestyle clusters) that might not have been considered before. This can help expand your potential customer base and increase sales opportunities by connecting with unexpected high-value groups.

Important Considerations 💡 This case study pertains to the Mexican market. Korean sellers should verify the availability and detailed usage of the mentioned AI-powered image generation tool through official Amazon Ads channels. This feature may not currently be available for all regions and accounts.

Next Steps - Check your Amazon Ads account for the availability of the AI-powered image generation tool and explore its features. - Analyze performance data from existing ad creatives to plan new AI-driven creative tests. - Experiment with creating customized image ads targeting various lifestyles and customer segments.

📰 Source: Amazon Ads, Hisense Mexico and EPA increased performance with gen AI