Amazon has launched a groundbreaking AI-powered video ad generator that transforms static product images into engaging video content. This tool is part of Amazon’s Sponsored Brands suite and is available at no extra cost to advertisers. With holiday campaigns on the horizon, this new feature promises to revolutionize ad production for small and mid-sized businesses. But how does it work, and what does it mean for your holiday marketing strategy?

AI-Powered Ad Tools Set to Transform Video Marketing

Amazon has unveiled its new AI-based video generator as part of its Sponsored Brands campaign suite. Currently in beta, this innovative tool allows advertisers to quickly create video ads from product images. The French skincare company Gellé Frères has already started using this new technology, especially as it gears up for Black Friday.

The tool operates with simplicity, giving marketers the ability to convert product pages into video ads in just a few clicks. The technology offers several video options that can be easily edited. For example, a lavender-scented lotion could have a video showing beautiful fields of lavender, while the advertiser adds text to highlight the product’s features. This intuitive solution is expected to cut down ad production time significantly, making video advertising more accessible to brands of all sizes.

New Live Image Feature Adds a Dynamic Edge

In addition to the video generator, Amazon has expanded its AI-driven tools with a live image capability. This feature breathes life into static images by adding dynamic elements like steam rising from a coffee cup, enhancing the visual appeal of product listings. These small touches can create a more immersive viewing experience and attract consumer attention, making products stand out in crowded markets.

The video and image tools are part of Amazon’s broader strategy to make upper-funnel advertising channels more accessible and cost-effective, especially for small and mid-sized marketers. As video ads tend to be more expensive to produce, these tools level the playing field, allowing advertisers with smaller budgets to create polished, professional content with ease.

Holiday Campaigns Get a Boost

With holiday shopping kicking into gear, the timing of Amazon’s new offerings is perfect. Brands like Gellé Frères are already testing the video generator to streamline their ad production process, helping them prepare for the Black Friday and holiday rush. In a statement, the skincare brand noted that the new tool has drastically reduced the time needed to produce video ads, enabling them to showcase more products in less time.

Amazon has been investing heavily in generative AI since last year, debuting an image generator that quickly caught on among advertisers. Last holiday season, Whirlpool used Amazon’s image generator to launch a campaign that gained over 2 million impressions and exceeded click-through benchmarks. Extending these capabilities into video ads is expected to bring even more brands into the fold.

Generative AI in Marketing: A Growing Trend

Amazon is not the only player in the space. Meta and Google have both been doubling down on generative AI, with promises of improved production efficiency and scalability. For Amazon, this move to AI-powered advertising tools is part of a larger effort to boost revenue from its ad segment, which grew 20% year-over-year in Q2 to $12.77 billion. Despite this growth, it marked a slowdown compared to previous quarters, spurring Amazon to roll out new features like these to attract more advertising dollars.

By offering tools like the AI video generator and live image feature, Amazon is positioning itself as a leader in the next wave of digital marketing innovation. These capabilities could be particularly attractive to brands aiming to cut costs without sacrificing quality as they prepare for the busiest shopping season of the year.