Amazon recently launched a new automated advertising product called Performance+. Using a black-box approach, it uses machine learning to optimize campaigns based on predicted conversion rates.
The general picture. Performance+ marks Amazon’s entry into the AI-powered ad automation space pioneered by Google and Meta. This puts Amazon in direct competition with these Internet giants for advertising budgets.
Why we care This gives advertisers the opportunity to diversify their ad spend and avoid relying solely on Google and Meta for AI-based campaigns. Advertisers may prefer Amazon’s solution over Google and Meta because it offers more control.
How it works. Performance+ is hosted on Amazon’s Demand Platform and uses an AI model to predict how likely users are to convert per hour.
Advertisers set target cost-per-acquisition goals and Amazon’s algorithms (using first-party signals) manage campaign settings, audience targeting, and optimization. Automated ad campaigns can run on Amazon-owned and operated properties as well as third-party publisher inventory.
Key features
Safety, pacing, frequency and brand visibility controls Custom attribution and reporting settings Designed for brands that don’t currently sell on Amazon’s e-commerce platform
Performance claims. From launch as of March, Amazon claims that most Performance+ campaigns achieved a 30-90% lower CPA compared to standard Amazon DSP ad buys with the same targets and formats.
What Amazon says. An Amazon spokesperson said Digiday (subscription required):
“Our goal is to provide advertisers and agencies with AI-driven efficiency with clear oversight, improving their marketing tactics and achieving their business goals..
“Performance+ simplifies programmatic buying while providing visibility into creatives, placements and audiences reached, along with a range of controls to ensure ads are reaching the advertiser’s intended audience.”
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bottom line With Performance+, Amazon aims to leverage its valuable shopping data to generate more ad dollars while offering an automated ad product comparable to Google and Meta’s AI ad offerings.
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About the author
Anu Adegbola has been a paid media editor for Search Engine Land since 2024. She covers paid search, paid social, retail media, video and more.
In 2008, Anu’s career began with
deliver digital marketing campaigns (primarily but not exclusively Paid Search) by creating strategies, maximizing ROI, automating repetitive processes and making all marketing departments efficient through inspirational leadership both on the agency, client and marketing technology side.
Outside of Search Engine Land article editing, she is the founder of the PPC networking event: PPC Live, host of weekly podcast PPCChat Roundup, ibRand Evangelist at ClickTech.
He is also an international speaker with some of the stages he has presented being SMX (USA), SMX (Munich), Friends of Search (Amsterdam), brightonSEO, The Marketing Meetup, HeroConf (PPC Hero), SearchLove, BiddableWorld, SESLondon, PPC Live Chat, AdWorld Experience (Bologna) and more.
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