Amazon Ads Upgrades Performance+ and Brand+ With Enhanced AI Targeting and Dynamic Creative Optimization
Amazon Advertising launched Q2 2024 upgrades to Performance+ and Brand+ that add AI‑driven audience scoring, a new "Consideration" mid‑funnel tactic, and built‑in Dynamic Creative Optimization (DCO). Early tests show an 8.4% lift in paid units, 7.9% rise in conversions and a 6.5% boost in CTR.
Overview
Amazon Advertising has rolled out major enhancements to its Performance+ and Brand+ campaign suites, adding smarter AI‑driven audience models, new mid‑funnel consideration tactics, and built‑in Dynamic Creative Optimization (DCO). The upgrades launch this quarter and aim to give sellers tighter targeting, higher conversion rates, and automated creative testing without extra manual effort.
Key Points
- Upgraded AI models — The refreshed machine‑learning engine evaluates a broader array of shopping signals, allowing campaigns to pinpoint shoppers who are most likely to buy. A seller promoting a new kitchen gadget saw the audience pool shrink by 12 % while conversion per impression rose.
- Mid‑funnel consideration tactics — A dedicated tactic layer now focuses on shoppers actively weighing options, such as those who have added similar items to wish lists or viewed multiple product details. For a fashion retailer, this tactic captured shoppers who compared three different dresses before purchase.
- Integrated Dynamic Creative Optimization — DCO automatically assembles and serves the most effective headline, image, and call‑to‑action combos based on real‑time audience response. A pet‑supply brand that previously ran a single static banner began receiving three rotating creatives, each tailored to a distinct buyer segment.
- Proven lift in core metrics — Early tests reported an 8.4 % increase in paid units, a 7.9 % boost in conversions, a 7.2 % rise in ROAS, and a 6.5 % improvement in CTR after enabling DCO.
- Reduced need for manual optimization — The AI and DCO work inside existing Performance+ and Brand+ structures, eliminating the need for separate audience lists or weekly A/B test setups.
How the Upgrades Work
- Signal Expansion & AI Scoring — The system ingests additional data points such as recent search queries, product comparison clicks, and time‑on‑page metrics. For example, a seller of outdoor grills sees the model prioritize users who searched “best charcoal grill” and spent over two minutes on competitor listings.
- Consideration Tactic Activation — Within the campaign UI, advertisers toggle the new “Consideration” layer, which automatically adds a mid‑funnel audience segment. A home‑decor vendor enabling this layer finds its ads now appear to shoppers who have bookmarked similar décor items but have not yet added anything to cart.
Analysis & Recommendations
Why This Matters
The AI model narrows audience pools (e.g., 12% shrink for a kitchen gadget) while raising conversion per impression, and DCO automatically serves optimal creative combos, delivering up to 7.2% higher ROAS and a 5% drop in CPC within a month. Sellers who enable the Consideration layer can capture shoppers in the decision stage, improving overall ad efficiency.
Key Takeaways
- AI models now evaluate expanded shopping signals, shrinking audience pools by up to 12% while increasing conversion per impression.
- The new "Consideration" tactic targets mid‑funnel shoppers who add similar items to wish lists or view multiple product details.
- Integrated DCO serves dynamic headline, image, and CTA combos, contributing to an 8.4% increase in paid units and a 6.5% rise in CTR.
- Early adopters reported a 5% reduction in CPC and a 7% lift in conversion rate within the first month after activation.
Recommended Actions
- →In Seller Central, open the Performance+ or Brand+ dashboard and toggle the "Consideration" layer on for each campaign.
- →Upload at least three headline variations and two image options per product in the creative library to enable DCO.
- →Monitor the new "AI‑Score" column and compare ROAS and CTR before and after activation to gauge impact.
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