AI Modeling: How To Tap Into Profitable Ads for Amazon Sellers

AI modeling for Amazon PPC is the latest way to capitalize on advances in artificial intelligence to construct, manage, and optimize your Amazon advertising.

How does AI benefit PPC?

A Brief History Of Amazon PPC

Amazon has been live since 1995, but it only started allowing sellers and vendors to advertise their products using PPC (Pay Per Click) in 2012.

That makes Amazon PPC relatively young in the world of PPC advertising. The first example of PPC is generally pegged at coming into use in 1996.

Though late to the party, Amazon has made up ground quickly.

Since its release in 2012 Amazon PPC has reached a (current) annual rate of 46.9 billion U.S. dollars in revenue generated through advertising sales worldwide.

As of 2023 that represented:

• An increase of 24% YoY (year over year)
• Over 10% of total digital ad spending worldwide.

All while simultaneously evolving in leaps and bounds along the way, becoming a vital part of the success of every Amazon business.

Those advances now include the application of AI modeling.

With the advent of AI (Artificial Intelligence), new, better ways of doing Amazon PPC are coming into play.

Understanding AI Modeling For Amazon PPC

Whether you’re yet using AI in your business, you’re at least aware that it’s now a part of the tapestry of our world.

When it comes to the application of AI in PPC, we use the term AI Modeling.

Amazon PPC AI models are programs that have been trained on a set of data to recognize certain patterns or make certain advertising decisions, without further human intervention.

Artificial intelligence models apply different algorithms to relevant inputs to achieve the tasks, or output, they've been programmed for.

The Role of AI Modeling in Amazon PPC

These days an effective Amazon AI advertising strategy begins with deciding to adopt this new technology.

AI doesn’t necessarily do anything new, but in the same way a car removes the need for walking long distances, getting you from Point A to Point B faster, AI achieves results much, much quicker.

More and more Amazon sellers will soon be driving.

Current AI solutions handle things like:

• Automated Bidding
• Ad Targeting
• Copywriting
• Research
• Ad Creatives
• Ad Optimization
• Analytics

AI modeling matters, and it can make a real difference.

Benefits of AI Modeling in Amazon PPC

Among other things, the benefits of Amazon ads AI include:

• Saving time.
• Eliminating human error.
• Streamlining processes.
• Analyzing data faster.

To see how this is true, let’s take an example: using AI for automated bid optimization.

AI-Driven Automated Bid Optimization

AI PPC optimization can eliminate the need for tedious manual tasks.

AI can, in real time, do the things that would otherwise take hours of evaluation and decision-making on the part of a person.

Tasked with bid optimization, AI algorithms continuously analyze data to:

• Maximize ad placement
• Minimize costs
• Evaluate keyword competitiveness
• Adjust for conversion rates
• Keep bids within budget parameters

As you read the above we hear you asking, “Yes, but how?”

Tools. 

AI Tools

There’s no shortage of AI tools for PPC ads.

We’ll list a few below, in a few categories, to help get you started.

As with most new things, the best approach is to get in the water and start testing the temperature, getting used to the cold (or the heat), getting wet, experimenting with a few strokes, etc., then slowly begin to swim.

Don’t jump in, necessarily, but at least get in.

In other words, pick something (a tool, a technique, an action) and give it a go.

That’s how you’ll begin your AI journey.

Keyword Discovery and Bidding Suggestions

Google, the expert on search and keywords, has a free AI-powered tool that displays keyword ideas and search volume to help you decide which keywords to target.

Google Keyword Planner

Leveraging Real-Time Data for Insightful Ad Management

Revealbot uses AI to find your top-performing audiences so you can run more successful ad campaigns. It monitors cost per click (CPC) for each audience to easily find the right groups to target.

Revealbot - Automate Your Ad Strategies

Enhancing Campaign Performance and Efficiency with AI

Optmyzer, a single platform to audit, optimize, automate, and report on paid media campaigns that grow your business, uses AI for PPC strategy and to optimize every element of your campaigns.

Optmyzer | PPC Management Software

AI-Enhanced Ad & Campaign Creation

It’s no surprise that AI-powered tools can also help streamline the generation of ad creatives and campaign creation. Try Pencil, as one example, and see what it can do for you.

Pencil - Make Ads That Work

In addition to the above examples, major advertising platforms, like Google and Meta, have built-in AI tools of their own, for everything from audience targeting to creative development. These tools allow you to test AI without incurring additional costs.

• Oversight is important, of course; you’ll want to regularly perform checks to see how your AI solution is performing.
• Consider using AI for data processing tasks and relying on human oversight for strategic tasks.

Best advice is to experiment with some of these tools and identify areas where your team needs the most help, or has room for improvement, and find the AI solutions that will increase productivity.

Using AI To Build Your Own Automation Tools

What about creating your own?

If you find yourself doing repetitive tasks, you may want to use AI to create your own automations. Save yourself, or even your VAs (Virtual Assistants) valuable time by creating AI automations to handle complicated tasks that must be done in volume or again and again.

AI tools like ChatGPT are not just text and image generators. They can generate code for spreadsheets, documents, and just about anywhere else you need to create custom automations.

In a recent webinar with 19 industry experts as guests, giving their tips and strategies on how to use AI to enhance PPC, several examples were discussed.

One in particular stands out:

Watch This 6-Minute Segment: Build Your Own AI Tools

Future Trends: Predicting the Next Big Things in AI and Amazon PPC

Everyone in this business, whether seller, agency, aggregator, tool and service provider (like us ), and even Amazon themselves, has their ear to the ground, wondering what marvelous new ways of doing things are coming down the pike.

A few we might expect to see:

Amazon Generative AI

After the release of multiple consumer-friendly chatbots in late 2022, generative AI has been a trending topic as the general public saw the ease of producing text and images with a prompt.

This is now the backbone of the AI tools and options we're discussing in this article, and it will continue to evolve, becoming ever more useful.

Media Sustainability

This is a bigger look, and not directly applicable to the results we're talking about here, but it's an important trend and it does, in the end, affect us all.

Media Sustainability is all about the commitment to reduce the carbon impact of advertising. We'll see more of this, and as users of the technology we will have opportunities to make our own contribution.

Streaming TV

Connected TV (CTV) will continue to alter the media landscape as linear TV ad spending is expected to fall every year through 2027.

As consumers move away from linear TV, there have been more choices in streaming options – even as fragmentation in the digital entertainment space has continued.

Services like Prime Video are working to create a singular space for audiences to find their favorite movies, TV series, and live sports.

This will play into the adoption of more comprehensive advertising solutions, such as DSP.

Addressability & Relevancy

As customers move further toward the streaming space, the issue of advertising addressability and relevancy will take priority.

With third-party cookies scheduled to finally be phased out this year, brands have already been preparing for this new normal by adopting cookieless technologies, like contextual targeting, to provide a seamless experience for users.

AI will play a big role in this.

Who Wins?

We all do, when AI is used to make our lives easier.

When it comes to using AI to enhance Amazon PPC:

• Customers get the things they’re searching for.
• Sellers get the sales they’re searching for.

If you’re an Agency, your client businesses are happy you’ve guided them to more efficiency in their operations.

If you’re an Aggregator, the bottom line across your managed enterprises goes up.

Wins all around.

Balance

Again, let us say:

Balance automation with human oversight.

Your team – or a trusted PPC agency – should regularly perform campaign checks.

Strategy, messaging, create and campaign approval, landing page experience … these should still be guided by human expertise.

AI tools are here to assist, not replace. They’re not a complete “fire and forget” solution, nor should they be. Cranes make it way easier, and way faster, for a small group of humans to build a giant building.

But the cranes aren’t designing and building the buildings on their own.

Amazon advertising AI represents amazing, incredible new tools, and we should be using them.

But they are, in the end, tools.

How we use them is just as important as that we use them.

This won’t be a revolution much longer. AI is here.

Tap into it at your earliest convenience, and start reaping the rewards of more profitable advertising on Amazon.