Google said today it is rolling out its Product Studio tool (originally announced in May) this week, which uses AI to help merchants create and manage product imagery. If that sounds familiar, it’s because Amazon Ads launched something similar last week.
But it’s not just Amazon and Google that are leaning harder into generative AI. Walmart is incorporating the technology into search to give shoppers more relevant results, while Klarna is using AI-powered video to expand users’ time spent with the platform.
Here’s a look at how each company is using generative AI to enhance the customer experience and make it easier for merchants to sell on their platforms.
Search party: Amazon, Walmart, and Google are leveraging generative AI to enhance their search capabilities and give users more relevant, informative results.
Why it matters: As of Q2 2023, 57% of US consumers start their online shopping search on Amazon and 39% start their searches on Walmart.com, according to a June 2023 Jungle Scout report. These updates will help the retailers stay competitive with traditional search engines and social media platforms like TikTok that use discoverability to lure in shoppers.
Into the real world: Generative AI can also help retailers provide a more omnichannel approach, blending the physical and digital shopping experience.
Why it matters: The number of US consumers who use AR to shop will increase 13.9% in 2024 to 47.6 million people, per our forecast.
Picture perfect: For advertisers who need a little creative boost, generative AI can do that, too.
Why it matters: “Ads and product listings with higher-quality images or multiple images draw more interest from shoppers via higher clickthrough rates,” said our analyst Sky Canaves. “And image tools offer a relatively lower-risk way for brands to test using generative AI since inaccuracies are easier to identify and fix than, for example, in a live customer conversation with a chatbot.”
As this technology develops, image-generation tools could eventually be deployed to create ultra-personalized product listings and offers that are tailored to individual consumers based on their preferences and shopping history, said Canaves.
Scroll happy: As US consumers’ time spent with digital video climbs to 3 hours and 33 minutes next year, per our forecast, Klarna is using an AI-powered shoppable video feed to keep consumers on the platform.
Why it matters: Shoppable video content is the No. 1 feature that ad agency professionals say will be the next frontier of retail media, per April 2023 data from the Path to Purchase Institute. With retail media ad spend more than doubling between now and 2027, per our forecast, the retailers that experiment with up-and-coming ad formats are more likely to score additional advertiser dollars.
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First Published on Oct 31, 2023