Amazon is building a team to work on artificial intelligence tools that will generate photos and videos for merchants to use in advertising campaigns on its platform, a company spokesperson confirmed, efforts that could help diversify its ad business.
Amazon's ad business has grown by double-digit percentages every quarter since Amazon started breaking out its revenue in 2021. It brought in $38 billion last year but currently centers on ads that give merchants a boost in search results. However, Amazon is trying to build a broader ad business, including through selling spots on its free video-streaming service, Freevee, as well as during Thursday Night Football broadcasts on Prime Video. The company also sells audio ads on Amazon Music and even runs digital ads on screens inside Amazon Fresh grocery stores, among other efforts.