The Evolution of Advertising: Meta vs. Amazon
In a recent interview, Mark Zuckerberg articulated a vision for Meta’s advertising future that raised eyebrows: a business could simply state its objectives, connect to its bank account, and forgo traditional advertising elements such as creative input, demographic targeting, and performance measurement. This proposition hints at a bold shift toward fully autonomous advertising, suggesting a system that eliminates traditional advertiser roles.
The implications of this vision have sparked intense discussions among brands and agencies, particularly regarding whether Amazon will adopt a similar “trust me” strategy with its flourishing retail media business. By closely analyzing Amazon’s recent advertising initiatives, a more complex narrative emerges—one that seeks to harmonize automation with advertiser autonomy.
Zuckerberg’s Vision for Autonomous Advertising
In a talk with Stratechery, Zuckerberg shared his anticipation of a transformative moment in advertising:
The future will enable businesses to tell us their objectives and connect to their bank accounts, eliminating the need for creative assets, demographic targeting, or traditional measurements—except for interpreting the results we provide. This would redefine advertising.
This forward-looking approach represents what many see as performance advertising’s ultimate “black box,” an AI-driven model that relinquishes conventional advertiser responsibilities and leaves results to the platform’s algorithms. It’s a significant gamble on artificial intelligence that promises to transform the dynamics between advertisers and platforms.
The Precedent Set by Google’s PMAX
Zuckerberg’s ambitious forecast doesn’t exist in a vacuum. Google has been progressively moving toward similar automated advertising systems, particularly through its Performance Max (PMAX) campaigns since 2021. PMAX combines various Google advertising channels—Search, Shopping, YouTube, and more—into a single campaign type largely managed by algorithms.
This model has garnered mixed reactions; over a million advertisers have reportedly adopted PMAX. However, recent analyses hint that its share of Shopping ad spending declined by approximately six percentage points from a peak of 82%, indicating some resistance to an all-encompassing automated approach.
In contrast to Zuckerberg’s vision of no input required, PMAX still mandates a basic creative kit—a logo, images or videos, and headlines—while Google has added transparency features to accommodate industry pushback, including search-term insights and asset-level reporting.
Will Amazon Follow Suit?
Amazon’s advertising sector generated over $46 billion in revenue in 2024, establishing it as the world’s third-largest digital advertising platform. As Amazon’s advertising offerings mature, experts express divergent opinions on whether Amazon will adopt the same fully autonomous advertising philosophy espoused by Meta.
Interestingly, Amazon has made significant investments to ensure that Amazon Ads is viewed as an independent business unit. According to a retail media agency leader who chose to remain anonymous, “Amazon Ads’ Performance+ and Brand+ are gaining momentum. These represent initial steps toward reduced control for advertisers.”
The introduction of optimization engines alongside Amazon’s commitment to generative AI tools for creating advertisements indicates a clear trajectory toward increased automation. However, it’s essential to note that unique elements within Amazon’s ecosystem may preclude a total transition to a black box approach.
Amazon’s Co-Pilot Model: A Different Approach
Kashif Zafar, CEO of ad-tech firm Xnurta, envisions Amazon pursuing a distinctive path: “I’m seeing Amazon leaning toward a co-pilot model instead of a closed cockpit. Advertisers crave transparency and input into the ad process rather than merely embracing a ‘trust us’ model.”
Zafar points to several recent Amazon initiatives that bolster this co-pilot theory:
- Generative AI Tools Require Brand Input: At its unBoxed 2024 event, Amazon unveiled an AI Creative Studio and Video Generator capable of producing assets within minutes, yet still ask for brand input and approval.
- Shopping Agents that Empower Consumers: Innovations like Rufus and the Buy for Me feature highlight Amazon’s commitment to facilitating AI-driven shopping assistance without relegating brands to a black box.
- Robust Measurement Capabilities: Amazon continues to enhance its Marketing Cloud, introducing user-friendly templates and simplified queries that are indicative of a commitment to transparency rather than obfuscating attribution.
Structural Challenges to a Complete Black Box Transition
Katie McKee, an independent retail media consultant, identifies multiple structural challenges that Amazon may face in pursuing a total black box approach. “Amazon, like Meta, has a wealth of data. However, much of this valuable information resides on the retail side and cannot be legally shared with Amazon Ads,” she explains. This limitation inflates the obstacles that could hinder the efficiency of such a tool.
Moreover, McKee notes a fundamental distinction in Amazon’s advertising structure: “Product pages serve as the primary creative format. If you take away the main image, bullet points, and reviews, conversions are likely to plummet. While Amazon can streamline asset workflows, it cannot eliminate them altogether.”
This view coincides with Zafar’s assessment: “High-margin inventory necessitates storytelling. Amazon’s expansion into Sponsored TV and Twitch relies heavily on brand-driven narratives, which is where the more lucrative CPMs reside.”
AI-Enabled Ads: Addressing Common Barriers
Ross Walker, Director of Retail Media at Acadia, underscores Amazon’s movement toward an automated solution with its Auto campaign feature for search. “You simply insert your product; the platform takes care of the rest with minimal creative requirements, such as the product image and title.” Walker notes a straightforward rationale behind this:
If you eliminate all the barriers brands cite as reasons for hesitance in investing, they are more likely to invest significantly. By cutting creative and agency costs, more budget is available for media spends.
However, Walker also cautions that marketers will always seek competitive advantages: “Brands will likely continue to strategize to gain an edge in advertising. Marketers are inherently competitive, and no system is entirely immune to manipulation.”
The Self-Assessment Dilemma
One of the most contentious components of Zuckerberg’s vision involves the proposition that platforms like Meta would be the sole arbiters of their own campaign successes. This self-evaluation model encounters substantial resistance in retail media, where brands increasingly demand independent verification of performance.
“The trust in retail media is highly precarious,” warns Zafar. “Brands are already skeptical about Amazon grading its homework. The removal of levers or the ability to audit via Amazon Marketing Cloud would undoubtedly raise alarms across major agencies.”
Scott Ohsman, VP of Digital Commerce at Quickfire, concurs: “It may take years before decision-makers and finance leaders opt for a ‘set it and forget it’ strategy devoid of measurements.”
Amazon’s Likely Path Forward
As Meta forges ahead with its bold vision and Google refines its Performance Max offerings, Amazon occupies a unique position in the advertising landscape. Being the third-largest ad platform globally allows Amazon to observe the outcomes resulting from Google’s PMAX before designing its own strategy.
Amazon’s diverse array of advertisers, from large enterprises with substantial monthly budgets to smaller sellers vying to improve organic rankings, translates into varied expectations. Some advertisers may embrace a black box approach if it leads to favorable results, while others—particularly those with established marketing systems—will demand greater transparency and control.
This diverse array of customer requirements, combined with Amazon’s capacity to learn from the experiences of its competitors, suggests a more measured approach will likely emerge. Rather than forcing all advertisers into a one-size-fits-all model, Amazon appears to be crafting a spectrum of solutions—ranging from highly automated options for those desiring simplicity to granular controls for those who insist upon them.
The pivotal question isn’t if Amazon will embrace AI-infused advertising practices; it already has. The more pressing inquiry is whether it will maintain the transparency and control that has come to define its competitive edge in contrast to the opaque futures that its rivals envision.