Computer Systems Design and Related Services2024Computer VisionGenerative AIMarketplace
Amazon

Amazon internal tests find AI-generated advertising imagery produces average 5% sales lift for participating brands

Internal Amazon testing of its AI Image Generator tool between October 2023 and June 2024 found that brands using AI-generated lifestyle imagery in advertising campaigns saw an average of nearly 5% more sales per advertiser — with click-through rates up to 40% higher for lifestyle versus plain product images.

Average sales lift~5% per advertiser
CTR advantage (lifestyle vs. product)40% higher CTR
4 min read

Background

Product advertising on Amazon has traditionally relied on product-only images against white backgrounds. Research and Amazon's own data consistently show that lifestyle imagery — showing products in real-world contexts — outperforms plain product images on click-through rate, but producing lifestyle photography is expensive and time-consuming, particularly for the long tail of smaller Amazon sellers.

What Was Implemented

  • Deployed Amazon AI Image Generator to participating advertisers in the Amazon Ads platform
  • Tool generates lifestyle background settings for product images using Generative AI, without brand-supplied backgrounds
  • Advertisers can generate multiple lifestyle image options and test which drives best performance
  • Added aspect ratio scaling capabilities for cross-placement use
  • Tool deployed across Sponsored Brands ad format for mobile placements

Results

Internal Amazon testing (October 2023–June 2024): brands using Image Generator saw on average nearly 5% more sales per advertiser . Lifestyle images in mobile Sponsored Brands ads achieve CTR up to 40% higher than standard product images. Campaign submission volume among Image Generator users increased by over 20% , indicating increased creative testing. All metrics are self-reported by Amazon.

Lessons

  • Lifestyle context in advertising imagery consistently outperforms plain product images on CTR, which in turn drives measurable sales lift — even a modest lift (~5%) across a large advertiser base represents meaningful aggregate revenue impact
  • AI image generation democratizes lifestyle advertising for smaller brands by removing the design resource barrier
  • Increased creative testing volume (20%+ more campaign submissions) is itself a signal of improved advertiser efficiency — more A/B tests mean faster optimization cycles
  • Platform-level AI tools benefit from network effects: as more advertisers use and optimize the tool, aggregate data improves ad targeting and format guidance

Ready to implement AI in your commerce operations?

McFadyen Digital helps teams move from case study to live implementation.

Talk to an expert →