Amazon launches conversational display ads that turn traditional banner ads into interactive Alexa shopping experiences, helping brands reach new customers with AI-powered conversations that can continue even after shoppers return later.
AI is quickly changing how brands connect with shoppers, and 70% of marketers expect it to play a larger role in their work in the years ahead. Amazon’s newest advertising update shows how those expectations are beginning to shape real shopping experiences.
As Amazon launches conversational display ads, shoppers can ask Alexa product questions directly from participating banner ads and continue those conversations later if they return. For Amazon sellers, the rollout could create new opportunities to reach first-time customers while improving engagement beyond Amazon.
Amazon Expands AI Advertising With Interactive Alexa Conversations
Amazon has expanded Amazon conversational display ads beyond its own properties, allowing shoppers to interact with Alexa directly from display banners across the open web. Instead of directing users to a traditional landing page, the ads include prompts that open a conversation where shoppers can ask product questions, and Alexa remembers those interactions if they return later.
The rollout builds on updates to Amazon’s Responsive eCommerce Creative (REC), a shoppable display ad format that automatically pulls product images, pricing, and reviews from product listings. REC now also supports AI-generated images, animation, and video, expanding beyond the static creative formats previously available as part of Amazon AI advertising.
According to Amazon, 20% of shoppers who select a conversational prompt continue chatting with Alexa, while 70% of purchases generated from these ads come from customers who are new to the brand. Amazon also reported that advertisers using its AI creative features have seen a 14% increase in click-through rate and a 7% improvement in return on ad spend.
The new off-site display ads use a CPM pricing model instead of the CPC model commonly used on Amazon’s marketplace. For businesses selling on Amazon, the announcement signals another expansion of Amazon’s advertising capabilities as the company continues testing new ways to connect brands with shoppers beyond its own website.
Amazon launches conversational display ads across the Internet that trigger Alexa chats with memory By Paul Drecksler"Amazon's take on conversational display ads turns legacy banner ads into a shopping tool that visitors can engage with, as opposed to a traditional binary decision of clicking or ignoring."
Alexa+ Agentic Ads Bring Shopping and Checkout Into One Conversation
EMARKETER reports that Amazon is expanding its AI advertising strategy with Alexa+ Agentic Ads, a format that lets shoppers complete the entire purchase journey within an Alexa conversation on Echo Show devices. The announcement complements Amazon conversational display ads by extending conversational commerce beyond product discovery and into product selection and checkout.
Instead of directing shoppers through multiple webpages, Alexa+ Agentic Ads allows users to ask questions, compare products or services, and complete transactions without leaving the conversation. Early examples include purchasing concert tickets after asking about seating options and ordering food based on personalized menu recommendations, with Papa Johns and several music artists among the first participating partners.
| Feature | What Amazon Announced |
|---|---|
|
Shopping experience |
Customers can ask questions, compare options, and complete purchases within an Alexa conversation. |
|
Supported device |
Echo Show devices. |
|
Example use cases |
Buying concert tickets and ordering restaurant meals through Alexa. |
|
Early partners |
Papa Johns and several music artists. |
|
Customer journey |
Discovery, product research, recommendations, and checkout occur in one interaction. |
For sellers and Amazon agencies, the announcement signals that conversational AI is becoming more closely connected to the buying process rather than serving only as a product discovery tool. Businesses already investing in Amazon PPC and other Amazon advertising solutions may need to prepare product content and campaigns for shopping experiences where customers expect immediate answers, personalized recommendations, and a faster path to purchase.
Amazon Introduces Customer-Focused Shopping Prompts in Display Ads
Amazon is expanding Amazon conversational display ads across the open web by embedding interactive prompts into display banners on publisher websites. According to a MediaPost article, instead of relying on a traditional call to action, shoppers can select suggested questions and begin a conversation with Alexa for Shopping to learn more about a product before deciding whether to buy.
The prompts are generated through Responsive eCommerce Creative (REC), which automatically creates Sponsored Products and Sponsored Brands prompts using information from product detail pages, Brand Store content, and campaign data. These prompts present relevant product questions based on what shoppers commonly want to know, making product discovery more interactive through agentic AI.
Once a shopper selects a prompt, the conversation continues within Alexa for Shopping, where they can ask follow-up questions, learn more about the product, or complete a purchase. If the shopper leaves and returns later, Alexa remembers the previous conversation so they can continue where they left off.
Amazon also introduced additional agentic capabilities, including the ability to notify shoppers when a product reaches their preferred price. While the ads use a CPM pricing model rather than the click-based approach familiar to Amazon PPC advertisers, the update reflects Amazon’s growing focus on conversational shopping experiences that extend beyond a single ad interaction.
