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Running Amazon Deals And Discounts: A Complete Guide

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Running Amazon Deals And Discounts: A Complete Guide

Amazon offers several different types of deals and discounts.

Utilizing these deals and discounts can impact your click-through rate, conversion, and even the overall success of your product launch.

In this article, we will outline the types of deals and discounts Amazon makes available to sellers and how you can utilize them to help drive awareness and sales for your products.

Lighting Deals

Screenshot from Amazon, September 2022
Running Amazon Deals And Discounts: A Complete GuideScreenshot from Amazon, September 2022
Lighting Deals and 7-Day Deals show on the Today’s deal page. Lighting Deals also show the percentage of items claimed.

Lightning Deals are probably the most well-known deal on Amazon.

When you run a Lighting Deal, it runs for a specific time set, and you commit to a specific number of units.

These deals are highlighted on the Today’s Deals page with the Limited Time Deal badge and the discount percentage.

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Outside of the Today’s Deals page, the badge and discount percentage also show in the search results.

lightning deal Amazon exampleScreenshot from Amazon, September 2022

With Lightning Deals, you select a specific number of units to be included in the deal, and a countdown of the percentage of discounted units displays on the product detail page.

The actual product detail page shows a countdown of the total number of units still available as part of the deal in the area next to the product’s Buy Box.

Together, the badge, percentage off, and the claimed percentage can increase impulse purchases by increasing a sense of scarcity for this deal.

With Lightning Deals, one thing to remember is that you have little to no control over when your deal will run.

While you can select a deal window where you know your deal will run, you cannot select the exact date and time.

If you select a deal during an event like Prime Day, the deal will run only during the event, but you will not be able to select the day or time.

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For non-events, there will typically be a list of weeks for you to choose from for a deal fee. For non-peak shopping days, this fee is usually $150. The fee for Prime Day, Black Friday, and Cyber Monday can be significantly more.

According to Amazon:

“A Lightning Deal is a time-bound, promotional offer where an item is featured for a limited number of hours, usually 4 to 12 hours (as determined by Amazon), on the Amazon Deals page.”

So your deal may run on a Tuesday from 9 a.m. to 9 p.m. PST, or your deal could run from 1 a.m. to 5 a.m. PST on a Sunday.

While, of course, the time the deal runs can impact the effectiveness of your lighting deal, the type of product you are offering can also significantly impact the number of customers interested in your deal.

In our experience, items a customer might have been looking for an excuse to buy do the best for Lighting deals.

Maybe they have been eyeing that Roomba, LEGO Set, or luxury home product, but have been watching for a discount that would justify splurging on the item.

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These items do the best with Lightning deals. The short duration of these deals provides the scarcity needed to compel purchases.

Commodities and items like groceries tend to underperform in Lightning Deals compared to the results of the products that are more coveted, as mentioned above.

7-Day Deals

If you are looking for a little bit more control on when your promotion will be run, you might want to look at 7-Day Deals. As the name suggests, these deals run for a full seven days.

While you will not get the countdown on the number of units offered, your deal will be featured on the Today’s Deal Page and show the discounted amount in search.

7 Day deals do not require you to select a specific number of units to commit to. They also provide enough time to amplify your deal via social media and your email list if you desire. These deals have a fee that starts at $300.

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We recommend that you test both Lighting Deals and 7-Day Deals to determine their effectiveness for your product mix.

Event Deals

Deadlines for event deals can vary by account. For deals like Black Friday, Cyber Monday, and Prime day, you need to check your Deals Dashboard in Seller Central. You will see that in the dashboard if you are eligible to submit a deal.

The deal fee for 7-Day Deals and Lighting Deals for events is more expensive than for non-event dates. That’s because Amazon anticipates significantly more potential traffic to your deal during these times.

Remember, even if you are too late to secure a deal for Black Friday, you can often still submit a deal for the period between Cyber Monday and Christmas, for instance – as well as run Prime Exclusive Discounts and Coupons.

Eligibility

Amazon outlines in detail what is required for a deal to be eligible for a 7-Day Deal or Lighting deal in its support documents.

To be eligible for deals, you must be a professional seller with an overall rating of at least 3.5-stars. Additionally, products must meet these criteria:

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Not every product is eligible to run deals. You cannot submit a deal if your product does not appear eligible in the Deals Dashboard in Seller Central.

It is also important to note that any coupons or discounts run simultaneously will be combined with your deal.

That means the coupon will still be available on top of the discounted price available through your 7-Day Deal or Lighting Deal.

For both deal types, Amazon will provide a minimum discount per unit that would need to be offered for the deal to be eligible.

Discounts

In addition to deals, Amazon also provides two different types of discounts you can run on your Amazon product detail pages.

These are Prime Exclusive Discounts and Coupons. Discounts don’t require the same lead time as deals and have less stringent eligibility and discount requirements.

Let’s go through the details for each type of discount.

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Coupons

Coupons are great tools for increasing your conversion rate. These coupons show in search and on the product detail page.

Because these deals show in both ads and search, coupons can also increase your CTR for well-optimized products.

All products are eligible for coupons. With coupons, you are only charged $0.60 when a coupon is redeemed. You will not be charged if a customer clicks a coupon but does not check out.

You can also see how many people clipped your coupons versus redeeming them. This reporting is found in Seller Central under Advertising > Promotions.

Prime Exclusive Deals

Prime Exclusive Deals (PED) are only available to Prime members. If a customer is not a member of Amazon Prime, they will have the option to join Prime.

While there is no charge for these discounts, there are stricter requirements around what products are eligible for Prime Exclusive Deals compared to coupons at the time of this writing. Additionally, customers will not need to clip or redeem this offer; it is available automatically.

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When first launched, Prime Exclusive Deals appeared with a badge and discounted amount – in both search results and the product detail page.

In the last week, Prime Exclusive Deals have only shown some products’ Prime Exclusive Deal information on the product detail page.

Amazon provides the requirements for Prime Exclusive Deals within the Prime Exclusive Deal workflow as follows:

  • The item needs to be a nationally Prime shipping eligible product.
  • The Prime Exclusive Discount must meet all regular eligibility criteria.
  • The product must have at least a 3.5-star rating or no rating.
  • The discount must be at least 20% off the non-Prime member’s non-promotional price.
  • The discount must be at most 80% off the non-Prime member’s non-promotional price.
  • The discount must be lower than the reference price (that is, List Price or Was Price). Learn more about Reference Prices and how to show a reference price to your products.
  • The Prime Exclusive Discounted price must be lower than the lowest price for the ASIN in the past 30 days. The lowest price in the last 30 days is the lowest order price for the ASIN in that period, including all deal, promotional, and sale prices across all merchants.
  • You must be a seller with at least 4 Seller Feedback Rating when the seller rating is available. Amazon looks at the last 365-day rating average if there are 10 or more ratings in that period. If there are less than 10 ratings in the last 365 days, Amazon considers the lifetime average rating.

*Note: A different set of criteria is posted in Seller Help documents; however, we find that the items within the workflow are the most accurate.

Testing Your Pricing With Deals

Prime Exclusive Deals and Coupons can be a great way to test a lower price for your items.

If you are concerned that your pricing might deter potential customers, we always recommend that you test a lower price with a discount before lowering your overall price.

Simply lowering the price on your product, instead of testing with a discount, can cause Buy Box suppression if you decide to return to the original higher price.

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If Amazon sees your current price on Amazon is higher than the average over the last 30 days, Amazon will often suppress the Buy Box on your items.

A suppressed Buy Box can cause your conversions to decrease significantly.

When the Buy Box for your products is suppressed, customers must click about three extra times to make a purchase. Also, you will be unable to run any ads while your product’s Buy Box is suppressed.

Testing with deals instead of simply lowering your price allows you to have the data you need to make an informed decision about whether or not to lower your price. It also limits any potential long-term negative effects on your product’s listing.

When Not To Use Deals And Discounts On Amazon

Discounts and deals can help you rank your products and increase brand awareness. However, there are times when it could be better not to run deals on Amazon.

Low Inventory

When considering running a deal, you also want to consider your current stock level and lead times. One of the benefits of increasing your sell-through rate is that it will naturally improve your organic ranking.

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However, if your deal causes you to sell out, you will lose any organic ranking gains from your deal.

When determining if you should run a deal, make sure that even if the deal goes well, you will still have enough units on hand to avoid any stockouts.

Low Profitability

While running deals can help with the successful launch or ranking campaign, it is important to look at overall profitability when considering deals.

A coupon might significantly impact profitability on items with a smaller average order value. This is especially true if you plan on running deals regularly.

Amazon now provides detailed SKU economics, including inbound shipping and your Sponsored Products costs. You can use this to help determine if your product has enough margin to sustain a profitable deal.

Audience Expectations

We have found that non-luxury consumables tend not to perform as well with deals and discounts because the discounts tend not to be large enough to motivate buyers.

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Consider if your audience is looking for a deal or if they are coming to your product ready to purchase it regardless of any discounts.

At the end of each deal, review your overall sales and conversion rate to evaluate the impact of your deal or discount. Will Haire, Co-Founder of BellaVix, shared advice:

“During strategic holidays like T5 (BF-CM) or Prime Day, shoppers expect to find deals on Amazon when shopping. We always recommend accepting deals when they become available. You can always cancel them up until the moment they go live.

Coupons are a performance-based promotion, which means you are only charged after the shopper clips and purchases a product.

We recommend trying out the different types of deals, and we find that the Prime exclusive deals tend to be the most successful in terms of sales and worth the upfront investment.

When experimenting with price points, we will leverage deals or coupons to measure any change in sales velocity, indicating if we are priced too high in the market.”

Overall, deals and discounts can help you increase your sales, click-through rate, and organic ranking when used in conjunction with a strong ad strategy.

Understanding the different types of deals and discounts available for your products on Amazon will help you maximize their effectiveness as you head into your busy season or launch new products.

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Big Update To Google’s Ranking Drop Documentation

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Google updates documentation for diagnosing ranking drops

Google updated their guidance with five changes on how to debug ranking drops. The new version contains over 400 more words that address small and large ranking drops. There’s room to quibble about some of the changes but overall the revised version is a step up from what it replaced.

Change# 1: Downplays Fixing Traffic Drops

The opening sentence was changed so that it offers less hope for bouncing back from an algorithmic traffic drop. Google also joined two sentences into one sentence in the revised version of the documentation.

The documentation previously said that most traffic drops can be reversed and that identifying the reasons for a drop aren’t straightforward. The part about most of them can be reversed was completely removed.

Here is the original two sentences:

“A drop in organic Search traffic can happen for several reasons, and most of them can be reversed. It may not be straightforward to understand what exactly happened to your site”

Now there’s no hope offered for “most of them can be reversed” and more emphasis on understanding what happened is not straightforward.

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This is the new guidance

“A drop in organic Search traffic can happen for several reasons, and it may not be straightforward to understand what exactly happened to your site.”

Change #2 Security Or Spam Issues

Google updated the traffic graph illustrations so that they precisely align with the causes for each kind of traffic decline.

The previous version of the graph was labeled:

“Site-level technical issue (Manual Action, strong algorithmic changes)”

The problem with the previous label is that manual actions and strong algorithmic changes are not technical issues and the new version fixes that issue.

The updated version now reads:

“Large drop from an algorithmic update, site-wide security or spam issue”

Change #3 Technical Issues

There’s one more change to a graph label, also to make it more accurate.

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This is how the previous graph was labeled:

“Page-level technical issue (algorithmic changes, market disruption)”

The updated graph is now labeled:

“Technical issue across your site, changing interests”

Now the graph and label are more specific as a sitewide change and “changing interests” is more general and covers a wider range of changes than market disruption. Changing interests includes market disruption (where a new product makes a previous one obsolete or less desirable) but it also includes products that go out of style or loses their trendiness.

Graph titled

Change #4 Google Adds New Guidance For Algorithmic Changes

The biggest change by far is their brand new section for algorithmic changes which replaces two smaller sections, one about policy violations and manual actions and a second one about algorithm changes.

The old version of this one section had 108 words. The updated version contains 443 words.

A section that’s particularly helpful is where the guidance splits algorithmic update damage into two categories.

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Two New Categories:

  • Small drop in position? For example, dropping from position 2 to 4.
  • Large drop in position? For example, dropping from position 4 to 29.

The two new categories are perfect and align with what I’ve seen in the search results for sites that have lost rankings. The reasons for dropping up and down within the top ten are different from the reasons why a site drops completely out of the top ten.

I don’t agree with the guidance for large drops. They recommend reviewing your site for large drops, which is good advice for some sites that have lost rankings. But in other cases there’s nothing wrong with the site and this is where less experienced SEOs tend to be unable to fix the problems because there’s nothing wrong with the site. Recommendations for improving EEAT, adding author bios or filing link disavows do not solve what’s going on because there’s nothing wrong with the site. The problem is something else in some of the cases.

Here is the new guidance for debugging search position drops:

Algorithmic update
Google is always improving how it assesses content and updating its search ranking and serving algorithms accordingly; core updates and other smaller updates may change how some pages perform in Google Search results. We post about notable improvements to our systems on our list of ranking updates page; check it to see if there’s anything that’s applicable to your site.

If you suspect a drop in traffic is due to an algorithmic update, it’s important to understand that there might not be anything fundamentally wrong with your content. To determine whether you need to make a change, review your top pages in Search Console and assess how they were ranking:

Small drop in position? For example, dropping from position 2 to 4.
Large drop in position? For example, dropping from position 4 to 29.

Keep in mind that positions aren’t static or fixed in place. Google’s search results are dynamic in nature because the open web itself is constantly changing with new and updated content. This constant change can cause both gains and drops in organic Search traffic.

Small drop in position
A small drop in position is when there’s a small shift in position in the top results (for example, dropping from position 2 to 4 for a search query). In Search Console, you might see a noticeable drop in traffic without a big change in impressions.

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Small fluctuations in position can happen at any time (including moving back up in position, without you needing to do anything). In fact, we recommend avoiding making radical changes if your page is already performing well.

Large drop in position
A large drop in position is when you see a notable drop out of the top results for a wide range of terms (for example, dropping from the top 10 results to position 29).

In cases like this, self-assess your whole website overall (not just individual pages) to make sure it’s helpful, reliable and people-first. If you’ve made changes to your site, it may take time to see an effect: some changes can take effect in a few days, while others could take several months. For example, it may take months before our systems determine that a site is now producing helpful content in the long term. In general, you’ll likely want to wait a few weeks to analyze your site in Search Console again to see if your efforts had a beneficial effect on ranking position.

Keep in mind that there’s no guarantee that changes you make to your website will result in noticeable impact in search results. If there’s more deserving content, it will continue to rank well with our systems.”

Change #5 Trivial Changes

The rest of the changes are relatively trivial but nonetheless makes the documentation more precise.

For example, one of the headings was changed from this:

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You recently moved your site

To this new heading:

Site moves and migrations

Google’s Updated Ranking Drops Documentation

Google’s updated documentation is a well thought out but I think that the recommendations for large algorithmic drops are helpful for some cases and not helpful for other cases. I have 25 years of SEO experience and have experienced every single Google algorithm update. There are certain updates where the problem is not solved by trying to fix things and Google’s guidance used to be that sometimes there’s nothing to fix. The documentation is better but in my opinion it can be improved even further.

Read the new documentation here:

Debugging drops in Google Search traffic

Review the previous documentation:

Internet Archive Wayback Machine: Debugging drops in Google Search traffic

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Google March 2024 Core Update Officially Completed A Week Ago

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Graphic depicting the Google logo with colorful segments on a blue circuit board background, accompanied by the text "Google March 2024 Core Update.

Google has officially completed its March 2024 Core Update, ending over a month of ranking volatility across the web.

However, Google didn’t confirm the rollout’s conclusion on its data anomaly page until April 26—a whole week after the update was completed on April 19.

Many in the SEO community had been speculating for days about whether the turbulent update had wrapped up.

The delayed transparency exemplifies Google’s communication issues with publishers and the need for clarity during core updates

Google March 2024 Core Update Timeline & Status

First announced on March 5, the core algorithm update is complete as of April 19. It took 45 days to complete.

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Unlike more routine core refreshes, Google warned this one was more complex.

Google’s documentation reads:

“As this is a complex update, the rollout may take up to a month. It’s likely there will be more fluctuations in rankings than with a regular core update, as different systems get fully updated and reinforce each other.”

The aftershocks were tangible, with some websites reporting losses of over 60% of their organic search traffic, according to data from industry observers.

The ripple effects also led to the deindexing of hundreds of sites that were allegedly violating Google’s guidelines.

Addressing Manipulation Attempts

In its official guidance, Google highlighted the criteria it looks for when targeting link spam and manipulation attempts:

  • Creating “low-value content” purely to garner manipulative links and inflate rankings.
  • Links intended to boost sites’ rankings artificially, including manipulative outgoing links.
  • The “repurposing” of expired domains with radically different content to game search visibility.

The updated guidelines warn:

“Any links that are intended to manipulate rankings in Google Search results may be considered link spam. This includes any behavior that manipulates links to your site or outgoing links from your site.”

John Mueller, a Search Advocate at Google, responded to the turbulence by advising publishers not to make rash changes while the core update was ongoing.

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However, he suggested sites could proactively fix issues like unnatural paid links.

Mueller stated on Reddit:

“If you have noticed things that are worth improving on your site, I’d go ahead and get things done. The idea is not to make changes just for search engines, right? Your users will be happy if you can make things better even if search engines haven’t updated their view of your site yet.”

Emphasizing Quality Over Links

The core update made notable changes to how Google ranks websites.

Most significantly, Google reduced the importance of links in determining a website’s ranking.

In contrast to the description of links as “an important factor in determining relevancy,” Google’s updated spam policies stripped away the “important” designation, simply calling links “a factor.”

This change aligns with Google’s Gary Illyes’ statements that links aren’t among the top three most influential ranking signals.

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Instead, Google is giving more weight to quality, credibility, and substantive content.

Consequently, long-running campaigns favoring low-quality link acquisition and keyword optimizations have been demoted.

With the update complete, SEOs and publishers are left to audit their strategies and websites to ensure alignment with Google’s new perspective on ranking.

Core Update Feedback

Google has opened a ranking feedback form related to this core update.

You can use this form until May 31 to provide feedback to Google’s Search team about any issues noticed after the core update.

While the feedback provided won’t be used to make changes for specific queries or websites, Google says it may help inform general improvements to its search ranking systems for future updates.

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Google also updated its help documentation on “Debugging drops in Google Search traffic” to help people understand ranking changes after a core update.


Featured Image: Rohit-Tripathi/Shutterstock

FAQ

After the update, what steps should websites take to align with Google’s new ranking criteria?

After Google’s March 2024 Core Update, websites should:

  • Improve the quality, trustworthiness, and depth of their website content.
  • Stop heavily focusing on getting as many links as possible and prioritize relevant, high-quality links instead.
  • Fix any shady or spam-like SEO tactics on their sites.
  • Carefully review their SEO strategies to ensure they follow Google’s new guidelines.

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Google Declares It The “Gemini Era” As Revenue Grows 15%

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A person holding a smartphone displaying the Google Gemini Era logo, with a blurred background of stock market charts.

Alphabet Inc., Google’s parent company, announced its first quarter 2024 financial results today.

While Google reported double-digit growth in key revenue areas, the focus was on its AI developments, dubbed the “Gemini era” by CEO Sundar Pichai.

The Numbers: 15% Revenue Growth, Operating Margins Expand

Alphabet reported Q1 revenues of $80.5 billion, a 15% increase year-over-year, exceeding Wall Street’s projections.

Net income was $23.7 billion, with diluted earnings per share of $1.89. Operating margins expanded to 32%, up from 25% in the prior year.

Ruth Porat, Alphabet’s President and CFO, stated:

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“Our strong financial results reflect revenue strength across the company and ongoing efforts to durably reengineer our cost base.”

Google’s core advertising units, such as Search and YouTube, drove growth. Google advertising revenues hit $61.7 billion for the quarter.

The Cloud division also maintained momentum, with revenues of $9.6 billion, up 28% year-over-year.

Pichai highlighted that YouTube and Cloud are expected to exit 2024 at a combined $100 billion annual revenue run rate.

Generative AI Integration in Search

Google experimented with AI-powered features in Search Labs before recently introducing AI overviews into the main search results page.

Regarding the gradual rollout, Pichai states:

“We are being measured in how we do this, focusing on areas where gen AI can improve the Search experience, while also prioritizing traffic to websites and merchants.”

Pichai reports that Google’s generative AI features have answered over a billion queries already:

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“We’ve already served billions of queries with our generative AI features. It’s enabling people to access new information, to ask questions in new ways, and to ask more complex questions.”

Google reports increased Search usage and user satisfaction among those interacting with the new AI overview results.

The company also highlighted its “Circle to Search” feature on Android, which allows users to circle objects on their screen or in videos to get instant AI-powered answers via Google Lens.

Reorganizing For The “Gemini Era”

As part of the AI roadmap, Alphabet is consolidating all teams building AI models under the Google DeepMind umbrella.

Pichai revealed that, through hardware and software improvements, the company has reduced machine costs associated with its generative AI search results by 80% over the past year.

He states:

“Our data centers are some of the most high-performing, secure, reliable and efficient in the world. We’ve developed new AI models and algorithms that are more than one hundred times more efficient than they were 18 months ago.

How Will Google Make Money With AI?

Alphabet sees opportunities to monetize AI through its advertising products, Cloud offerings, and subscription services.

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Google is integrating Gemini into ad products like Performance Max. The company’s Cloud division is bringing “the best of Google AI” to enterprise customers worldwide.

Google One, the company’s subscription service, surpassed 100 million paid subscribers in Q1 and introduced a new premium plan featuring advanced generative AI capabilities powered by Gemini models.

Future Outlook

Pichai outlined six key advantages positioning Alphabet to lead the “next wave of AI innovation”:

  1. Research leadership in AI breakthroughs like the multimodal Gemini model
  2. Robust AI infrastructure and custom TPU chips
  3. Integrating generative AI into Search to enhance the user experience
  4. A global product footprint reaching billions
  5. Streamlined teams and improved execution velocity
  6. Multiple revenue streams to monetize AI through advertising and cloud

With upcoming events like Google I/O and Google Marketing Live, the company is expected to share further updates on its AI initiatives and product roadmap.


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