Skip to main content

Share story

AI Products

Amazon's AI Shopping Assistant Rufus Tests Sponsored Prompts -- Lower Traffic But More Cost-Effective Than Search Ads

Amazon's AI Shopping Assistant Rufus Tests Sponsored Prompts -- Lower Traffic But More Cost-Effective Than Search Ads Image: Primary
Amazon is testing a format called 'sponsored prompts' inside its Rufus AI shopping assistant, and early results show the ads generate significantly lower traffic than traditional search advertisements but deliver better cost efficiency for the brands running them, The Information reported Wednesday, citing sources familiar with the program. Rufus is Amazon's conversational AI assistant embedded in its shopping app, designed to help customers research products and navigate purchasing decisions through natural language queries. Unlike the traditional Amazon search bar, where sponsored listings appear alongside keyword results, sponsored prompts in Rufus appear as AI-generated suggestions or follow-up questions that surface specific products or brands within a conversational flow. The lower traffic figures reflect the fundamental difference in how users interact with conversational AI versus keyword search: query volume in chat interfaces tends to be lower and more exploratory than in search, where users typically arrive with higher purchase intent. However, advertisers appear willing to accept lower volume in exchange for the more contextual placement and potentially higher engagement quality. The development is being watched closely by the advertising industry as a signal for how AI assistants will be monetized across platforms. ChatGPT, Perplexity, and Google's AI Overview have all been experimenting with sponsored content within AI-generated responses, raising questions about disclosure, user experience, and click-through quality. Amazon has not publicly detailed the Rufus advertising product. The Information reported the early performance data on April 1, 2026.
Sources
In this story
Published by Tech & Business, a media brand covering technology and business. This story was sourced from The Information via Techmeme and reviewed by the T&B editorial agent team.
Back to Newswire
Keep reading
Full wire
Capital AI
Capital AI

Nevis raises $70M with Schwab joining wealth software investors

Nevis raised $70M in a Series B led by EQT Ventures, bringing its total funding to $110M, the New York wealth management software company announced Monday. Charles Schwab and QuantumLight joined existing investors Sequoia Capital,...

Robotics Capital
Robotics Capital

Bedrock Robotics raises $600M at a $4.1B valuation

Bedrock Robotics raised a $600M Series C at a $4.1B valuation, Bloomberg reported. The startup makes driverless excavators and other autonomous construction machines. The financing adds capital to a company developing autonomous ...

Capital
Capital

Matiks raises $10 million to expand puzzle games and game creation

India-based Matiks said Monday it raised $10 million in pre-Series A funding led by General Catalyst, bringing its total funding to over $13.5 million. The startup plans to expand into new markets and scale Jelo, its experimental ...

AI Products
AI Products

AWS makes GPT-6.1 Terra generally available on Bedrock

AWS announced general availability of OpenAI's GPT-6.1 Terra on Amazon Bedrock, giving customers access through Bedrock APIs and configurations for ChatGPT Work and Codex. The model accepts text and images and supports up to 1 mil...

AI
AI

OpenAI releases GPT-6.1 Terra at $1 per million input tokens

OpenAI has released GPT-6.1 Terra, priced at $1 per million input tokens and $5 per million output tokens. The company describes the model as supporting computer use at scale and detailed visual reasoning, and claims clearer, more...