Published by FirstAlign
Our economy is steadily transforming into a digital one. Artificial intelligence is slowly, but surely, taking over most industries globally. The advertising industry has seen a revolutionary shift taken due to the implementation of AI in it. Advertizing with intelligence will not only alleviate the workload of an advertising company, but it would optimize the entire process of marketing itself.
Artificial intelligence processes data faster than the human mind. Hence, it would improve the marketer’s abilities to gather the best possible interests, keywords, and targeting segments. It can then create the perfect targeting plan to advertise to the right customer. This article will examine how intelligent advertising is able to boost marketing for businesses.
Targeting the right audience
One of the biggest challenges for marketers is putting relevant content in front of the right customers. Due to the large volume of data growth, it becomes increasingly hard for marketers to analyze data and identify the right customers to advertise to. AI makes this much easier and efficient. It processes all available data and has the ability to create the ideal audience for the product or service. The advertising company can then target this group of audience in different ways.
Advertising with intelligence is able to achieve this through predictive analytics which is the use of consumer data and statistical algorithms to determine what could happen in the future. AI uses predictive analytics to go through data and create ad targeting and media buying strategies. This makes it possible to identify potential customers and target them with relevant content on the right platforms at the right time.
Predictive analytics requires a large amount of data to function well and can analyze billions of signals from sources such as social media, web, e-mail, and offline data. It uses all variables like behavior, demographic, and more to predict future buying patterns based on previous purchase and behavior.
Using Google Ads as an example, the AI in its advertisement model helps identify users’ tastes and preferences and as per that, shows advertisements. It is also implemented in Netflix’s algorithm, particularly in thumbnails. The algorithm decides which thumbnail to display depending on the user’s search and watch habits. If the user previously watched a show with a particular lead actor in it, they would appear in the thumbnail of another show.
Similarly, if another user is more drawn to shows or movies with animals in it, they will receive thumbnails with animals in it pertaining to the aforementioned show. Therefore, two new audience members are brought to the show through different thumbnails. Targeting the right advertisements to the right consumers gives a high return on investment (ROI) to the company.
Programmatic advertising is the automation of the steps and transactions involved with purchasing and placing ads on websites or apps. It is the process of buying digital advertising space automatically with computers using data to decide which ads to buy and how much to pay for them.
This automation does a much faster job of the purchase and placement of ads; it does the matter in less than a second. Programmatic platforms are growing their database to support any format so that any channel can be accessed programmatically, including mobile phones, desktops, tablets, connected TV, and more.
We previously saw how advertising with intelligence includes targeting strategies to categorize audiences using data so that advertisers will pay for ads delivered to the right people and the right time. Thanks to programmatic advertising, obtaining targeted ads becomes an easier process.
Programmatic advertising uses AI to independently buy the ad space in real-time based on the user’s search behaviors and demographic. It analyzes a visitor’s behavior and then, depending on their likes, dislikes, and habits, the program estimates a search. It will then immediately choose proper advertisements to buy and display in a matter of milliseconds.
The demand-side platform (DSP) or the consumer search, work alongside the supply-side platform (SSP), or the ad agency to match the appropriate ad with the correct audience.
The program evaluates the consumer’s details and well as their reaction to the advertisements fashioned towards their interests. It is continually learning about customers and collecting information on how different people react to any given brand. For future targeted marketing, this information comes in handy. In this way, AI optimizes the tailoring of advertisements to specific groups.
So far we have seen how AI can improve the performance of ads and can target it to the right consumer without much hassle. However, AI can also be used to create advertisements themselves. Platforms that have advertising components, such as Facebook, have AI that will help with the creation of ads and ad variations at a faster speed in comparison to manual labor. It can perform all of this using the content which is already uploaded by the creator.
Taking all of this a step higher, Lexus released an advertisement in 2018. This ad was entirely scripted by artificial intelligence. Lexus partnered with IBM’s Watson and the agency input data to formulate the script. The data included 15 years of Cannes Lion award-winning advertisements in the “luxury” sector.
With enough research and development, AI can take over the process of content creation for an advertising company. We might see more of advertisements and other media forms in which content has been completely created by AI.
Artificial Intelligence improves advertising as it enables the advertising company to understand consumer behavior and interests. It provides the relevant audience with targeted advertisements at the right place and time. This produces better results because lesser ads are shown to people who are not interested.
Advertising with intelligence is basing ads on a consumer’s interest, preference, location, and demographic. The tactic of delivering personalized advertisements has proven to be a boon to the advertising industry. There is always room for more research and development. Eventually, the future will witness a fully automated process of advertisement production.
- @AI News: It’s time for business to embrace AI
- @SEJ: What Is Predictive Advertising & Why Do You Need It?
- @AI News: Why continuous learning is key to AI
- @WhatIS: Programmatic Advertising