A New Wave of AI in Digital Advertising – A Data-Driven and Strategic Revolution
Advertising is a major business driver for organizations ranging from small startups to leading enterprises. It reliably drives revenue by building brand awareness and influencing consumer decisions. This might sound simple, but the process of using advertising to influence consumer behavior is actually extremely complex.
Advertising technology (ad tech) is evolving in tandem with a continuously shifting digital advertising landscape. Amid this evolution, personalization and precision remain the hallmarks of successful advertising campaigns.
To deliver relevant and impactful messages to the right audiences at the right time, advertisers are increasingly looking to the power of artificial intelligence (AI) to optimize their campaigns.
Recommended: Five Things You Should Do to Ace your Customer Service Strategy with Artificial Intelligence
In particular, the rise of generative AI tools like ChatGPT has created a recent renaissance, unlocking a waterfall of unprecedented AI applications. Here’s how the ad tech industry is leveraging AI to enable an even more data-driven and strategic approach to media buying.
AI’s Analytical Capabilities Eliminate Guesswork
Much of the discussion has centered around front-end capabilities like generative AI, but back-end applications of the technology are in fact making the most impact on advertising functions.
AI in advertising takes the guesswork out of finding the right audiences and saves advertisers both time and effort. The technology identifies audience segments that align with advertisers’ goals to ensure higher on-target percentage (OTP) performance.
This is accomplished by processing and extracting insights from vast and intricate datasets that include demographic data, purchase history, online behavior, and other relevant parameters. When you use ad-tech AI solutions, like Koa AI, you’re tapping into data analyzed from over 1 trillion ad opportunities per day – that’s roughly 13 million ad opportunities every second. The output is actionable and granular insights into customer profiles and behaviors that advertisers can leverage to identify patterns and trends for their advertising strategies.
Finding high-value prospects in an efficient, performance-driven way has historically been challenging for marketers, but AI surfaces data-driven insights that enable them to reach the right audience throughout the entire customer journey. This level of precision and personalization boosts engagement, increases conversion rates, and enhances the overall consumer experience.
Optimize Campaigns on the Fly with Real-Time Insight
Advertising campaign optimization is notorious for the significant time, budget and manpower investments required – advertisers must continually monitor results, test new approaches and adjust strategies. What’s more is this process has historically happened after the fact, meaning advertisers can only generate different types of learning and insights once an advertising campaign has concluded.
But with real-time insights and performance tracking delivered by AI, advertisers can now monitor and optimize their campaigns on the fly.
Using predictive modeling and advanced algorithms, ad tech AI systems surface real-time recommendations or optimizations to help improve a campaign’s performance as it is running. These optimizations accelerate performance and save marketers time and money by helping them pay the right price per impression leading to performance and cost efficiencies.
Strategic Decision-Making
AI arms advertisers with the data they need to strategically execute campaigns with predictive analytics, forecasting models, and market trend analysis. These tools and insights empower them to make more informed decisions about budget allocation, media buying, and creative development.
For example, AI can surface suggestions for the optimal advertising strategy based on historical data, factoring in market opportunities and emerging trends. Advertisers can then make data-driven decisions about campaign performance and optimize their resources accordingly. With the help of AI, advertisers can better navigate the complex advertising landscape, staying ahead of the curve and maximizing their advertising investments.
Generative AI Unlocks New Opportunities for Creativity (With Human Oversight)
As some of the largest advertising players announce new partnerships with leading AI companies, creative solutions are emerging as a key result of these deals. Even publicly available generative AI tools like ChatGPT and DALL-E are making waves in the advertising industry, enabling marketers to generate unique and relevant text, images and videos for campaigns. These models also allow advertisers to automate the creation of ad copy, social media posts, relevant imagery and more. However, it remains essential for humans to act as the gatekeepers of AI-generated content. The technology can provide a jumping off point, but it is crucial that humans fill in the gaps that generative AI cannot, particularly by ensuring that advertising assets strike the appropriate tone and emotion and remain true to the brand and message.
AI as a Co-Pilot
The relationship between humans and AI is symbiotic. As with any technology, AI will adopt some functions that humans have historically owned. However, this grants advertisers more freedom to focus on higher-level responsibilities that drive business goals, freeing them from tedious tasks like shuffling spend or adjusting bids.
Humans will continue to play a crucial role in successful advertising campaigns, providing strategic oversight and guiding AI towards achieving the right goals. Humans excel in coming up with various Hypotheses, and AI’s power can help validate the possible outcome in real time, resulting in better decisions.
The partnership between humans and AI allows marketers to focus on the more important aspects of their work, while AI supports them with its analytical capabilities, resulting in a more effective, data-driven, and strategic approach to media buying.
Comments are closed.