How Can AI Help in Digital Advertising?
The technology that has been creating quite a stir ever since it was in its development stage, Artificial Intelligence (AI) is a thing of wonder. All that anticipation and intrigue around the technology was worth it. Gradually, it is being taken up by different industries to accelerate their growth, including digital advertising.
It can be adapted and implemented to serve various purposes, depending on the task at hand. The first time it was used in advertising was when Lexus came out with an ad scripted by AI in the year 2018.
Lexus took the help of IBM Watson to analyze certain data going back 15 years and the results proved that AI is indeed the future of advertising. However, we are getting ahead of ourselves. Read on to know how exactly AI can help in digital advertising.
What is AI?
To understand its role in advertising better, we first need to understand AI. Artificial Intelligence refers to that branch of computer science that creates smart machines possessing the ability to think for themselves. Hence the name.
Now, this branch is widely ranged and its main motive is to replicate human intelligence in machines. Thus natural intelligence is what’s exhibited by humans and animals and when it is created in machines to replicate natural intelligence, it is known as artificial intelligence.
How has AI been Helpful in Advertising?
When it comes to ads, AI is not just helpful in its creation but the whole process. From audience targeting to ad buying and everything in between, it will slowly transform the whole world of advertising.
Currently, some ways in which AI is proving to be helpful in advertising have been explained below:
Optimizing Ad Expenditure
AI is proving to be extremely helpful in determining how much advertisers should spend on a given campaign. As it is constantly monitoring the different channels to track their progress, AI systems are able to figure out how much should be spent where to optimize performance.
These systems can consider a lot of factors that humans are not able to track effectively and this makes all the difference. They are not just monitoring their progress but the competitors’ as well.
Further, AI systems are much more ‘situationally aware’ and can take into account the continuously shifting market patterns. Therefore, keeping in mind the inconsistent behavior of markets, it’s better to have such systems onboard that can adjust quickly and make smart decisions.
Creating Recommendations
With the help of Predictive Analysis, which functions using machine learning which is a subset of AI, Netflix offers quality recommendations to its users that help them enhance their viewing experience.
In a similar manner, American sports apparel company Under Armour uses IBM’s Watson to combine data collected through its Record App and third-party sources to provide their users with more personalized training.
Search Engine Algorithms
Google has always been very particular about only providing the best to its users and this is why it uses the AI system RankBrain. This system helps the search engine in better understanding the user’s query.
With the help of machine learning, the search engine algorithm can teach itself about how queries can be interpreted in a way that gauges the user’s intent behind the search rather than depending on a program that is predetermined.
Email Marketing Responses
Email marketing is one of the most effective channels of online marketing and AI has only upped its game. The secret to a great email marketing campaign naturally lies in the quality of the emails that are being sent.
Good emails lead to more clicks, improve open rates and increase responses. Many companies are now taking the help of AI-driven systems that can write catchy headlines as well as customer-based email marketing language that will ultimately lead to more clicks, and therefore revenue.
The AI mechanism learns from the customers’ response metrics and using that data, optimizes the language used in the email to suit the customer’s preference so that they are compelled to open the email.
Programmatic Advertising
When it comes to ads, a lot of factors have to be considered before launching an ad. The right ad has to be displayed at the right time to the right people. There are several ‘right’s involved here that could go wrong.
This has been a major issue for several companies, including Google Ads. But with the help of AI technologies such as programmatic advertising, the problem regarding the selling of ad inventory was resolved.
By using programmatic advertising, Google has automated the whole process, from buying to selling ad inventory, and combining AI and real-time bidding inventory over mobile, display, video as well as social channels.
The technology assesses visitors’ behavior and also allows real-time optimization of the ad campaigns so that the chances of conversion increase.
How is AI helping in Ad Creation?
Advertisers are turning to AI for ad writing more and more. Several social media, as well as online advertising platforms, are using tools that can create more ideal messages. Notable platforms such as Facebook and Instagram have been using AI-enabled tools to make the ads and also create variations.
Besides the major platforms, smaller companies and startups as well are turning to AI to generate more optimized and targeted ads. In fact, many are working on advertising systems that are completely automated.
Conclusion
Slowly and steadily, AI is expanding its impact on the advertising world. Every step of the advertising process is getting refined and optimized, thanks to advanced technology. In the future, this will only lead to more effective and fitting ads, according to the preferences of the customer.
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