Artificial intelligence is changing the advertising world. From creating ads to audience targeting and ad optimization, artificial intelligence has transformed everything. Top brands have already begun utilizing artificial intelligence technology to segment customers into different groups, build creative advertisements, enhance ad performance, and save marketing spend. These applications of AI for advertising have a profound impact on brands when it comes to digital advertising.
Why is artificial intelligence getting all these hypes compared to traditional software? It is because artificial intelligence can deliver actionable insights at scale. In a way, it can be said that artificial intelligence technology is ‘smart.’ AI for advertising helps marketers identify the leads that are more likely to convert.
Why is Artificial Intelligence Ruling the Advertising Industry?
AI for advertising can help marketing leaders in identifying prospects and follow up with leads. Also, AI for advertising can help marketers create content for ads, identify profitable customer segments, streamline ads, and allocate marketing spends efficiently. So, there’s no doubt that AI will rule the advertising world in the years to come.
Our world is filled with scattered data. Thanks to artificial intelligence, now we can quickly process all the data and make data-driven business decisions. As a result, it’s high time for small and large businesses to leverage AI for advertising to boost revenue, decrease costs, and create massive competitive advantage.
How Artificial Intelligence Applies to Advertise?
Today, customers are spoilt with choices. As such, marketers who create targeted and personalized ads for their customers are expected to keep ahead of others. There are tons of data available to advertisers, such as impressions, click-through-rates, demographic data, and much more. But the point is in making use of these data efficiently. It is where the real power of AI for advertising comes into play.
With the available data, AI tools can detect patterns, foresee market changes, and suggest changes in the ads. Think of the time when these tasks were done manually. We agree that these tasks can be performed manually, but will the findings be accurate or error-free? Certainly, no. AI for advertising helps business leaders in increasing returns on spend and reducing labor costs. Additionally, artificial intelligence helps businesses in:
- Increasing revenue by analyzing and acting on data
- Reducing overall costs by acting on the data faster
- Building a massive competitive advantage with superior insights
Excellent Applications of AI for Advertising
#1: Digital Advertising and Ad Platforms
Digital advertising involves programmatic advertising and marketing on platforms like Facebook, Instagram, and Pinterest. AI for advertising can play a significant role in digital advertising. AI technology enables marketers to decide who should see the ad and how the marketing budget will be allocated. For instance, Facebook uses ad frequency and relevance score to dictate how much businesses must pay and how their ads are displayed.
AI technology helps marketers identify the users’ tastes, and as per that, it shows Ads. It eventually helps marketers in increasing returns on investment (ROI). Besides, AI-powered programmatic ads bring a tremendous amount of traffic to the website.
#2: Spend Optimization
AI technology can evaluate the performance of ads and assist marketers in optimizing their ads to improve performance. In some instances, you can automate actions, save costs and time. Besides, AI technology can now highlight if any obstacles happen in the ad. All these applications of AI for advertising can help marketers in optimizing ad performance and streamlining marketing spend. Additionally, it frees up marketers to carry out other priority tasks.
#3: Ad Creation
AI for advertising can fully or partially create ads for your business. Doesn’t it sound interesting? Well, this AI application is already being used in some of the channels. It uses intelligent automation to suggest ad businesses, and these AI-powered systems leverage natural language processing (NLP) and natural language generation (NLG) to create ads that perform well.
#4: Targeting Audience
Targeting the right customer segment is as essential as ad creation for businesses. Nowadays, Facebook, Twitter, Instagram, and LinkedIn provide impressions and analytics sections. Through these analytics, brands can identify the engagement received for their posts. Moreover, the analytics enables businesses to make changes in their ads as and when they are required. By weighing the insights against the company’s KPIs, AI technology identifies like convertible consumers.
From ad creation to targeting and spend Optimization, AI for advertising is drastically transforming everything. AI for advertising promises to increase revenue, reduce marketing spend, and optimize advertising initiatives. Adopt AI-based advertising strategies to avoid being left behind. Moreover, automate a significant part of your mundane tasks and enable your marketing professionals to focus on priority tasks.