How AI Will Drive the Future of Advertising?

How AI Will Drive the Future of Advertising?

Humans love personalization and feeling as though an experience is custom-tailored to their own wants, needs, and personalities. Even those skeptical about AI, or artificial intelligence, cannot deny the benefits that it has introduced into society today.

Understanding the future of AI in advertising is essential whether you are working in marketing or if you have a product to sell.

What are the Different Parts of AI in Advertising?

Before diving into AI advertising, it is essential to already become familiar with the different parts of artificial intelligence in the advertising industry.

  • Big Data and Analytics: Storing everything to The Cloud and sharing details of user behavior, website browsing, and more have provided us with Big Data. With AI, the use of Big Data and analytics to cultivate relevant, useful, and highly targeted campaigns has never been easier.
  • MLC: Machine-learning capabilities (MLC), is another prominent feature of artificial intelligence that just isn’t possible with human beings. With machine learning capabilities, AI utilizes updated algorithms in real-time to provide the most accurate results.
  • AI-Specific Platforms: Currently, many AI platforms are in the works and are already available to help make the transition to AI advertising as seamless as possible.

The Current State of AI in Ads

AI has come a long way since its inception and still continues to break the mold for learning and evolving. From providing fundamental insights into a topic just a decade ago, AI now has the capability to hone in on specific audiences for contextual advertising that is significantly more relevant and appealing to prospective customers.

It may be time to rethink this decision for those who are not using AI in their digital marketing strategies, as AI has drastically improved in just the past few years alone.

How is AI Changing Advertising in 2022?

changes AI doing to advertising
  • Segmented Audiences: While it is possible to segment audiences with any digital marketing campaign, it is difficult to do so before launching any campaign or spending an initial amount on your advertisement(s). With AI, segment specific audiences based on demographics you intend to target prior to launching your campaign(s). This will help to streamline the marketing process while simultaneously saving on your marketing budget.
  • Personalization is Key: Personalization goes a long way, whether you are selling a new product or if you are offering a service to locals. Using personalization in marketing campaigns can help prospective customers to feel special, motivating them to learn more about your advertisements and/or products.
  • Improved ROI and Conversion Rates: Using AI in your marketing strategy goes well beyond standard A/B testing, as AI can often complete necessary research even before launching your first campaign. To put it simply, AI is transforming the way consumers engage with advertising, which is not always bad, especially for users who have ad blindness or a negative view of advertisements. When a user feels as if an advertisement is relevant or valuable to them due to various algorithms at play, they are more likely to engage with the ad, which may lead to an increase in revenue generation.
  • Privacy Won’t Kill Data-Driven Advertising: Most often, advertisers will need to abide by standards and comply with various regulations such as GDPR. As AI ads become increasingly powerful, it is up to advertisers to remain aware of the privacy risks of users at all times. Ensuring safeguards and added protection for users who share their information for advertising purposes will likely be an issue that is a priority in the near future.
  • Powering the Future of Contextual Targeting: As AI in advertising is continuously evolving, so is the way we target prospective customers or clients online. With AI, the power of contextual targeting cannot be underestimated, as deep learning machines and AI with machine learning capabilities have become even more prevalent in everyday life.

Challenges of AI in Advertising

Although there are many advantages of AI in advertising, there will also be challenges that must be accounted for, such as:

  • Privacy: Privacy concerns are a top priority for consumers and must not be ignored. Advertisers and AI developers alike must abide by current regulations and privacy restrictions in place.
  • Security: With the rise of data theft, hacking, phishing, and scams, AI must be closely monitored to prevent infiltrations and/or hijackings.
  • Ethics: As AI becomes more in tune with human nature, ethics may come into question, especially when considering predictive health conditions and/or opinions that may be controversial.
trends in AI advertising

As AI continues to evolve, there are a few trends to keep an eye on, such as:

  1. Targeted/Personalized Advertising: Targeted and personalized advertising is not going anywhere anytime soon. As AI advances, expect targeted trending to follow suit.
  2. Search Advertising: The use of AI in search advertising will continue to grow, especially as AI becomes more aware of a user’s wants, needs, and overall meaning when using search engines.
  3. Automatic Content Generation: AI can also be utilized to automatically generate content, which can be helpful for branding or company messaging purposes.

Top 3 Predictions for an AI-Driven Ads Future

predictions for AI driven ads future
  1. Advanced Speech Recognition: Speech recognition is already available with at-home devices such as Amazon Alexa. As AI evolves, expect advanced speech recognition with a low failure rate, allowing one-on-one conversations with AI in real-time with minimal effort.
  2. Machine-Enabled Vision: Soon in the future, you can also expect a machine-enabled vision to be possible. Machines with vision will help identify potential problems or threats in nearby surroundings. In the future, the machine-enabled concept in AI can also be used to shop for products, prescribe medications, or even tend to customer service needs.
  3. Biometric Advertising Capabilities: AI is not likely to stop on the screen. In fact, biometric AI technology already exists and is typically used throughout the medical industry. Using biometric AI in advertising can help marketers pinpoint consumers’ specific needs while streamlining advertising campaigns. Biometric data can provide information regarding health, diet, lifestyle choices, and even past choices an individual has made. Facilitating a campaign using biometric data saves on costs while ensuring that only those who have a genuine interest or need in your products or services view your advertisement.
TheExpertCafé Team

A distinctive community of marketers based out of the US that conducts market research surveys on niche segments of digital marketing to influence the future of marketing. We welcome marketers like you to join TheExpertCafé and use your industry experience to help decision-makers chart the course for new marketing products and platforms.

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