Artificial intelligence enabled advertising – Economic Times

  • Lauren
  • March 1, 2022
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Artificial Intelligence (AI) is changing the nature of advertising. AI is transforming the advertising industry from ad creation and testing to audience targeting to ad buying. The context of advertising is affected intensively and the AI driven advertising has become promising in leading industries such as retail, automotive, entertainment, healthcare and pharmaceutical, telecommunications, and financial services. The concept of AI driven advertising is gaining popularity.
Advertising research develops the understanding of the efficiency, effectiveness, and safety of how and why AI operates in advertising. Intelligent advertising is defined as consumer-centered, data-driven, and algorithm- mediated brand communication. AI is predicted to take up to 80 percent of Global advertising spend in the world. Around 75%advertisers use AI in their services. In 2018, Lexus released the first advertisement scripted by artificial intelligence. Lexus used IBM Watson to analyse 15 years of “car and luxury brand campaigns that have won Cannes Lions awards for creativity.
We receive tons of data at our disposal from CRM systems, marketing automation software, ad platforms, etc. Advertising performance have quadrupled owing to intervention of AI in extracting the insights from the data. With the right data, AI-powered ad tools can detect patterns economically in the advertising data, then predict what changes to campaigns will improve performance against a specific KPI. AI for advertising has the ability to increase ROI on ad spend and reduce the amount of money you spend on staff time and ineffective ad budget.Digital advertising exchanges and platform use artificial intelligence for regulating the purchase and sale of advertising in real-time. That includes programmatic exchanges, third-party networks, and advertising on platforms like Facebook, Instagram, and Snapchat.
Facebook advertising provides ad frequency and relevance score. These two numbers are key pieces of data that Facebook’s algorithms use as no human involvement is there to dictate how much we pay and how our ads are displayed. Machine learning algorithms are used by commercially available solutions to analyse how various ads perform across specific platforms, then offer recommendations on how to improve performance. The AI tool, Albert uses sophisticated AI to analyse ad campaigns, then manage targeting, testing, and budgets. Another AI tool, Phrasee is used for ad creation.

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Disclaimer Views expressed above are the author’s own.

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Source: https://timesofindia.indiatimes.com/blogs/marketing-swan/artificial-intelligence-enabled-advertising/