Using AI in Advertising
Sat, December 3, 2022

Using AI in Advertising

With technology and automation, advertising has become relatively easier. Reports show that spending on marketing/advertising automation is expected to reach $25.1 billion annually by 2023 / Photo by: Allen.G via Shuterstock


Advertising and marketing have changed in huge ways over the past few decades. Typewriters have been replaced by laptops, while ad campaigns have been greatly enhanced by technology, particularly AI. In the past, starting a campaign would require audience research, creating amazing ads, coming up with a compelling offer, and deploy the campaign according to the budget that you had allocated to it.

However, times have changed. There’s so much demand for products and services now that companies need to cater to. Usually, a manual analysis is needed to identify and attribute the highest performing ads, opportunities for expansion and contraction of the overall initiative, and the best audiences. These factors would determine if the ad is successful or if it needs more improvement. This would usually take weeks or months.

With technology and automation, advertising has become relatively easier. Reports show that spending on marketing/advertising automation is expected to reach $25.1 billion annually by 2023. The “Marketing Automation Technology Forecast, 2017 to 2023 (Global)” report by research firm Forrester stated that six marketing automation technologies such as through-channel marketing automation platforms, real-time interaction management solutions, marketing resource management software, lead-to-revenue management automation platforms, content marketing platforms, and cross-channel campaign management software would show double-digital growth over the next few years. 

According to MarTech Today, a daily publication that covers all aspects of the marketing technology industry, 55% of global marketing decision-making out of over a thousand marketers from eight countries are planning to increase spending on this kind of tech in the next year. The report projected a compound annual growth of 14% over the next five years. 

Report co-author Jennifer Adams stated that a key driver of adoption is that companies are leveraging artificial intelligence in the tools. These tools can boost the platforms’ ability to “power personalization, content generation, and recommendations, along with improving marketing efficiency.”

AI in Advertising

AI has been changing the way companies run advertising operations. A report showed that 60% of marketing leaders believe that the technology can help them run more effective programmatic campaigns. Research firm Accenture also projected that AI can “coalesce” with existing systems to generate US$4.7 trillion in gross value added by 2035. AI for advertising would mean assisting publishers, marketers, and agencies with detailed insights on revenue and performance. 

According to the Marketing AI Institute, a content hub that explores the current and future potential of artificial intelligence, machine learning, deep learning, and cognitive computing to transform marketing, AI can analyze large data sets about online advertising. After that, it can create ad copy and creatives based on what the technology predicts will work best. It can gather data about how consumers interact with advertising, which will then be used to optimize a company’s campaigns to perform better. AI can give feedback to the data collected from consumers and other ad buyers to vastly streamline and optimize ad spend and strategy.

Surveys conducted by Gartner reported that marketers are pushing forward with AI spending and integrating it into their customer experience. The explosion of AI use in this industry is driven by the availability of software-as-service and cloud computing bandwidth. Also, machine learning will help companies in bringing products to the market faster. According to ADvendio, an ad sales management solution that handles ad campaigns across digital platforms and streaming media for all sized companies, it can be used to study their customer’s behavior and use that information to stay ahead of their needs.

How AI is Helping Advertising

“Ultimately, we believe that AI will never be a replacement for human creativity and ingenuity. In advertising, great creative that drives an emotional connection always requires a human spark. What AI can do is free people up to focus on the problems humans are best at,” Keith Eadie, VP and GM of Adobe Advertising Cloud, said.  

Here are some of the ways AI is used in advertising.

1 - Performance and spend optimization

AI and machine learning can analyze people’s ads across specific platforms. The data will then be used to offer recommendations on how to improve performance. At the same time, these technologies can be used to intelligently automate actions that you know you should be taking based on the best practices. They can even highlight issues people didn’t even know they had. 

2 - Boost media companies ad ops’ productivity

Usually, ad operations require tasks that sometimes are not that important. It just shifts the marketers' focus on something more critical. With machine learning algorithms, marketers can boost their performance by assisting them in critical tasks and decision making. This helps companies in discovering, sourcing, structuring and sharing previously disorganized information from outside organizations. 

Usually, ad operations require tasks that sometimes are not that important. It just shifts the marketers' focus on something more critical / Photo by: Jacob Lund via Shutterstock


3 - Early warning alerts reduce customer churn

Marketing companies need to observe if they are losing customers who are dissatisfied with their return on investment (ROI). Thus, they monitor incidents, track performance, and record outputs. This can help in providing real-time visibility, alerting potential problems, and proposing alternative solutions. Using AI, companies can predict customer churn by analyzing customers' shopping carts and CRM behavior. Also, they can use AI to improve their outreach and value proposition to customers. 

Advertising is now being disrupted by improvements in AI and machine learning but with good reasons. These technologies allow advertisers to provide more customized and personalized ads to consumers with more precisely targeted messaging. This can help save time, resources, and money as well as influence behavior.