|Like most industries, artificial intelligence is changing advertising right before our eyes. Ad targeting and audience segmentation are two of the most popular ways that marketers apply AI / Photo by: Daniil Peshkov via 123RF|
Like most industries, artificial intelligence is changing advertising right before our eyes. Ad targeting and audience segmentation are two of the most popular ways that marketers apply AI. A 2018 survey of 400 digital advertising professionals across the world showed that nearly half of the respondents use AI for ad targeting (47%) and audience segmentation (45%). This is followed by dynamic creatives (42%), campaign planning and modeling (41%), media spend optimization (39%), and personalized offers (38%).
With the increasing data collected from the industry’s CRM systems, marketing automation systems, ad platforms, and more, companies are finding it difficult to consolidate everything. They lack the time, energy, and cognitive capacity to process all the data effectively. As a result, marketing and advertising performance suffer the most, costing huge amounts of time and money for brands. This is where AI comes in.
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 make sense of all the data gathered. It can detect patterns at scale in a company’s advertising data as well as predict what changes in campaigns will improve performance. An AI-powered advertising system can also help a brand discover and convert new customers.
At the same time, AI can give marketers additional insights about their customers. A 2018 survey of 200 US marketers conducted by Sapio Research and LoopMe showed that one-third of respondents stated that the impact of AI on their ads sales is the most valued insight they get from the technology. Also, a 2018 survey of 2,665 senior and design professionals revealed that data analysis was AI’s most common use among client-side and agency respondents.
Thus, it’s not surprising that cloud conglomerates like Salesforce, Nielsen, and IBM are investing millions in AI-powered tools and applications for advertising.
IBM’s AI-Powered Advertising Accelerator
AI and machine learning are the main priorities of the marketing and sales departments above any other area. Reports show that AI is expected to free up more than a third of data analytics in marketing organizations by 2022. This would enable employees to focus on business priorities instead of reporting, marketing performance management, anomaly detection, lead scoring, personalization, and other manual processes. This is what IBM, an American multinational information technology company, wanted to do.
Recently, IBM announced that it leveraged AI to envisage the optimal combination of creative elements to be used in advertising. This will, in turn, help drive high engagement and conversion from the audience. According to Industry Wired, the best go-to industry resource for helping today's entrepreneurs build tomorrow's leading businesses, the AI-powered advertising accelerator is the latest addition to IBM’s extensive Watson Advertising suite. It now belongs to the three other new marketing solutions under the Watson umbrella, which includes Watson Ads Omni, Media Optimizer, and Predictive Audiences.
According to VentureBeat, an American technology website that publishes news, analysis, long-form features, interviews, and videos, Ads Omni can deliver “hyper-personalization” paired with actionable insights; Media can connect pre- and post-customer journeys across paid, owned, and earned channels, and Predictive Audiences enables businesses to layer data signals to identify people are most likely to buy.
The company hopes to deploy AI and algorithms to assist businesses better tailor their advertising strategies by understanding the preferences and the composition of their target audience. "Ad targeting enables marketers to identify core customers, who are often overserved with messages that might not drive immediate action. Advertising Accelerator with Watson aims to address this challenge head-on, arming clients with IBM Watson to help them better engage and understand their target audience,” Jeremy Hlavacek, Head of Revenue, IBM Watson Advertising said in a statement.
|Recently, IBM announced that it leveraged AI to envisage the optimal combination of creative elements to be used in advertising. This will, in turn, help drive high engagement and conversion from the audience / Photo by: Josef Kubeš via 123RF|
The Role of AI in the Advertising Accelerator
In collaboration with Watson, IBM aims to create campaigns that are designed to understand and engage customers. At the same time, it aims to address industry pain points like targeting and personalization. IBM Advertising Accelerator makes AI more accessible to advertising, which can help in enhancing creative performance, audience discovery and actionable insights as well as driving faster predictive models. This would also help advertisers to better understand the composition and preferences of their audience to inform future media strategies.
At the same time, Advertising Accelerators can offer capabilities that can help media buyers and brands. This includes anticipation or predicting the creative elements to drive engagement; segmentation or discovering new audience segments based on message resonance to help expand a message to untapped audiences, and revelation or analyzing each campaign from a creative and audience perspective.
According to IBM News Room, this AI tool would help advertisers such as LendingTree, Potential Energy Coalition and other leading brands to implement the AI-enabled predictive audience solution. "Matching creative iteration with audience segment is the next step in campaign optimization. LendingTree is proud to implement IBM Advertising Accelerator with Watson at launch to improve advertising effectiveness,” Josh Eldridge, Senior Director of Marketing of LendingTree, said.
This new AI tool can greatly help in the advertising industry, bringing more innovations and success. Advertising Accelerator can encourage advertisers to adopt the technology into their companies.