The Rise of AI in Advertising: How AI Advertising Management is Revolutionizing the Industry

Artificial intelligence is taking the business world by storm. Experts estimate it could contribute $15.7 trillion to the global economy by 2030 — a massive 15% uplift in worldwide production in only five years.

Moreover, AI technology is seeping into more sectors including advertising, particularly ad management.

This article explores the role of artificial intelligence in transforming advertising strategies. Reading it, you will learn about the benefits of the technology, the remaining challenges and limitations, and how leading firms can leverage it for success.

The Evolution of Advertising: From Traditional to Digital
Advertising has come a long way since the emergence of the first brands over two centuries ago. Previously, companies used newspapers, magazines, flyers, billboards, and shouting in marketplaces to broadcast their messages. Later, they migrated to mass media: TV and radio.

However, digital technology is facilitating a third arena: the online space. Search engines, websites, and social media are making advertising more penetrating than ever.

Now AI is a real force, it is changing the landscape again. The infusion of high intelligence into the digital realm enables advancements that weren’t possible when humans controlled the show.

What is AI Advertising Management?
AI advertising management uses artificial intelligence systems to control and automate marketing campaigns. It is an evolution of “dumb” software that attempted to simulate these processes before.

AI uses machine learning, data analytics, and natural language processing to achieve superhuman control over ad endeavors. These technologies let it accept inputs and turn them into outputs that move it toward some objective (say, to make more sales).

Controlling thousands of ads and data points with humans would be impractical. Companies couldn’t afford it. But AI-controlled ad management brings the price down by several orders of magnitude.

How AI is Transforming Advertising Strategies
This superior control enables AI to deliver ad experiences that would be challenging without it. For example, AI can:

Personalize ad experiences to the user, showing them the most relevant items in a format that caters to their preferences
Improve audience segmentation by splitting prospects into groups based on user data
Boost targeting accuracy by detecting subtle hidden patterns to reveal more about leads that conventional analysis can’t identify
Improve real-time bidding, automating the process and seeking cost-efficiencies
Create content dynamically to meet users’ real-time needs, providing more in-depth and relevant information based on queries and keywords
Leverage emotional intelligence to communicate with customers more effectively than human-generated content
Optimize campaigns and ad efforts across platforms, including search, social media, and banners
Benefits of AI in Advertising Management
Given these transformations, the benefits of using AI for ad management are substantial. These include:

Increased Efficiency
AI permits the automation of repetitive tasks and campaign optimization. Marketing professionals don’t need to calibrate campaigns manually because data-driven algorithms do it automatically.

Enhanced Creativity
AI-powered tools let marketing professionals and content creators originate new ideas daily. Systems can draw from the totality of human creativity and may even add machine creativity to the mix, enhancing everything from ad copy to bid management.

Data-Driven Insights
AI can leverage big data non-linearly for actionable insights and decision-making. Standard statistical tools aren’t always robust and don’t provide optimal decision-making routines. But with AI, many traditional statistical stumbling blocks (that might bias decision-making) simply don’t apply.

Better ROI
Lastly, AI can improve return on investment through precise targeting and reduced wastage. Organizations are less likely to waste funds on unproductive bids or ad placements.

Challenges and Limitations
With that said AI in ad management isn’t perfect.

Data Privacy
For example, there are concerns about user data and ethical considerations. AI could “profile” individuals, learning information about them that it could then use to manipulate or control their decision-making. Third-parties could also harvest this data and use it for shady purposes.

Algorithm Bias
Furthermore, while AI techniques can deal with tricky issues that plague conventional statistical analysis, it is still at risk of bias. Biased algorithms can display the wrong advertisements to the wrong prospects if trained incorrectly.

Integration
There are also challenges in integrating AI systems with existing marketing infrastructure. Existing solutions might be siloed or missing the high-quality data artificial intelligence needs to thrive. Firms may also need more technical expertise to transform the technology into something usable.

Case Studies and Examples
Despite these issues, plenty of real-world examples of companies successfully using AI in advertising exist. For example, Meta is already testing AI-generated ads for Facebook, its flagship social media platform. The technology will enable text-to-image generation, automatic text variations, and outcropping to fit users’ aspect ratios.

Nike recently did something similar, creating an AI-generated ad featuring champion Serena Williams. The company rendered an invented match between the tennis star and her younger self to commemorate the company’s 50th anniversary.

Finally, ClickUp used SurferSEO’s AI technology to drive 85% more traffic to their blog. Integrating suggested keywords, titles, and images allowed the company to beat Google’s ranking algorithm and place articles higher in search results.

Future Trends in AI Advertising
Given the rapid advances in AI, the future of the technology looks exciting. Some commentators believe it will eventually come to dominate most industries.

Predictive analytics will undoubtedly play a valuable role in ad management in this brave new world. Brands will use artificial intelligence to anticipate consumer behavior and trends, improving ad placements and operational efficiency.

Voice and visual search will also likely feature. AI-driven advertising will recognize non-text search inputs and display ads it believes are relevant whenever it detects “commercial intent.”

We may even see the emergence of autonomous ad creators. AI could take over the process entirely by collecting data, experimenting with various formats, and seeing what works best.

Conclusion
In summary, AI has the potential to reimagine ad management. The technology can optimize and synchronize advertising processes (like bidding and content creation) beyond what’s possible with humans and conventional software.

As such, we encourage you to consider investing in AI technology to improve ad service. Using it could lower costs, enhance creativity, and help you get to know your prospective customers better.

Originally posted on ADvendio.com on 8th July 2024.