Like a lot of industries, artificial intelligence (AI) is changing advertising right before our eyes. What is Artificial Intelligence and how can it change the future of advertising? AI relies on data-driven accumulated information; the AI based neural networks are capable of experience-based self-learning.
AI is optimized ad drafting used for implementation, testing, ad buying and audience targeting. According to Enberg, businesses worldwide will spend over $500,00 plus billion in digital advertising by 2023. While according to AdExchanger, AI will take up around 85% of advertising spend. That is just mind-blowing!
It is estimated that half of global advertisers are already using AI in their advertising campaigns. According to Adobe, more than 80% of consumers use a device or service, which is powered by AI. Even electronic billboards can include AI- based delivery systems. Programmatic advertising allows systems to display the right types of ads to the right prospects.
Wondering how AI helps businesses optimize their ad ROI? Keep on reading…
Ad spend optimization aims to identify the marketing channels, touchpoints, and strategies that drive the most value for a brand.
Machine learning and artificial intelligence have influenced ad spend allocation and ad account management. The processing of data, trends and metrics to identify the cost saving opportunities are now being run by a software platform.
AI helps businesses by providing tailored audiences and targeting
With the daunting task of interpreting consumers’ online behavior, browsing history and mobile geo-location, AI does the job without any problems. Through the technology being used to deliver recommendations, personalized advertising became possible. AI can optimize your ad budget through micro-campaigns for multilateral testing where you can create ad campaigns around your targeted demographics.
The use of image recognition
Using image recognition programs, businesses can now target ads. Ads related to images, which are part of articles, blogs, website pages and other types of digital content can now be shown with ads. This helps. Advertisers hyper target their messages for huge conversion by showing ads up on the page or above a specific image within the content.
Attribution lets you see how different interactions throughout the customer
The attribution models allow Google and other search engines to identify the clicks, which drive customers to your website. The 5 rules-based model and the date-driven model were included within the Google Ads. These rules include time decay, last click, position-based, first click and linear.
Once you have a better understanding of how advertising agencies are using AI to improve their ads and their reach, you will know why AI is an excellent tool that is changing the business in a major way.
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