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AI Ushers in a New Era of Advertising

AI Ushers in a New Era of Advertising

The world of advertising is evolving—and it’s all thanks to artificial intelligence (AI). 

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Because of the pandemic, the need for smarter, automated solutions grew to a fever pitch. Companies started to invest in AI to streamline their processes, reduce their business costs—and ultimately survive the disruption (Forrester).

From healthcare to automotive, different industries from across the globe started to increase their investment in AI to up to 44% at the height of the pandemic (Statista). Because of the string of benefits it brings to the table—from automating operations to increasing return on investment (ROI), it’s no surprise that more and more companies are continuing to integrate AI into their infrastructures.

Certainly, the accelerated adoption of AI is changing the face of advertising, whether we like it or not. Let’s take a look at how this smart technology is slowly transforming the advertising sector today. 

On Ad Creation

Gone are the days when developing ads depended solely on human creativity. Today, businesses can tap into the power of AI-powered tools to craft dynamic ads.

A growing number of businesses have been utilizing AI-powered programs to build their ads (BBC). These AI-powered platforms, supported by machine learning capabilities, select optimal combinations of ad elements—such as slogans, sound effects, text overlays, messaging, sequencing, and assets—to create the most compelling campaigns for brands (Forbes). But there are also AI-supported programs that generate slogans and scripts for ads using machine learning algorithms. Burger King, Lexus, and JPMorgan Chase are just some of the prominent brands that released campaigns written by AI. Because of this, even small-scale enterprises are dipping their toes into the water.

Of course, not everyone is pleased with the potential takeover of AI in ad creation. But for some, capitalizing on AI, and not just human intuition, is helpful in creating ads that can actually resonate with consumers. 


On Customer Interaction

Because of AI (specifically conversational AI) the quality of interactions between brands and their customers has greatly improved. 

Conversational AI provides assistance to consumers through real-time, human-like conversations. Through this type of advanced solution, customers receive responses to their queries in an instant (and in the most personal way possible)—which has shown to increase customer engagement and boost customer loyalty and satisfaction among businesses at large. 

The need for conversational AI has also soared because of the pandemic. With more and more people wanting to stay connected, brands have been making it a priority to integrate conversational AI solutions into their marketing and advertising initiatives. In fact, the AI market is predicted to expand from just $6 billion in 2021 to $18 billion in the next five years or so (MarketsAndMarkets Research). And by the looks of it, integrating this conversational AI as early as possible would be a smart business investment. 


On Audience Targeting

Thanks to AI, it’s becoming easier for businesses to personalize their customer experiences.

In this day and age, personalization is everything—consumers want everything tailored to their individual tastes. Relevance has been shown to be the strongest driver of conversions. In fact, more than 80% of customers are more likely to purchase from businesses that offer personalized experiences (Epsilon).

Luckily, building personalized, highly targeted campaigns and experiences isn’t as hard as it once was thanks to AI. From personalized messaging, to personalized ad targeting, to personalized recommendations, countless brands have been using various personalization techniques to create experiences that suit the needs of their customers. 

Amazon, Walmart, Nike, Starbucks, Ikea, Under Armour, and McDonald’s are just some of the big-league companies that are cashing in on AI-supported personalization to improve their customer experiences, and it won’t take long for the rest of the world to follow. 


On Ad Spend

Businesses have been making smarter budget decisions because of AI.

Businesses have been enhancing their ad performance and making more informed decisions when it comes to their ad spend because of AI. Through AI-powered bidding models, advertisers are able to optimize their ad spend and generate maximum impact for their campaigns—even on tight budgets. Because of AI, businesses don’t have to depend on intuition alone when building their bidding strategies. They can use data-backed insights to show the way. 


Indeed, the world of advertising is changing by the second. And to thrive in this new era entails taking advantage of emerging technologies like AI.

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