The advertising campaign industry is undergoing a huge transformation, thanks to Artificial Intelligence (AI). According to a 2019 Salesforce study, 51% of marketers are already using AI and 27% plan to adopt it in the next 2 years.
Indeed, today’s marketing is data-driven and becoming less dependent on creativity and a big budget. Companies such as Google and Facebook have profoundly and permanently changed the advertising industry, making it more accurate. Thus, understanding the mechanisms of social platforms has become an essential skill for success in this field.
In this article, we’ll explore how artificial intelligence can improve the effectiveness and relevance of advertising campaigns, as well as the limitations to consider.
AI in advertising: how does it work?
Mastering the impact of AI on advertising campaigns is absolutely essential if you want to thrive in the new advertising landscape. Thanks to the internet and programmatic advertising, you now have the ability to reach consumers on a multitude of digital platforms. You can also target your audience using hundreds or even thousands of demographic and behavioral data points. But that’s not all: you can also test a multitude of different ads to see which ones perform the best.
However, it is important to recognize that in the face of this growing complexity, managing these challenges effectively represents a real challenge for us as human beings. Certainly, we excel at strategy and creativity, as was demonstrated in the legendary era of Mad Men advertising, when a brilliant idea and a hard-hitting slogan were the key to the success of any advertising campaign. Even today, our role is crucial in developing strategies and creating memorable ads.
Faced with the vast amount of data available and the need to act quickly to improve your campaigns, we quickly reach our limits. We don’t have the capacity to effectively analyze all the data we have to take quick and informed action. Managing hundreds, if not thousands, of ad variations, targeting, and budgets to get the best results is a herculean task. And finding new customer opportunities in a sea of data is a complex challenge.
This is precisely where artificial intelligence comes into play, offering capabilities far beyond our human skills. Forward-thinking companies are using AI to help you allocate your advertising budgets optimally, whether that’s across different channels or targeting specific audiences. Additionally, AI can automatically adjust your ad budgets to meet your set KPIs. Thanks to its data analysis power, it also allows you to discover new advertising audiences and conversion opportunities within this mass of information. By creating richer audience profiles, it gives you an in-depth understanding of your target consumers.
But the AI doesn’t stop there. It goes beyond your expectations in terms of advertising creation. It is able to automatically generate compelling advertising text and create attractive visual ads for you. Its hyper-personalization power allows you to tailor advertising messages and imagery to each individual consumer, enabling pinpoint advertising targeting.
The Different Types of AI Revolutionizing Advertising: Machine Learning, Deep Learning and Natural Language Processing
In the field of advertising, AI is deployed through different types of revolutionary technologies. Three of them stand out in particular: machine learning, deep learning and natural language processing.
Machine learning, or automatic learning, is a branch of AI that enables systems to detect complex patterns and make intelligent decisions based on the analysis of large amounts of data. In the context of advertising, machine learning helps optimize advertising campaigns by analyzing consumer behaviors, identifying trends, and adjusting parameters in real time to maximize results.
Deep learning, on the other hand, is an advanced form of machine learning that is inspired by the functioning of the human brain using artificial neural networks. Using this technology, systems can process unstructured data, such as images, videos or sounds, and extract relevant information from them. In the field of advertising, deep learning makes it possible to create visually appealing advertisements and to analyze consumer emotions in order to adapt messages accordingly.
Finally, natural language processing (NLP) is a branch of AI that focuses on understanding and manipulating human language. In the context of advertising, NLP is used to analyze consumer feedback on social media, forums, and online reviews, to understand their preferences, needs, and opinions. This analysis allows advertisers to create more relevant advertising messages and establish more authentic communication with their target audience.
These different forms of AI are revolutionizing advertising by offering unparalleled analysis, creation and understanding capabilities. Using machine learning, deep learning and natural language processing, advertisers can optimize their campaigns, create more impactful ads and better understand their audience’s expectations. The future of advertising is undeniably shaped by these technological advancements, opening up new vistas and providing unparalleled opportunities for advertisers looking to stand out in an ever-changing advertising landscape.
AI is revolutionizing the optimization of advertising campaigns
Audience segmentation
Want your ads to reach the right people at the right time? AI can help with audience segmentation. Using powerful algorithms, it analyzes a massive amount of data about your consumers, ranging from their preferences and interests to their buying habits. With this in-depth analysis, you can divide your audience into specific segments, allowing you to create targeted and relevant ads for each group. Accurate audience segmentation guarantees you maximum efficiency and impactful results.
Performance prediction
For optimal ad performance, ad performance prediction is essential. Thanks to artificial intelligence, you can analyze large amounts of data in real time and benefit from valuable information on trends and future prospects. These predictions allow you to adjust your delivery strategies, your targeting and your message to maximize the performance of your advertising campaigns. By using the predictive powers of AI, you can make informed decisions and direct your resources to the most promising channels and audiences.
Content personalization
To create real impact, content personalization is key. Using AI, you can analyze your target’s behavioral data and past interactions with your brand to deliver a personalized advertising experience to every consumer. By tailoring your ads to their specific interests, needs and preferences, you drive engagement and increase conversion rates. AI allows you to create tailored ads, ensuring that every consumer feels understood and valued. Deliver a unique and memorable experience to your audience with AI-powered content personalization.
With artificial intelligence as your ally, you can give a new dimension to your advertising campaigns. Segment your audience to reach the right people, predict performance to maximize results, and personalize content to create unique experiences.
The challenges of using AI in advertising
However, it is important to note that AI in advertising is not without limitations.
Protection of private life
AI in advertising can collect and use large amounts of personal data to target consumers more accurately. This raises privacy concerns and compliance with data protection regulations including the General Data Protection Regulation (GDPR) in Europe. Advertisers should be aware of these potential risks and take steps to protect their customers’ personal data.
Nevertheless, the GDPR should not be seen as a brake on the use of AI in advertising, but rather as a necessary limit to guarantee the protection of consumers’ personal data.
AI offers powerful opportunities in advertising, but balancing the use of AI with privacy and regulatory compliance is key. By adopting an ethical and responsible approach, advertisers can harness the full potential of AI while protecting their customers’ personal data.
Bias in the data
Another significant challenge with AI-based advertising is the potential for bias in the data used to train the algorithms. If the data used is itself biased, this can lead to discriminatory or unfair decisions being made by the AI system. It is therefore essential to ensure that data collection is done in a neutral , objective and exhaustive way in order to guarantee that AI serves the interests of users and does not reproduce the biases or inequalities present in the original data. .
By implementing rigorous protocols to collect and prepare data, avoiding systemic biases, and applying ethical training methods, it is possible to reduce these risks of bias in AI-based advertising.
To ensure exhaustive collection, particularly in an increasingly cookieless world, Wizaly also uses traditional tracking systems for specific API connections to enrich the data before making it available to the algorithms.
Reliance on technology
AI in advertising can be an effective solution to achieve advertising goals, but it can also lead to overreliance on technology. Advertisers can become overly reliant on AI and overlook the importance of human creativity, intuition, and subjective experience in creating effective ad campaigns.
The potential of Artificial Intelligence in marketing attribution
The benefits of AI in advertising are numerous, its use in marketing attribution also represents considerable potential for improving the measurement and optimization of advertising campaigns. Despite the limitations of AI, this technology offers unique capabilities that can be leveraged to strengthen marketing attribution, especially through solutions such as Wizaly.
Indeed, with the increase in cookie restrictions and tracking limitations, traditional rules-based marketing attribution methods are becoming increasingly difficult to implement. This is where Machine Learning (ML) comes in, giving businesses an alternative way to accurately attribute conversions to the marketing channels that drive them. This method is called “algorithmic attribution”.
What is Algorithmic Attribution?
Algorithmic attribution is used to solve the challenge of marketing attribution in a cookieless world with tracking limitations. This technique uses Machine Learning algorithms to analyze large amounts of data, including all customer interactions with a website, to accurately attribute value to marketing campaigns and channels.
Without cookies, businesses struggle to track customer interactions across devices and correctly attribute conversions to the marketing channels that generated them. For example, when a customer visits a website after clicking on an online advertisement, it can be difficult to track and correctly attribute the conversion to the original advertising channel, i.e. the ad.
Algorithmic attribution uses data analytics to understand the customer journey to purchase and determine the role each touchpoint played in conversion. It accurately measures the contribution of each marketing channel to a conversion, even when the purchase journey is complex and the data is more limited, which can also be the case of impressions on social networks “Walled Garden ”. The attribution then integrates other technologies such as marketing mix modeling to take into account the different types of more or less limited data.
This synergy between artificial intelligence and marketing attribution has many benefits, including better insights, advanced marketing analysis and reporting, and more.
But not only does Algorithmic attribution allow companies to make more informed decisions about advertising spend and maximize their return on investment (ROI) by allocating marketing budgets to channels that have the greatest impact on conversions.
However, it is important to emphasize that the use of AI should not completely replace humans. Experts must always be involved to evaluate the results and refine the advertising strategy accordingly, which is the case at Wizaly via our data analysts.
AI offers immense potential to improve online advertising and allow advertisers to better understand their audience and optimize their advertising investments. As marketing and advertising professionals, we must embrace this technology and learn how to use it strategically to achieve the best possible results for our clients. Thus, to maximize the relevance and effectiveness of your advertisements, Wizaly is a solution to consider.
You can benefit from improved efficiency and performance optimization thanks to the Wizaly algorithmic attribution platform, which has been using all AI technologies for more than 7 years. So, don’t hesitate to request a free demo of the platform to find out how you can benefit from the power of AI in advertising.
