Artificial Intelligence (AI) is changing the advertising industry. Advertisers are now able to leverage AI to drive their marketing efforts and target the audience more accurately than ever before. Newer technologies like Machine Learning, Natural Language Processing, and Computer Vision etc., are helping advertisers to discover untapped audiences and increase ROI by personalizing the ads, measuring campaign performance and reducing wastage. Read on to learn how AI is disrupting the advertising world.

The Power of Artificial Intelligence in Advertising: How AI is Changing the Game

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How AI is disrupting advertising industry?

Artificial intelligence (AI) is all around us. From the alarms waking us up in the morning to the friendly voice of Siri on our iPhones, AI has become a part of our daily lives. AI is expected to impact all industries in the near future and the advertising industry will not be an exception. There are many ways AI is impacting advertising and many industries that are expected to be disrupted by AI. Let’s take a closer look at some of them. — Text-based advertising — The way we advertise is also changing and artificial intelligence is expected to play a large role in it. One of the biggest changes that AI will bring to advertising is the way we approach writing advertisements. Nowadays, advertisers often rely heavily on clickbait headlines that don’t really represent the content of the ad. However, with the help of AI, we will be able to write advertisements that are more relevant to the content. — Real-time advertising — Real-time advertising is another field in which AI can have a big impact. While real-time advertising is not a new concept, the way it is being done is. Real-time advertising relies on a system that can collect and analyze data about customers in real time and serve them with relevant ads. — Voice advertising — The use of voice assistants has increased significantly over the past few years. With increasing popularity of smart speakers like Amazon Alexa, Google Home, and more, the need for advertisers to employ AI in voice ad campaigns has also grown. Voice assistants are one of the fastest-growing markets as they help customers with their daily activities. — AI-driven creative tools — Creative tools are used by advertisers to create better ads. There are several different types of creative tools including advertising automation tools, ad management tools, ad creation tools, and so on. With the help of AI, it’s possible to create better ads with the help of these automated tools. — Real-time bidding (RTB) — RTB is one of the oldest and most common forms of advertising on the Internet. With the help of this tool, advertisers can bid on particular keywords in real time and show their ads on relevant search engine results pages (SERPs).

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Why is AI important for the advertising industry?

Marketers have always been driven by one question: “How do I find and reach my target audience?” While traditional media like newspapers, magazines, and radio provided great reach and guaranteed publicity, the Internet has completely changed the game. With the Internet, marketers have found a whole new world filled with opportunities. Connecting with existing customers and potential customers has become much easier due to the vast amount of digital channels. However, marketers have found another problem: lack of control. The Internet is a huge network where you can reach the entire world, but it’s also a place where you have no control. The challenge of the digital marketing is that it’s very difficult to control and measure the performance of digital campaigns. There is no way to know which channel works best for you, or to see how many people see your ads. Even basic information like how many people click on your ad, how many people visit your website after clicking on an ad, and how many sales you get from those visits is difficult to find out.

Data-driven marketing has always been the top priority for marketers. However, the way data is being used has changed with the emergence of artificial intelligence. Digital marketers are now collecting even more data than before and using intelligent algorithms to analyze the data. With AI, the marketing and advertising teams are able to collect data from different sources and create a single source of truth. A single data source is a must-have for digital marketers who want to use AI to drive their marketing efforts. Data helps AI to understand the marketing environment and helps marketers to understand customer behavior by providing insights about what customers like and dislike. For example, marketers can use AI to understand the type of customers who typically visit a brick-and-mortar store. Once this data is collected, AI can analyze it and create a digital marketing strategy for these customers.

Machine learning is one of the most important subfields in the AI sector. In simple words, machine learning is a subfield of artificial intelligence that enables computers to learn without being programmed. Nowadays, many advertising platforms are using machine learning algorithms to optimize their advertising campaigns. Advertisers can use machine learning algorithms to target customers and optimize their ad campaign. Let’s take an example to understand how machine learning works in advertising: Suppose a company is running an ad campaign on the internet. The company wants to sell its product to customers who are interested in drones. Now, the company can create an ad campaign with specific keywords to reach the target audience. Now, the system will use machine learning algorithm to show ads to people who are searching for “drones for sale”. It means the system will learn from user behavior and find the best way to show ads to users. This is how machine learning works in advertising.

Natural Language Processing in advertising

Organizations are moving towards Artificial Intelligence-based solutions such as Natural Language Processing (NLP) that enable the machines to understand human language. NLP allows machines to read, understand, and act upon language in the same way that humans do. With the help of NLP, your ads can understand what the customer is saying in their natural language and respond to their questions appropriately. NLP can be used to optimize the advertising campaign by collecting data from the customer’s website. For example, if a website visitor types “I want to buy a new drone”, the website can understand that the person is interested in drones and can perform any action.

Computer vision uses artificial intelligence solutions to understand images and videos. Computer vision can be used to understand the content of images and videos, classify images and videos, and categorize images and videos. In the advertising sector, computer vision can be used to analyze the content of images and videos. A computer vision solution can analyze the content of a video and suggest relevant advertisements to be displayed on the video. A computer vision solution can help an advertiser to keep track of the number of views a video has received. Computer vision can be used to analyze the content of images and videos to understand what type of product/service is being advertised. For example, an advertisement for a digital camera can be shown to people who are viewing images of landscapes.

Video content is growing rapidly, and it is predicted that it will account for 80% of all internet traffic by 2021. With the increase in digital video consumption, advertisers are now using artificial intelligence solutions to create personalized video ad campaigns. AI can be used to analyze the content of a video and create personalized ads based on it. With the help of artificial intelligence, you can create personalized video ads that are relevant to your customers and are less disruptive than typical pre-roll video ads. You can create video ads that are targeted towards your customers’ interests and can be served up quickly.

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Artificial intelligence is disrupting the advertising industry, and there are many ways AI is impacting the advertising world. Data-driven marketing, real-time advertising, machine learning, and computer vision are just some of the ways AI is changing the advertising sector. Now that you understand how AI is changing the advertising industry, you can make sure your business benefits from these new technologies.

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