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The advertising industry has been evolving rapidly in the last couple of decades. Today, businesses don’t rely on one-way TV or newspaper commercials, but rather try to use highly personalized digital ads to grab the attention of each prospect individually.What made such an overwhelming impact on digital marketing? The answer is simple: Artificial Intelligence (AI). By definition, AI is the capability of a machine to imitate intelligent human behavior.While the technology still cannot reach the human level of imagination and creativity, it has one substantial advantage. Unlike the human brain, AI can accumulate, organize, and analyze massive volumes of information effortlessly.This gives intelligent machines the power to influence almost every single aspect of our daily lives. In this post, we will show you how the future of digital ads is changed because of AI.
7 Ways AI Impacts Digital Advertising
AI is helping digital marketers to create better and more productive advertising campaigns. The technology impacts the process on so many levels, but we want to highlight the most important features only. Without further ado, let’s see seven ways AI impacts digital advertising.
1. Audience targeting
Extremely precise audience targeting is the first advantage of using AI in advertising. Modern platforms such as Google or Facebook give you a wide range of possibilities to identify and target highly specific types of consumers.As the largest social platform in the world, Facebook gives us a great example of how AI-based advertising works in practice. There is hardly anything to add here because the network lets you choose between three types of audiences:
- Saved audiences: It allows you to target people based on their interested and other demographic features.
- Custom audiences: You can retarget users who already established some sort of interaction with the brand through websites, apps, etc.
- Lookalike audiences: These are the prospects who resemble your current customers.
Needless to say, this level of audience targeting would be impossible without AI and its ability to process and evaluate enormous volumes of data in real-time.
2. Personalized advertising
We already mentioned the possibilities offered by Facebook, but every other digital advertising platform deploys pretty much the same technology personalization-wise. Namely, AI can process the entire history of customer interactions and decide which type of ad to serve to the targeted prospect.Jason Gardner, a digital marketing specialist at Australian Writings, explains how AI functions: “The system knows when a customer interacts with the same sort of content over and again. For instance, if you search for the same pair of shoes for a few times, rest assured you are going to see a digital ad promoting this same product all over the web. It can hardly get any more personal than that.”
Related: Digital Ads: Why Settle for the 6% When You Can Shoot for the 94%
3. Voice-based marketing
Do you know that 50% of online searches will be voice-based by 2020? The rise of AI allows smartphone users to interact with digital content using vocal orders. In such circumstances, marketers have to respond by creating content that suits the growing demand for voice optimization.Once again, new technologies can help you to take advantage of this trend and win over the audience with relevant content. For instance, AI can be your assignment help while creating voice-optimized ads because it knows which phrases to use and how to adapt copies so as to suit the audio search style.
4. Chatbot technology
Chatbot technology is winning over the Internet because it enables 24/7 availability and allows businesses to always be there for their consumers. Instant messaging tools take customer service to the whole new level, but they also change and improve digital advertising strategies.What makes chatbot advertising so special? Well, it’s the fact that AI encourages interactivity. You don’t have to be a passive advertiser anymore. Instead, you can get proactive and address potential customers through the instant messaging platform.With its powerful analytics, AI understands the needs and demands of your audience. The system reacts in real-time and sends promotional messages to your audience with tailored offers that correspond with the interests of a specific receiver. It makes digital advertising more dynamic and engaging.
5. Augmented Reality
Augmented Reality (AR) is not a novelty, but it is getting increasingly important in the world of digital advertising. Tech gurus at edugeeks club explain that the technology is based on AR, noting that it exploits super-fast processing capabilities to add new layers of information to the existing image.If you are wondering how it works in practice, here is a good example. IKEA Place is a mobile app that augments reality to ensure better shopping experiences. The tool helps buyers to analyze and choose furniture by giving them the chance to test products before buying. This is only one but extremely vivid example of how AI elevates digital marketing and helps brands to drive consumer engagement.
6. Predictive analysis
AI improves digital advertising in real-time, but it’s not where the story ends. On the contrary, this technology makes it possible to analyze historical data and predict future trends very precisely.Instead of relying on your guts and personal experience, you can now make data-driven decisions that maximize the conversion potential. Here are only some of the things you can do with AI:
Predict the odds of turning prospects into full-time consumers;
Estimate the discounts needed to encourage prospects to complete the purchase;
Determine who has the potential to become a returning customer.
7. Increase digital advertising ROI
After everything we’ve seen so far, the only reasonable conclusion is that AI really boosts the ROI of digital advertising. According to the report, businesses now make an average of $2 in revenue for every $1 they spend on Google Ads. It is already a big achievement, but we can expect this figure to keep growing in the years to come. As AI keeps getting better and more advanced, digital advertisers will get the opportunity to minimize budget waste and maximize the profitability of their campaigns.
Conclusion
AI has made a substantial impact on the way we live and do business. Digital advertising is not an exception here because marketing communication has also become tailored and more versatile. In this article, we showed you seven ways AI changed the future of digital advertising. The benefits of AI technologies are immense, so you should definitely consider embracing this powerful marketing tool if you haven’t done it already.