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how AI is changing digital advertising

by OppGen

Have you ever noticed how ads seem to know exactly what you like?  

Well, that’s in part thanks to AI assistance.

First, a quick history of AI in digital advertising…

  • The idea of AI has been around since the 1950s, but it wasn’t until the 1980s that businesses started using simple AI to figure out which groups of people to target with their ads. In the 1990s, when the internet became popular, advertisers got a lot more information to work with. AI helped them understand what customers liked and didn’t like.
  • In 2000, Google launched a service called AdWords (now called Google Ads), which used AI to show ads to people based on what they searched for. This made ads a lot more relevant to what people were interested in. 
  • In the 2010s, AI got even smarter and could guess what people might want to buy. It also started deciding where and when to place ads online super quickly.
  • This decade: AI helps automate almost everything — from creating ads to figuring out who should see them for the best results.


Here’s what we’ll be covering:

1. AI in Advertising is Changing the Game

2. Automation in Digital Advertising

3. Real-World Examples of AI in the Digital Ad Space

4. What AI Can Help With

5. Projections: How Artificial Intelligence Will Keep Impacting Digital Marketing and Advertising

6. AI for Advertising is Personalizing the Customer Experience


AI in Advertising is Changing the Game

Why It’s a Big Deal and How It Supports Marketers…

Well, instead of guessing what people might like, marketers can use AI to look at tons of information about what people actually watch, click on, or buy. 

This helps them understand what’s popular and what’s not. 

AI can analyze all this data quickly and spot trends, like if a lot of people start buying skateboards as summer gets closer. 

It also helps marketers figure out the best times and places to show their ads, making sure they reach the right audience.

For example, imagine you’re looking online for a new backpack. Later, you start seeing ads for backpacks everywhere you go online. 

That’s AI working in the background.

It noticed you were interested in backpacks, and now it’s showing you ads hoping you’ll buy one. Or maybe you’ve talked about a new movie with your friends, and then you see an ad for that movie on your social media feed. That’s also AI at work, picking up on the things you and your friends are excited about.


Automation in Digital Advertising

Another cool way AI is changing the advertising industry is by automating the creation and management of ads. 

This means marketing agencies can set up their ads faster and make sure they’re effective. 

This gives skilled advertisers and marketing agencies the ability to analyze, iterate, and optimize on an accelerated scale. 

At its core, AI augments the existing skills, abilities, and experience of digital advertisers.  


Real-World Examples of AI in the Digital Ad Space

  • Predictive Analytics: Google’s Smart Bidding uses AI to figure out the best amount to bid on ads based on what’s likely to get someone to buy something.
  • Generative AI Content: Pixis’s AI-powered system creates pictures and videos that grab people’s attention and make them more likely to buy things when they see ads on different websites or apps. Pixis also tracks how well these ads do, so you can make even better ones next time, boosting sales even more.
  • Chatbots for Customer Engagement: Stores like Sephora use AI chatbots to talk to customers, help them find products, and give advice, just like a real salesperson would.


What AI Can Help With…

AI has a variety of helpful advertising capabilities. Here’s a handful of examples:

  • Find the Target Audience: AI digs through data to find just the right people to show ads to.
  • Ad Optimization: Automatically changes ads to get the best results.
  • Smarter Budget Management: AI can figure out the best way to optimize ad spend.
    Track Results: Keeps an eye on how well ad campaigns are doing and tells marketers how to improve them.
  • Stop Click Fraud: Catches sneaky fake clicks that waste money.


Projections: How Artificial Intelligence Will Continue to Impact Digital Marketing and Advertising

AI is changing how ads and marketing work online, and it’s going to keep making big changes. Here’s how AI is transforming advertising and will continue to impact digital marketing and what we might see in the future:

  • Increased Personalization: AI is getting better at figuring out what people like to watch, read, or buy. So, in the future, you’ll probably see more relevant ads that feel like they were made just for you.
  • Faster Decisions: AI can think really fast. This means that companies can decide where and when to show their ads super quickly, so the right ads show up at the right time more often, making advertising more efficient.
  • New Ways to Create Ads: AI isn’t just about choosing who sees the ads. It’s also starting to help make them. AI can generate ad messages or design pictures, making the whole process faster and sometimes even more creative.
  • Data-Driven Understanding of What Works and What Doesn’t: AI can look at how well ads are doing and learn from that. It can tell marketers what’s working and what’s not, so they can make even better ads next time.
  • Less Wasted Money: With AI, companies don’t have to guess where to spend their ad money. AI helps them put their money where it works best, so they waste less and make more people happy with their ads.
  • Predicting for the Future: Experts believe that AI will soon be able to predict trends before they happen, allowing businesses to prepare ads that will be popular before a trend even starts. Also, as AI becomes more advanced, we might see it handling more complex marketing tasks.

But even with the expansive scope of AI’s performance capabilities, you need advertisers who understand these tools, how to use them, and are familiar with the competitive landscape of the niches they’re advertising in.


AI is Personalizing the Customer Experience

AI helps make shopping more personal and fun. It can suggest products that make you feel like they were picked just for you, making shopping easier and more satisfying.

As a customer, you might’ve experienced how helpful AI chatbots can be, answering questions instantly and helping you out just like a real person would. This means a better shopping experience and less waiting around.


In Closing

AI is already making a big splash in digital advertising, and it’s only going to create bigger waves. Businesses that embrace AI will find themselves way ahead, making advertising more effective and customer-friendly than ever before. 

If companies want to stay on top in the future, they need to keep up with how AI is changing advertising, invest in new technologies, and always be ready to try new things. This proactive approach will help them discover new opportunities and maintain a competitive edge in the fast-evolving world of digital advertising. 

Speak to the OppGen team today to find the latest happenings in the world of AI advertising and how it might just be the right way to go about your business.

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