Mumbai: Artificial intelligence is one of the transforming phenomena from a trend in modern times when it comes to digital advertising. As Gandharv Sachdeva, an experienced digital expert and India country head of Hybrid, stated, “AI has transformed digital advertising”. He explains how the developments in AI have significantly influenced digital advertising and points out that the biggest impact has been felt in the field of segmentation and personalisation.
Times, when there were no ads with explicit, consistent, and well-targeted messages, are long gone. AI has given rise to digital advertising, which is now data-driven and the application of algorithms has made it possible to run hyper-targeted ads. Apart from enabling a more efficient budget allocation, the user experience has also improved as the right message is shown to the right individuals at the right time.
Predictive analytics is another advancement of AI that is worth mentioning. Predictive analytics allows marketers to optimize their ads to make them more personalised and adapt to consumers’ actions based on historical data and machine learning algorithms. For example, the company selling outdoor equipment can use this technology to suggest products based on what its chosen customers have already bought in its store or what such clients have looked for in specific months of the year. However, such a benefits approach is not only beneficial for achieving marketing goals, but it also helps build a stronger relationship with customers by making communications more relevant and timely.
Moreover, artificial intelligence has been a great tool for the personalization of ads by providing unique and personalised experiences at scale. Now, marketers can apply dynamic content and also adaptive suggestion engines that can be customized to each viewer. A streaming service / OTT platform might integrate AI to show relevant ads based on the content that is being consumed by the users such as sports, travel, adventure, etc. thus increasing user engagement and satisfaction.
In addition to the above, advertising associated with AI also diversifies attention to targeting, personalisation, and achieving maximum optimization. AI algorithms provide a means of identifying the successes and failures of a campaign in real time and can always assist advertisers in making immediate decisions. Brands can then respond quickly to changes in the market because they can always get the best from their budget. For instance, a clothing brand can use AI to target the top five fashion styles while focusing on consumer response rates to get the best out of its budget achievable.
In a nutshell, artificial intelligence in advertising has brought about a paradigm shift in the way brands interact with their audiences. AI can now be used by marketers to reach their target customers with the use of customized ads, personalisation, and optimisation in real time. The advancement of technology creates new ways and opportunities for the ad industry with AI being one of them, which will push the change and establish new marketing standards. Nevertheless, the rise of AI in digital advertising is just as important as ensuring that advertisements follow all ethical standards and practices. Marketers must balance individualisation and privacy, in which the consumers' data are used proportionately and transparently.
