Artificial intelligence (AI) is making big impacts across industries, and advertising is no exception.
Marketers have come to depend on artificial intelligence (AI) to revamp and improve strategy side by side with data analysis and personalization.
According to Deloitte’s global AI study, more than 80% of organization leaders view AI as either very or critically important to the success of their business over the next two years. And data from the IDC shows that by 2023, global spending on AI systems will hit $97.9 billion.
So, why is advertising increasingly incorporating AI? Here are 5 key benefits that are proving AI is a necessity.
1. Programmatic advertising
Programmatic advertising refers to the automation of buying and selling online ads. This means a single technology platform can be used and transactions are automatic and streamlined. Computers make decisions about which ads to purchase, and for how much, based on data analysis. This creates a much easier process for marketers, who would be analyzing the same data and making the same decisions, only not as fast.
eMarketer predicts that by 2021, 88% of all digital display ad dollars in the U.S. will be transacted programmatically. Automation will increasingly be incorporated into digital display ad campaigns as more businesses continue to benefit.
2. AI assistants and advertising
More and more people are incorporating AI assistants into their everyday lives. These usually take the form of a smart speaker, like Google Home or Amazon’s Alexa. Pew Research data shows that a quarter of Americans now have a smart speaker in their homes.
This opens an opportunity for more voice advertisements to be integrated with these AI assistants. Studies have shown that consumers are more engaged by voice ads. According to an Adobe Digital Insights survey, 43% of consumers feel that voice ads are less intrusive than more traditional ad spaces like TV or social, and 42% found them to be more engaging.
3. Personalizing advertisements
AI helps marketers better profile consumers and thus contributes to more accurate segmentation and ad targeting. This is done by analyzing customer behavior and decision making in real-time, and building personalized messages and relevant ad distribution on this data.
Smart recommendations can be made to consumers based on data points like age, location, order history, and gender, all thanks to incorporating AI in profiling and segmenting audiences. This is more important than ever as customers increasingly care about seeing personalized messages before deciding to be loyal to a brand. AI also assists marketers with knowing which customers will have greater lifetime value, and ad media can be mixed and adapted based on consumers’ reception of previous messages.
Ads are then automatically created using AI. The right people are targeted in real-time, and they can even be reached across multiple channels. Marketers can learn how customers respond to messages on each channel to improve their strategy even more.
4. Improving spend forecasts
Integrating AI and machine learning means you can have a much more accurate prediction about the future behaviors of consumers, as well as the performance of ad campaigns. This is especially important for marketers in the area of advertising spend. AI tools can review and analyze spending, ROI, and any significant changes, and optimize future ad spending based on these factors.
Using AI in this way will help your business see better ROI on paid advertising. Predictions will no longer be made based on assumptions, but actual facts and marketing data.
5. Gathering data across channels
A major benefit that AI brings to advertising is the ability to track and analyze data across marketing channels. This includes paid search, content marketing, social media, and more. This comprehensive study and collection of data is a requirement to remain competitive in the age of digital marketing.
AI tools can instantly detect data patterns, provide necessary measurements and metrics, and optimize strategies across all outlets that are part of your marketing efforts. This is a crucial use of AI that will bring you closer to reaching the right people who are ready to see and hear your ads.
Using BDEX data
BDEX provides a data infrastructure that empowers your brand to make more meaningful connections with your audience. The BDEX Data Exchange Platform (DXP) delivers real-time insights that set you apart from competitors you’ll avoid using the same customer data over and over again with up-to-the-minute user behavior data.
BDEX creates individual consumer profiles so you know who you’re targeting behind each data signal. Take advantage of the BDEX Identity Graph to match customers across channels and Omnisource IQ, the Data as a Service offering from BDEX that helps you get your messages in front of consumers who are ready to make a purchase.
Contact BDEX to learn more about our data marketplace and innovative data tools.