How Artificial Intelligence is Changing Advertising

Artificial intelligence (AI) is perhaps one of the most exciting technologies currently in development, and it’s breaking new ground with each passing year. AI is still a long way off from sentient machines, but despite that, it still has enormous potential to change a lot of industries.

Put simply, AI is the development of computer programs that are trained to complete tasks that humans would normally do. Computer programs can analyse huge amounts of data in a short time and can be used to analyse this data and make predictions. Using these techniques, AI can create new opportunities in finance, healthcare, and even advertising.

You can learn more about how AI works and how it can change the world with online courses in artificial intelligence. In this article, we’ll learn more about how AI is changing advertising, including everything from digital marketing to TV commercials.

Analysing Previous Successes

One of the things that AI does best is analyse data and use it to predict future results. In advertising, AI can be trained to look at how customers respond to certain ads, and the results of this can be used to create more effective advertising campaigns. A good example was when Lexus used IBM’s Watson AI model to analyse 15 years of award-winning TV ads. The AI then used this data to produce its own car commercial, designed to resonate best with current audiences.

Not only can this be used to create ads, but it can also be used to determine the best advertising strategy. Companies can input past advertising and sales data, allowing the AI to work out what worked best and how to improve in the future. Not only will it look at successes but also at failures too, ensuring that the advertising strategy is as effective as possible.

Building Accurate Customer Profiles

When devising a marketing plan, it’s always important to make sure that you have good knowledge of your target market. In addition, most marketers build customer profiles, allowing them to create better advertising that’s targeted towards the right people. AI can be used to analyse customer data and develop more accurate customer profiles, giving marketers a solid understanding of their audience.

One of the main reasons consumers fail to engage is due to content that’s not relevant to their interests or needs. Advertisers can discover trends based on audience behaviour and message resonance by utilising machine learning, a form of AI. To determine the type of content a particular niche sector truly wants to see, machine learning considers all the data it has on a given person, including demographics and online behaviour.

Creating Personalised Ads

Personalisation is where consumer data is used to improve the relevancy of an ad. This helps brands connect better with their audience while giving consumers a better experience. This ties into the aspect of creating more effective customer profiles, which ensures that companies can target people more effectively.

Targeted and personalised advertising is particularly effective online, where a wider range of data is available to collect. Social media platforms, for example, collect a huge amount of data on each user. AI tools can use this data to build personalised ads which will only be shown to certain people. In the modern world of advertising, there’s a growing shift towards personalisation, and many consumers now expect the ads they see to be relevant to them. Effective personalisation leads to better brand loyalty and increased ROI on marketing spending.

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