How AI is Transforming Online Advertising

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How ai transformed online advertising

What role does artificial intelligence play in online advertising? Are there some interesting benefits of AI in digital marketing one might need to know?

In the past few years, AI technology and machine-learning services have been one of the fastest-growing industries in the world. According to a Gartner study, more than 37% of businesses have enhanced their processes with AI in one form or another.

As more companies realize the importance of having an online presence, they begin to investigate ways in which to improve their online advertising. 

Cue, Artificial Intelligence. 

AI’s innate ability to extrapolate valuable information from extreme volumes of data is where its benefits lie. The technology is helping top digital marketing agencies in Israel, the United States, the UK and so on work more effectively, making use of the data sets and information AI provides these teams. 

Ultimately, AI has given companies and businesses better insights into the minds of their customers than they have ever had before, providing an opportunity to increase conversions and profits. 

In this article, we will go through a few of the key ways AI is specifically being applied to help transform online business’ advertising.  You will discover some of the essential benefits of artificial intelligence to online advertising.

But first, what is AI? 

Artificial intelligence, in its simplest description, is the endeavor in which a machine is ‘thinking’ as a human. 

At the forefront of the AI space, we have Demis Hassabis. Representing Google’s DeepMind, he defines AI as the “science of making machines smart.” The benefit of AI is its capacity to learn and grow in all forms of online advertising. Theoretically, AI could exponentially learn at a rate that would accelerate past the point of our control, which is when a machine may gain something that resembles consciousness.

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That may be a long way off, or perhaps just the plot to great Sci-Fi movies. What is real is how this technology is already having a big impact on the way we live our lives and run our businesses. You can see this in our everyday Internet of Things.

Let’s dig back into a few of these now. 

1. Chatbots 

By now you will have all heard of chatbots. They have become synonymous with online shopping. In fact, it is estimated that 67% of worldwide consumers interacted with a chatbot to get customer support in the past 12 months. 

Chatbots are built on-top of AI technology. They enlist the help of natural language processing (NLP), natural language generation (NLG), and natural language understanding (NLU) to process what a consumer is asking them — then respond in a neutral, humanoid way. 

Chatbots have come along in leaps and bounds, and can now even be mistaken for human beings. The enormous advantage chatbots provide is 24/7 customer support. This level of service cannot be understated and is having profound impacts on online advertising. 

2. Personalized User Journeys

As well as providing 24/7 customer service, AI is going the extra mile to make sure customers are happy. Companies are implementing AI and machine learning to discover how consumers are behaving online. This data can then be used to change the design or recommendations of the platform in real-time to better suit the needs and requirements of the exact consumer. 

For example, Netflix will recommend shows to you and me differently. The AI integrated into the platform knows that I’m in love with Gary from Final Space, but that you would much prefer to watch Stranger Things. This personalization of user journeys, particularly through changing UI and UX in real-time is becoming increasingly common. Large companies like Google, Amazon, and Facebook are also utilizing AI to enhance this form of online advertising. 

The personalization of user journeys holds incredible potential, as it provides marketers with the opportunity to display copy alternatives and advertisements to consumers who are more likely to benefit from it. This will only result in one thing — increased conversions. If you are wondering how fine-tuned personalization works in email marketing, this is it.

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3. Creative Copy 

How artificial intelligence transformed online advertising

Taking it one step further, AI is now capable of writing these copy alternatives and advertisements themselves. Originally thought to be only good for rational lines of thinking, AI has proved its doubters otherwise. A practical example is CopyDyno.

With CopyDyno, you can write email copies, video scripts, advertising copy, sales copy, any e-commerce product description, webinar presentation slide, etc. You can write a lead generation ad copy and even all manner of email copies.

JPMorgan conducted A/B testing on one of their marketing campaigns and found that AI can potentially write better ads than humans can. In some cases, the new and improved headlines and ad copy that the AI wrote were clicked on twice as much as the copy written by its human counterpart. This led to JPMorgan signing a 5-year deal with this particular AI tech startup to handle their online advertising. 

On a smaller stage, we are seeing AI’s use case in this space growing by the day. AI is now capable of crafting compelling follow-up emails, engaging advertisements, and CTA’s that get interacted with far more than ones designed by humans. 

This, in the future then, could be how AI most radically transforms online advertising. If AI has the ability to be creative and innovative via analysis of human behavior, it may be primed to take over an entire industry. At that time, writing the attention-grabbing emails, sales copies and blog posts headlines will become a walk in the park.

After all, why pay a team of marketers to do what AI can do better for free? 

4. Geographical Targeting & Localization

AI is also being used to more accurately target audiences and demographics based on their location. This has proved extremely helpful in making ad copy that is more organic and native to those who are being exposed to it. 

As operating online has opened the doors for many businesses to provide their products and services globally, it has become necessary to localize their campaigns. This is where AI comes in. Instead of having to manually localize each and every campaign — a process that would eat into one’s resources — AI can automate the editing and adjustment of the campaigns according to specified variables. 

For example, AI could localize a campaign by rewriting a CTA or headline to make it more relevant to the consumer’s geographical area. It doesn’t matter whether you know how to write a great call-to-action or not. It wouldn’t make sense to have a headline from a campaign being run in New York if this ad was now being targeted at consumers in San Francisco. 

5. Automated & Programmatic Marketing

Before the days of AI, buying ad placements was a time-consuming process that could eat up hours of a workforce’s day. With the advent of programmatic and automated marketing, digital marketing and advertising has been changed forever. 

Programmatic marketing can be defined as the automated purchasing of digital advertisements by using machines. AI makes these decisions to purchase the advertisements based on its analysis of tonnes of consumer data. When implemented and set up correctly, advanced digital marketing teams can be hands-off and just monitor programmatic marketing, keeping an eye out for errors.

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Within programmatic marketing, AI can even predict the ideal number of exposures and retarget consumers accordingly. It does this through examining consumer behavior and pattern recognition. This means users do not continually get shown ads that they are not interested in, reducing occurrences of consumers becoming annoyed and distrustful of the company using programmatic marketing.  

Summary 

It is undeniable how much of an impact AI is having on the world of online advertising. It is becoming such a valuable tool that by 2025, AI, as an industry is predicted to grow up to a $118.6 billion market cap. These are only a few of the key ways AI is being implemented today by businesses and individuals around the world, looking to streamline their online advertisement processes. The future possibilities are endless! 

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