What has artificial intelligence influenced advertising?

Time is changing and so is technology. Despite artificial intelligence is not fully developed, it has already influenced many industries. One of the biggest industries is advertising. You might be curious how AI affects the field of advertising. As we know, before publishing an ad campaign, there is a lot of preparation need to be taken into account. However, with the hands of artificial intelligence, it can help things to be more accurate and more in-depth. So, how does it exactly help in advertising? Let us see what we have here.

I.)             Data analysis

One of the things that advertisers need to consider about is data collection. After collecting data, analyzation need to be done and then come out with the best solution that fit the current situation. Advertising agencies have been tangled with analyzing data as they have to analyze huge amount of data and make sure there is no missing piece before proceed to whatever step that they take. Some advertising agencies even hire data analysts to do the job. However, with the existence of artificial intelligence, agencies could save much time and money in this stage. AI helps to analyse tons of data accurately; however, when it comes to analyzing people’s conversation on the internet, AI could not do it as accurate as human do, because it is not emotion driven object. Despite of this weak point, AI at least helps to analyse data content and it is expected to be better and greater in the future.

II.)           Media buying

Because of the strong capabilities of targeting audience, AI has a big impact on media buying process. As mentioned, AI is good at data analyzing, after collecting the data and compel them together, it is obvious that you can create an accurate profile of an individual. (DIGIDAY, 2017). With the accuracy of target audience, advertising agencies and advertisers are able to target the niche market and choose the most suitable platform to publish/expose their ads. In 2016, Volkswagen, a successful case study, bought the AI recommendation’s platform for the first time for a campaign, turned out it brought up to 14 percent sales in order from Volkswagen dealers. It was successful as the data information that provided by AI recommendation’s platform is more accurate than the recommendations from ad agencies.

III.)        Predicting conversion

Not only does AI know well about every single consumer buying behavior, it also helps to predict conversion rate. (Stackadapt). In terms of ROI, advertisers are able to know the value of the ads and knowing how exactly the advertisers would get out of it. Artificial intelligence target every visitors that has already been to your website, signed up or bought your product anyway. With this targeting, AI is able to predict the conversion. Not only so, this also helps to add value by reminding visitors; however, it may be annoying.

IV.)        Programmatic Advertising

Programmatic advertising is an automated ad buying and selling system that liaise with publisher and advertiser in regards to ads inventory buying and selling. The classic example of programmatic advertising is SEM advertising on channels that Facebook and Google have been practicing. Although Facebook, Google and other social media platform have provided a trackable statistic for advertiser (and agencies), it is not as accurate as programmatic advertising is. Because the system that runs programmatic advertising is artificial intelligence. AI has its own algorithms that analyze visitors’ behavior that allowing for real time campaign optimizations towards an audience more likely to convert. This is why programmatic companies are able to gather the audience data and then target them more precisely and accurately. In 2016, Audi apply programmatic advertising for its customizable car, the Q2, turned out “it delivered more than double the efficiency of standard ads”.

AI seems to be unrelated to advertising but in fact, it does influence in certain ways. For example, AI helps in data analyzing, reading consumer behavior, and conducting research. These are not be forgettable as if it is backstage personnel. It helps to conduct many preparations before an ad is pulled out. Not only does AI helps in time saving in terms of data research, it also helps in cost saving. According to ClickZ, “it is predicted that over $76 billion will be spent annually on ‘Big Data’ technology by 2020. With the help of AI, it is believed to lower the cost in data analyzation. Therefore, AI does influence advertising; however, do not afraid that your job will be replaced with AI; still we can do many things that AI cannot do.