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.
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