How AI can shape the Advertising Sphere

Frameworks like generative AI enable us to remain relevant to the consumer in a manner that seems crafted just for them – that is hyper-personalization at scale – Nitin Saini ,VP  – marketing, Mondelez India.

Artificial intelligence has been on the threshold for a while, but the advent of ChatGPT and other generative AI tools is unlocking its potential and finally realizing its value. When used properly, generative AI can offer us fantastic solutions to even the most complex problems in the marketing and advertising industry. Let us see how AI is making waves in the industry.

Generative AI in Advertising

Such tools learn from data to generate innovative creations on demand for users. Generative AI can create content across images, speech, text, video, and product design code with simple prompts, in a matter of minutes.

According to an analysis by Gartner, 30% of outbound messages from large organizations will be AI-generated by 2025.

With such advanced capabilities of generative AI, consumers can create their own ads, design greeting cards for their loved ones through celebrities, or combine multiple videos and create pieces of content that look customized to unique customer experiences.

Modern businesses have already started leveraging the capabilities of generative AI to drive personalized communication toward their target groups. For example, fast food competitors McDonald’s and Burger King have recently come up with ChatGPT-written billboards. Apparently, this step shows how industry giants are taking advantage of AI capabilities for their out-of-home advertisements.

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What does it mean for modern advertisers?

Statistics show the worldwide market for outdoor advertising is expected to grow to $39.2 billion by 2030. In this fast-paced digital world, audiences have a multitude of options, and gaining their attention towards a brand is difficult. Advertisers must tap into AI technologies for outdoor advertising and it can make a difference. The move can contribute to increased investments to be made in this space and they can ensure that their messages reach their relevant target groups.

Talking about the OOH advertising sphere, here is what an AI-deal world looks like:

• AI can process real-time data for OOH ad optimization. Modern businesses must tap into these capabilities to generate relatable and impactful ad campaigns for their target groups. For example, when the weather gets cold, the billboard will automatically change the content and display ads for sweaters, hot soups, and so on. So, AI helps to create hyper-personalized ad campaigns and enhance the overall effectiveness of their outdoor campaigns.
• AI can analyse the historical data and market trends. It can supply advertisers with optimal locations, timings, and ad formats to enhance the impact of OOH campaigns. So, AI helps the marketing and advertising teams to find appropriate areas and locations that deliver the best ROI and spend advertising budgets more effectively.
• AI carries the potential to analyse a wide range of data sources from social media to demographics to consumer behaviour patterns. Apparently, it provides valuable insights for businesses about audiences in a specific location and their behaviours. So, the marketing team knows where, how, and what ads to post.

The impact of AI on digital advertising

Generative AI is itself digital and it already has its virtual fingerprints all over digital advertising. Not to forget, machine learning, which falls under the umbrella term of artificial intelligence, is at the heart of programmatic advertising and real-time bidding. Undeniably, various digital advertising platforms are leveraging AI to create custom campaign optimization, facilitate time savings, reduce ad spend waste, increase conversions, and inform decision-making with real-time data and insights.

Top digital agencies and brands have already adapted to generative AI. According to a recent survey, 72% of marketing and advertising professionals have started using generative AI tools as part of their digital advertising at least once in a month. They adopted AI capabilities from research to content creation and personalization. Advertisers and marketers are embracing AI, with four in five predicting it will radically transform digital advertising in the next 3-5 years. This could be a tipping point for AI in marketing, as early adopters pave the way for wider adoption.

Conclusion

The advertising world is on the cusp of an AI-driven revolution. Artificial intelligence is not just enhancing advertising; it’s fundamentally reshaping it. From precise targeting and predictive analytics to programmatic advertising and content personalization, AI is the catalyst for a new era of advertising that is data-driven, personalized, and efficient.

As advertisers continue to embrace AI technologies, it’s crucial to strike a balance between automation and creativity. AI can handle the heavy lifting of data analysis and optimization, allowing human marketers to focus on strategy, storytelling, and brand-building.

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