1 Artificial Intelligence and Advertising2 AI Changes Advertising2.1 Personalization2.2 Setting correct targeting2.3 Improving ad conversion3 Ways of Using Artificial Intelligence in Advertising3.1 Machine Learning3.2 Analysis of Big Data3.3 Diverse Artificial Intelligence Advertising Solutions4 Issues AI Faces in Advertising4.1 Privacy of Data4.2 Quality of Data4.3 Lack of Data4.4 Insufficient Budget4.5 Lack of Trust in AI among Companies5 Final Words
This is very beneficial for advertisers, as AI technologies can set the desired targeting and collect data on the habits of the target audience.
AI Changes Advertising
Speaking about artificial intelligence and advertising, it’s necessary to admit that such technology changes advertising a lot by providing it with new trends and mechanisms of work. What artificial intelligence advertising solutions do people have today? Check below!
Personalization
“Personalization is an integral part of successful advertising. This term refers to the processing and use of data obtained about consumers to increase the attractiveness and relevance of advertising for a given target audience of any width – from lots of people to one person. Artificial intelligence collects this data, processes, sorts it, and generates personalized offers for the customer based on their previous behavior, preferences and global trends.” Eugene Medved, data science consultant, at InData Labs After the introduction of this technology in the process of creating advertising, its perception by potential buyers has become much higher.
Setting correct targeting
Artificial intelligence allows you to carry out such an important procedure as the selection of the target audience even before the ad is displayed. It is much more profitable and more convenient since this advertisement will be shown to an already defined target audience, where the advertiser will quickly find buyers. In addition, you will eliminate any errors, because the system carefully checks all audience data.
Improving ad conversion
Artificial intelligence advertising features make its conversion better due to a detailed analysis of its previous trends and progress. Thus, most advertisers emphasize that AI facilitates interaction with customers. They claim that correct targeting with personalization is necessary for an excellent conversion.
Ways of Using Artificial Intelligence in Advertising
There are many artificial intelligence advertising solutions. This technology is used differently in this sector, so, below, you will see the ways it is utilized.
Machine Learning
AI uses cognitive advertisement, which means that the technology analyzes the previous information about the audience by some algorithms and utilizes it for future advertisement. It is done thanks to a separate sector of AI – machine learning.
Analysis of Big Data
AI and Big Data effectively work together. Their relations are beneficial for both sides because AI uses Big Data for analyzing more information and accepting appropriate decisions, while Big Data cooperates with AI for better analysis of their data. Thus, AI has enough data to analyze and make your advertisement more attractive and useful for users.
Diverse Artificial Intelligence Advertising Solutions
AI offers quite effective solutions for advertisers, which help them realize their audience’s preferences more. From these details, it becomes easier to set fruitful advertisements and attract more clients through them.
Issues AI Faces in Advertising
Although artificial intelligence advertising features are incredible, this kind of technology also faces some challenges. Here we named their main examples.
Privacy of Data
There are certain generally accepted rules for collecting and processing user data. Their violation leads to the payment of large fines and, accordingly, the loss of reputation of the company that violated them. This can be a problem when using AI as if this technology violates the data collection rules even slightly, the company that used AI in this way will be punished. So, to prevent it, the company needs to get familiar with all the rules regarding the privacy of users’ data in advance and understand how it is crucial for its clients. The users’ data must not be shared with someone else as well as used for personal mercenary gains.
Quality of Data
AI aims to process high-quality data, while low-quality data will not produce successful results from using AI in advertising. Although a company may have a large amount of data, it may be of poor quality, and not suitable for reliable processing by artificial intelligence. So, it will become a problem for artificial intelligence, as well as for the company using it since the success of the advertising will not be provided.
Lack of Data
There is a similar problem as described above. If the data volumes are very small, artificial intelligence will not be able to provide a proper analysis of possible solutions to improve advertising. However, recently these problems have been noted less frequently, as companies strive to collect as much data as possible but the issue of their quality remains unresolved.
Insufficient Budget
The allocation of insufficient budget by companies for the work of artificial intelligence can affect its effectiveness. The fact is that many companies underestimate this technology. Artificial intelligence requires quite complex software and proper hardware. Therefore, because of this, artificial intelligence needs significant investments that not every company can afford.
Lack of Trust in AI among Companies
Since artificial intelligence is a new technology, which is also complicated by non-traditional mechanisms for working with data, many companies are wary of it. They do not want to risk their reputation and fear that this technology will not suit them. This factor is one of the main problems artificial intelligence faces while working with advertising.
Final Words
Artificial Intelligence plays a significant role in advertising. With the help of it, advertisers get their targeted audience and solutions for attractive advertisements. AI uses complicated mechanisms and algorithms to collect and process all data properly. Big Data helps a lot for this by providing more data to AI systems. Although the role of artificial intelligence in advertising is gigantic, it still faces lots of challenges today. They are insufficient budgets of companies, their lack of trust in AI, lack of data, and some more. However, AI in advertising shows amazing results nowadays, which means that the use of this technology will be increasing and flourishing.
