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Why AI is taking over the advertising industry
This is why AI is starting to gain traction in marketing and advertising.
Thanks to the digital marketing revolution, we have tons of data at our disposal from CRM systems, marketing automation software, ad platforms, etc.
But we lack the time, energy, or cognitive capacity to process all of this data effectively, even though it probably holds insights that can dramatically improve our campaigns. Our marketing and advertising performance suffers as a result, costing huge amounts of time and money for brands.
As a result, entrepreneurs and forward-thinking marketing leaders are turning to AI for its ability to increase revenue, reduce costs, and build massive competitive advantage.
And when it comes to AI for advertising, there are already plenty of use cases and tools that anyone can understand, pilot, and scale.
How AI applies to advertising
Advertising platforms give us tons of data to work with, including measurable impressions, click-through rates, bid levels, demographics, and more.
Humans certainly have the ability to produce good advertising, measure that advertising, and improve ads based on what they learn.
But, digital advertising across search, content, and social media channels, gives us an almost unlimited ability to generate data on what works and what doesn’t.
That’s what makes advertising at scale tricky (read: impossible) for humans. And it’s what makes AI a natural fit for advertising.
With the right data, AI-powered ad tools can detect patterns at scale in your advertising data, then predict what changes to campaigns will improve performance against a specific KPI. This can all happen in seconds, rather than the hours, days, or weeks it might take a human to analyze, test, and iterate across campaigns.
Advertising costs a ton of money, especially if you’re selling a product or service that doesn’t produce an immediate return.
AI for advertising has the ability to increase your return on ad spend (revenue) and reduce the amount of money you spend on staff time and ineffective ad budget.
But, AI can actually go one step further.
In one high profile example we covered, an AI-powered advertising system actually helped a brand discover and convert new customers they didn’t even know existed.