What does ‘AI in Digital Advertising’ mean anyway?
“You need to implement AI tools in your digital advertising” you’ve heard them say. But what on earth does that mean? AI involves smart algorithms that analyze massive amounts of data from multiple sources, for example, smart advertising AI platforms draw data from Google Analytics & social media (ad) accounts.
Once all this data has been pulled and analyzed, the AI tool is then able to make accurate recommendations about advertising optimizations and growth opportunities, based on cold, hard facts.
Studies find that around half of today’s marketing and advertising pros already know that AI tools enable marketers to increase sales, improve customer retention, and launch successful new products.
When AI algorithms study a digital advertising campaign, they can determine if it’s moving in the right or wrong direction, and optimize it accordingly. For example, the AI algorithm achieves this for social media advertising by:
- Looking at available data sets (based on what you have linked to the platform). This can include your Google Analytics account, Facebook Ads Manager, Tik Tok etc.
- Analyzing what is performing well & what isn’t based on this data. AI can detect anomalies in your data set, and then further analyze social media account data to see which factors influenced that anomaly & identify opportunities for growth based on this analysis. For example, this can include optimizing audience demographics, creative format, CTA, placement etc
- These suggested growth opportunities are made available for the marketing team to act on – In this way, the ultimate power stays with you!
This generates maximum performance and efficiency, while also reducing time spent conducting manual analysis.
The ultimate decision is always in the hands of humans managing the campaign (no, robots aren’t coming for your job). But now this decision is based on concrete numbers, gathered from online/digital advertising AI, rather than gut feelings or manual analysis.
Unlike humans, algorithms can be everywhere simultaneously. With dozens of campaigns, accounts, channels, and creative assets to cover, Data Analysts often find it impossible to track every result and still have time to estimate future progress. This constant chase after the latest performance report causes teams to put out fires instead of calmly making correct decisions. AI solves this issue, saving precious time.
And precious it is. Every wrong decision or missed opportunity in ad analytics directly translates to lost time and money. Optimizing budget spend across platforms isn’t a ‘nice-to-have’, and excuses like “I’m only human” no longer cut it when available tech tools are readily available here to assist.
For example, when global luxury brand Balmain set out to captivate their audience on social media, they combined a strong understanding of their target audience with technology that monitored every channel. This helped the brand build a solid strategy that harnesses the best that brilliant human minds and sophisticated technology have to offer.
And in the future, with the growth of Web 3.0, advertising AI will become even more important for advertisers as it will enable digital marketers to provide a highly-personalized experience for each and every user based on their preferences, likes, and dislikes. While far from perfect, AI & Web 3.0 are developing at a rapid pace, offering those who can take advantage of its tremendous growth opportunities.
Big Data Is a Big Deal for Ad Analytics
The volume of data produced by organizations and individuals grows rapidly, with around 90% of the world’s data created in the last 3 years. Companies rely on data coming from a long list of sources, including websites, social media channels, ads, and more.
It’s humanly impossible to keep track of every channel without relying on advertising technology for assistance. Perhaps that’s why even though 92% of organizations understand that data is essential to growth, around 70% of the data collected remains unused. Agencies are expected to stay on top of all data channels for their clients, especially when large enterprises and luxury brands are involved. The choice is obvious: either embrace AI or risk losing the account.
In the marketing arena, AI does far more than tell you what’s going on. Teams receive optimization suggestions based on historical data and future predictions. They can prepare in advance, save time and money, and wow clients with their insightful vision & improved results. What could have been an awkward juggling act becomes a smooth, graceful transition between multiple dashboards that deliver accurate recommendations right on time.
“The AI allows you to easily fix problems identified in your data as well as leverage growth opportunities if something is performing really well.”
Dymtro, Product Owner @ Paragone.ai
Editing & Smart Automation
Two additional capabilities AI offers advertisers are editing and smart automation. We’ve mentioned how difficult it is just to monitor multiple campaigns at once (often for different clients). It gets more complicated when you consider the need to edit and adjust each one directly from its dedicated channel.
Smart advertising AI platforms allow advertising pros to skip this step and edit all campaigns without leaving the platform. This is a dramatic change for large organizations or agencies with multiple accounts.
Automation is possible without AI but becomes that much better when you add smart algorithms to the mix. Companies can set advanced rules for the systems to implement and follow, gaining what feels like additional team members who move fast, never sleep, don’t take breaks, and make no mistakes.
These rules inform subsequent human decisions, allowing you to stay true to your strategy, always. Put simply, watching ads and budgets adjust without having to actively do anything is hard to explain – Almost like magic!
AI doesn’t aim to replace human knowledge but instead gives teams superhuman abilities that help execute the established strategy. By bringing these two worlds together, we reach an optimal solution that appreciates digital advertisers’ expertise and elevates it.
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