Artificial Intelligence in Digital Advertising

Brands are employing AI to learn more about their customers.

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Artificial intelligence is a lot like what we’ve seen from the Jetsons. It’s a machine that can think for itself and make choices for you. And in the case of advertising, it’s being used to learn more about your customers. Nowadays, brands have access to so much data: everything from customer preferences to geo-location. AI helps process all this data and figure out how to best reach customers.

This type of AI is called predictive analytics and it works by gathering past consumer data and using it to predict future trends. For example, an advertiser might be interested in knowing how many people who were 20-years-old during the last year were also single parents living in a certain state, making $75,000 or less per year. Predictive analytics would use past customer data to answer that question and predict how many people that fit those criteria could be interested in their products or services.

AI can help brands make better decisions

Digital marketing is becoming increasingly important for brands. In fact, 91 percent of marketers say digital marketing is an effective way to achieve their goals. But with so much data available and so many channels to use, it can be hard to make decisions that are smart and effective. AI can help brands make better decisions by looking at the data they collect and using machine learning to predict customer behaviour.

AI in advertising is used to identify what will work best for a particular audience. With AI, marketers can have a plan in place before they spend too much on ads that don’t convert into sales or leads. This means that marketers won’t be wasting time on a campaign that might not work for them. The AI will take all of the information about the audience and figure out which campaigns are most successful for brands based on similar audiences. For example, if you wanted to promote your new line of jeans on Instagram, the AI would take things like location, age, gender, and interests into account when determining whether this ad would be appropriate for this specific audience or not. Because of this, the AI will save time by eliminating ineffective ads while also reducing costs. Brands will also be able to eliminate human error as there is no room for interpretation when it comes from an algorithm!

The Case for Brands and Advertising

As AI becomes more sophisticated, it can be used for predictive marketing. It can predict what people want and when they want it.

For example, if you’ve been browsing red dresses on one of your favourite websites, and then all of a sudden ads for red dresses start popping up everywhere you go online, you might think that there is something wrong with your computer. What’s actually happening is that the algorithms are using data to predict what products you might like.

Predictive marketing is not just about finding shoppers who are close to buying a product but also about targeting those who are likely to buy from your brand in the near future. Predictive marketing has enabled brands to create accurate customer profiles, better understanding their customers’ needs and wants. Brands can use this information to make targeted marketing campaigns based on what their audience wants.

Predictive marketing through AI helps brands stay ahead of the competition by predicting customer behaviour before they know it themselves. It increases engagement rates, improves customer retention rates and creates more loyal customers in general for brands.

The Future of AI in Digital Marketing

This is a pretty new development in the world of digital advertising. AI has been used by brands for years to analyse customer data, but now that it can “learn” from data, it’s even more powerful. Brands have also begun to use AI to target people who are likely to buy their product. For example, a brand may advertise on sites like Pinterest or Facebook with ads for children’s clothing because they know those ads will be seen predominantly by parents who are in the market for child-related products.

With advanced AI algorithms and machine learning on advertisers’ side, there’s potential for brands to reach their target audience with greater accuracy than ever before. As you can imagine, this is a very advantageous development for brands looking to grow their business. While AI may be encroaching on our digital lives as consumers, it may not be such a bad thing when it comes to digital advertising and marketing.

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