Artificial Intelligence And Advertising: The future that is already a reality. The success of Artificial Intelligence in the advertising industry is explained by one simple reason: it increases sales in all products and services where it is applied.
Although it may sound like a distant future, artificial intelligence (AI) is already a reality that is being applied within the advertising industry, with great benefits for brands and greater personalization for their customers.
Currently, AI ‘places’ advertising on the web where it is relevant to the audience, making it appear at the right time, but preventing it from appearing in an inappropriate or unsafe place for the user. Its best-known applications, in addition to programmatic, are in speech recognition, machine learning, virtual agents, language generation, and text and natural language analysis.
Although AI is still at an early stage (dubbed innovation trigger) and is still ten years away from commercial maturity, as pointed out in Gartner‘s 2019 Hype Cycle for advertising and marketing, the industry is increasingly betting on this technology. In fact, according to a Salesforce survey two years ago, 52% of marketers were already using AI and 28% were considering applying it at the time.
The success of AI within the advertising industry can be explained for one simple reason: it increases sales in all products and services where it is applied, as shown in a report prepared by the strategic consulting firm Boston Consulting Group (BCG).
The key to Artificial Intelligence is that it increases the effectiveness of marketing strategies, audience segmentation and improves the management of advertising campaigns. Its ability to adapt and learn (machine learning) about the medium makes it possible to modify the content of the advertisement in seconds, with hyper-personalization.
In the medium term, we will see a boom of this technology in many other sectors, due to its great benefits at a reduced cost. For example, banks and insurance companies already expect an 86% increase in their investments in AI by 2025, according to The Economist Intelligence Unit.
Predictability, personalization, analytics, optimization, and customer service are a sum up of the advantages of applying artificial intelligence to the advertising sector. This technology allows greater efficiency of the investment managed, which derives in a capacity to optimize each dollar invested much higher than what we were capable of just a few years ago.
Specifically, AI applied to the industry promotes several fundamental aspects for the sector, such as:
- Automated campaigns. Through e-mail marketing.
- Data analysis. Especially the most difficult for a human. AI gives feedback on how to make improvements.
- Greater efficiency. Streamlines processes.
- Personalization in both in the customer experience and in the content.
In addition to cost reduction, AI empowers the full tailoring of content to the customer, giving companies greater insight into the tastes, activities and expectations of their consumers. In this way, advertising campaigns can be further segmented to have a higher success rate.
With such campaigns, it is possible to know the target, to sell what interests each user and to facilitate the sales process.
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