What is the Impact of Artificial Intelligence on Advertising?

Published on May 22, 2018 in Frank Blog

Impact of AI in advertising

AI in marketing is a powerful tool to help you gather valuable insights into consumer online behavior. Artificial intelligence is applied to marketing practices to better analyze and interpret behavior on the basis of information collected from past searches, buys, and other user activities.

How come AI became so important for digital advertising and why it is so different from previous marketing models?   

What AI Processes Can Do for Marketing

The simplest definition of artificial intelligence is making machines capable of solving problems in a similar way people do. This process is enabled by teaching computers to go beyond a strictly programmed algorithm.

When a computer system follows an input of solved examples, it learns how to apply it in similar future situations. Simply put, the computer learns.

Computers learn by applying a number of advanced technologies to target the audience in much better ways than what was possible with previous programming efforts.

Typical artificial intelligence processes include:

  • Natural learning processes (NLP)
  • Automated learning
  • Computer vision
  • Robotics
  • Reasoning and general intelligence

Many of the above innovative programming solutions have found their place in AI advertising, improving the relevant matches between what people look for and what search algorithms are capable of delivering in return.

But AI for marketing is about so much more than precise result retrieval. How can these processes be applied to AI marketing tools?

Natural Learning Processes

Natural Learning Processes are about making machines understand human language. Due to the way they interact, computers have difficulties interpreting what people want to say. By filling the communication and interaction gaps with NLP, computers can better process human language.

NLP is applied in technologies such as voice and speech recognition. Google Assistant, for instance, is a real-world example of a personalized AI tool that mirrors a real conversation, helping the user perform office, shopping or organizational tasks. With the Google Assistant, the user can schedule tasks, send text messages, read the news, plan routes, set wake up alarms, and even set up automated shopping lists.   

Machine Learning and Neural Networks

With machine learning, systems learn from experience. An example of AI in marketing using machine learning is Amazon’s product recommendation feature.

Many AI advertising tools use neural networks and deep learning, which, in an ideal scenario, are supposed to mimic the human brain, teaching machines to apply human cognitive processes.

Such cognitive processes include planning and reasoning based on large sets of data, making AI algorithms impressive deep learning predictors.

  • AI marketing tools have the greatest impact on relevance, personalization, and automation in digital marketing.

By using the above learning processes, sophisticated AI marketing software programs automate manual activities, bringing a more personalized user experience. Users get in touch with providers that can give them exactly what they need.

AI advertising tools can be efficiently combined with other innovative technologies, providing even more dynamic marketing results.

Customized Marketing Campaigns

Artificial intelligence has a groundbreaking impact on campaign customization.

By aligning the campaign and the content marketing strategy with data collected from customer searches, previous shopping decisions, and interests, marketers can generate significantly personalized customizable campaigns.

AI marketing tools are so competent, that a personalized experience can be created for every single customer. Data generated by each search or web browsing can be analyzed to reveal information about user needs, allowing the marketer to optimize and deliver the most relevant good or service to the customer.

Chatbots for AI in Advertising

Chatbots communicate with customers on the basis of data they receive from the customer’s online habits. Though we are now getting used to chatbot text messages and popup boxes, it’s possible that the future developments of AI in marketing transform customer interaction by implementing sensory characteristics, so that the chatbots get voice and touch capabilities, imitating a real conscious person.   

Augmented Reality

The downside of digital experiences is that people can’t see or feel what the product looks like when taken off of the screen. Many still prefer going to physical stores, partially because of previous poor shopping experiences from mismatched product descriptions, and partially because of products that cannot be rightfully presented by a digital image.

But the convergence of augmented reality and artificial intelligence already gives customers an idea of what a product would look like in the real world.

AR makes the customer confident in the buyer’s decision and more likely to click the ‘purchase’ button without hesitation. In turn, faster customer responses result generate more revenue.     

ai marketing

AI and the Internet of Things

The Internet of Things industry is revolutionizing the ways in which we connect. Humans already use smart devices at home and in transportation, getting multiple points of access to the Internet.

The data collected from numerous access points can be used for AI marketing automation to improve the products that are incorporated in the IoT industry.

Artificial intelligence methods used in IoT devices can gather more data about how users think and react. The information learned can be used to provide a better user experience.

ai and the internet of things

Sales Automation

Ask any marketer, and they will tell you that marketing and sales automation go hand-by-hand.

Automated sales and marketing are at the backbone of effective customer relationship management (CRM). Digital marketers rely on great CRM software to ease the effort behind repetitive activities, and apply advanced analytics and forecasting tools to delight customers. CRM has room for improvement that can be created by artificial intelligence. AI marketing software with CRM features can:

  • Examine user behavior in more detail,
  • Identify opportunities for improvement,
  • Develop more compelling sales campaigns.

AI has been able to target leads and customers to a greater extent than ever before. Paid AI advertising hasn’t completely replaced organic SEO, but has an overall enhancement effect on major search engines and social media outlets. In terms of creating targeted paid campaigns, Google AdWords and Facebook PPC are getting better as we speak.

sales automation

How AI in Marketing is Getting Improved

Since AI marketing software is based on purposeful learning that mimics the human brain, it has proven to adopt some of the ‘defects’ of human reasoning.

Artificial intelligence is prone to using biased information. In this sense, AI as a student matches the quality of its human teachers, having difficulties in telling the difference between biased and unbiased information. If the teacher inputs biases in the information, the student is more likely to adopt them and make future predictions on basis of both biased and unbiased information.     

Another consideration of AI in marketing is ethics. AI tools can collect personal and sensitive data that must be handled with tact and care because they may not always reflect consumer’s buying needs and habits.

Despite the ethical implications and the need for improvements, AI marketing tools are providing depth and reliability to marketers, helping them make better-informed decisions. Many of the manually performed advertising operations are streamlined in a software, letting the marketers get to the most relevant customers and intelligently using available resources.  

Contact us to hear more about how Frank.ai help you create an intelligent marketing campaign.


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