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Artificial intelligence (AI) has emerged as a powerful force in the digital advertising industry, revolutionizing various processes such as programmatic media buying, SEO generation, and optimization. As we enter 2023, AI is poised to transform every aspect of the industry, from production to insights and reporting. Advertisers are increasingly recognizing the impact of AI on ad creativity, as evidenced by its prominent presence at the recent Cannes Lions International Festival of Creativity.
The Rise of AI in Digital Advertising
AI is the latest technological development in the ever-evolving world of digital advertising, and it is likely to shape the industry for years to come. Just like mobile and social media before it, AI has fundamentally changed the approach to digital advertising. However, AI has the potential to push the boundaries of capabilities even further, surpassing what was previously deemed possible.
The timing of AI’s development is particularly advantageous as the industry prepares to bid farewell to third-party cookies next year. AI enables marketers to continue delivering relevant, targeted advertising and gaining valuable insights into campaign effectiveness, regardless of the cookie-less environment. However, creativity has always been the driving force behind effective ads, and understanding how creative components interact with media and data has been a challenge. AI aims to address this issue by helping marketers understand the interoperability of different campaign components and leveraging this creative intelligence to drive optimal outcomes.
AI as More Than a One-Trick Pony
AI encompasses various subsets, including deep learning, computer vision, neural networks, large language models, and reinforcement learning. These subsets will propel creativity in digital advertising forward, enabling marketers to gather real insights and capture consumer attention based on accurate data, rather than relying on assumptions.
For instance, the combination of computer vision and generative AI can be used to understand how individual creative components drive attention and engagement. As these technologies continue to advance, digital marketers will be able to create custom content in real time, designed to maximize audience attention. Deep learning and neural networks can then be utilized to link engagement metrics to brand-specific outcomes, providing valuable insights into campaign performance.
This ability to track attention metrics paves the way for marketers to inform their ad creatives using accurate data and optimize for the best possible performance. The unique insights derived from AI can also serve as a historic reference for future campaigns, enabling continuous improvement over time.
Adapting for the Future
As AI becomes more integrated into creative processes, it is widely acknowledged that many jobs will be impacted. However, the effectiveness of AI relies on the data and the people behind it. Deploying AI-generated content without human oversight would not be a wise decision, especially considering the importance of brand safety and suitability. AI can be leveraged to increase the relevance of digital advertising based on placement and audience interests.
Brands need to make important decisions regarding the integration of AI into their digital advertising and wider business strategies. This requires a clear vision and direction from the board, as well as the appointment of a Chief Technology Officer (CTO) with expertise in data science, data engineering, and software development. Brands must also distinguish between AI-driven applications that should be developed in-house and those that can be outsourced to third-party vendors. Deciding on the appropriate level of investment in data science resources is crucial, as many companies have yet to address this aspect. CEOs must understand the benefits and risks associated with adopting AI at a strategic level and incorporate this understanding into their short and long-term technology strategies.
While human input will still be necessary, AI will revolutionize digital advertising, particularly in the realm of creativity and optimizing it for optimal business outcomes.
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