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Ad Tech Artificial Intelligence

5 Ways the AdTech Industry is Being Transformed by Artificial Intelligence

Stu G
Stu G Artificial Intelligence

Artificial Intelligence (AI) has helped revolutionise many industries, one of which is no exception is the AdTech industry. AI can collect and analyse huge volumes of data, automate complex tasks, extract invaluable audience insights, and make intelligent predictions, transforming how companies strategise and execute their marketing campaigns regarding how ads are created, optimised, and targeted. 

From personalising ads in real time to automating ad campaigns, here are five ways Artificial Intelligence is transforming the AdTech industry:

Data-driven decision making

Thanks to AI, digital advertising and marketing professionals can use the incredible volumes of information collected by AI-powered analytics tools to make better data-driven decisions. 

Ordinary information that may seem to have no significant value is now seen as highly valuable and of extreme strategic advertising importance. AI's thorough examination can identify trends that were otherwise hidden and then help advertisers use that information to hone their advertising campaigns.

This enables AdTech professionals to gain an advantage over their competitors simply by taking advantage of AI's data-driven analysis in a constantly evolving industry. It can enable them to achieve their goals and grow their business in ways that were otherwise unimaginable. 

Audience insights and enhanced targeting

AI-powered systems and tools give advertising professionals a unique perspective on their audience and help them understand them in new ways. AdTech professionals can now use a variety of AI-driven technologies to analyse huge volumes of data almost instantaneously. 

These tools can help them examine consumer behaviour from an individual level to entire audience trends and patterns in how consumers purchase goods and services and other interests. This gives them valuable insight into their target audience. 

After analysing these patterns, they can carefully target precise sections with incredible accuracy. They can employ techniques such as creating specifically crafted messaging that can resonate much better with the audience. It's then more likely to leave a lasting impression. Anyone who can harness AI's power in this way can gain a crucial edge over their rivals. 

Automated advertising campaigns

Over the past couple of years, Artificial Intelligence has greatly affected how AdTech professionals create and optimise their ad campaigns. AI has completely changed the face of the world of advertising like never before. 

Professionals now have access to more advanced tools and systems that fully automate almost every part of ad campaign management. For example, AI-powered tools can target specific audiences with the most relevant, visually appealing ads. These tools can also help track performance better than ever and help optimise bids. 

Marketing professionals are no longer tied down to the mundane tasks of having to do the hard work themselves when using the relevant AI tools that are now available to them. They can now focus on other areas and make the most of their creative skills in other ways. 

All of this can increase productivity and make their campaigns more efficient and effective. AI can uncover patterns hiding in plain sight simply by analysing the data collected to identify common target audience characteristics, which is extremely important in advertising. 

It can analyse how users interact with certain ads, for example, how long they remain on an ad (dwell time), facial expressions and scroll depth, all of which can be used to understand better that user's feelings about the content, or in this case, the ad. Useful insights like these can help advertisers refine their marketing strategies, help tailor the ad's message, make the ad more relevant to the user, and, inevitably, increase sales. 

Ethical considerations and transparency

Professionals in the AdTech industry must be transparent in their advertising techniques and strategies while carefully navigating ethical considerations. They must adhere to many regulations and guidelines, which are also constantly changing as technology rapidly evolves. 

Two of the most important examples of ethical considerations are GDPR (General Data Protection Regulation) and DAA (Digital Advertising Alliance), meaning they must be responsible for using data and ensuring user consent. AdTech professionals must ensure transparency in who they target, how they collect the data they use in their ad campaigns, and the delivery of the ad itself, along with fairness and accountability. 

Reputable AdTech companies that hold ethical AI practices in higher regard than their competitors will more easily be able to gain the trust of the consumers, and the stakeholders with a vested interest in them. It can help create relationships built on trust that last longer and improve the brand's image. 

Personalisation at scale

In recent times, one of the game-changers in successful ad campaigns online is via personalisation, something that was much harder to do before AI came along. AI has helped deliver personalised ad experiences at scale. AdTech professionals can take advantage of machine learning algorithms to analyse individual user's behaviour and patterns to deliver ads that are more personalised than ever. 

Using real-time data, they can strategically adjust things like images, calls-to-action, and headlines to deliver what has been referred to as hyper-targeted advertising, where ads are more relevant to each user's tastes and preferences. It helps drive conversions and increase revenue. Personalisation in this way can also increase brand loyalty and lead to more positive engagement.