If you listen to the hype, you’ll hear that AI is either bringing us untold wealth and opportunity or, like some Hollywood sci-fi thriller, rendering us all useless.
The truth, so far at least, is somewhere in between. Artificial intelligence is helping people in multiple industries – advertising among them – to enhance their work and processes.
Marketers are using AI to help improve programmatic advertising, boost Facebook feeds, strengthen ecommerce, and otherwise hone and improve the effectiveness of messaging on multiple platforms. Here’s how.
1. Handling big, big data …
There’s way too much data being exchanged way too quickly in programmatic advertising for human beings to grapple with it in any kind of efficient way.
Sure, someone can check dashboards every hour and then adjust, but by the time they have done so, the market conditions have likely moved. AI can do the work, going into minute details in much smaller increments, much more quickly.
2. … in fine, fine slices
Programmatic advertising traders generally slice bids on an advertising exchange into what, for people, are manageable increments, perhaps trying ad buys at 25 or 50 cents higher or lower to see which bids are winning in exchange auctions.
But machines are more than happy to constantly monitor rafts of data and test bids in fractions of a penny, adjusting every moment, 24 hours a day. They don’t need to sleep, eat, or take potty breaks.
3. Encouraging clickthroughs
The clickthrough rate is still (sad to say?) one of the most prevalent ways advertisers measure success in digital. And there’s nothing better than a machine to optimize to such a simple gauge of success.
Machines avoid biases that people may have, and will test anything to see if it’s the best method of generating clickthroughs from a desired target audience.
For example, Sarah Bird, technical program manager at Facebook AI Research, said at a New York Tech Meetup last October that the social media behemoth uses AI to help optimize placement of ads and content in people’s newsfeeds.
4. Evolving chatbots
Brands are building chatbots to deliver information and experiences, and to generate ecommerce transactions.
AI, backed by natural language processing, semantic understanding, resource description framework, and other technologies are able to mimic human interaction.
Someone can have a human-like interaction when, for example, they ask a Sephora Kik chatbot about makeup, or ask a travel brand’s chatbot about hotel deals. Because of deep learning and use of neural networks, the bots can continually improve as they interact.
5. Pricing dynamically
Showing someone makeup or suggesting a hotel can be a boon for marketers. Even better is offering the price that gets the customer to click and buy.
AI can use deep learning technologies to ingest and process market information and correlate that to a particular user’s behaviors, habits, and preferences.
We’ve all seen dynamic market pricing in action for travel and for tickets to events. AI can incorporate a lot of data to facilitate pricing that’s not only dynamic to market conditions but also specific to individuals.
6. Optimizing campaigns
We’ve previously mentioned how dynamic creative optimization can assemble creative components in order to show a hot coffee ad to someone on the slopes and a nice iced beverage in the same instant to a beachgoer.
AI can also home in on target audiences and constantly adjust for a marketer’s goals – be that scale, targeting, reach, device type, context or, as above, clickthrough rate, as well as some clever combinations.
People with common traits can be segmented into what’s known as “clusters,” then targeted, and be shown ads whose targeting is continually optimized through ongoing multivariate testing.
As consumers respond to campaigns, the more machines continue to learn from their activity and behavior, giving marketers more enriched data and the opportunity to improve personalization and optimization.
Using AI well comes down to marketers working with engineers to make algorithms that correctly interpret a campaign’s goals. Some day those goals may even be to write an article like this to convince you that AI is in the service of human beings.
Assuming AI hasn’t done that here, already, and written this article.
Check out this LiveIntentional on 3 Ways Marketers Already Use AI