By Arpit Chaudhary
AI possesses the potential to revolutionise the digital industry, fostering growth through its ability to facilitate experimentation and reveal insights. Among the industries that have witnessed an enrichment due to AI’s influence, adtech stands out.
Furthermore, AI offers a solution for cost reduction, as it automates tasks and streamlines processes within the adtech sphere. This optimisation has paved the way for profitability and efficiency.
Hyper-Personalisation and Engagement: AI has held a firm foothold on behavioural analysis and has helped brands collect, analyse and take action with data. It has enabled brands to target users personally and deliver highly tailored ads by using first-party data and algorithms.
Take for instance a retailer who uses AI to analyse a buyer’s browsing history or purchase patterns. If buyers are on the lookout for a laptop, they are likely to be served ads that show laptops from different brands. A laptop owner is also likely to invest in a laptop cover.
So, AI tools can help ads become smarter by making this analysis without human intervention and end up automatically serving ads of laptop covers to the buyer. This will in turn result in lesser ad spending for the advertiser.
Creative ideation and generation: AI has expedited the process of creative iterations and helps advertisers refine their campaigns faster. Generative AI will help create impactful advertisements by creating headlines, ad copies, and visuals with pre-prescribed inputs. These tools shell out compelling ad variations with ease.
For instance, AI can take a pre-existing template and generate many variations by creatively reworking the design or copy. AI can also analyse the visual elements that resonate the most with the audience.
Fraud detection and prevention: By leveraging advanced algorithms and machine learning techniques, AI has displayed immense capabilities to detect and prevent fraud in the adtech industry. With the help of AI, advertisers can identify and mitigate unlawful activities with ease and maintain the integrity of their campaigns.
At present, AI also recognises patterns and tracks down click farms, ad stacking, or pixel stuffing. AI algorithms detect and prevent such activities from intruding into the ad scape in real time. Eventually, this will become a solely AI-run operation, with no human intervention.
Enhanced supply path optimisation: At present, when advertisers want to buy ad space, they educate themselves on the different options to choose the best advertising platform. But this is a time-consuming and complex process to carry out manually.
But in the future, AI can help advertisers optimise these decisions with ease. AI will take the lead in analysing information in an in-depth manner. It will consider aspects like price, performance, and any possible fraud that could take place to help advertisers make an informed decision.
AI has made the process of generating content effortless since it has rendered manual work obsolete. By creating numerous variations based on hypothesis and determining the traction a piece of content gains, AI can transform the adtech space tremendously.
Many adtech companies have started leveraging AI to experiment with various ad forms and create ads that captivate users. By understanding the types of ads users respond to, we seek to provide a better user experience.