Rising Potential for AI in AdTech

Hridkamal Roy | Sunday, 25 April 2021, 08:54 IST

The technology around us is evolving day by day. It is bringing about change in organizational ideas and our perception of lifestyle. Digitization and process automation were the initial milestones achieved, but AI (Artificial Intelligence) and ML (Machine Learning) are taking it to the next level. Recognizing user data, target marketing and personalized content approach are some of the subjects which are getting highly influenced by AI and ML technologies. The whole idea here is to reach out to prospective customers with a deeper sense of understanding about their choices in products and services. As a result, the Indian advertising industry is expected to grow at a CAGR of 12 per cent.   

AI systems not only help in reaching out to customers, but also find the potential customers for a business. They provide perfect infrastructure for better ad placement, hyper-personalizing messages and keeping track of a lot of things that cannot be done manually. “Increased competition and easy access to technologies have curbed the prices to advertise. Designing and launching Ad campaigns using the AR/VR technologies is comparatively cost-efficient and has a larger customer outreach,” says Neeraj Sharma, Head Technical, Kellton Tech Solutions Limited.

Ad-spend optimization with AI

AI systems create the perfect ad-spend plan for businesses. By monitoring various channels all around the digital landscape, they are able to provide the information on who to reach out to, when to reach out to and with what to reach out to. The systems analyze all possible information about the success and failure rate of several online campaigns which is impossible for a human mind and present highly complicated data in a concise format for business to understand the need in the market. AI is furthermore capable of providing a customized ad-spend plan keeping the entire data under analysis to prevent businesses from spending surplus on digital marketing.

Not only do AI systems monitor the campaigns of the advertiser, they also help in keeping analysis of the campaigns launched by the advertiser’s competitors thus enabling “situational awareness”. In today’s competitive world, where the market changes at the blink of an eye, AI systems are quickly able to adapt to the changing market trends and provide rapid response to the advertiser with the right information required.

Creating Advertisements with Artificial Intelligence

AI is being widely used to create advertisements. Various social media channels like Facebook and Instagram have developed their own AI-enabled tools that facilitate an advertiser in creating advertisements along with several variations of the same. In turn, it enables the advertiser to reach out to potential customers with an array of customized advertisements at once. The response rate of these advertisements is then analyzed by the AI systems. The analysis is used by the systems to determine the most attractive content on the basis of which the upcoming advertisements can be planned. It is a cyclic process that helps create a series of good advertisements for the business concerned with are likely to create further good will for it over the digital landscape.

In fact, there are many companies, mostly start-ups that are working on their compliance towards AI-enabled tools. Basically, it is pitch perfect data that is provided by these systems to the advertisers. It is on the advertiser how he wishes to make use of that and create the perfect content for the consumer. As times are changing, businesses are trying to be completely reliant on the AI systems on the grounds of marketing and promotion. It is the system itself which will create the ad and the variations of it and spread it over the online platforms. It will analyze the response rates and further channelize advertisements for target marketing with more optical content. This however, is in its initial stages because it takes humongous efforts to attain the position where the marketing is completely controlled by AI with minimum or no human interference.

A number of backend functionalities are also facilitated by AI. Social media platforms such as Instagram and Facebook use AI-enabled tools that keep a calculated track of all the online conversions, advertisement expenditure and the customer behavior as well. Owing to the huge popularity of these platforms, thousands of advertisements are posted on them every day which increases the possibility of restricted content getting viral. So, these platforms use AI in the backend to filter the content that is getting posted. But, like every action has an equal and opposite reaction, AI systems are also being used by these platforms to attain restricted data of the consumer.

Facebook was accused of breaching the personal data of almost 87 million people in the United States with a political consultancy firm named Cambridge Analytica. On being confronted, Mark Zukerberg denied every accusation but since then, rules have become more stringent for these platforms on what they can and can’t do with the public data they retrieve through advanced technology. Because, the systems are capable of even acquiring the minutest detail of an individual’s personal life, safety of that information becomes primary. It can be easily traded off for monetary benefits which can become a major threat to personal safety.

TikTok is also an instance of something similar for which it was recently banned in India. Allegedly, the higher management of TikTok are ministers of the Chinese government who have gained access to information about each and every downloader of the app from all over the world.

AI-enabled Customer Support

Increasingly, businesses are going for AI enabled customer support systems that function round the clock. It enables the business to provide prompt response to the inquiry and speeds up the process of conversion. Chatbots are a way to represent the customer service in an advanced and customer friendly way that creates a sense of trust and reliability. AI systems also help in creating the customer profile which is a primary requirement for personalized ad creation.

The global pandemic scenario has also influenced the innovations in AI systems with the world getting dependent on online platforms for most of the requirements. It has brought about newer innovations in the digital marketing sector complemented by AI and ML technologies. Businesses are trying to come up with creative content powered by these which is enabling them to get in touch with the customer at a personal level in order to gain reliability.

The trends in digital marketing are changing with the development of these technologies. Especially, in the developed economies, these technologies are breaking boundaries but they are yet to penetrate into the developed economies such as India. But it is changing, slowly and steadily. Indian businesses are getting more technology oriented with their marketing approaches and understanding the importance of using modern technologies to reach out to customers across the world.