The global AI market is on a rapid growth trajectory, projected to reach $184 billion by the end of 2024 and $826.70 billion by 2030. This exponential growth underscores AI's unparalleled potential to transform how we work, make decisions, and engage with customers. Yet, the majority of digital advertising teams at brands and agencies have only begun to tap into AI’s potential, which extends far beyond content development.
AI is set to revolutionize every aspect of digital advertising, from strategy implementation and campaign optimization to data analysis and reporting.
This article explores:
- the next wave of AI implementation in digital advertising operations
- how AI, paired with automation, superpowers advertising programs
- why brands and agencies should be building AI-enabled teams to set themselves up for future success
Looking Back: The Surge of Generative AI in Digital Advertising
In the past year, we’ve seen a remarkable surge in the adoption of Generative AI (GenAI). According to a May 2024 survey by Foundation, 87% of marketers use AI for content creation. Tools like ChatGPT and DALL-E have enabled advertisers to quickly create personalized and engaging content that resonates better with target audiences.
While AI can't replicate human creativity exactly, AI can enhance the content creation process by generating personalization suggestions, ad copy, keywords, subject headlines, calls to action, and other key creative elements.
AI's capabilities extend far beyond content generation. A comprehensive AI integration into your digital advertising strategy can optimize campaign management, enhance targeting, analyze performance, forecast consumer behavior, and improve business results.
End-to-end AI integration is currently used by a few early adopters in the digital advertising space. However, this approach will be essential for staying ahead in a rapidly evolving market.
How AI Can Improve Digital Advertising Operations
While GenAI has significantly advanced content generation, there are real (and untapped) opportunities for AI in advertising operational improvements.
Agencies and brands continuously need to improve efficiency and results with existing resources. AI can be hugely beneficial in streamlining digital advertising workflows, unifying data, and optimizing strategies proactively.
Here are some insightful ways that AI can improve digital advertising operations:
Campaign Budgeting and Spend Management
More brands and agencies are incorporating AI in the campaign budgeting and management process. In fact, 73% of marketing leaders deem this the number one use case for AI implementation!
Audience Management and Targeting
Top brands and agencies use AI to improve bidding strategies, determine audience segmentation, find lookalike audiences, and discover behavioral trends.
Data Measurement, Analysis, and Insights
Rapid data analysis topped the list of AI benefits for Senior Marketers in a WebFX survey. Because AI can analyze huge amounts of data to identify consumer behavior patterns, it's largely beneficial in gaining practical insights advertisers can use for better performance.
We’ve seen digital advertisers of all sizes improve their operational workflows using AI. For example, full-service marketing firm Click Here Digital saw a 40% decrease in time spent on ad adjustments and optimizations when they started bringing AI and automation tools into their operational workflows.
Using Predictive AI and Prescriptive AI in Digital Advertising
Predictive AI forecasts future behavior based on historical data. Digital advertisers can use predictive AI to identify valuable audience segments, optimize ad spend, and measure campaign effectiveness.
We’re seeing predictive AI on the rise in the digital advertising space. According to a recent global survey, 53% of e-commerce and brand marketers have used predictive AI in the last six months.
Prescriptive AI goes one step beyond simply predicting outcomes: it can tell you how to achieve those outcomes. With prescriptive AI, advertisers can get a list of specific actions to achieve desired outcomes. This is particularly helpful when it comes to something like budget reallocations. Agencies may use prescriptive AI to reduce the manual legwork that goes into preparing strategic recommendations for client conversations.
By integrating predictive and prescriptive AI models, advertisers can boost efficiency, drive better outcomes, and maintain a competitive edge.
Harnessing the Combined Power of AI and Automation in Advertising Operations
Optimal efficiency and effectiveness in advertising is no easy task to achieve, even with the help of AI. This is where automation comes in. Integrating AI with automation tools creates a powerful synergy that superpowers digital advertising teams.
AI excels in analyzing data, predicting trends, personalizing content, and empowering human decision-making. On the other hand, automation streamlines repetitive tasks to ensure consistency and improve efficiency. Together, AI and automation enable strategic decision-making and large-scale campaign management across the entire digital advertising spectrum.
Organizations that combine their advertising AI and automation into a single unified system stand to enjoy several key benefits:
Unified Platforms for Unified Channel Strategy
Implementing an AI-integrated automation platform into your digital advertising toolset reduces the need for multiple disparate systems by streamlining workflows. A robust automation platform efficiently manages campaign rollouts, budget distribution, and ad operations. This ensures a unified approach across all channels.
Consistent Data Management for Compliance and Security
Using a single, AI-powered automation system ensures that data is consistently managed and utilized. This reduces silos and enhances your team’s decision-making capabilities. A unified approach to data management is crucial for compliance, security, and strategic control in any advertising program.
Continuous Optimization for Maximized Impact
Controlled AI continually analyzes performance data and optimizes campaign strategies in real time, ensuring that your advertising efforts remain effective and efficient.
Brand and agency leaders should thoroughly evaluate tools and find a centralized platform powered with AI and automation to manage their digital advertising operations. Adopting too many AI tools increases the risk of fragmented usage and poor integration capabilities.
It’s also critical to ensure teams are being versed in AI alongside the adoption of a platform. Effective change management strategies are instrumental in balancing technology with the appropriate human oversight.
The Road Ahead: Embracing AI and Automation for Advertising Success
As the global AI market expands at an unprecedented rate, AI’s impact on digital advertising is poised to be transformative. The power of AI extends far beyond content creation, offering brands and agencies opportunities to enhance productivity, precision, and decision-making across all advertising operations.
Cohesively integrating AI and automation (and building AI-enabled teams) enables advertisers to stay ahead in a competitive landscape, drive better outcomes, and unlock new levels of efficiency. The future of advertising is here and it's powered by AI.
If you’d like to learn more about how Fluency can help you leverage AI and automation for unprecedented results, connect with us today.
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