5 ways AI is changing advertising right now

The holy grail of advertising has always been finding the right person, at the right time, with the right message, in the right context. Over the years, technology has adapted to help brands meet these goals, but the advent of Artificial Intelligence (AI) is revolutionising the advertising industry at an unprecedented pace.

With its ability to process vast amounts of data and make real-time decisions, AI is helping automate, optimise, and even create campaigns. Here’s 5 ways it’s changing the industry right now:

1. Online targeting

Machine learning is nothing new for Google and Meta - they use AI to show ads based on users' past interactions, increasing the likelihood of engagement and conversion. So, what about the open web? With the demise of 3rd party data this year, AI is being used to power contextual advertising, to make the environment as relevant as possible.

The technology essentially analyses the contents of a web page and then serves contextually relevant ads – for example, an ad for ISAs next to a news article on saving money.

2. Predicting content performance

AI-driven predictive analytics are transforming content performance analysis in social advertising, helping brands make data-driven decisions. By analysing historical data and user behaviour, AI algorithms can predict the performance of social ad content before it goes live.

For example, AI might forecast which ad creatives or copy variations are likely to generate the highest engagement or conversion rates. Armed with this insight, advertisers can optimise their content strategies to achieve better results.

3. Real-time outdoor  

In DOOH advertising, AI is enabling real-time audience analytics, allowing advertisers to understand and target audiences more effectively. From the ability to personalise locations at scale, to reacting to the weather or live social media, contextually relevant content can now be shown to the right audience at the right time.

4. Targeted content recommendations

As more of us move away from linear TV, Connected TV (CTV) advertising is benefiting from AI-powered targeted content recommendations, enhancing the viewer experience, and increasing ad effectiveness.

Streaming platforms like Netflix, Disney Plus, ITVX and Amazon Prime use AI algorithms to analyse viewers' watch history and preferences, recommending relevant content and ads. For example, if a viewer enjoys watching thrillers, AI can suggest similar TV shows or movies, ensuring that ads are shown to interested audiences, leading to higher engagement and conversion rates.

5. Levelling the playing field

Finally, one of the most interesting aspects for smaller businesses is the ability for AI to generate multiple adverts tailored to the objectives of marketers quickly and cheaply.

Meta, for example, have just released a slew of new tools in their Advantage Suite which includes the ability to optimise and personalise video based on the user. What was once only available to the biggest in the business – multiple creatives, at scale – is now out there for everyone.

Reach your target audience

As AI continues to evolve, it will play an increasingly crucial role in shaping the future of advertising, contact us today to lean how you can reach your target audience more effectively than ever before.