AI renders a more conducive landscape for ad industry
In recent years, the entire world has been riding the wave of acute digitisation. Businesses are intensively deploying technology into their operational structure to fetch maximum development and growth. The paradigm shift towards technology has favoured the emergence of artificial intelligence (AI), machine learning, IoT, etc. Businesses, today, have become agile enough to adopt these technologies with alacrity to render quality results.
According to the Salesforce Research report titled Enterprise Technology Trends, 83% of IT leaders are of the view that AI and machine learning are transforming customer engagement and 69% are of the view that these are transforming their business. AI has a huge impact on the advertisement industry and is constantly transforming the advertising landscape.
The ad industry is a very dynamic sector that requires constant interaction with the target audience, and a presence across various social media platforms. Following traditional methods to garner the desired outreach is not possible in the dense digital ecosystem.
Businesses are using AI even for basic static ads in order to be more effective and persuasive in their message delivery. We can take the example of McDonald’s. In order to generate visibility around their McCafé limited-time specialty coffee offerings, McDonald’s, in April 2021, hired an advertisement agency. The company wanted to experience a surge in engagement and to drive consumers in-store to purchase, while measuring in-store visits. To meet the demand, AI generated high-impact branded backgrounds to capture users’ attention and native photos to integrate McDonald’s into the seamless flow of The Weather Channel mobile app. As a result, McDonald’s witnessed 79% customer visits to the restaurant within three days.
Chatbots as an essential element of AI are more in trend, helping businesses improve their sales. These virtual assistants are known for taking customer support to new heights through natural language processing. According to Capgemini reports, 75% of businesses using chatbots have experienced at least a 10% upward push in customer satisfaction. Lufthansa, earlier this year, came out with a meaningful engagement with the conversations delivered by its ad agency, in order to reach and engage with everyday travelers and adventure seekers.
AI has taken ad campaigns to advanced levels through its improved user experience (UX) and reduction in human error. Today, ad agencies are focussing on learning more about their audience’s needs and interests (UX), so that they can deliver the best possible outcome.
In order to enhance the user experience, Best Western deployed AI to interact with potential consumers. Getting an insight into their requirements, the technology devised the best possible travel plan to meet their aspiration of weekend travel even amidst the busiest travel period. In addition to this, AI also reduced their burden of devising the itinerary of the journey. It curated personalised travel plans, keeping in mind consumer demands.
Toyota, for the launch of the Prius Prime vehicle, wanted to serve consumers something cutting edge to maintain the idea of a technologically smart vehicle. Hence, it deployed AI conversations to help initiate interaction with consumers that rendered an ideal path to engage and educate the audience.
AI has simplified how modern day’s advertisements are made and delivered to targeted audiences with increased efficiency. With a vast prospect yet to be unravelled, it can be said that AI will be of great significance in shaping the ad sector.
Therefore, the intervention of AI in the ad industry skims down the complexity of the work and drives automatic monetisation. The ad algorithm detects potential consumers and by understanding their interests, shows relevant ads. Hence, analysing the entire landscape, it increases the probability of conversions and improves the ROI of the business.
The author is co-founder, Option Designs