A new study by Nielsen, conducted in collaboration with Google, has revealed that AI-powered advertising solutions can increase sales effectiveness by 23% when combining Video Reach Campaigns (VRC) and Video View Campaigns (VVC).

The research analysed more than 50,000 brand campaigns and one million performance campaigns across the U.S. between July 2022 and June 2024. The findings demonstrated that AI-driven strategies consistently outperform traditional manual optimisation, significantly enhancing return on ad spend (ROAS) and overall marketing effectiveness.

Beyond the 23% increase in sales effectiveness from combining VRC and VVC, the study found that AI-powered YouTube video campaigns delivered a 17% higher ROAS than manually optimised campaigns. These campaigns improved audience engagement and targeting, leading to stronger ad performance. Additionally, Demand Gen campaigns, when integrated with Search and Performance Max, generated a 10% boost in ROAS and a 12% increase in sales effectiveness.

The study examined how AI-powered tools are shaping digital advertising across platforms such as YouTube, Search, and Performance Max campaigns. By employing Marketing Mix Modeling (MMM) and sales attribution methods, Nielsen measured the effectiveness of AI-driven strategies in improving audience targeting, engagement, and overall campaign performance. The study focused on AI-driven solutions such as Video Reach Campaigns, Video View Campaigns, Demand Gen Campaigns, Performance Max, and Broad Match. Each of these tools leverages AI to optimise ad delivery, maximise audience reach, and enhance engagement.

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AI-driven Performance Max campaigns outperformed traditional Search campaigns, delivering an 8% increase in ROAS and a 10% rise in sales effectiveness. The study also found that Broad Match keyword targeting in Search improved reach and conversions, leading to a 15% increase in ROAS and a 10% uplift in sales effectiveness. These findings suggest that AI-powered advertising tools not only enhance efficiency but also drive higher returns for businesses investing in digital marketing.