Artificial Intelligence (AI) has become an integral part of our daily lives and it’s happened in a surprisingly slow and incestuous way. While many of us might have only become aware of its influence in recent months, the groundwork has been laid for decades with subtle revolutions being felt across the creative industries.
Over the years, AI has transformed the way businesses connect with their audiences and optimise their marketing strategies. So, while 2023 might very well end up being the year AI enters mainstream discourse, I thought I’d take a look back at how we got here, focusing specifically on the advertising space and the impact AI has had on how agencies and brands flog their wares.
The Emergence of AI in Advertising
Jessica Sutton
The roots of AI in advertising can actually be traced back to the 1990s when the internet first started gaining widespread popularity. Marketers realised the potential of using data to understand consumer behaviour and deliver targeted advertisements.
This led to the development of rule-based systems, where algorithms were used to match advertisements with specific keywords or demographic information. These systems have been perfected today and form the backbone of many marketing activations. Indeed, targeted advertising has never been bigger and is only going to get smarter in the years to come.
Machine Learning and Personalised Advertising
As the internet continued to evolve, so did AI. The rise of machine learning algorithms allowed marketers to analyse vast amounts of data and make predictions based on user behaviour. This led to the emergence not only of targeted advertising but personalised advertising, where ads were tailored to individual preferences and interests.
Companies like Google and Facebook became pioneers in using AI for personalised advertising. They used algorithms to analyse user data and deliver relevant ads based on search history, social media activity, and other factors. This approach not only improved the effectiveness of advertisements but also enhanced the overall user experience and made users feel a little bit more ‘special’.
Natural Language Processing and Chatbots
Another significant development in AI advertising was the integration of natural language processing (NLP) and chatbots. NLP allowed computers to understand and process human language, opening up bold new possibilities for interactive advertising.
Chatbots, powered by AI, allowed brands to engage with their customers in real-time. These bots could answer queries, provide recommendations, and even complete transactions. The integration of AI and chatbots not only improved customer service but also provided valuable data for marketers to understand customer preferences and improve their advertising strategies.
Michael Winokur
Programmatic Advertising
In recent years, programmatic advertising has gained significant traction, thanks to AI. Programmatic advertising refers to the use of AI algorithms to automate the buying and selling of ad inventory in real-time auctions. This approach eliminates the need for human intervention in the ad buying process, making it faster and more efficient.
Programmatic advertising uses AI to analyse data and make real-time bidding decisions based on factors such as user demographics, browsing behaviour, and ad performance. This allows marketers to reach their target audience more effectively and optimize their ad campaigns in real-time.
AI and Voice-Activated Advertising
As voice-activated devices and virtual assistants like Amazon's Alexa and Apple's Siri gain popularity, AI has found its way into voice-activated advertising. Marketers are now exploring ways to deliver ads through voice-activated platforms, revealing new channels for advertising and reaching consumers right in their homes.
With voice-activated advertising, AI algorithms can analyse voice commands, understand user preferences, and deliver relevant audio advertisements. This technology is still in its early stages but shows great potential for the future of advertising.
Ethical Considerations and Challenges
While AI has transformed advertising in numerous ways, it also raises ethical concerns. Privacy and data security are major issues, as AI algorithms rely on vast amounts of personal data to deliver targeted ads. Striking the right balance between personalisation and privacy is a challenge that marketers and regulators continue to face.
Moreover, there are concerns about AI's potential to perpetuate biases and stereotypes in advertising. AI algorithms are trained on historical data, which can contain biases present in society. It is crucial for advertisers to ensure that their AI systems are fair, transparent, and free from discrimination.
Looking Ahead
Ivan Westerveen
The history of AI in advertising has been characterized by constant innovation and adaptation. As AI continues to advance, we can expect further developments in areas like augmented reality, virtual reality, and immersive advertising experiences. The future of AI in advertising holds immense potential for brands to connect with consumers in more personalized and meaningful ways.
As technology evolves, it is crucial that brands and agencies alike work to strike a balance between leveraging AI's limitless capabilities and addressing the ethical considerations associated with its use. This is the only way advertisers can harness the power of AI without losing the trust of their audience. It’s a fine balancing act but it’s one that will perhaps come to define the next decade of advertising.
