{"id":17056,"date":"2024-11-29T12:12:09","date_gmt":"2024-11-29T17:12:09","guid":{"rendered":"https:\/\/illumin.com\/?p=17056"},"modified":"2025-01-30T06:03:00","modified_gmt":"2025-01-30T11:03:00","slug":"ai-shaping-digital-advertising","status":"publish","type":"post","link":"https:\/\/illumin.com\/insights\/blog\/ai-shaping-digital-advertising\/","title":{"rendered":"How AI is shaping digital advertising"},"content":{"rendered":"

Digital advertising has always grown and changed as technology evolves. With the continued development of artificial intelligence, digital advertising is seeing major shifts.<\/span><\/p>\n

AI<\/span><\/a> has been front and center in minds and headlines through 2023 and 2024, with no signs of slowing down. The rise of platforms like <\/span>ChatGPT<\/span><\/a> and debates surrounding legal regulations have captured the imaginations of advertisers and audiences across the globe.<\/span><\/p>\n

After all, with so many use cases, AI has the potential to revolutionize a broad range of industries.<\/span><\/p>\n

According to a 2018 study from <\/span>McKinsey<\/span><\/a>, out of the 400 most advanced industry use cases for AI, marketing was shown to have the greatest potential value. AI was already being utilized across the world by marketing departments to improve their strategies, plan their advertisements, and even create content.<\/span><\/p>\n

Since then, the number of departments using AI globally has only grown. Generative AI entered the conversion with a bang in 2023 and since then tech giants and advertisers have scrambled to be on the front lines of the latest AI trends.<\/span><\/p>\n

A study conducted in 2021 by <\/span>Semrush<\/span><\/a> showed that marketing and sales departments are already prioritizing AI and machine learning, with departments having 40% greater success when doing so.\u00a0<\/span><\/p>\n

Since this study was conducted, technology has only improved, making the use case for AI even stronger. The use of AI is also only slated to grow; the same <\/span>Semrush<\/span><\/a> study concluded that the AI market will reach $190.61 billion in market value by the year 2025.\u00a0<\/span><\/p>\n

The state of AI in advertising<\/span><\/h2>\n

In advertising, AI is most often used to assist with analytics, programmatic buying, and customer service tasks. Artificial intelligence can be used to answer questions like \u201cHow many potential customers will see my ad?\u201d and \u201cHow can I optimize my campaign\u2019s reach?\u201d AI has the potential to transform more marketing campaigns into success stories.\u00a0<\/span><\/p>\n

In particular, <\/span>predictive AI<\/span><\/a> has massive potential for advertising optimization. While predictive AI isn\u2019t new, its potential remains unrealized in the world of advertising. This technology can be used to more effectively target customers and optimize campaigns for maximum reach at the lowest cost possible.\u00a0<\/span><\/p>\n

AI for targeting<\/span><\/h3>\n

One of the best current use cases for AI in marketing is to improve returns on investment. By using AI to collect and analyze data to better target potential customers, advertisements can be shown to the right audiences, the right number of times \u2013 reducing costs substantially.<\/span><\/p>\n

In <\/span>a 2021 study<\/span><\/a>, 48% of companies were already using AI to improve their targeting data and this number continues to grow year after year.\u00a0<\/span><\/p>\n

The AI controversy<\/span><\/h2>\n

As mentioned previously, there is still a great deal of controversy surrounding AI. In part, this is due to a lack of understanding in the general public of what AI is and can do. On the other hand, there are still a lot of legal unknowns when it comes to AI, both in terms of data collection and content creation.<\/span><\/p>\n

As AI technology grows, so do the number of ethical conversations happening around it.\u00a0<\/span><\/p>\n

Some of the ethical issues raised by <\/span>UNESCO <\/span><\/a>include:\u00a0<\/span><\/p>\n