How AI is Changing the Way We Target and Measure Display Ads

How AI is Changing the Way We Target and Measure Display Ads

How we target and measure display ads is rapidly changing thanks to the use of Artificial Intelligence (AI) in everyday business tasks. In this blog, we will look at how AI is targeting, measuring, and helping Google display ad experts with more tools to reach your audience effectively.

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The Intersection of AI and Advertising

AI can do a lot of things with online ads to help boost the effectiveness of campaigns. Below, we have put together some ways that AI is impacting advertising for businesses:

Personalized Ad Campaigns

One of the greatest things about AI is just how much data it can crawl through and process. One of the key sets of data a specialist might look into for your display ads is user behavior and preferences. This helps the display ad expert craft the perfect ad to speak to individual users who may be looking for your products or services. Machine learning algorithms can then adapt further based on interactions on your website to tailor display ads specifically to individuals. 

Real-time Optimization

AI can keep track of a lot of things at once and make changes in real time, so the process is faster than human touch alone. Real-time optimization is incredible as it can save your display ad budget since changes are made as soon as they become more lucrative. Advertisers in control of the AI can also adjust bidding strategies to maximize your ROI further based on AI suggestions. 

Precise Targeting

Segmenting audiences is a good strategy advertisers use to ensure display ads are personalized. AI can do this easily based on demographics, browsing behavior, or purchase history. This way, display ads can be shown to the most relevant audiences. AI can also generate lookalike models to find new customers/clients who may not have heard of you but share characteristics with other high-value customers. 

Ad Creatives Enhancement

AI can test different elements of your display ads quickly and efficiently. They can change images, headlines, and calls to action, so your digital marketing expert can then review the data and see what is working best. AI can also use Natural Language Processing (NLP) to craft good ad copy that sounds human. Of course, someone will have to overlook this process to ensure it is working as it should. 

AI in Advertising Technology

AI and advertising technology (ad tech) are pushing innovation, so businesses that want to stay ahead of their competitors need to stay up-to-date. Here are some key areas to pay attention to:

 

AI in Ad Tech Features
Programmatic Advertising AI automates the buying of display ads in real-time auctions, optimizing placements for maximum impact.
Ad Fraud Prevention Machine learning algorithms detect and prevent fraudulent ad activities, protecting ad budgets.
Dynamic Creative Optimization AI tailors ad creatives in real-time, delivering personalized content to viewers.
Cross-Channel Advertising AI enables seamless ad campaigns across multiple channels, ensuring consistent messaging.
Data Analytics AI analyzes vast amounts of data to provide actionable insights for refining advertising strategies.

Measuring Ad Success with AI

Targeting isn’t the only area that AI can help with; AI can also measure how successful display ad campaigns are. This is important for businesses to make changes where needed or jump on certain trends that seem to be working well:

1. Advanced Attribution Models

Attribution Models driven by AI help the display ad professional to understand the customer journey a bit better. You can allocate credit to touchpoints that seem to really impact conversions, as opposed to making guesses and testing outcomes. Time Decay Attribution, Algorithmic Attribution, and Data-Driven Attribution are examples of AI-powered attribution models that allow you to do this. 

2. Predictive Analytics

Predicting what might be trending next for your business can put you ahead of your competitors. AI can do this by looking at historical data to see where efforts should be placed next. 

3. A/B Testing at Scale

A/B testing is tedious when done manually, but AI can automate the process. This way, the ad expert can run the program and find the best variations of display ads to target exactly what converts for whom.

Trends of AI in Online Ads

There are some cool trends popping up as AI gets better and better. We have listed some exciting ones to watch that might impact your business:

  • Voice-Activated Ads: Voice activation is becoming a big trend in all areas online, from search to advertisement. Voice assistants will enable interactive voice-activated ads so businesses can reach out to customers/clients.
  • AI-Enhanced Creativity: AI-generated content will speed up a lot of the display ad process. Understanding the nuances of your industry enough to capture interesting ideas is something AI can’t do, but it can work as an assistant to speed up the process, saving you money. 
  • Hyper-Local Targeting: Display ads can already target people in the general area, but now hyper-local targeting will come into play based on the precise locations of potential customers/clients. 

AI in Google Display Ads

Google has created something called the Google Ads Creative Lab. This is an AI-powered tool to help advertisers create better display ads more efficiently. The tool tracks customer/client behavior so it can give the digital marketer some idea of how certain display ads will actually perform, and from there, businesses can decide if their budget would make it worthwhile. 

Another thing Google is doing is called Google Ads Performance Max, which is a new campaign type using AI to help businesses reach goals across all Google channels. This automates campaigns for performance and budget so you can reach new leads. 

Google Ads Smart Bidding is another tool, which is a set of automated bidding strategies that can help you optimize bids and conversions, ultimately giving your budget the best chance possible. 

Finally, Google has Google Ads Recommendations, which is an AI tool that uses personalization. This tool recommends tweaks for advertisers so they can improve their campaigns. Things it might suggest are targeting, bidding, or ad creatives. 

Companies Using AI in Their Advertising

Some of the biggest companies in the world use AI in their advertising campaigns to help them target specific customers. Here are some examples:

Amazon

Amazon has AI-targeted ads, which are often based on past purchases, browsing, and more. AI helps Amazon to personalize the shopping experience and make conversions easier. Amazon uses some display ads with these methods for Prime Video, Amazon Music, and Amazon Fresh.

Coca-Cola

Coca-Cola has personalized ads for each customer and does this using AI. The company has data on customer demographics, interests, and behaviors so that display ads will really resonate with potential customers. One example of a campaign is from 2021, where Coca-Cola launched a Christmas-based display ad campaign in Italy to reach shoppers around the web. The campaign worked and increased sales and awareness.

Starbucks

Another cool way that AI is used in advertising is on mobile apps. Starbucks uses data on customer purchase history, browsing, and more to make drink recommendations, food recommendations, display ads for local businesses and events, display ads for their partners Spotify and Uber, and personalized promotions.

Conclusion: How AI is Changing the Way We Target and Measure Display Ads

AI is giving businesses the tools they need to create display ads that target specific audiences and do it well. For businesses interested in targeted display advertising ClickGiant is a leading digital marketing agency who is well-versed in all the latest technologies surrounding display ads and more. 

If you need assistance with custom content that ranks and gets clicks, improves your brand’s exposure online, increases quality traffic to your site, and converts visitors into customers, contact ClickGiant today. We are a leading digital marketing agency serving clients nationwide. 

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