AI holds the optimum potential for advertising technologies- helping marketers to deal with daily grinds, like automation, segmentation, and deriving insights into the customer’s intent effectively with Big data.

AI technology in advertising encompasses automation, segmentation, personalization, and other functions that ad stacks cannot be imagined without. In the era of manual hiring practices, professionals face severe quality data scarcity, due to the overwhelming data availability. With a saturated market for marketing technologies, the value of data-driven AI solutions becomes apparent – for the stack to assure making the right decisions and justified investments.

Marketers Using AI Don’t Leverage the Technology to Its Full Potential: Study

Why invest in AI advertising stacks

Personalized marketing messages in the digital advertising space provide clients a sense of value and fostering user loyalty. This usually leads to enhanced CTR and conversions and also to strengthens engagement and continued user retention.

Marketing and advertising professionals implement AI to achieve well-optimized ad campaign outcomes, which translates into higher incomes that ad stack generates throughout.

The following three reasons explain how AI contributes to this:

Increased conversions

CRM systems having in-built AI support, for instance, can automatically determine the overall likelihood of a conversion, suggesting the type of service or product that a client buys and what type of the message will become most relevant. This allows the sales managers to stay much more focused on optimizing their efforts.

The best channels of customer communication

AI also helps marketers to comprehend the relationship among the number of interactions and communication channels in order to define the probability of each transaction for different segments of clients.

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Strengthening advertising personalization

Advertising and AI, when applied together, can easily boost personalized outcomes. This way, retailers can help breathe new life into the existing loyalty programs, which, for some reason, have turned to be ineffective.

Since such programs are based on discounts and hot offers, they can later get a second life; e.g., with relevant location-based geofencing or marketing ad campaigns. This is precisely why, for the brands, marketers, and advertisers invest hugely in AI-based stacks as the number one commercial opportunity.

In fact, Deloitte, in its survey on AI investment, reveals that over 82% of big and medium sized companies in the UK are embracing AI opportunities. While, barely 15% of such companies actually know how to correctly master the full scope of AI capabilities – 17% in France, 22% in Germany, 19% in Canada, and 24% in the US.  Now businesses that invest in AI-based advertising stacks will be able to create personalized services and products which easily hook customers in with individual offers.

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And, the programmatic AI tools drive deeper into customer personalization by ensuring:

Dynamic creative optimization – Companies can develop unique designing solutions that combine performance, branding, and personalization in one creative.

Predictive bidding – This allows the systems to aptly evaluate the data arrays by offering the right bid at the perfect moment during the programmatic auction – reducing the cost per ad impression

Product recommendations – AI advertising algorithm adds recommendations to the advertising that the user experiences on the page.

The advertising industry is, to the core, built-in and around data. That’s why there’s no better job for AI in ad stacks than to simplify routine tasks, automate processes, reduce advertising budgets, and personalize the user experience. Also, the implementation of small algorithms into the advertising stack is not too costly or burdensome.

By investing in smart programmatic AI advertising platforms, companies can maximize the the potential of data with comprehensive campaign automation, personalization, and ongoing campaign optimization.