For the final instalment in this series we will discuss how AI is used in terms of digital advertising.
We have seen already Lexus’ advert that was scripted by AI, however, in relation to advertising AI is rapidly transforming numerous aspect from intelligently identifying and segmenting audiences, build ad creative, test variations, improve performance, and optimise spend—automatically, in real-time, and at scale.
It is evident that entrepreneurs and market leading brands will implement AI in to their digital advertising going forward. An example of this would be RedBalloon owned by Naomi Simson of Shark Tank Australia, Naomi was spending $45,000 a month on agencies to run digital advertising campaigns and was paying over $50 to obtain a new customer.
She found an AI tool for advertising called Albert, which uses sophisticated AI to analyze ad campaigns, then manage targeting, testing, and budgets.
The tool was so effective learning from data that it was able to average an 1100% return on ad spend and RedBalloon were able to cut their marketing cost by 25%.
Over time, the tool was so effective at learning from data to improve performance that it skyrocketed RedBalloon’s return on ad spend. The company was averaging a whopping 1,100% return on ad spend using the tool when we spoke with them. They had also cut marketing costs by 25% thanks to improved efficiency, all while improving results.
The tool also identified potential customers in people travelling to Australia from other countries.
“I found markets in the US and UK of people travelling to Australia that I didn’t even know I had,” Simson tells Mike Kaput of the Marketing Artificial Intelligence Institute. From this case study the institute were able to take 3 key points from implementing AI into a brands digital advertising.
- Increase revenue by analyzing and acting on data at scale.
- Reduce costs by acting on that data faster and automatically.
- Build a massive competitive advantage with both superior insights and superior speed.
Ultimately from the above story implementing AI into a brands digital advertising strategy will be essential for brand going forward.
References:
Kaput, M., 2020. AI For Advertising: Everything You Need To Know. [online] Marketingaiinstitute.com. Available at: <https://www.marketingaiinstitute.com/blog/ai-in-advertising> [Accessed 31 March 2020].
AI In Digital Marketing 