Part 1: The Role of AI-Powered Tools in Digital Advertising

With ChatGPT amassing in popularity over the last few months, marketers are once again turning their attention to the potential capabilities that artificial intelligence (AI) can bring to the  marketing industry and the impact AI can have on business transformation. Artificial intelligence is continuing to rapidly transform the digital marketing landscape, enabling businesses to gain deeper insights into their customers, optimize their ad campaigns, and personalize their marketing efforts. As the volume of digital data continues to increase exponentially, traditional marketing techniques are becoming less effective. That’s why AI has become an essential tool for marketers, allowing them to leverage machine learning algorithms and predictive analytics to better understand their audience and deliver more relevant and engaging experiences. In this blog post, we will explore three ways AI is improving digital marketing campaign performance: improved audience targeting, optimized ad campaigns, and enhanced customer insights as we approach cookie-less marketing.   

Improved Audience Targeting 

With the growing competition in the digital space, businesses are now looking for ways to optimize their ad campaigns and reach the right audience more efficiently. One of the most effective strategies is audience targeting, which involves identifying and targeting people who are more likely to convert into paying customers. This approach requires advanced technology and tools that can help businesses analyze their target market and deliver personalized messages to each audience segment. 

AI-powered predictive audience targeting is one such tool that uses machine learning algorithms to identify the ideal audience for a particular campaign. By analyzing historical data and behavior patterns, AI algorithms can predict which audience segments are more likely to engage with the campaign and take the desired action. Once the target audience is identified, businesses can use AI-powered bidding algorithms to determine the optimal bid amount for each ad placement. These algorithms use various signals such as device, location, time of day, re-marketing lists, language, and operating systems to make bid decisions. This ensures that businesses get the maximum return on their ad spend while reaching the most relevant audience.  This is largely due to the fact that with AI-powered algorithms “you can cast a wider net to find more valuable converting customers while maintaining relevance and ROI. You can also help shorten the “learning period” and accelerate AI’s ability to drive results by sharing the unique insights you have about your customers” (Google). 

Optimized Ad Campaigns 

Dynamic creative is another tool that leverages AI to serve up personalized messages to each prospect. By analyzing user behavior and preferences, dynamic creative platforms can serve up the optimal combination of creative components such as headlines, descriptions, images, CTAs, and landing pages that are most likely to convert each prospect. This is utilized in Google’s Performance Max, which is built on AI and uses predictive metrics to optimize ad campaigns. Performance Max also incorporates advanced features such as attribution modeling, budget forecasting, and data-driven attribution to help businesses make informed decisions and optimize their ad campaigns for maximum performance. At Location3, we already leverage Performance Max campaigns in addition to other AI-based Campaign types and ad formats on behalf of our partners, including Dynamic Search Ads, Responsive Search Ads, and Responsive Display Ads.   

Enhanced Customer Insights 

Another challenge that businesses face in the digital space is data signal loss due to the deprecation of third-party cookies. This can impact their ability to track and measure campaign performance accurately. However, AI can help to fill in measurement gaps by intelligently combining a marketer’s first-party data with other available signals (Think with Google). By leveraging the power of AI, businesses can continue to deliver personalized and effective ads while measuring campaign performance accurately in a post-cookie world. 

In conclusion, audience targeting, and media campaign optimization are critical to the success of any digital advertising campaign. With the help of AI-powered tools, businesses can gain efficiency in analyzing their target markets, identifying their ideal audiences, and delivering personalized messages that are more likely to convert. AI-powered bidding algorithms, dynamic creative, and attribution modeling are just the beginning of some of the tools leveraged by artificial intelligence that businesses can use to optimize their ad campaigns and achieve better results.

At Location3, we utilize this power of artificial intelligence to ensure campaigns are optimized and efficient for every marketing dollar.  If you are interested in learning more about how we leverage artificial intelligence in our marketing campaigns, we welcome the opportunity to speak with you more about your marketing goals and how we can advance your marketing strategies. 

Stay tuned for part 2 of our artificial intelligence series where we will deep-dive into generative AI and its impacts on digital marketing. 

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