Artificial Intelligence: Next Step In an Advertisement Evolution?

Maria Bondarenko
Multiplayer
Published in
4 min readFeb 29, 2024

Artificial Intelligence, also known as AI, involves machines programmed to imitate human intelligence, including learning and problem-solving. It uses such technologies as machine learning and neural networks, enabling computers to analyze data, identify patterns, and make decisions on their own. AI is used in various industries, such as healthcare for diagnosing diseases, transportation for self-driving cars, and finance for fraud detection and market analysis. Furthermore, AI is reshaping the advertising industry by processing vast amounts of data to create more personalized and effective advertising experiences for consumers.

There are several significant ways in which AI can benefit marketing and advertising:

  • Data-Driven Insights
  • Personalized content creation
  • Real-Time Optimization
  • Predictive Analytics
  • Hyper-Targeted Advertising Campaigns

AI Hyper-Targeted Advertising Campaigns

To understand trends, artificial intelligence can analyze extensive consumer data from various sources like online browsing histories, social media activities, and purchasing habits. Using this data, AI can personalize advertisements to target individuals more likely to be interested in the promoted product. AI can predict future consumer actions through advanced machine-learning algorithms, allowing for strategic advertising placement during key decision moments such as important purchases. AI can also optimize ad distribution on different platforms like social media, search engines, and websites to reach the right audience at the most effective times.

The Impact Of Personalized Ads On Customer Engagement And Conversion Rates

Customer Engagement

Tailored advertisements have the potential to capture consumers’ attention and interest by catering to their individual preferences and interests. This personalized approach increases relevance and engagement, leading to higher interaction with the brand. Personalized ads can stimulate consumer engagement through various channels, such as click-throughs, website visits, and social media interactions, creating a stronger connection between the consumer and the brand. Ultimately, personalized ads can foster lasting customer loyalty and positive brand recognition.

Conversion Rates

Recent research shows personalized ads are more likely to lead to conversions like purchases or sign-ups because they are more relevant to individual consumers. An Adobe study found that a majority of respondents (67%) prefer receiving personalized promotions based on their spending habits while shopping, with many (61%) indicating that these promotions increase their likelihood of making a purchase, showing a significant boost in performance that can impact a business’s revenue stream.

Automated Creative Optimization

The use of artificial intelligence in creative optimization in advertising offers several benefits, such as cost savings through streamlined processes, improved ad effectiveness, increased productivity by automating tasks, and personalized campaigns for targeted results. Overall, AI integration in advertising reshapes how companies plan and implement successful, efficient, customized marketing strategies.

HOW COMPANIES USE AI FOR ADS?

KitKat “Have AI break”

In 2023, KitKat introduced a campaign named “Have a Break, Have a KitKat,” embracing cutting-edge generative AI technology. With a history of advocating for breaks for over 65 years, KitKat embraced the chance to explore the realm of artificial intelligence. Utilizing AI-generated content via DALL-E 2, their aim was to engage the expanding Gen Z audience interested in innovative messaging. This initiative reinforced KitKat’s core message on the importance of taking breaks in a fast-paced lifestyle. The idea of “Have AI Break” was simple yet effective: allowing AI to lead the creative process, providing a break for the brand and their agency partner from traditional campaign efforts. The emergence of AI and platforms like ChatGPT gave KitKat the perfect opportunity to embody their philosophy.

The response from their target audience, Gen Z, was overwhelmingly positive. The campaign significantly broadened the brand’s reach and engagement, particularly on social media platforms such as YouTube, Instagram, and TikTok.

Coca-Cola “Create Real Magic”

Coca-Cola’s “Create Real Magic” campaign is a unique project that utilizes cutting-edge AI models like GPT-4 and DALL-E 2. The platform allows artists to explore Coca-Cola’s archives and create original artwork with AI assistance. Artists can describe their ideas, and the AI transforms them into stunning images, bridging imagination and technology.

Image Source

The results are astonishing, with artists producing digital collages, videos, and music inspired by Coca-Cola. This initiative showcases Coca-Cola’s commitment to innovation and creativity, demonstrating how AI can enhance our artistic experiences. The campaign exemplifies the powerful partnership between art and technology.

These are just a couple of examples of ad campaigns that use the power of artificial intelligence. However, there is no doubt that AI is the next ‘big thing’ in the marketing world due to its effectiveness and creative potential.

To learn more about advertising, new technologies in marketing, and gamification of ads, please visit gamified.marketing

Maria Bondarenko, Business Intelligence Specialist @Multiplayer

www.multiplayer.com.tr

maria@multiplayer.com.tr

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