How Can Artificial Intelligence Help Improve Targeting in Advertising?

Tachain
4 min readAug 1, 2018

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In this article we talk about the ways, in which the artificial intelligence (AI) can help advertisers to better target their ads.

Today, AI is already actively used by many bigger players and it gradually starts to get available to medium and small businesses. Read on to learn about the wins you can take by bringing AI to the table.

When it all comes together

When we talk about the role of AI in advertising — or any other industry, for that matter — we mean the synergistic benefits, brought by the conjoint use of AI, Big Data, Machine Learning and Internet of Things.

AI helps to process huge caches of data. The machine can learn by making sense of patterns and by taking it own decisions.

Big Data is just that. Both individuals and businesses generate enormous amounts of data, coming from tracking of online activities, healthcare records and census.

Machine Learning means processes that are performed to handle data and identify patterns.
Internet of Things refers to interconnections between devices, like cars, appliances, lighting systems and motion sensors. All these gadgets learn to communicate, share information and even trade through the use of cryptocurrencies.

Streamlining all processes in advertising

Leveraging all of these new capabilities can be beneficial to advertisers, cutting the time needed to process information and enabling most effective placement of ads.

The synergies of the 4 components above might usher the era of truly personalised ads, when AI accounts for particular needs, tendencies and habits that individual consumers have.

In this setting, the speed, with which the machine can process changing circumstances, comes to the fore.

The companies who learn to effectively use the fast and effective AI-powered ad targeting will move forward, eating away the market pie from the less agile competitors and gradually squeezing them out completely.

Advent of personalised providers

At the same time, the world might be on the brink of moving to the personalised economy where billions of micro and small businesses provide very customized services. We can envision these businesses having no officies, no stringent business processes, no staff.

Whenever a person needs a service or product, the AI-powered targeted ad will offer a consumer several options to choose from, all of them fully compliant with the minute requirements, stipulated by the customer.

Let’s say, you want to have an apple pie, which has a specific recipe and which has to delivered in 34 minutes to your doorstep in Bronx.

If you google it, the AI might find the bakeries, which are located just close enough to you and which offer the customized-recipe service.

Naturally, no company will ever be able to match the speed and efficiency that AI can bring forward. To help you find a pie maker, such a company would need to have hundreds of thousands of employees, who have the latest scoop on each particular use case and service. That’s just not realistic.

In this channel, we will be talking about the real-life case for using AI in advertising. Make sure that you subscribe and keep track of the latest developments in this segment.

First examples of real-life implementation

Even today, first cases pop up with one of them dealing with billboards.

This experiment included the installation of the billboard at a busy Japanese highway. The camera on top of the billboard was recording the cars, driving at the distance of 350 meters from the venue. The recordings were being furnished to the processing system, which was used to identify the models.

The identification process was done, using the publicly available photographs of cars (5,000 photos for each model).

All the cars were divided into four categories:
1) luxury cars
2) budget cars
3) specific cars, owned by the project members
4) unidentified cars

Depending on the type of cars, the billboard was showing a specific ad:
1) ad for a golfing club
2) ad for family entertainment park
3) logo of the project
4) weather information

In this way, the team managed to leverage the capabilities, brought by AI, in order to differentiate customers in smaller groups, customising the message and, probably, getting better results from the advertising campaigns.

In the next articles we will tell you about the particular case studies and future solutions for using AI-powered systems to deliver smooth and fast operations of targeted advertising.

If you are interested in the AI-powered advertising, make sure that you subscribe to our Medium channel.

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