AI in Advertising: Friend or Foe?
In an ever-evolving world, it is important for businesses to remain current by continuing to adjust their marketing strategies. Could Artificial Intelligence, (AI), benefit companies, or should we all take a step back before diving headfirst into the realm of AI? We’re breaking down the pros and cons of AI in advertising.
PRO
AI provides enhanced audience targeting by analyzing vast amounts of data and identifying patterns and trends.
In the marketing realm, you may be familiar with growing intelligence platforms like BI, or Business Intelligence. BI tools offer businesses the necessary data-driven insights to steer their marketing strategies based on historic and current customer data. AI, on the other hand, uses advanced algorithms to continue aiding companies in understanding their target audience and identifying patterns in consumer behavior to gain valuable insights.
CON
The number one concern with AI is privacy. AI-powered advertising relies heavily on collecting and analyzing vast amounts of consumer data. This raises concerns about privacy and data protection. Advertisers must ensure that they comply with relevant data protection regulations and obtain proper consent for data usage to maintain customer trust.
PRO
AI is known to help improve creative ad elements. By testing and iterating different variations of ads, the intelligent algorithms identify the most effective designs, images, copy and calls-to-action to enhance engagement and conversion rates.
CON
Don’t forget, we are all human and need that human touch. Over reliance on algorithms for decision making may stifle creativity, human intuition and critical thinking. There must always be a human element in advertising. Understanding cultural nuances and the range of human emotion is so important when it comes to the creation of compelling messages that resonate with audiences.
PRO
We’ve probably all encountered chatbots or virtual assistants at this point in our online navigation. These AI-powered bots provide personalized interactions with consumers, answering inquiries, providing recommendations and facilitating transactions. They can be integrated into advertising campaigns to deliver real-time customer support and personalized product or service suggestions.
CON
While typically AI can help detect and prevent ad fraud and manipulation, it can also be exploited by malicious actors to deceive AI systems and generate fraudulent clicks, impressions or engagements. Advertisers need to be vigilant in monitoring and addressing potential ad fraud risks. Again, that “human” element is still needed. The lack of transparency on how the AI data is being pulled could mean false information is being shared.
The key takeaway is this…it might be wise to utilize AI technology and see if your brand gets the boost it needs and deserves. However, it still takes human review to ensure data is kept safe, empathy lives in campaigns and information disseminated isn’t fraudulent or misleading.
About Innovative Advertising
Innovative Advertising is a full-service marketing firm and digital advertising agency, with offices in Greater New Orleans and Nashville. We partner with B2C, B2B, and non-profits to create completely original design, digital, advertising, public relations and media solutions. Following a disciplined approach, our team conducts analyses and optimizations of these cross-platform brand development efforts to create sound marketing solutions with demonstrable results.