Artificial Intelligence in Digital Marketing PDF

Chapter 14: Artificial Intelligence in Digital Marketing  2 AI In Digital Advertising AI in Digital Advertising AI in advertising uses machine learning, big data, and predictive analytics to make campaigns smarter, faster, and more personalized. AI I...

Chapter 14: Artificial Intelligence in Digital Marketing  2 AI In Digital Advertising AI in Digital Advertising AI in advertising uses machine learning, big data, and predictive analytics to make campaigns smarter, faster, and more personalized. AI In Digital Advertising Audience Personalizati Targeting on Ad Creation Optimization  WHAT IS DATA Numb ers Etc. Text Video Dat Imag a es X-ray Symb resul ols ts Grap hs Fi DATA TYPE BY SOURCE rs t- S Collected directly from your audience p e (customers, site visitors, social media ar c followers) ty o d n T at d- Acquired from a trusted partner hi a p rd ar - ty Zp Acquired from a data aggregator d ar er at ty o- a d p A customer intentionally and proactively at ar shares with a brand a ty d  STRUCTURED VS. UNSTRUCTURED DATA STRUCTURED UNSTRUCTURED Quantitative data in Qualitative data in the the form of numbers form of text, audio & and values video files Highly organized and No predefined format or formatted and easily organization ☞ difficult searchable to collect, process, and Stored in relational analyze. databases or Stored in data lakes spreadsheets Examples: Mobile Examples: Names, activity, rich media, dates, social addresses, credit card media posts, satellite TARGETING Audience Targeting  AI-Powered Targeting Precision Meets Relevance t audience at the right time and on the right dev  AI-Powered Precision: Targeting The Right People  Data Integration  Behavioral Analysis  Predictive Modelin  Precise Targeting  AI-Powered Targeting: Faye Challenge: How to expand reach – Find new audiences to target Google Ads Clicks/week = 8,000 Avg. CTR = 4% Your ideal customer doesn’t only care about your products or services. They have three-dimensional lives with many other interests as well. You need to have a 360º view of the customer  AI-Powered Targeting: Faye  Step1: Google Analytics + Google Search Console + Google Ads AI-powered persona generator (Delve.ai)  Step 2: Created detailed audience segments (x8)  Step3: Analyzed industry-specific insights  Step 4: Expand target segments beyond direct product relevance  Step 5: Build Tailor ad creative and messaging AI-Powered Targeting: Faye No. of impressions: 367% No. of clicks 253%  Reached new audience segments without hurting CTR performance significantly Previous audiences: New audiences:  Children’s Apparel –  Comics & 5.07% CTR. 74,960 Animation Fans – impressions. 3,804 clicks 3.88% CTR. 791,944  Gifts & Occasions – impressions. 30,749 4.16% CTR. 67,421 clicks impressions. 2,808 clicks  Arts & Craft  Baby & Toddler Supplies – 3.44% Apparel – 4.12% CTR. CTR. 17,740 31,229 impressions. impressions. 611 “Our new audience segments gave us way more clicks and impressions than all our earlier segments combined. This was great on its own, plus the CTR was comparable to our past results,” - Jose John (Founder, Faye) Source: MarketingSherpa  Targeting: Challenges & Ethical Considerations  Data Quality & Accuracy  Data Privacy Risks  Bias in Targeting  Transparency Issues  Over-Automation PERSONALIZATION  Personalization Making Ads Speak to You The process of tailoring ad content to match individual customer preferences  Personalization Pre-AI Manual Segmentation Rule-Based Targeting Static Content Survey and Feedback Driven Throw ads at consumers. Then hope (and pray) it resonates!!  AI-Powered Personalization 1. Data Collection & Analysis 2. Customer Segmentation 3. Content Personalization 4. Dynamic Creative Optimization (DCO) 5. Predictive Recommendations  Staples: The Situation  Pandemic restricted in-store shopping and sparked an instant change in consumer behavior  Every media execution for each of their 1079 retail locations had to be treated as a separate campaign that featured location-specific product availability, price, and fulfillment options, and aligned with changing consumer preferences  Staples: The Challenge  Automatically render thousands of hyper- personalized brand experiences across video and display  Quickly adapt to short production and activation timelines  Handle a large volume of product and inventory feeds that changed on a daily basis for each of their 1079 retail locations across the United States  Staples: The Solution  AI-driven decision engine seamlessly integrated product feeds for each of their 1079 individual retail locations  Original TV ads were wrapped with dynamic content that highlighted products, fulfillment options, and special offers specific to each Staples retail location  Automatic updates across all programmatic video and display creative variants in real time 12k+ Ad Variations + 1079 Retail Locations 12k+ Ad Variations + 1079 Retail Locations Personalization: Cadbury 500 zip codes 2500 local stores 35% business growth Bipasha Ghosh 29 DCO: Nestle Personalization: Heineken  Why Use AI to Personalize Ads?  Scale  Accuracy  Real-Time Updates  Automation  Challenges & Ethical Considerations  Data Privacy Concerns: Collecting, storing, and processing personal data can raise privacy issues  Transparency in Data Use: Users should know how their data is collected and used  Bias in Personalization: AI-driven personalization can reinforce stereotypes or exclude certain groups  Ad Fatigue: Over-personalization can make users feel tracked or overwhelmed by AD CREATION AI-Powered Ad Creation Creativity Meets Automation The use of AI-powered tools to design, write, and optimize ad creatives, including text, images, and videos, tailored for specific audiences  AI-Powered Ad Creation  Automated Copywriting  Visual Ad Design  Video Ad Production  Dynamic Ad Generation Coca-Cola: Christmas Commercial Heinz 850 million impressions 2500% earned media 38% higher engagement rate  Ad Creation – Why Use AI?  Faster Turnaround: Ads are created faster than ever  Cost Efficiency: Reduces reliance on large creative teams  Improved Engagement: AI optimizes creatives for higher performance  Ad Creation - Considerations  Maintaining originality and brand uniqueness  Balancing AI automation with human creativity OPTIMIZATION  AI-Powered Campaign Optimization Unleashing Efficiencies. Maximizing Impact. Using ML and data analytics to improve ad performance in real time, ensuring maximum  How AI Powers Ad Optimization  Real-Time Performance Tracking  Dynamic Budget Allocation  Audience Feedback Loops  Predictive Analytics  A/B Testing Automation Practical Applications of AI in Ad Optimization  Ad Placement Optimization  Creative Optimization  Keyword and SEO Optimization  Cross-Channel Campaign Optimization Google Smart Bidding: Rakuten 40% increase in revenue Why AI in Ad Optimization?  Higher ROI: Maximizes campaign performance by focusing on what works  Time Savings: Reduces manual effort for ad managers  Customer Satisfaction: Tailors campaigns to evolving user needs  Challenges & Ethical Considerations  Over-reliance on AI can lead to missed human creativity  Balancing privacy concerns with data collection for optimization Why Use AI in Digital Advertising?  AI-Powered Targeting Precision Meets Relevance  Higher Engagement Rates: More clicks, views, and interactions. Reduces ad fatigue  Improved Conversions: Increased purchases or sign-ups  Better Brand Loyalty: Consumers feel understood and valued. Higher customer satisfaction  Repeat purchases (higher LTV)  Referrals