Artificial intelligence is increasingly dominating the world of marketing and is also playing a growing role in business. While it seemed like a futuristic concept a few years ago, it is now a reality: not only can AI help companies better understand their customers, it can also create personalised experiences, ads and offers that can significantly increase customer engagement and conversions.
One of the best-known applications of AI is the personalised recommendation system used by companies such as Netflix and Amazon. Netflix can use AI to recommend the movies and series that are most interesting to users, taking into account their previous viewing history, ratings and search habits. Not only does this provide a convenient user experience, it also helps companies better understand what their audience is interested in and how they can tailor content to generate even more interest.
By taking into account consumer habits and individual preferences, AI allows advertisers to create personalised ads that reach their target audiences much more effectively. Think of it this way: if you often shop for sportswear in an online store, for example, AI will be able to generate ads that offer you the exact products you are most likely to be interested in. So you’ll see not just a simple ad, but an offer that really fits your needs and interests – so you’re much more likely to convert.
Why is this important?
The digital advertising market is facing ever-increasing competition and users are increasingly used to personalised experiences. AI enables companies to continuously adapt and refine their campaigns based on user behaviour and preferences. Targeted ads not only better reach potential customers, but also increase the relevance of ads, making them less likely to be ignored by users.
Machine learning allows advertising to evolve as more data becomes available.
Machine learning is a branch of artificial intelligence (AI) that allows computers and systems to learn from experience and improve their performance without having to be explicitly programmed for each task. Machine learning is therefore concerned with how computers can ‘learn’ from the data available to them and use it to make decisions, recognise patterns or make predictions.
Machine learning can basically be divided into three main types:
- Supervised learning: in this type of machine learning, the system receives predefined, labelled data, which is accompanied by answers. The goal is for the system to learn using the data it has already received and to be able to make accurate predictions for new, unknown data. For example, an email filtering system can be trained to recognize which messages contain spam and which do not.
- Unsupervised learning: where the system is not given predefined answers, but tries to discover hidden patterns or structures by analysing the data. For example, when analysing the shopping habits of users of an online store, machine learning can group them according to similar shopping behaviours, without predefined categories.
- Reinforcement learning: in this type of machine learning, the system autonomously tries to optimise its decisions based on feedback from its environment. The goal is for the system to gain the most reward by making the right decisions. This form of learning is often used in video games and self-driving cars, for example.
Machine learning is widely used in many industries. Online recommendation systems such as Netflix movie recommendations, fraud detection in the financial sector, robotics or medical diagnostic systems all use machine learning.
Machine learning is therefore not just an advanced technology, but also the basis for future innovations that can help us better understand and manage the modern world.
Now you see HOW, let’s move on… 🙂
AI can process data quickly and accurately, allowing advertisers to create increasingly precise campaigns. With AI, companies can quickly identify and respond to changes incustomer behaviour.
Tip 1: Use personalised recommendations in your advertising!
One of the key benefits of AI is that it helps you make personalised recommendations to your customers. Personalized ads can not only increase conversions, but also boost customer engagement in the long run. If a shopper regularly buys sports equipment, AI will be able to provide offers that are specifically related to sports, making the shopper more likely to buy more, and the business can increase sales (and we’re going with “likely”)
Tip 2: Optimise your campaigns in real time!
As well as helping you target ads precisely, AI also helps you optimise campaigns in real time. For example, if an ad isn’t performing as well as the advertiser would like, AI can immediately identify the problem and help fix it (you’ve probably seen this with Facebook ads – it helps with optimisation, makes suggestions) Machine learning allows advertisers to react quickly to user behaviour, so they can continuously improve the effectiveness of the campaign. And it is precisely this fast response time that can help you not only be more efficient but also save money!
Tip 3: Use predictive analytics to predict customer behaviour!
Predictive analytics is one of the most exciting applications of AI that allows you to predict customer behaviour. If we know that a particular product will be in high demand during the festive season, for example, AI can help predict this and time ads accordingly. This allows us to target audiences at the best moments and increase the number of purchases.
Tip 4: Create AI-generated content!
AI can help not only to personalise ads, but also to produce content. AI can quickly and efficiently create text, images or videos that fit your brand. This can save you time and money while ensuring that your content is always produced to the highest quality.
Tip 5: Keep testing and learning!
AI is constantly evolving, and new opportunities are emerging every day. It’s important to keep testing your campaigns to see what works best. AI allows you to quickly test different ads and see immediately which types of campaigns produce better results.
The future of artificial intelligence in advertising
Artificial intelligence is a technological innovation, but also a revolution that is fundamentally changing the world of marketing. As more and more data becomes available, AI will continue to generate better ads and offers that target audiences even better.
Companies that can take advantage of AI can gain a competitive advantage while increasing customer engagement, reducing costs and increasing revenues.
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