GUEST ARTICLE: Artificial intelligence: The key ingredient to boost the growth of the advertising industry

GUEST ARTICLE: Artificial intelligence: The key ingredient to boost the growth of the advertising industry

With AI, advertisers can improve customer brand recall, enhance the ROI, and make a high impact.

Amitt Sharma

Mumbai: For a layman, the term "artificial intelligence" is usually associated with robots and voice assistant software like Alexa and Siri or Elon Musk’s self-driving cars. Many people don’t think about the scope of AI beyond these concepts. However, the aforementioned use cases of AI are just the tip of the iceberg.

In reality, the power of AI cannot be summarised in a few words or applications, as an infinite number of AI-enabled tools and interfaces are working behind the scenes to make the lives of consumers and other stakeholders a lot easier.

This is especially true in the business world. AI has played a pivotal role in putting products and services in front of potential customers through social media or other means, even though it wasn’t widely recognised or understood. An impactful form of marketing, AI-enabled advertisements present themselves before customers only after learning and assessing their online preferences, shopping behaviour, and other necessary inputs.

And soon, the fast-emerging advertising industry realised that the days of manually asking for customer inputs are behind us, as AI can do this job in the background. This was just the beginning of an AI hurricane that swept the advertising world off its feet. Automation technology evolved, and so did its applications.

Against this backdrop, we will discuss AI’s role in the advertising industry and its advantages in-depth. Without further ado, let’s dive in!

The emergence of adtech: A comprehensive overview

If there’s one industry with a genuine case of AI fever, that is advertising, aka adtech. From the desktop sidebar ads in the 1990s to mobile advertising and the user recognition capabilities of CTV marketing, the advertising industry has evolved dramatically over the past two decades. Everywhere the eye can see today is likely an advertisement. One can thank the internet and new technologies like AI and ML (machine learning) for this drastic change.

Gradually, as remote access to stable internet connections and the widespread distribution of smartphones and smart televisions increased, the pathway to video and online ads became clearer. Some significant industry experts believe that the launch of the iPhone and the consequent smartphone market growth played a considerable role in augmenting the acceleration of adtech, specifically online advertising.

A 2021 InMobi report revealed that programmatic mobile video ads had registered a 194 per cent increase in India. This proves the widespread adoption of video ads as a more effective source of advertising than others, as they are better at connecting and engaging with the audience. But this is just one example of the new wave that enveloped the advertising industry and pushed it toward the path of unprecedented success.

The latest tools and approaches are taking the adtech world by storm

Interactive ads: Going over and beyond

Interactive advertising is a contemporary marketing technique that enhances customer participation. The primary focus is to ensure that consumers engage with and interact with the ad, directly or indirectly, and provide real-time feedback on the relevant campaign. The idea is to not limit the audience from viewing the ad but to make them feel its presence and relevance. There are different ways to implement interactive advertising. Here are a few pioneering examples:

1. 3D impact: A solution that offers immersive experiences to consumers by leveraging advanced animations to deliver multiple messages in one video. Utilising this, advertisers can improve customer brand recall, enhance the ROI, and make a high impact.

2. 3D wobble: A solution that delivers compact and efficient information through a comprehensive UX powerhouse. It adds a noteworthy twist to ads and increases user engagement, brand conversion ratio, and click through rate (CTR).

3. Shoppable unit: A solution that appears as a deck inside a conversational flow. It allows customers to swipe and check out the sequence of product images. This is an effective solution for brands gearing up to streamline their sales and marketing strategies.

CTV advertising: Think bigger

Connected TV advertising (CTV) is a type of advertising approach placed on any smart TV with the facility to connect to the internet. CTV essentially depends on a large TV screen, which enables advertisers to engage audiences in a linear TV-like environment.

It allows advertisers to create a one-to-many relationship with the audience (propelled by co-viewing) compared to other advertising methods where advertisers establish a one-on-one relationship with their target customer base. There are several ways to implement CTV advertising. Here are a few suggestions:

1. Split screen: The split screen technology offers viewers a non-disruptive, non-intrusive, side-by-side creative display. This ensures that consumers don’t miss any key details or pay attention to the content they are consuming while consciously or subconsciously watching the display ad.

2. Brand assimilation: By harnessing the power of mighty brand assimilation, advertisers can manipulate visual effects and place brands in a place where they get seen by customers seamlessly and effortlessly.

3. Persuasive overlay: This approach includes a contextualised and commercial interactive video that connects with the audience through powerful content. The video is created in such a fashion that consumers can quickly connect the display with the brand.

Wrapping up

The use cases, solutions, and approaches mentioned above clearly demonstrate that AI is not the distant future of adtech but its present. This remarkable technology plays a crucial role in helping advertisers deliver highly engaging and non-intrusive ads while providing incremental revenue to publishers. Additionally, given that AI can automatically generate the ad while keeping customer preference in mind, advertisers don’t need to engage their manual workforce for such tasks and can easily concoct their next ad campaign.

AI has made it incredibly easy for advertisers to leverage its many benefits while simultaneously saving money and optimising efficiency to a noteworthy extent. Adequately handling this can improve the overall effectiveness and ROI of ad campaigns, making the entire concept more rewarding.

The author of this article is VDO.AI founder and CEO Amitt Sharma.