Artificial Intelligence (AI) has emerged as a game-changer in mobile advertising, enabling advertisers to craft more relevant, targeted, and engaging ads. Leveraging AI allows for a refined approach to ad design, placement, and targeting, enhancing the overall impact of advertising campaigns.
AI’s multi-faceted benefits in advertising
AI’s power extends beyond creating superior ads; it reduces costs and boosts conversions. Industry reports from eMarketer reveal that AI has led to a 27 per cent decrease in customer acquisition costs. Furthermore, Epsilon’s research found that AI-driven Personalisation Images influenced 80 per cent of consumers to purchase. These findings underscore AI’s potential to enhance ad reach and efficacy.
Another significant advantage is AI’s ability to generate and optimise ad creatives based on audience preferences, behaviours, and emotions. It facilitates experimentation with various ad elements, such as copies, images, colours, and layouts, enabling advertisers to choose the best-performing ones. AI also determines mobile ads’ optimal placement and frequency, considering the ad’s content.
The future landscape and ethical considerations
The future of digital advertising is intertwined with AI and machine learning. Their adoption for creating personalised, engaging consumer ads will empower advertisers to optimise campaigns, measure ad performance, and analyse data for deeper insights. Social media and influencer marketing have also revolutionised consumer outreach, with user-generated content and social proof amplifying ad appeal and credibility.
Also Read: Evolution of advertising industry with the rise of OpenAI’s ChatGPT
Cutting-edge technologies like Augmented Reality (AR), Virtual Reality (VR), voice search, and interactive videos redefine ad experiences, offering immersive and memorable ways to showcase products and services. AI tools such as chatbots, voice assistants, and sentiment analysis enhance customer service and outreach in e-commerce.
AI’s influence is also evident in growing sectors like travel, where specialised apps cater to diverse traveller segments by understanding their unique needs and preferences. This understanding allows for targeted promotions during off-seasons, ensuring a consistent business flow.
Mobile trends in 2023 significantly influenced consumer behaviour and advertiser strategy. Platforms like TikTok pioneered short-form video advertising, and mobile gaming and in-app ads experienced substantial growth. However, integrating shopping features within social media apps raised privacy concerns, necessitating advertisers to devise strategies to address these issues while ensuring user data safety.
In 2024, advertisers are expected to embrace immersive and cohesive ad formats, creating a holistic advertising experience. The shift towards a more automated, data-centric, and integrated advertising experience is anticipated.
AI’s primary advantage is its ability to minimise human intervention and manual work, leading to faster, more accurate results and substantial cost savings. Marketing companies even utilise AI-powered dashboards for real-time analytics and reporting, providing timely insights on campaign performance and enabling informed decision-making.
Regarding data privacy, companies must ensure ethical data usage, transparency in AI usage, and allow consumers to opt out of data collection systems. Data should be anonymised or aggregated to prevent individual identification.
While traditional advertising methods retain relevance for specific demographics, the trend is unmistakably toward more targeted, data-driven advertising, promising more precise and accurate marketing.
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