AI Advertising: To Do or Not to Do (And How?)

Artificial intelligence has taken over the world -- but not in a Skynet-terminator kind of way. Instead, AI is revolutionizing industries and transforming the way we live our lives. From self-driving cars to virtual personal assistants, AI technology is quickly becoming integrated into our daily routines.

Once the first AIs came out, it was only a matter of time until AI advertising became a reality. And while it may sound like something out of a sci-fi movie, AI ads are something you should consider.

Why and how to leverage AI for your advertising campaigns?

Keep reading and find out more.

What is AI advertising?

AI advertising utilizes artificial intelligence technologies to enhance and automate various advertising processes and strategies. It involves using machine learning algorithms to analyze data, predict outcomes, and make decisions that would traditionally require human oversight. By integrating AI into advertising, businesses can achieve higher levels of precision, efficiency, and personalization in reaching their target audiences.

Do you need AI advertising?

In the fast-paced digital world, AI advertising can be crucial for businesses seeking to maintain a competitive edge. It offers numerous advantages such as improved targeting accuracy, cost efficiency, and timely optimization of ad campaigns. For companies aiming to streamline their advertising processes and maximize their return on investment, incorporating AI technology is not just advantageous but increasingly necessary.

Top 7 use cases for AI in advertising

Buy & place programmatic ads

Programmatic ads leverage AI to buy and place ads in real-time across digital platforms. This process automates the buyer-seller interaction, significantly reducing the time and resources traditionally required for ad placements. The use of AI here ensures that ads reach the right audiences at optimal times, enhancing the effectiveness of marketing efforts.

Optimize your ad budget

AI plays a critical role in budget optimization by analyzing spending patterns and customer engagement data. It helps marketers distribute their budget across channels in a manner that maximizes impact and minimizes waste. This level of financial precision ensures that every dollar spent on advertising contributes to achieving business goals.

Ad creatives

Artificial intelligence aids in generating compelling ad creatives by analyzing vast datasets to discern what resonates most with target audiences. Through natural language processing and image recognition, AI can offer insights that inform design and messaging strategies. This capability enhances creativity while ensuring alignment with customer preferences and trends.

Ad management

AI simplifies ad management by providing sophisticated tools for scheduling, monitoring, and adjusting campaigns. It enables real-time responses to market changes and consumer behavior, ensuring ads remain relevant and effective. The continuous data analysis provided by AI supports informed decision-making and strategic adjustments.

Generating ad variations

By using AI, marketers can efficiently generate numerous variations of an ad to test different elements such as headlines, visuals, and calls to action. AI-powered tools can predict which variations are likely to perform best, thereby refining campaigns for maximum engagement. This ability to swiftly iterate and test creative options saves time and increases campaign efficacy.

Ad personalization

Ad personalization with AI tailors content to individual user preferences and behaviors, significantly enhancing user engagement. Machine learning algorithms analyze user data to predict interests and deliver customized advertising experiences. Personalized ads are more relevant to consumers, leading to higher click-through and conversion rates.

Predict ad effectiveness

Predictive analytics tools use AI to forecast the performance of ad campaigns before they are launched. By analyzing historical data and current trends, AI can estimate critical metrics such as reach, engagement, and conversion rates. These predictions help marketers fine-tune strategies, resulting in more successful campaigns.

Run competitive analysis

AI enhances competitive analysis by examining competitors’ strategies, performance, and market positioning. It sifts through large datasets to gather insights on competitor ad placements, creative approaches, and audience engagement. This information is invaluable for benchmarking and identifying areas of opportunity and differentiation.

AI advertising examples in 2024

When thinking of "AI" ads, most people think of rather bland or overly-serious robotic voices. However, AI advertising is rapidly evolving, and, so far, many companies have already proven you can leverage AI for very successful exampaigns.

Here are some of the best AI advertising examples from 2024:

Virgin Voyages - "Jen AI" (2023)

In July 2023, Virgin Voyages launched an innovative "Jen AI" campaign, featuring a virtual AI version of Jennifer Lopez. Through collaboration with VMLY&R and Deeplocal, this campaign empowered users to generate personalized cruise invitations using the AI tool. The clever twist, revealing that the on-screen Lopez was an AI-generated avatar, greatly enhanced user engagement, setting a new benchmark for personalized marketing within the travel sector.

Coca-Cola - "Create Real Magic" (2023)

Coca-Cola's "Create Real Magic" platform invited users to craft their artwork using AI technologies like DALL-E 2 and ChatGPT. This initiative resulted in over 120,000 user-generated art pieces, with participants engaging on the site for more than seven minutes on average. The campaign not only demonstrated Coca-Cola's dedication to innovation but also boosted user interaction and fostered creativity within advertising.

Nike - "Never Done Evolving" (2024)

In early 2024, Nike launched the "Never Done Evolving" campaign featuring Serena Williams, using AI technology to spotlight her career's evolution. Generative AI facilitated the creation of a virtual match between Williams' younger and contemporary selves, merging nostalgia with cutting-edge innovation. This campaign not only honored her accomplishments but also captivated audiences by showcasing AI's storytelling prowess.

Should you run AI advertising?

Well, no. You don't have to feel like you have to run AI ads.

However, staying ahead of the curve and on top of your competition will be much easier when you learn how to leverage AI technology for your advertising campaigns. With its ability to optimize budgets, generate creative content, personalize ads, and predict effectiveness – AI truly has the potential to transform your ad strategy.

Whether you choose to run full-blown AI campaigns or simply incorporate elements of AI into existing strategies, embracing this technology will ultimately help drive results and keep your brand relevant in a rapidly evolving digital landscape.

Need a professional team to help you with your AI ads? Hire one of the Mayple-vetted advertising agencies. No contracts, no minimums, and you can cancel whenever you want -- plus, we'll match you with the best agency for your specific needs.