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Artificial intelligence (AI) is becoming clearer as to how it will underpin the growth of online advertising.
In recent weeks, ad agencies, ad tech vendors and platforms have all started talking about their plans and visions for the technology. And judging from the information already shared, it seems to automate everything that can be automated when it comes to ad campaign planning and buying.
GroupM recently estimated that 90% of digital ad campaigns will be influenced by AI by 2027, according to New Street Research analyst Dan Salmon. ing.
Given that media agencies are already making extensive use of AI in a variety of operations, from dynamic creative optimization to brand safety assurance, the applications over the next five years should be as broad as they are deep. likely to be
The flow of entrusting many of the simple tasks to AI
Take Havas for example. Havas has historically used AI and machine learning techniques to optimize performance at the bottom of the funnel. And now it’s trying to incorporate the technology into more stages of the campaign process.
“Over the next two to three years, we’re going to introduce AI into our agencies and make all media buying more efficient at HMG,” said Mike Bregman, chief data officer at Havas Media Group (HMG). optimizing bidders, creating custom algorithms for bidders, identifying training modules that fit planners, and automating manual tasks such as timesheet filling.”
To be clear, it’s not that AI will quickly take over jobs in this sector. Nor will media agencies be overthrown by machines. Rather, it seems to suggest that AI will take over the mundane aspects of media selection and trading, as most machines do.
Media agency Horizon Media is a prime example. In January, the company unveiled an AI-based predictive analytics tool that it said was meant to boost e-commerce sales for its clients by 20%.
What are marketers using AI for?
Omnicom is also investing in AI. At the end of January, the company’s DDB announced its hybrid creative platform “RAND”, which focuses on the development and implementation of new AI technologies for the creative process. RAND will also become a formal center based in Sweden, and DDB is recruiting creative technologists and machine learning veterans to build new creative augmentation tools.
While past technological explosions have sometimes felt incompatible with DDB’s DNA as a creative agency, George Strahov, DDB’s chief strategy officer for EMEA, said AI I affirm that it is worth the investment.
Because it’s “fundamentally, it’s the next step in the creative process,” he says. And as media buying becomes more optimized and personalized, generative AI will become even more important in helping creatives develop enough content to meet that demand, Strahov continues. But he adds that important questions also need to be considered. So what are marketers optimizing for?
“Obviously you’re optimizing for something you can measure, but at the moment it’s mostly attribution,” Strahov said. “But optimizing for immediate action, immediate clickthrough only risks turning everything into a TikTok, which means anything is possible as long as it’s seen. I don’t think it’s the place to go.”
Nicole Green, senior director analyst at Gartner’s marketing efforts, said agencies without a proprietary model are likely to want to work with a variety of AI vendors. He also says he finds studying choice architecture and its role in driving people to different behaviors “both exciting and frightening.”
“AI is in everything, but I don’t think marketers and agencies fully understand how pervasive AI is in our lives,” Green said. “ChatGPT’s rapid evolution has really pushed AI to the forefront.”
Google and Meta offer AI-powered advertising products
Of course, online platforms are also touting the AI capabilities of various advertising products. The CEOs of Google, Meta, Snapchat and Microsoft all made it a point to highlight AI capabilities in their most recent conference calls with analysts. The CEOs were enthusiastic about AI, mentioning it a total of 105 times during these sessions. While some remarks focused on tools more akin to machine learning than real AI, the end goal is clear.
Nicola Mendelsohn, Vice President of Global Business Group at Meta, summed it up in an interview with Digiday: “More and more advertisers are telling us, ‘We finally understand what it means to have AI play a really important role in the future of content creation and consumption for users, creators and businesses,'” he said.
Marketers are beginning to accept pitches from such platforms. Meta’s Advantage+ suite, a machine learning-based toolset that allows marketers to automate all stages of a campaign, is in fact one of the fastest growing products. Google’s P-MAX is similar. P-MAX is a tool that uses machine learning to automate marketers’ targeting, creative decisions and placements across Google’s ecosystem. Google’s chief business officer, Philip Schindler, made the point during his earnings call on Feb. 2.
Still, not all is positive. There is a caveat to this story. It’s the black-box nature of many of these technologies. Take for example the solutions proposed by Google and Meta, yes, the performance of these products is obvious, but there is a problem. Whether it’s Advantage+ or P-MAX, marketers have no choice but to cede control of their advertising to the platform and rely on AI without being able to verify its results.
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(Text by Seb Joseph & Marty Swant, Translation by Kaori Yonei/Galileo, Editing by Ryohei Shimada)
Source: BusinessInsider
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