The Role of AI in Advertising Campaigns

Human creativity has made remarkable strides in marketing over the years. Take the innovative "Taste the Rainbow" campaign by Skittles or the classic "Just Do It" by Nike, for example. These became famous slogans that we still remember today. They’ve become part of our everyday vernacular.

However, the ubiquity of AI technology, and its capabilities, are changing the landscape of advertising and media industries. The fact that marketers can generate ideal model faces using AI tools like Rosebud.ai or create realistic-looking 3D environments is giving rise to a new breed of creativity that's quickly blurring the lines between what's real and what it’s not.

In recent years, Artificial Intelligence has begun to play a more significant role in the behind-the-scenes processes of media production. Large companies such as IBM, Adobe, and Sky have all invested in Artificial Intelligence capabilities to help automate various tasks related to the production of media content. For example, IBM's Watson has been used to create trailers for movies such as 20th Century Fox's "The Greatest Showman" and Sony's "Venom”.

But what does AI mean? And how are advertising and media industries harnessing the power of AI? Here's everything you need to know about the role of Artificial Intelligence in media production and advertising campaigns.

AI - The Intelligence of Machines

AI, or artificial intelligence, is the ability of machines to perform tasks that only humans can perform, by using cognitive science techniques. For instance, human beings can interpret questions and queries, understand natural language, and contextually know what someone means. That's precisely the areas AI is targeting today.
Artificial Intelligence is supplementing humans to create more realistic and lifelike interactions with customers.

Do you wonder how Siri or Alexa understands you when you talk to them? That's AI at work!
In the realm of marketing, AI is changing how marketers think and operate. From identifying the target audience to understanding their preferences and needs to create hyper-personalized content, AI is increasingly becoming the backbone of marketing operations.

Applications of Artificial Intelligence in Advertising and Media Industries

Advertising has always been about creating attention-grabbing content relevant to the audience. The catch is to do so without bombarding them with too many ads. The perfect solution to achieve the right mix is through AI.

Programmatic Advertising

Programmatic advertising is a form of AI-driven advertising that uses algorithms to buy and place ads automatically. The idea is to use data to better understand the user and serve relevant ads in real-time. This way, marketers can be sure that their ad reaches the right person at the right time. Facebook and Amazon are two of the biggest programmatic advertisers today.

Predictive Analytics

Do you know what your customers are going to need or want next? Using predictive analytics, businesses can analyse past customer behaviour to make predictions. This information can be used to make product development, pricing, or stockholding decisions. Walmart is one company that's using predictive analytics on a large scale to optimise its supply chain.

Generative Adversarial Networks (GANs)

Systems such as OpenAI’s Dalle-2 and Midjourney utilise Generative Adversarial Networks (GANs) to generate imagery and artwork. GANs are a type of AI algorithm that's used to generate images or videos that are realistic enough to fool humans. This technology helps businesses in creating more realistic product images or videos for ads. For example, online fashion retailer ASOS uses GANs to create images of models wearing clothes from their collections. Pretty neat, huh?

General Adversarial Networks — Example of GAN using labs.openai.com

Virtual Reality and Augmented Reality

Virtual reality (VR) and augmented reality (AR) are two other areas where Artificial Intelligence is being used extensively. These technologies create realistic experiences for users by superimposing computer-generated images in the real world. If you've used IKEA's Place app, you've experienced AR firsthand. This app allows users to see how furniture would look in their homes before they buy it. Talk about making shopping more convenient!

Automated Transcriptions and Subtitles

The media and entertainment industry relies heavily on transcripts and subtitles to create content. YouTube, for instance, has a massive repository of user-generated videos with subtitles in different languages. Artificial Intelligence is making it possible to develop these transcripts and subtitles automatically. More importantly, the big data generated by AI can be used to understand user preferences and create better content.

AI in Social Media

Tweet recommendations, Facebook's News Feed, Instagram's Explore section – all these features use AI to show you content you're interested in. AI is also used to monitor social media conversations and spot potential crises. For example, Coca-Cola uses AI to scan social media posts for mentions of its brand and potential issues. It aids them in taking quick action to resolve any problems.

AI-Powered Digital Influencer Avatars

As social media platforms have evolved, so have AI-powered tools that assist influencers in growing their followers and honing their skills. Influencers may use these tools to better understand their audience, focus their content, and assess the effect of their postings. As a result, AI-powered influencers are becoming increasingly popular, as they can communicate with their audiences more effectively and generate high-quality material. A close example of this phenomenon is the blogger, influencer and model Lil Miquela, who in 2016 appeared on the market becoming the face of major fashion brands such as Prada and Calvin Klein.

Benefits of Using AI in Advertising and Media Industries

The dollars have shifted to digital, and so needs data-driven advertising. So, it's evident that businesses are benefiting from using AI in the advertising and media industries. But is it only limited to reduced human errors and improved experiences? Not really.
Studies reveal that businesses are actively investing in AI. Global spending on AI can hit a whopping $18 trillion by 2030.
So, what are these substantial benefits driving this level of investment? Let's take a look.

Improved Customer Experience

Consumer behaviour has been a strong player in defining how marketing has changed in the last few decades. As customers become savvier and more demanding, businesses need to find new ways to meet their needs. It is where AI can help. Using data, AI can provide customers with a more personalised experience throughout their journey – from when they first interact with your brand to when they become loyal customers.
If we look at the statistics, 80% of the customers are willing to trade some level of personal information for a more personalised approach by marketers.

Better Customer Segmentation

When businesses could get away with a one-size-fits-all marketing strategy are long gone. In today's world, you need to segment your customers and craft targeted messages to appeal to them. It is easier said than done, but AI can help you out. By analysing data, AI can help you identify trends and behaviours that can be used to segment your customers. It, in turn, will help you create more effective marketing campaigns.
McDonald's used location data and store locators to generate approximately 5,000,000 impressions for their McCafe coffee products driving 79% traffic in their restaurants within 3 days.

Reach the Right Customers at the Right Time

To succeed, you need to ensure that your marketing campaigns reach your target audience at the right time. It can be challenging, considering the number of channels and platforms available today. But, with AI, you can take a data-driven approach to identify the right time to reach your customers.
You can also use AI to adjust your campaigns based on customer behaviour and real-time data. This way, you can always be sure that your marketing efforts are aligned with your business goals.

Enhanced ROI

In the end, it all comes down to ROI. Marketers have been frustrated by the difficulty of accurately measuring the ROI of their campaigns for a long time. But AI has raised the bar by offering new ways to measure and improve ROI.
For example, AI can track how customers interact with your brand across different channels. You can also identify which campaigns are most effective in driving conversions. AI can even help you optimise your campaigns in real-time to maximise results.

Improved Campaign Efficiency

The advertising and media industries are under immense pressure to deliver results quickly and efficiently. With the help of AI, you can automate various tasks such as media buying, creative optimisation, and ad placement. AI does this by analysing data and finding patterns that humans might miss. This way, you can reduce the time it takes to plan and execute campaigns.
According to Salesforce Research, 83% of IT (Information Technology) leaders agree that AI and machine learning have enhanced customer engagement. At the same time, 69% confessed that their businesses were transformed by AI-powered automation.

The Roadblocks AI Faces

While AI holds a lot of promise for the advertising and media industries, some roadblocks still need to be addressed. It could be the lack of data, the fear of change, or the budget. But, with the right strategy in place, these challenges can be overcome.

Lack of Data

For AI to be effective, you need a large amount of data. It can be a problem for small businesses that don't have the resources to collect and analyse data on a large scale. Imagine trying to segment your customers without knowing their demographics, psychographics, or even their purchase history. But there's a way out.

Bias

AI is only as good as the data used to train it. If the data is biased, the AI will be biased as well. Many companies are now using AI to screen job candidates. However, if the data used to train the AI is biased, it could lead to discrimination against certain groups of people. Pricing is another area where AI can be biased. If the data used to determine prices is flawed, it could result in unfair pricing.

Weak IT Infrastructure

IT infrastructure is the backbone of any AI initiative. It includes everything from hardware and software to data storage and security. If your IT infrastructure is not up to the task, it could hamper your Artificial Intelligence efforts. A company's IT department needs to be prepared to handle the increased demands AI will place on the network.

Lack of Talent

AI is a relatively innovative technology, and there is a talent shortage. Finding people with the right skills to implement and manage AI initiatives can be difficult. But companies are starting to invest in training and development programs to close the talent gap.

The Anti-AI Pool

There is a small anti-AI sentiment among the general population. Some people are concerned about the potential misuse of Artificial Intelligence. They worry that AI could be used to manipulate people or invade their privacy. As a result, companies must be careful about how they use AI and be transparent about their AI initiatives. An effective way to combat the anti-AI sentiment is to use AI for good. For example, AI can improve customer service or make your products more environmentally friendly.

Budget Constraints

AI can be expensive. The cost of hardware, software, and data can add up quickly. In addition, you need to invest in training and development programs to ensure that your team has the necessary skills to implement and manage AI initiatives. As a result, many companies are hesitant to invest in AI. The solution lies in outsourcing AI initiatives to companies like Pegasus Systems. We can help you get started with AI without breaking the bank.

Artificial Intelligence and Intellectual Property

Intellectual property is a big concern with AI. IP covers everything from patents and trademarks to copyrights and trade secrets. Up until now, Intellectual Property has fared well in the digital world. But, with the advent of AI, there is a risk that Intellectual Property could be compromised. For example, when it comes to copyright care needs to be taken when using imagery generated by an AI to ensure that the proper licensing rights are available for commercial use. As a result, companies must be careful about protecting their Intellectual Property.

Some practical measures include:

Filing for patents
Keeping trade secrets secret
Registering trademarks
Copyrighting original works

Finding the Best Solution to the Roadblocks with Pegasus Systems

AI is changing the landscape of the advertising and media industries. It is revolutionising the way companies operate and connects with their customers. But the road to success is not without its challenges. The key is to find the right solution for your company.

We answer all your creative agency management needs at Pegasus Systems. Media management, talent management, project management, we do it all. We also offer a wide range of services that can be tailored to your specific needs. So, we've got you covered whether you're looking for help with an AI initiative or need a complete agency management solution.

Get in touch with us today to learn more about our services. We will be happy to answer any questions you may have.

CONNECT WITH US