The AI Revolution in Digital Advertising: Here’s Why It Matters
Let’s imagine the digital marketing world as a playground. On one end, you have Shane Rasnak, a digital marketing veteran, tinkering with his shiny new toy, ChatGPT. Add to the mix some generative AI tools like Midjourney, and you’ve got a recipe for advertising innovation. Thanks to these tools, tasks that used to eat up an hour of Rasnak’s day are now 15-minute projects. And the party is just getting warmed up.
How Generative AI is Shaping Digital Advertising
Generative AI is not just a shiny new tool; it’s a game-changer. It’s like the arrival of social media, reshaping the digital ad industry. Rasnak isn’t the only one aboard the hype train. Bigwigs like Meta, Alphabet, and Amazon are betting big on generative AI, hoping it will become a core part of their business models.
These tech giants are in the early stages of exploring this technology, and yes, there’s been some criticism about rushing to market. But look beyond the critics, the potential of generative AI is colossal. It’s like taking targeted online advertising to the next level. As Cristina Lawrence of Razorfish aptly put it, “This is going to have a seismic impact on digital advertising.”
Meta’s Advantage in the AI Playground
Meta is already making strides with its AI Sandbox and Meta Advantage service. The former allows companies to experiment with generative AI software, while the latter uses machine learning to up the efficiency quotient of ads running across Meta’s various platforms.
Meta’s Advantage service is gaining traction, particularly with retailers using it for automated shopping ads. Meta’s generative AI tools could potentially allow a bicycle company to tailor ads based on location, age, and interests. That’s personalization on steroids, folks.
The Roadblocks in the AI Playground
Hold up, though. The AI journey is not all rainbows and unicorns. Issues like brand safety, potential legal issues, and the quality of output are significant hurdles to be addressed. AI can generate visuals and phrases that reflect biases or could be offensive. There’s also a legal labyrinth to navigate when using generative AI powered by data scraped from the internet.
The Human Element in the AI Playground
Generative AI is a promising tool, but it doesn’t replace the human touch. Take the words of Stacy Reed, an online advertising and Facebook ads consultant, who uses generative AI as a starting point but maintains that companies still need to hone their brand messaging strategy. Generative AI doesn’t think like a human strategist. It doesn’t know what themes resonate with different audiences or how to execute major campaigns across multiple platforms. As Reed aptly put it, “I’m dealing with large brands that are struggling, because they’ve been so disconnected from the average customer that they’re no longer speaking their language.”
The AI Playground: A Work in Progress
Here’s the thing: generative AI is a work in progress. Big companies and ad agencies are mostly using it for pilot projects. They’re waiting for the technology to mature. But that doesn’t mean they’re not excited about the potential. As actor Ryan Reynolds, co-owner of Mint Mobile, said after reading an AI-generated script, “That is mildly terrifying, but compelling.”
