Updates on AI in Media Buying
February 13, 2023
I’ve written before about the growing role of artificial intelligence (AI) in the process of media strategy, buying, and placement. AI algorithms can analyze data from a variety of sources such as consumer behavior, demographic information, and previous advertising campaigns to predict the best media channels and target audience for a particular advertising campaign. In addition, AI helps to automate the buying process by automating the negotiation process with media outlets, optimizing advertising budgets and scheduling, and reducing the risk of human error.
What are some ways that AI is being used to streamline and improve our media buying?
Generation and Personalization
Microsoft has announced a $10 billion investment in ChatGPT’s parent company, OpenAI, and they plan to incorporate ChatGPT responses into their Bing search engine. This may be setting up a war between them and Google, who has indicated on their research blog that they are training their search algorithm to identify and down-rank AI-generated content. Google has also announced their own AI chatbot technology called Bard that will be rolling out in the coming weeks.
Meanwhile, ChatGPT is growing in popularity as a marketing tool that can help you generate content, even though its database contains information only up to 2021. But ChatGPT and other AI systems can also be incorporated into process automation, customer support functions, and even website optimization.
A good AI system can also analyze data from a consumer’s mobile device to personalize an advertising message and also determine when they are most likely to be active on social media.
HOLT CAT is a heavy equipment company that was looking to attract talent across a specific line of business. Using employee data and an AI-powered ad platform AiAdvertising, HOLT CAT was able to personalize their messages to appeal to top candidates. Using the tool, they were also able to lower their cost per hire by 20%. The company hired 270 new people since the start of the campaign. On average, 40% of those hires reported being influenced to apply by the advertising.
Timing and Placement
I’ve written a lot about the power of programmatic media buying and how it dynamically targets audiences and automatically places media in the right locations, all powered by AI. Based on the analysis of user data, a skilled media buyer can use an AI-powered demand-side-platform to place advertisements in the consumer’s social media feed at the optimal time to increase the chances of engagement. This level of precision helps to improve the effectiveness of advertising campaigns and ensures that advertisements are seen by the right audience at the right time.
The non-profit organization Amanda Foundation recently created a super personalized programmatic campaign in their effort to match people with animals up for adoption in the charity’s shelters. They used AI to gather the hobbies and characteristics of members of their target audience to serve them targeted and personalized ads featuring the pets that matched their lifestyles, leading to a spike in successful pet adoptions.
Tracking and Reporting
Another benefit of AI in media placement is the ability to track and measure the success of advertising campaigns. AI algorithms can analyze data such as click-through rates, conversions, and engagement to provide advertisers with valuable insights into the performance of their campaigns. These insights can be used to adjust campaigns in real-time, improving their effectiveness and maximizing ROI.
Using a data visualization tool called Domo, integrated with Google Analytics, one Cleveland-based marketing agency recently reported that they cut the time required to produce a monthly performance report from five hours down to ten minutes. This now requires just one person to spot check the results, instead of requiring several members of the team to compile, prepare, and finalize each report.
AI technology is making the media buying and placement process more efficient, effective, and profitable for advertisers. As AI technology continues to advance, it is likely that we will see even more innovative uses of AI in the media industry in the future. Stay tuned for more updates, and reach out to us if we can help you incorporate new AI tools and tactics into your next campaign!