By Maitri Chattopadhyay

Advertising has a rich history that dates back to ancient civilisations, where word of mouth was used to promote goods. In the 19th century, the Industrial Revolution fueled mass production and the need for effective marketing, propelling newspapers and magazines to the forefront of advertising platforms.

The 20th century marked a revolutionary era introducing radio, television, and the internet, catalysing a dynamic transformation of advertising into a captivating multimedia experience. In today’s digital era, the fusion of technology and AI has propelled advertising into a realm of hyper-personalisation and real-time optimisation, fundamentally reshaping how brands engage audiences.

Personalisation

Personalisation in advertising means leveraging data to increase an ad’s impact on its target audience. These datasets can range from user actions, behaviour patterns, preferences and more. Research records a 40% increase in revenue for companies curating personalised Ads, compared to their counter partners. Personalisation not only improves ROI but also strengthens customer loyalty for the brand. From suggesting products based on purchase history to showing deals on products matching browsing history, AI holds the potential to transform advertising from irrelevant promotions to curated experiences.

Targeting

Another aspect that hugely influences the conversion rate of an ad is its reach to its intended audience. Unlike personalised ads, that are easily identifiable, watching a targeted ad might seem like watching any other ad. The actual magic is in finding the answer to how the targeted ad found you. AI has the capacity to comprehend huge amounts of data to establish audience segments ensuring the ads reach the right person at the right time.

Programmatic Advertising

Programmatic advertising refers to the automated process of buying and placing digital ads. When a user visits a website or app, a split-second auction occurs where advertisers bid for the ad placement in front of that specific user. The highest bidder wins the auction and their ad is displayed. Programmatic ads leverage technology to streamline the bidding process and real-time optimisation of ad placements. Algorithms analyse user behaviour and adjust bidding strategies to maximise the effectiveness of ad campaigns. Since the whole process is automated, it eliminates the need for manual intervention, making the ad-buying process more efficient.

Conclusion

In the United States alone, the year-on-year growth of advertising spending stands as a testament to the evolving landscape. According to Oblero, US digital ad expenses are projected to hit a staggering $400 billion by 2026. AI is an instrumental driving force behind this upward trajectory, making every ad dollar invested increasingly strategic and effective.


About the author

Maitri is a Senior Software Engineer at Disney Streaming where she leads engineering solutions to enable Ads on Disney online platforms( Disney+, Hulu, etc). She has a Bachelor’s and Master’s in Electrical and Computer Engineering.

She is also a passionate advocate for STEM education and careers. She has been speaking on global platforms encouraging girls, gender minorities, and youth to pursue STEAM fearlessly. As a global ambassador of the Girls Leadership Academy Meetup (GLAM), she has mentored over 1,000 young people to pursue leadership and careers in the field of technology.

 


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