Today, 95% of marketers believe artificial intelligence (AI) offers a more streamlined campaign management approach. Many are using it to deliver a more personalized customer experience.
In this new era of advertising, leveraging AI is key for keeping up with the competition. That said, the technology brings its own set of risks and challenges. Using it to your advantage requires careful implementation—and a few handy best practices. Learn more about the benefits and challenges leveraging AI in advertising, and how to start using it for your business.
How is AI used in advertising today?
Artificial intelligence (AI) is helping businesses and the advertising industry create successful ad campaigns more efficiently. From the automation of manual tasks and ad content creation to predictive analytics that allow for advanced personalization, AI advertising tools can improve results while saving time and money.
For example, generative AI uses machine learning to create original content such as text and images. Shopify Magic, an AI tool included with every Shopify account, can change the background of images and write product copy, making product pages easier to update, and ads faster to design.
“I use Shopify Magic to write product descriptions by inputting desirable keywords for SEO,” says Kwame Chambers, CEO of lifestyle brand Glitch Anomaly. “It gives me the ability to work more efficiently and save costs. It’s a game changer.”
Benefits of using AI in advertising
AI can be an invaluable tool for your business’ advertising efforts. Here are three benefits to consider:
Improved efficiency
AI can significantly reduce the time and resources required to create, manage, and optimize advertising campaigns. Repetitive tasks that might take human workers hours or even days—such as content creation, data analysis, and audience segmentation—often can be automated and executed in real-time by AI systems.
For example, Google’s AI-powered Smart Bidding tool can automatically adjust bids for Google ads, ensuring you stay competitive in search results for the lowest possible cost. This automation minimizes human error and helps save time for marketers, freeing them up to focus on more strategic tasks such as creative development and campaign planning.
Advanced personalization
AI-powered tools like BrightBid enable advertisers to deliver personalized ads at a scale that would be impossible to execute manually. Traditional advertising typically relies on broad demographic categories, but AI can go beyond these and personalize ads and ad placement for each target audience. By analyzing user behavior and purchase history, AI technology can generate ad creatives to appeal to specific audiences.
For example, you might use AI to swap out creative elements of dynamic ads—such as ad copy, product descriptions, or product photos—to deliver precisely what each potential customer wants to see. Putting the right ads in front of your target audience makes for more effective campaigns, leading to higher click-through rates and conversion rates.
Predictive analytics
AI tools use historical data to uncover deeper insights and patterns humans might miss (or spend hours to identify). AI predictive analytics tools can forecast future trends by recognizing patterns and correlations in data. This foresight enables you to make more accurate predictions and targeted strategies, adjusting as you go for better performance.
Challenges of using AI in advertising
For all its benefits, working with AI presents some unique challenges. Here are three issues to monitor:
Privacy concerns
AI typically requires large amounts of data to train machine learning algorithms. Collecting and processing consumer data—such as browsing habits, purchase history, and location data. This raises ethical and legal issues regarding data security and user consent.
Many customers have become wary of sharing information, and mishandling it can lead to a loss of brand trust. Regulations, such as the California Consumer Privacy Act (CCPA) and the European Union’s General Data Protection Regulation (GDPR), also limit businesses’ ability to gather data and use AI to its fullest potential.
Tread carefully whenever consumer data is involved. Collect, store, and use data responsibly and consult with a legal professional to ensure you comply with laws and regulations.
Lack of human touch
While AI excels at data analysis and automation, its work on more creative tasks can sometimes leave something to be desired. Generative AI has come a long way in its ability to mimic your brand’s tone when writing advertising copy, but its reliance on existing data patterns means it cannot truly be creative.
To avoid sharing impersonal AI-generated ad copy, focus on delegating the more formulaic and data-driven tasks to AI. Leave the creative brainstorming and content development to humans who can infuse emotional nuance and cultural context into their work.
Inaccurate or biased results
Humans aren’t the only ones who can make mistakes. Flawed machine learning algorithms may misinterpret information, take satire literally, or simply not have enough data to deliver accurate results.
Just as concerning, AI systems are trained on historical data that may reflect existing biases. For instance, AI might favor certain demographics or perpetuate potentially harmful stereotypes when producing copy and images.
When using AI, always be sure to have a human review its work to prevent it from sharing the wrong information or content that doesn’t align with your brand’s values.
How to start using AI in advertising
- Identify how AI can help you
- Find an AI tool that matches your needs
- Integrate across different platforms
- Avoid common pitfalls
- Invest in continuous learning and adaptation
Want to use the power of AI to benefit your business’s advertising efforts? Use this step-by-step guide to get started:
1. Identify how AI can help you
There are so many different options for using AI that it’s hard to know where to start. First, consider your business’s advertising goals and identify where you’re hitting snags in your existing process. Are you looking to crunch vast amounts of data? Or do you need help brainstorming the first drafts of blog posts? Knowing where you need help can help you narrow down your options and find a tool tailored to your goals.
For example, an online retailer looking to boost sales could use AI to generate personalized product recommendations based on a customer’s past behavior and purchase history.
2. Find an AI tool that matches your needs
Once you’ve identified how you want to use AI, research AI tools that specialize in those functions. You can find a wide variety of options in the Shopify App Store. Evaluate each tool’s features, scalability, ease of integration, and cost.
For example, Wiser is an AI-powered product recommendation app that combines frequently bought together bundles and discounts into a one-click upsell.
3. Integrate across different platforms
To integrate AI across different platforms, adopt AI tools (such as inCharge) that can unify data from multiple sources, including social media, your website, and email campaigns. Sync AI-driven insights with each platform’s ad management system, enabling personalized ads to be automatically tailored and placed based on audience preferences.
4. Avoid common pitfalls
Implementing AI is exciting, and when it’s working well, it can be tempting to turn more and more of your work over to the intelligent machines. But make sure you balance AI’s automation with human oversight to insert creativity into campaigns and ensure you catch any errors. Be mindful of ethical issues, such as data privacy, by adhering to regulations, such as CCPA. Regularly monitor AI’s performance and make adjustments as necessary.
5. Invest in continuous learning and adaptation
AI technology is evolving rapidly, so stay up to date on advancements and evaluate whether your strategies could benefit from new tools. Keep experimenting with AI-powered solutions to ensure your advertising efforts stay competitive, innovative, and aligned with evolving market dynamics and user behaviors.
AI in advertising FAQ
What is an example of the use of AI in digital advertising?
One example of using AI in digital advertising is allowing Google AI to adjust your bids on your Google ads to optimize your results based on your stated advertising goals.
What is the best AI for making ads?
There are many different AI tools designed for creating ads and ad content. Jasper can write copy for various platforms using your brand’s tone, and Shopify Magic offers text generation and image editing tools.
How can AI improve my marketing strategy?
AI can improve your business's digital marketing efforts by improving your team’s efficiency, allowing for advanced personalization and providing predictive analytics.