Marketing Technology

How Artificial Intelligence Will Change Paid Marketing

This is undoubtedly the year that artificial intelligence (AI) finds its way into just about every technology-related discussion on the planet. For marketers, AI brings a variety of consequences, and the possibilities are still emerging.

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The relationship between AI and paid marketing has flown low on the radar so far, but that is changing. A recent report concluded that machine-learning-optimized campaigns had a 71% better conversion rate and lower Cost Per Click (CPC) than campaigns not using the technology, sparking hot conversations on the topic. In light of these stark findings, here’s a look at how AI will impact paid marketing in the coming years.

Advancing personalization efforts: Google AdWords’ custom in-market audience searches leverage AI to create more personalized advertising campaigns. The audience groups can be created by adding keywords marketers think someone in their target audience might have used to search for the product or service in question. The resulting groups can then be used to segment advertising based on interests, demographics, or other characteristics.

AI-powered rules: AI could lead to programmed rules, but technology would have to advance quite a bit further before such a thing would be more effective than current practices.

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Automated bid management: Human marketers currently use a certain amount of guesswork when setting bids on keywords without historical performance data, which works to a certain extent. But AI tools could be taught about campaigns and keywords so they could make the same types of decisions, thus automating the bid management process. What’s more, a machine could accurately learn over time and identify patterns of success that humans may overlook.

The end of A/B testing? AI could lead to ultimate ad optimization by enabling tools like AdWords to decide—in real time—which version of an ad to display based on each specific user’s preferences and behavior patterns. Marketers, then, will be tasked with creating more variations of the same ad, so the machines can determine which is most suitable for each audience member. Automating the delivery portion of the process could help foster more creativity in the design and messaging areas.

These are just a few examples of how AI will forever alter the path of paid marketing. With innovation barreling forward at an astounding rate, and new applications becoming apparent all the time, it will be a challenge to stay on top of the developments in this area. The reward for doing so, however, could make it all worthwhile.