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Is Artificial Intelligence the Future Of Advertising?

Business.com / Marketing Solutions / Last Modified: May 25, 2018
Image credit: Rawpixel.com / Shutterstock

AI can help advertisers create more personalized and effective campaigns.

Advertising is a tried and tested method that many businesses hold as an integral part of their growth strategy. However, in a digital world where consumers are overwhelmed and bombarded by a staggering amount of advertisements every day, they are becoming less and less effective. In fact, the average click-through-rate is just 0.05 percent across all ad formats.

This means businesses are operating on very thin margins of success and that only in an economy of scale will they get the results that actually make a difference for their bottom line. 

The problems in the advertising industry go beyond just the desire for more customers: They are also challenges for the consumers and for the publishers. Consumers are bombarded with a seemingly endless stream of often irrelevant content, which makes them turn a blind-eye to the ads they see daily. For publishers, bots and fraud are destroying their relationships with advertisers and making their work less effective.

While all this might seem bleak for those thinking of launching an ad campaign soon, it is also an indicator that the programmatic advertising industry is ripe for disruption. Enter AI and blockchain solutions.

How Can AI and Blockchain Improve The User Experience?

Too often, consumers are bombarded with ads that are totally irrelevant to their needs. This just annoys consumers, which keeps advertisers and publishers uncertain on how much revenue their ads are likely to generate. Of course, there are targeting methods that attempt to display more relevant content, but the fact remains that individuals cannot be effectively grouped together for marketing purposes.

There needs to be a personalized and individualized approach to get the best results. In fact, according to the Adobe Digital Insights Advertising Demand Report, 78 percent of consumers prefer personalized advertisements, yet only 28 percent believe that it is done effectively. However, with the speed and frequency of online advertising, it’s actually impossible for any human to do.

This is why companies like Ubex are developing artificial intelligence solutions that make it possible to provide a more personal and direct advertising messages to users. The Ubex platform aims to enable AI with a capacity to leverage website and user information that was captured by blockchain technology in order to serve the most appealing and relevant ads at all times.

It’s believed that this intelligent advertising algorithm will cause consumers to respond more eagerly to online advertising, while providing more revenue for advertisers and publishers in the meantime. The days of businesses having to hire marketing experts to test untested online ad campaigns could be in the past.

What this boils down to is that consumers will only see ads that actually appeal to them, which would subsequently lead to a better experience for them, more conversions for advertisers, and easier revenue for publishers.

How Can AI Prevent Fraud?

Non-human traffic is a problem for everyone. Research suggests that bot fraud cost advertisers roughly $6.5 billion in 2017.

In many cases, the anti-fraud detection systems in place aren’t capable of recognizing the increasingly human-like behavior displayed by these bots, meaning that attackers can walk away with millions in one day. Cases like these are causing advertisers to lose trust in traditional systems.

However, one company has actually advanced advertising technology to put an end to this problem and ensure that their advertising spend is being spent promoting their product only to humans. Kubient has created the only AI-based fraud prevention system that can monitor activity on advertising auctions at a speed of under 10 milliseconds. This is faster than any traditional detection system and can prevent even the most advanced bots from bidding on ads.    

This is incredibly important for advertisers and publishers alike. Since they can be confident that they are not spending money advertising to bots, campaigns will be more effective and less-costly by simply avoiding the undesirables.

Get On Board, or Get Left Behind

From a business perspective, people who are running an ad campaign to help grow their business need to stay on top of the technologies available to them. There are only so many people out there with so much attention (and money!) to give to advertisements.

Historically, it has always been the marketers with the bravery to do something different that have succeeded in a world where consumers are increasingly programmed to tune out advertising altogether. However, early research suggests that incorporating AI into an online advertising campaign won’t require much bravery at all. In fact, with the added security and transparency of blockchain technology tied into these systems, combining AI and online advertising looks like a no-brainer.

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