AI Applications for Media Buying
15 October 2021
Artificial intelligence capabilities have grown by leaps and bounds, and marketing has been one of the first industries to be affected by its remarkable advances. By using an AI platform, a marketer can ensure that the process of media buying is yielding the best results. Before even placing a bid, a marketer can determine where their bid should be placed, how much they should bid, and when they should bid, ensuring that they get the best possible return on their investment.
What Is AI?
AI is the science that allows computers to take care of tasks that would otherwise require human intelligence. When it comes to media buying, AI can help marketers make the most of their dollars by helping them better understand their collected data and determine the right audience, the proper placement, and the best timing for an ad.
Case Studies: Using AI in Digital Media Buying
For niche industries with very specific target markets, particularly those in large cities, traditional advertising isn’t always effective. For Asaf Jacobi, president of Harley-Davidson NYC, digital marketing was an obvious solution to this dilemma. However, with limited resources and a lack of marketing experience, Jacobi wasn’t sure where to begin. Today, Jacobi uses Adgorithm’s Albert, which performs a wide range of tasks, including autonomous media buying. Jacobi simply tells Albert the desired outcome for a marketing campaign, who the target audience is, and his geographic priorities, and then Albert takes care of the rest.
For Jacobi, using AI has taken the guesswork out of analyzing behavior habits, predicting optimal pricing for ad buys, and redistributing his budget to favor the most effective channels. Since turning his marketing efforts over to Albert, Jacobi has seen website traffic increase by 566 percent, and his in-store sales had tripled within the first two months.
While other companies use a mix of AI and human research and intuition when making decisions regarding media buying, Blue Apron has jumped in with both feet, relying solely on AI to take on the task. Utilizing a software platform that uses predictive analytics and artificial intelligence to decide where to spend their ad dollars, the company uses an automated process to buy across the internet.
AI at Work: Display Advertising, Paid Search and Social Media
When it comes to media buying, AI has a wide array of applications.
As more data becomes available to businesses, the opportunity to use display advertising to create a personalized approach has increased. For example, last year, Campbell’s Soup used IBM’s Watson to create display ads with customized recipes based on the user’s geographical location, the current weather conditions in that region, and even preferences in ingredients.
Thanks to the comprehensive data that businesses now have at their disposal, creating increasingly personalized approaches are becoming the norm. While marketers used to be limited to targeting audiences based on their search terms, AI’s current capabilities allow bid optimizations based on other factors, like age and gender.
Social Media Marketing
Social media provides profound insight into the habits, needs, and interests of consumers. Advertising agencies that use AI have the ability to hyper-target consumers by gathering that information, and then using it to create relevant ads. Facebook, for example, has an AI platform that can narrow target segments down within just a few hours.
Incorporating AI into your media buying process can seem overwhelming. Here are a few steps to get you started.
- Clarify your objectives and find the AI platform that will fit your needs
- Develop a pilot case; for example, when Jacobi first incorporated AI into his marketing efforts, his desired outcome was to see a sales increase
- Assess the results to decide if your desired outcome was achieved
- Work to fine tune the intelligence and learning platform
- Launch and monitor results
While customizing AI software to meet the unique needs of your business can be a process that lasts weeks or even months, the end result is an unrivaled ability to ensure that your media planning and buying is yielding the best results possible.
Also checkout our articles on AI Applications for Segmentation and Personalization and AI Applications for Digital Marketing.