2024年6月20日5:04 PM

What is the effect of using AI in advertising? Introducing the benefits and use cases

What is the effect of using AI in advertising? Introducing the benefits and use cases

The market size for print media and terrestrial television advertising is slowing, while internet advertising is growing rapidly instead.

Since internet advertising spending surpassed terrestrial television advertising spending for the first time in 2019, the gap has only widened, and the importance of internet advertising will continue to grow in the future.

In this context, advertising AI, which utilizes AI technology, is attracting attention.

So, this time, we will explain in detail what advertising AI is and the benefits of using AI in advertising.

We will also introduce some actual examples of AI advertising being used in the advertising industry, so please use this as a reference.

What is advertising AI?

Advertising AI is a generative AI technology that uses AI (artificial intelligence) to maximize advertising results.

By utilizing advertising AI, advertisers can optimize targeting and creativity, allocate budgets more efficiently, and automate tasks related to advertising campaigns, resulting in more effective ad performance.

Companies that outsource their internet advertising to agencies have reportedly had positive opinions about advertising work that utilizes generative AI technology.

Today’s advertising market handles an enormous amount of information at an incredible speed, making it difficult to produce sufficient results using human labor alone. Making effective use of advertising AI is recognized as a strategy to maximize advertising effectiveness by reducing costs through reduced effort and time and also developing new marketing strategies.

The benefits of using AI in advertising

So what are the benefits of using AI in online advertising?

Benefits of using AI in advertising: 1. Efficient targeting

First, effective targeting.

The advantage of SNS advertising and listing advertising is that they allow you to appeal to a specific target demographic.

However, in order to determine the target audience and key points, advanced analytical skills such as market research and demand forecasting are required.

AI (artificial intelligence) excels at machine learning, which involves repeatedly learning from acquired data.

By using AI to analyze data obtained from users, it is possible to generate potential customers and highly relevant keywords, which can then be used for listing ads, etc.

Benefits of using AI in advertising ② Creating original advertising content

The Internet market has been maturing in recent years, with consumers’ information literacy improving and their needs becoming more diverse and sophisticated.

In order to establish an advantage over other companies in this environment, you must create original advertising content.

It is said that humans are superior to AI in creative fields, and by using AI to analyze huge amounts of data, we can expect to see more strategic marketing and the creation of original advertisements that humans could never think of.

Additionally, the use of advertising AI is becoming more widespread in the operation of matching apps, which have been a hot topic in recent years.

In regulated industries such as matching apps, there are few models and celebrities who are willing to appear, and even if they are, the fee tends to be high.

By using illustrations and AI models created by advertising AI, you can create more impactful advertisements while keeping costs to a minimum.

Benefits of using AI in advertising 3. Improving the efficiency of advertising operations

Traditional mass advertising has been aimed at an unspecified number of targets.

On the other hand, social media advertising and display advertising allow you to freely set targeting, making it possible to flexibly set both a broad approach and appeal to a segmented target demographic.

Traditionally, such highly specialized advertising operations required the help of data analysts and business analysts.

This is because determining the right ad requires repeated testing of hundreds of ads every day.

Automating tasks using AI (artificial intelligence) and machine learning can make labor and time more efficient.

This does not mean that analysts will become unnecessary, but the use of AI is likely to lead to more efficient advertising operations.

Benefits of using AI in advertising 4. Predicting and evaluating advertising effectiveness

AI excels in making predictions and evaluations based on data.

For example, if you can conduct detailed analysis of the number of ad impressions, clicks, conversion rates, etc. and predict an advertising strategy that meets customer needs, you can manage your advertising more accurately.

By utilizing AI, it will be possible to automatically continue the PDCA cycle of “Plan” → “Do” → “Check” → “Action,” resulting in even more accurate scoring.

Examples of advertising AI use in the advertising industry

From here, we will introduce some examples of companies that are actually using advertising AI in the advertising industry.

There are many ways to use advertising AI, and it is important to apply it to marketing and promotions that suit your company.

Case study of advertising AI usage in the advertising industry: Google Ads automation

Google, a major provider of Internet-related services, offers Google Ads, which automates ad creation.

Advertisers can set goals and budgets and specify the purpose of their advertising, and by analyzing these using AI, it is possible to display advertising copy and messages to users who will be most likely to receive the advertising effect.

Google Ads is easy for anyone to use, and it has the advantage that even users who have not used Internet advertising much before can easily use it.

Case study of advertising AI usage in the advertising industry ② Dentsu’s “MONALISA”

Dentsu, a major Japanese advertising agency, has developed “MONALISA,” a tool that can predict the effectiveness of advertising materials for social media in advance.

In Internet advertising, the quality of the advertising materials directly reflects the effectiveness of the advertisement.

MONALISA analyzes past ad delivery data and advertising materials for video and still image ads on Instagram, Facebook, and Twitter and can predict the percentage of users who will watch the advertising video to the end and the percentage of users who will click on the banner.

It is also possible to improve the accuracy of the predictions by comparing the predicted data with the data after the ads have been delivered. By using “MONALISA,” you can eliminate advertising content that is unlikely to produce results or change to more accurate advertising planning.

Example of the use of advertising AI in the advertising industry ③ Hakuhodo’s “Face Targeting AD”

Hakuhodo, a major advertising agency, is a company that is actively introducing AI.

“Face Targeting AD,” announced in 2017, is a targeted advertising delivery system that combines cloud AI with mirrors to read the facial expressions of people standing in front of a mirror and deliver advertisements.

For example, we were able to deliver ads such as showing an “energy drink” ad to someone with a tired expression and introducing a “calming” movie ad to someone with a sad expression.

Case study of advertising AI usage in the advertising industry 4: CyberAgent’s “AI feed designer Plus”

“AI feed designer Plus,” which CyberAgent has been offering since 2020, is a tool that uses AI to optimize dynamic retargeting ads.

Dynamic retargeting advertising is a method of displaying the most suitable advertisements for each user who has visited a site by combining product data held by the advertiser with their behavioral history on the website.

“AI feed designer Plus” predicts the effectiveness of product images displayed before advertising is delivered and displays product images with higher advertising effectiveness, which is expected to lead to conversions.

Example of the use of advertising AI in the advertising industry 5. OPT Inc., “Literalporter”

OPT, Inc., an internet advertising agency, offers “Literalporter,” a tool that uses AI technology to automatically generate analysis of advertising reviews.

Previously, it took a lot of time to extract the causal relationship between advertising management measures and results and then to create and analyze the results in a review.

“Literalporter” uses AI (artificial intelligence) to automatically extract and analyze these tasks and even automates the consideration of advertising management performance.

By using advertising AI tools, you can standardize processes that previously required personal know-how and expect to reduce costs and optimize advertising operations.

Case study of advertising AI use in the advertising industry ⑥ Septeni Holdings Co., Ltd. “Odd-AI Creation”

“Odd-AI Creation,” provided by Septeni Holdings Co., Ltd., a company that provides digital marketing support services, is a tool that can predict the effectiveness of advertising creatives in advance and visualize factors behind positive performance.

“Odd-AI” can be effectively used as a method to visualize existing advertising results, allowing creators to redesign advertising content and generate original advertising content.

Case study of advertising AI usage in the advertising industry 7: Rakuten SQREEM Inc. “RMP – SQREEM Ads”

“RMP-SQREEM Ads,” provided by Rakuten SQREEM Inc., a subsidiary of the Rakuten Group, is an advertising product that uses AI-based behavioral pattern analysis technology.

By analyzing consumer behavior analysis data based on Rakuten members and online open data, you can generate delivery segments and use them to optimize your advertising operations.

By using advertising AI tools, it is possible to display personalized ads to each potential customer.

If you are considering using advertising AI, please visit MabuhayTech.

The importance of internet advertising is expected to continue to grow in the future.

This is where advertising AI comes in.

Advertising AI, which utilizes generative AI technology to maximize advertising results, is said to be the mainstream of advertising strategies in the future.

By making effective use of advertising AI, it is expected that it will not only be possible to reduce the effort and time required and achieve cost savings, but it will also lead to the development of new marketing strategies.

Specific benefits of advertising AI include efficient targeting, the creation of original advertising content, more efficient advertising operations, and effectiveness prediction.

The number of companies that are actually using AI is increasing, and the practicality of AI advertising will likely become even more valuable in the future.

MabuhayTech supports the use of advertising AI.

In Internet advertising, proper targeting, speed, and personalized ad display have a significant impact on results.

However, the reality is that doing everything by hand would be extremely time-consuming and costly.

To solve these problems, MabuhayTech provides support for utilizing advertising AI.

If you are considering advertising AI, such as “I want to use advertising AI” or “I don’t have any personnel who are familiar with AI,” please contact MabuhayTech.

Free consultation is here.