Marketers' New Helper: Artificial Intelligence

“How is artificial intelligence used in advertisements? Why is this new technology important to marketers?”

Brendon Kraham, Vice President of Commerce at Google Ads, answered these two frequently asked questions about artificial intelligence in an article he wrote. Kraham's answers also contain tips for marketers who want to leverage artificial intelligence in their marketing efforts. Here is the article by Brendon Kraham.

Why is AI important to marketers?

In recent years, users have made a rapid transition to digital in almost every aspect of their lives. We can also see that many of these new behaviors and habits are permanent. Therefore, it is increasingly difficult for marketers to predict consumers' next step. The road to success in this new world is to analyze huge amounts of data and react in real time according to this analysis.

Just as with the advent of the internet in the early 90s and mobile computing in the early 2000s, we are on the verge of a technological revolution in artificial intelligence that will provide exceptional value for businesses and marketers around the world. Today, breakthrough developments in artificial intelligence are fundamentally changing the way users interact with technology. It also makes it easier for marketers to confront customers in more connected and consistent ways.

So much so that we are witnessing that artificial intelligence becoming a factor that increases the power of businesses. AI enables marketers to stay up-to-date on consumer needs and trends, and leverage new analytics to quickly create campaigns that deliver the desired ROI and performance.

How is artificial intelligence used in advertisements?

Google has been a pioneer in AI development for over a decade, and AI is at the core of Google Ads. From AI-powered creatives like responsive search ads to the ability to optimize bids for each auction, Google is leveraging AI and has been publishing and updating its policies on this since 2018.

Over the years, these technologies have been improved upon, based on feedback from marketers and revolutionary advances in Google's AI solution. Large language models are now 50 percent better at understanding human language. This means real business gains for customers. For example, advertisers who switch from exact match to broad match in campaigns using cost-per-acquisition achieve an average of 35 percent more conversions.

Maximum Performance, a new target-based campaign type, is supported by artificial intelligence. It helps find valuable new customers and demand opportunities across the entire Google inventory, including YouTube, Search, and Gmail. Advertisers using Maximum Performance campaigns average 18 percent more conversions at a similar cost-per-action.

Source: marketingturkiye.com.tr