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.
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. Read more from business.com…
thumbnail courtesy of business.com