As artificial intelligence evolves, it is enabling new opportunities for personalization in advertising and e-commerce.
From generating creative assets to optimizing campaigns and streamlining operations, AI is being applied in three key areas to enhance personalization and drive better outcomes.
“When we’re using AI to optimize campaigns, we’re seeing about a four to one return on every dollar spent,” said Jack Smith, Global Chief Innovation Officer at DoubleVerify, in this video interview with Beet.TV. “So you’re getting $4 back for every dollar.
“And when you add on other kinds of personalization to that, whether it’s creative personalization or others, then that can also increase your return.”
Setting Clear KPIs is Key to Measuring Success
But how should an advertiser think about getting started with AI’s ad uplifts?
To effectively measure the impact of personalization, Smith emphasized the importance of setting clear key performance indicators (KPIs) upfront and validating whether those outcomes are being achieved.
“You need to understand what outcome you expect before you go in and then validate whether you’re getting that outcome or not,” he said. “So you need to set KPIs that are hard KPIs – know what value you expect to get from that. Sometimes you’re going to get that value and sometimes you’re not.”
AI Assists with Insight Generation and Pattern Recognition
One area where AI is being leveraged is in the generation of insights and pattern recognition to assist humans in determining what sub-components of assets to build or where to point the AI to create new types of creative or images that will resonate with consumers.
“It’s going to continue in really three areas,” Smith said.
- “Generation of insights and pattern recognition that’s going to assist humans in determining what sub-components of assets to build or where to point the AI to create a new kind of creative or new kind of image that’s going to resonate with the consumer.”
- “Optimizing campaigns before getting to the delivery of personalized experiences, such as determining the right environment in which to personalize.”
- “Linking these two together in a loop to reduce the burden on operational teams who are managing increasingly complex advertising campaigns and e-commerce sites.”
“As we think about this, AI is going to help relieve a burden in all three of those areas, and it’s getting much easier to do,” Smith added.
