Top 14 Ways to Use AI Advertising 

AI isn’t new to advertising. The fact that businesses have already started implementing it within their operations proves that this technology is here to stay. Moreover, based on recent studies, 67% of companies already integrated AI for content marketing and SEO in 2023. 

So, where does this leave us, marketers, within the AI advertisement landscape? It would be foolish to fear AI technology when it wasn’t intended to cut the human touch. 

In contrast, AI aims to improve targeting efficiency by providing robust customer segmentation and personalization. It can also help upskill decision-making by leveraging predictive analytics. 

Thus, AI is improving the advertising industry, and we could say that. Today, we discuss seven ways to use AI advertising for your business from top to bottom with real, practical examples. 

What is AI Advertising?  

Artificial Intelligence advertising is a new technological approach to all traditional advertising methods that blends human intelligence with machine learning capabilities based on data and analytics. 

What can AI do for your business? It can help your business create a more personalized experience for your targeted audience while helping you make the right decision at the right time. 

Specifically, AI encompasses many technologies, from machine learning to computer vision, natural language generation (NLG), natural language processing (NLP), deep learning, neural networks, speech recognition, and many more. 

As a result, these allies can perform the intellectual tasks that humans do, such as: 

• Reading and understanding the topic,  
• Writing text, poetry, and other advertising types of content,  
• Hear and understand multiple languages,  
• Reply through voice modules, 
• Comprehend the environment. 

Once the AI advertisement system is trained, it gets even better as it can learn from its outcomes, thus making better and better predictions over time. 

As such, we can conclude that Artificial Intelligence is the foundation of innovation in advertising, reshaping the best practices and redefining new successful metrics. 

The State of the AI Advertising Market  

AI has significantly changed many industries, particularly advertising. As a result, the advertising market has seen a dynamic shift in targeted advertising, content optimization, hyper-personalization, marketing automation, predictive analytics, and more. 

Furthermore, the global market revenue of AI usage in marketing is expected to reach $35 billion by the end of 2024 and more than 107.5 billion by 2028. 

These key findings are no surprise. They showcase AI advertising’s potential in the market and reinforce the adoption of such tech within your daily advertising and marketing operations. 

Also, a study made in March 2023 showed us that 84% of B2B marketers stated that aligning web content with search intent is the most effective use of AI and marketing automation. 

Improving user experience accounted for 80%, followed by 74% of marketers interested in raising SERP ranking. 

As we can see, AI advertisement and marketing is set to grow even further, expanding its implications within the advertising landscape, from AI-powered copywriting to generating visuals, real-time ad campaign optimization, and others. 

How is AI Used in Advertising? 

Gone are the days of Mad Men in which you only needed a creative idea and a catchy slogan to ensure an advertising campaign was successful. 

Since AI is a machine trained to read, understand patterns, and interpret data, it is used in advertising to help advertisers and publishers increase their advertising efforts. 

Thanks to advancements in programmatic advertising, you can now reach consumers through multiple digital platforms and target them based on hundreds of data touchpoints, such as demographics and behavior, to serve highly personalized and targeted ads. 

Thus, the advertising industry is even more competitive today, as each ad must be unforgettable to break through the ad noise, competing for users’ attention, time, effort, and financial potential. 

Indeed, advertisers and marketers could do all these aspects individually. This is the truth and the main reason many companies and businesses choose AI promotion.  

They aim to efficiently strategize, create, deploy, gather, and analyze the results promptly, especially when the market is competitive. They must also continually search for the latest trends, industry reports, and benchmarks. 

Indeed, an entire advertising and marketing team could do them all, but leaving room for growth is challenging. 

Thus, AI works behind the advertising scenes, making informed decisions on which ads to run based on user data and consumer behavior. The world’s leading advertising platforms, such as Google Ads and Meta, reinforce this by using AI to target, place or sell ads. 

Moreover, it can also be more efficient for advertisers to create campaigns from scratch, as AI can generate copy, visual deliverables, customer segmentation, predictive analytics, real-time optimization, and more. 

However, let’s break it down further and discover the key components of AI advertisement. 

1. AI in Customer Segmentation  

As we know, traditional customer segmentation involves broad demographic data and customer inputs to divide business customers into groups based on similarities or buying behavior. 

As a result, businesses can deliver targeted advertising outreach tailored for that specific segment at the right time. 

However, AI can help businesses gain new and more in-depth consumer behavior insights. It also plays a vital role in improving customer engagement by enhancing the impact of advertising campaigns. 

Another benefit of AI segmentation is increased conversion rate, as it allows businesses to identify the most profitable customer segments and shift their focus toward them in a human way and at the right time. 

Lastly, AI can enhance customer retention while optimizing advertising budgets by analyzing customers on a granular level, allowing you to anticipate their needs. 

2. Predictive Analytics  

AI algorithms use historical data and analyze large volumes to predict customer behavior, preferences, and future trends.  

Thus, AI allows advertisers to optimize campaign ad placements, bidding strategies, and budgets by placing highly targeted advertising campaigns that maximize conversion rates and maximize engagements. 

Some of the key data sources are: 

• Social media platforms; 
• Frequency of use; 
• Website advertising analytics; 
• Customer surveys; 
• Purchase history; 
• Features most often utilized; 
• Times of peak usage; 

So, we can conclude that AI algorithms are optional but heavily dependent on identifying hidden patterns and correlations that human marketers may overlook.  

With such vital findings, businesses can proactively optimize and better tailor their personalized outreaches about their offerings. 

3. Hyper-Personalization   

AI hyper-personalization allows businesses to deliver tailored content based on users’ preferences and real-time interests on multiple digital touchpoints. Therefore, such AI efforts improve brand loyalty and user experience while enhancing user engagement, conversion rates, and customer retention and enabling an increased Return on Investment. 

But as with any advertising tactic, don’t go overboard, and remember to keep a human touch and feel, especially when AI is crafting your outreach messages. 

Furthermore, AI can help sales teams target customers with personalized videos; thus, hyper-personalization extends beyond text content, as seen in email marketing. 

4. AI Programmatic Advertising  

The AI algorithm machine learning is perfect for automating different advertising tasks, such as the ad buying and placement process, also known as programmatic advertising. 

Moreover, since programmatic advertising uses real-time bidding on multiple channels, advertisers can now place more efficient bids, upscaling their advertising efforts. 

How does it work? The AI algorithm makes decisions based on various factors, such as targeted audience, demographics, behavior, and context, thus serving suitable ads to the right people in seconds. 

5. Visual and Voice Search  

Visual and voice search are new and emerging ways for consumers to interact with your business offerings. Thus, optimizing advertising content and campaigns for visual and voice search ensures your brand’s visibility and relevancy. 

You’ve probably also used AI voice assistants, such as Siri, Alexa, and Google, to quickly search for information in the past.  

This conversational feel and touch turn SEO experts on their heads, as they must reevaluate their strategies and offer conversational and user-friendly content that answers to users’ search intent, besides NLPs’ influences. 

Voice Search Best Practices: 

• Be sure to use long-tail keywords;  
• Include FAQs; 
• Implement schema markup; 

In contrast, visual search, as seen in Google Lens, Samsung Circle, or Apple Vision Pro, offers a new way for potential consumers to interact with your products.  

As a result, visual and voice search has become a more intuitive way for users to connect with brands more directly, efficiently cutting down on time. 

6. Chatbots 

Machine learning and natural processing algorithms have created many AI chatbots that communicate in real-time and respond to users’ queries.  

But this isn’t all; these AI chatbots also reply in a personalized manner, thus enhancing the customer service segment and potentially increasing sales. 

Therefore, chatbots could be another 24/7 advertising extension that segments your traffic and advertises your products to your target audience. Also, recent studies have advised that 77% of a business’s ROI comes from targeted communication. 

7. AI Content Generation  

When discussing advertising content, generative AI can help from one end to another, such as creating an effective content strategy and generating the content, which you must modify for SEO later.  

Indeed, based on a recent report, only 67% of respondents use AI for SEO and content, yet it has potential. 

Types of AI Content: 

• Social media editorials; 
• Blog articles; 
• Sponsored and PR articles; 
• Ad copy and commercials; 
• Video scripts; 
• Product description; 
• Email content; 

Indeed, as we are prone to human errors, AI is susceptible to AI hallucinations, thus giving errored texts. Hence, a human checkup, optimization, and structuring are required. 

However, suppose you pair AI’s outcome with high expertise within a specific domain. This combo can open new doors and engage customers at any point in their funnel journey, offering personalized content. 

The Pros and Cons of AI Advertising  

Any AI tool has pros and cons, limitations, and challenges, depending on how you use it. So, let’s examine the details. 

The AI Pros in Advertising 

• Automation is the most common benefit of using AI in daily advertising and marketing activities. AI can automate repetitive tasks such as writing copy, targeting audiences, managing campaign processes and budgets, extracting analytics, and more. Moreover, according to Forbes, AI and big data can now automate approximately 80% of all physical tasks, 70% of data processing, and 64% of data collection. 
• Ad Campaign Optimization is the next advantage of using AI, just as Google AI solutions do. Therefore, Google AI handles real-time campaign optimization, adjusting the bidding, targeting, and creatives to boost your ROI. 
• Personalization is the next step, as your campaigns are up and running and fully optimized. Personalizing your ads and content ensures that your outreach resonates with your targeted audience. 
• Time and Cost-Efficient Content Creation are last but not least. With the help of AI, you can now streamline the content generation process, regardless of the type. Whether you use Midjourney for visuals, ChatGPT for content, or Jasper for SEO optimizations, AI can produce content much faster than human resources. 
• Effective Targeting to reach more users is vital to boosting your ROI. To gain this advantage, take inspiration from Coca-Cola’s algorithm, which analyzes when, where, and how consumers talk about the brand on social media channels. 

As you can imagine, categorizing over 120,000 social media posts and mentions based on demographics and behaviors can be challenging. However, with a robust AI system in place, anything is possible.  

The outcome? Coca-Cola knows how to efficiently adapt its content to meet users’ needs and expand its reach. 

Indeed, in all these pro instances, there should be one last checkup to ensure maximum accuracy, yet it is still much quicker than doing anything from scratch. 

The AI Cons in Advertising 

• Data Privacy plays a significant role within the advertising industry. The extensive data collection required by AI poses privacy concerns and potentially misuses personal information. Therefore, for businesses choosing to use AI within their advertising endeavors, the challenge is to balance what consumer information to use and how. 
• The Lack of Human Touch is obvious, especially when writing content, as the output can be robotic and cold. Also, AIs are trained on large databases fed by humans; thus, they could be susceptible to biases and often offer inadequate responses. 

Indeed, AI excels in efficiency, but here’s the catch: do not solely rely on an AI tool, and pair it with the experience of a thought leader and a human insight to ensure  

The Best 5 Examples of AI Advertising   

1. Meta Sandbox 

It’s no wonder Meta has begun testing AI-generated Facebook ads using its AI Sandbox features within Meta’s Ads Manager.  

As such, they unlock new possibilities for all advertisers, offering them a creative tool that increases productivity, personalization, and performance. 

Some of the features include background removal or generation, image expansion, and text variations, and we are planning to launch even more business-facing features. 

2. Coca-Cola & Open AI 

Coca-Cola strikes again, and since it has been in the advertising industry since 1896, when it advertised for the first time in a newspaper, the brand is still thriving, and they are still on the market; it seems they have an ace up its sleeve. 

They’ve constantly been innovating and investing heavily in their advertising game, and as such, in February 2023, they participated in a creative partnership between Bain, a management firm, and OpenAI.  

The result? A creative contest, “Create Real Magic,” based on AI-based products, such as ChatGPT and DALL-E, inviting users to create unique artwork.  

3. Nike 50th Anniversary – Never Done Evolving | The Greatness of Serena Williams 

Nike is another brand that used AI to its leverage, and during 2018-2019, it acquired multiple predictive analytic companies and used them to gather data and better understand its customer habits. 

They also implemented AR and AI technologies within their Nike Fit app, which allows users to scan their feet and find the perfect shoe match. 

However, their award-winning project, “Never Done Evolving,” done to celebrate Nike’s 50th anniversary, depicts Serena Williams in a tennis match between herself from the ’99 Grand Slam and the 2017 Australian Open. 

4. JPMorgan Chase 450% CTR  

JPMorgan Chase proves that AI can be a reliable resource when trained well, especially with its five-year contract signed with Persado. As a result, JPMorgan Chase saw a +450% CTR on their advertising reach outs. 

With Persado’s help, they rewrote the existing marketing copy to make it more appealing to customers and personalized the content to attract even more. 

5. Netflix and Content Personalization 

No wonder Netflix incorporated AI and machine learning into many operational processes.  

However, the most rewarding one is the personalized content feature, which shows recommendations and changes thumbnails based on the user’s account preferences and with the help of Aesthetic Visual Analysis (AVA). Even the Home tab is based on what users previously watched. 

Top 14 Ways How to Use AI for Advertising  

As we’ve learned more about AI advertising and its primary use cases, it’s time to get into practice. Thus, read further and discover many ways to use AI in advertising.  

Therefore, from one end to another, AI can help with the following, regardless of the chosen AI product. 

Getting Started 

1. Market Research, Documentation, and Information Retrieval 

The chosen AI model can assist you with concept definitions and explanations, quickly retrieving information. Moreover, tools like Sourcely assist you with finding the sources of citations and other research. 

2. Your Assistant  

Regardless of how well organized you are, AIs can set reminders, manage tasks, and help you increase your overall productivity throughout the day. 

3. Problem-Solving Skills 

Another option could be using AI to help with reasoning, brainstorming, and the overall decision-making process. 

4. Understand Your Target Audience 

AI can quickly analyze multiple data points and create a detailed persona or ideal customer profile based on preferences, behaviors, needs, and wants. Once you have this on paper, it’s easier to know who you’re advertising to. 

The key is to deliver personalized messages, product recommendations, and offers, right? 

Creating Advertising Deliverables 

5. Your Writing Wingman 

Do you need more inspiration when drafting ad copy, social media posts, or sales pitches? AI can lead by generating text for your advertising needs, offering suggestions, tips, and tricks on staying consistent and restructuring content in just a few minutes. 

Indeed, as with any AI product, this isn’t a one-step only, so be sure to check it afterward. 

6. Advertising Image Generation 

There are hundreds of AI tools that can assist you with creating advertising images for various purposes. They all work with text-based input. As such, you can quickly prototype visual concepts or final images for multiple uses, which can be repurposed. 

Also, tools like Photoshop already have AI integrated and can assist you on the spot, not to mention Canva, a popular tool for many advertisers. 

By combining AI with human creativity, you can tap into new levels of productivity and success. 

7. Hyper-Personalized Video Ads 

With the help of hyper-personalized videos, you can now create video ads based on your user’s preferences. As a result, you can quickly increase your CTR, view-through rate, and ultimately sales and ROI. 

AI Predictive Analytics to Power Up Your Strategy 

8. Reporting and Detecting Anomalies 

Let’s say your ads are up and running, and now you don’t know how to interpret your results, right? AI is there for you, and its uses stretch far more comprehensively than your nerdy colleague who always knows it. 

Feed your AI-based tool multiple data points and even data anomalies, and it can find patterns and correlations between critical metrics, such as the length copy and CTR.  

It can also identify trends based on CTR changes, conversion rates, or CPA. 

9. Optimize Campaigns with Ease 

Since it can quickly analyze data entries and identify key growth points and market trends, it can also give you advertising campaign optimization tips and tricks depending on your budget, high-performing channels, and other details. 

10. Brand Sentiment Analysis 

Did you know AI tools can now track and analyze your social media performance? They can also give you practical examples of elevating your strategy or even creating one from the top down. 

Regarding your brand’s sentiment on social media platforms, these powerful tools can analyze hundreds of conversations and brand mentions to help you know exactly where you stand within your online community. 

Improve Your Ad Targeting 

11. Refining Your Target Audience 

Once your first ad campaigns are up and running, based on the result, you can give them one week or two to see how they’re performing or even shorter.  

Therefore, you can go more granular and further segment your customer segments based on their online behavior, interests, and other factors. 

12. RTB and Ad Slot Buying 

Real-time bidding efficiently streamlines buying ad placement, ensuring your ads reach the right target audience and convert. 

All interested advertisers bid for ad space on publishers’ sites through a real-time auction. 

13. Ad Fraud Prevention 

AI can also be used for fraud detection, pattern recognition, anomaly identification, and data verification based on historical behavior.  

As this is a continuous process whereby AI constantly learns, the result will become even more accurate over time. 

Customer Support and Retention 

14. Enhancing Customer Support 

AI chatbots offer instant responses to user queries, support 24/7, and are easily integrated with other systems. 

Therefore, AI chatbots free human agents, allowing them to focus on more complex issues. 

5. AI Advertising Prompts Ideas 

Targeted Audience and Value Proposition 

Create a compelling ad for an X company targeting Y, emphasizing the product’s Z and Z and highlighting its positive impact on A. 

Emotional Connection and Storytelling 

Develop an ad campaign for an A brand focused on B. Use storytelling to evoke X, Y, and Z. Target is A, age B, online shoppers. 

Problem-Solution Focus 

Create an ad for a new X app targeting Y individuals struggling with Z. Emphasize the app’s ability to A, B, C, and overall D. 

Leveraging User-Generated Content (UGC) 

Develop an ad campaign encouraging users to share their experiences with an X. Use a mix of professional and user-generated content to highlight the product’s benefits and community aspect. 

Incorporating AI-Generated Imagery 

Create an ad for an X product using AI-generated visuals. Target early adopters and emphasize the product’s Y and Z features. 

As you can see, the AI world is your oyster; you only have to test the waters out. 

3 Common Mistakes in Using AI Advertising  

AI is fun and games; however, it is essential to remember that it is prone to errors. Therefore, let’s discover the three most common mistakes when using AI in advertising. 

1. Not Fact-Checking AI’s Output 

As mentioned, AI is a powerful tool, yet one of its drawbacks could be fact-checking unless it is a specialized tool trained in this area.  

Therefore, there are many instances, some when the errors are unnoticeable and others when they are directly and dramatically incorrect. 

So, be sure to check it before advertising. 

2. Using AI for Every Task 

In our opinion, AI is best used to automate dull, repetitive, and tedious tasks. Also, the more complex your AI system is, the greater the chance of things not working correctly. 

3. Data Privacy 

Data privacy and unauthorized access to personal data are often a significant issue within the advertising industry, as the system usually requires it to work properly. Thus, the risk of privacy violations and identity theft increases. 

Final Thoughts  

Integrating AI advertising into your strategy is no longer futuristic but mandatory to remain relevant within the industry. With machine learning, predictive analytics, and natural language processing, you can unlock unprecedented opportunities for personalization, efficiency, and ROI.  

However, as technology evolves, businesses must embrace AI as a strategic tool to drive growth and stay ahead of the competition.