Skip to content

Using AI in Advertising: How it Can Help Businesses Promote Better

    ai in advertising

    Artificial intelligence has taken the world by storm in recent years, revolutionizing numerous industries with its advanced capabilities. From healthcare to finance to transportation, there seems to be almost nothing that AI has not yet touched.

    In healthcare, AI has been used to analyze medical records, diagnose illnesses, and develop personalized treatment plans. In finance, AI is being used for fraud detection, credit scoring, and investment analysis. In transportation, autonomous vehicles rely on AI technology to operate safely and efficiently.

    Several more industries are impacted by AI in various ways. But what about commerce and advertising?

    I’m here to tell you that AI in advertising is already here, and Braxy is one of the best examples of it.

    The Role of AI in Advertising

    It’s no surprise that AI is making its way into the advertising industry. AI-based systems are quickly accelerating the speed and scale of digital marketing, allowing brands to reach more audiences than ever before.

    Let’s talk about how:

    Programmatic Media Buying

    Have you ever wondered how advertisers are able to target you with the perfect ad at the exact moment you need it, thinking of it, or interested in it? The answer lies in the power of programmatic media buying, where artificial intelligence is the behind-the-scenes hero.

    You may not know it, but this has been happening for more than 30 years!

    Programmatic media buying refers to the process of using automated technology to buy and sell digital advertising inventory in real time. For example, you are browsing a website and you suddenly see a banner ad for a product that you looked at last night. How in the world did the website know what to show you?

    It is not the website but the advertising platform that pays websites for placements that take control of these things. Such advertising platforms is where marketers create their ad campaigns, request to be shown to relevant audiences through ad targeting, and submit a bid (an amount they are willing to pay to have their ad shown).

    Programmatic and automated media buying is an auction-based system, which means it will evaluate all bids for a specific ad placement the moment an inventory is available (read: when a user visits a website that shows banner ads). The winning bidder gets to have their ad placed. The whole process happens in less than a hundred milliseconds.

    This buying is done through sophisticated algorithms that are designed to target specific audiences based on a variety of data points, including user behavior, geographic location, and demographics.

    With programmatic media buying, advertisers can target specific consumers and deliver personalized messages at the right time, in the right place, and on the right device.


    Artificial intelligence has opened up new doors in the field of advertising by changing the way we are able to target audiences. Advanced algorithms are now being used to collect vast amounts of consumer data and identify trends in online behavior, preferences, and interests that were once impossible to spot.

    Armed with this knowledge, advertisers can create marketing campaigns that are precisely targeted to their intended audience. No more generic ads that miss the mark; with the help of AI, businesses can now speak directly to the hearts (and wallets) of their customers.

    There are several ways for us to target audiences, and these are:

    Demographic Targeting

    Say goodbye to the days of simply targeting based on location; now we can get granular with demographic targeting. Age? Check. Gender? Check. Device and browser type? Check and check. 

    Audience Segmentation

    With its ability to sift through enormous piles of data, AI makes audience segmentation a breeze. Like a digital surgeon, it carefully divides a larger audience into smaller, more manageable subgroups based on specific characteristics such as interests and demographics. 

    Behavioral Targeting

    AI can help advertisers identify patterns in an individual’s internet use, such as the types of websites they visit, the products they search for, and the content they engage with online. By analyzing this data, AI can create a unique profile of each individual, allowing advertisers to deliver targeted ads that are more likely to resonate with the individual’s interests and needs.


    Have you ever seen an ad that shows an item you have added to cart on an e-commerce website a few hours ago? Such is the power of retargeting.

    AI-powered retargeting platforms are able to keep track of users who have previously interacted with a certain website, and present them with ads for products or services they viewed in the past. This helps to keep your brand top-of-mind and encourages consumers to come back and finish their purchase.

    One concrete example of using AI to accurately target your audience is Braxy.

    Braxy‘s AI can help you find the right targets through intelligent research. All you need to do is provide details on your local business, such as your location, business type, and target audience. Braxy will use this information to identify potential customers who are likely to be interested in what you have to offer.

    Even better, our AI will check into your competitors and see what they are doing right so the same can be applied to your campaigns.

    Ad Creation and Personalization

    Gone are the days of one-size-fits-all advertising strategies — now you can make sure your ads are tailor-made. Through machine learning algorithms, AI can identify patterns in consumer behavior, learn from past interactions, and make predictions about what ads will resonate with each person.

    This groundbreaking technology empowers advertisers to create ads that are highly personalized to each individual, driving up engagement and conversion rates to unprecedented levels. It’s truly fascinating to witness how AI algorithms pore over massive amounts of data, bringing to light insights that would have otherwise remained hidden. 

    This level of personalization not only improve ad performance but also fosters a more positive relationship between brands and consumers. With the help of AI, personalized advertising has never been easier, more efficient, or more exciting.

    Braxy does this with high efficiency. It creates multiple ads for you to test, though you still need to confirm whether you like the ads before they are run.

    There’s also the option for Dynamic Creative Creation. AI technology can be used to collect a specific information from an online visitor and use it to personalize ad content in real-time.

    I’m pretty sure you’ve experienced at least once seeing an ad that is meant specifically for your location, device, browser, and more.

    Surprising? No. These ads are dynamically changing content, which fills out information based on what the ad network collects about you. And if the advertising network is Google Ads, expect them to collect highly accurate information about its visitors.

    Augmented Reality Technologies

    As the use of augmented reality technologies continues to surge, so does the potential for revolutionary new channels of customer interaction. From customized product recommendations to personalized advertising experiences, AI’s integration with AR is already producing better, more effective digital marketing promotions. 

    And when it comes to publicizing products via augmented reality, Ikea has set a high standard with their Ikea Place app. This innovative app has not only received great reviews but has also allowed customers to visualize how Ikea furniture will look in their own homes before they even make a purchase. It’s a highly effective way of enticing your customers to buy more from you while increasing customer satisfaction.

    Attribution Modeling

    AI algorithms can help in attributing success to a campaign’s performance by analyzing the numerous campaign channels and attributing costs and revenue with granular, multi-touch attribution techniques.

    With the help of clever algorithms, we can now achieve a level of precision that would make a Swiss watchmaker blush. By breaking down each campaign and analyzing its various channels, we’re able to identify the specific pieces of the puzzle (ad, keyword, or metric) that led to a successful conversion.

    Sales Forecasting

    Sales forecasting is like a crystal ball for businesses, allowing them to stay ahead of the game and plan for the future. And with the help of AI, that crystal ball just got a whole lot clearer. 

    By utilizing sales forecasting, companies can plan and set targets for sales in the short-term and long-term, prioritize sales and marketing initiatives, allocate resources, and optimize their production and staffing capacity.

    Advertisers can spot patterns and forecast future outcomes for a specific industry or niche of interest with the help of AI tools. It can help businesses with insights on optimal product selection and the right timing to roll out new products or services.

    Price Optimization

    Pricing can make or break a product or service, and businesses need to find the sweet spot to maximize profits. That’s where artificial intelligence comes in — it helps advertisers with price optimization.

    In the past, businesses would rely on intuition or historical data to set their prices. But now, with AI technology, they can take a more data-driven approach.

    Customer demographics, purchasing habits, and even external factors like competition and market trends are analyzed by nifty tools. Advertisers can then tailor prices to what their customers are willing to pay. It’s a win-win situation — customers are happy and businesses can improve their bottom line.

    By setting optimal prices, businesses can improve sales volume and profitability without sacrificing margins or losing customers to competitors. Another benefit of price optimization through AI is that it eliminates the need for manual pricing, which can be time-consuming, subjective, and prone to errors.

    Brand Safety

    Brand safety is the practice of ensuring that advertising and marketing campaigns are aligned with the values, ethics, and image of a company. It ensures that businesses protect and maintain their reputation while reaching their target audience.

    How important is it for business? It’s on the top tier of concerns. It is essential for businesses today since a negative ad placement can result in significant financial and reputational damage. If an ad appears next to inappropriate content, it could damage a brand’s reputation, leading to a loss of trust, respect, and customers. No business would want that to happen!

    Fortunately, artificial intelligence has proven to be an invaluable tool in this area. Through advanced algorithms, AI can scan through massive amounts of data and pinpoint which type of content an ad is likely to appear on. This helps businesses avoid any reputational damage that might arise from being featured on inappropriate websites, social media platforms, or PPC search ads results.

    Advertising Optimization

    So once you have your ad campaign running, AI can then start analyzing data as they come in. The more data you get, the easier it is to analyze. This is where optimization comes in. AI algorithms can interpret the data and make suggestions on how to improve your ad campaigns for better results.

    On full reign, Braxy’s AI technology can constantly update your campaigns by identifying:

    • which keywords are delivering the results (and which aren’t so the AI can automatically pause them)
    • which ad creatives resonate better with your audience
    • platforms and channels you should focus more on
    • the ideal marketing budget to obtain the right balance between cost and profit
    • best ad placement or websites to promote in
    • what time of the day and day of the week do your audiences do their Google search, etc.

    But the AI doesn’t stop with just analyzing — it takes action.

    As your campaign gains data, Braxy can do any of the following:

    • craft more ad creatives based on good-performing ones so you can split-test them and find the cream of the crop;
    • send you information on new keywords that might work for you;
    • set negative keywords so that keywords that are related but don’t work for you will be actively blacklisted;
    • set the correct frequency;
    • automatically send you performance reports so you know what’s happening.

    …and so much more.

    Intuitive Product or Service Recommendations

    Picture this: you walk into a store and the salesperson greets you with a warm smile and offers you a personalized product recommendation before you even have a chance to browse.

    Sounds too good to be true, right? But with the power of artificial intelligence, this dream scenario is becoming a reality for businesses. AI systems can analyze extensive amounts of customer data to provide product or service recommendations that are tailored to each individual’s preferences.

    These recommendations take into account an individual’s interactions with the brand and other variables, such as purchase history, likes, dislikes, and even browsing history. The result is an unparalleled level of personalization that creates a deeper connection between the brand and the customer.

    This not only significantly improves the customer experience by offering personalized suggestions, but it also increases the likelihood of a sale. It’s like having your own personal shopping assistant who knows exactly what you need before you even do.

    Image Recognition

    Image recognition technology has outrageously improved the way advertisers target their audience. Through the use of AI algorithms, ads can be tailored to specific demographics based purely on insights derived from images.

    Whether it be analyzing the age and gender of a person in a photo or identifying the interests of a consumer by analyzing their social media profile picture, AI has completely changed the game.

    Remember when you uploaded an image of yourself wearing your favorite sports team’s shirt? Well, the social media network where you uploaded such an image can now send you ads for that particular sport and team, increasing the advertiser’s chances of getting a purchase from you.

    Content Creation

    Creating enticing adverts is no easy job, but with AI’s assistance, advertisers can easily craft content that caters to their specific audience. Content creation is one of the most popular uses of AI tools in 2023, after all.

    With its knack for customization and engagement, having tools like ChatGPT is like having a genius copywriter in your pocket. Whether it’s crafting a clever social media post, a heartfelt video ad, a thought-provoking piece of written content, or whatever ad creatives you want, AI can help tailor the language and message to the specific group you’re targeting. 

    Who knew that you could summon creativity like a genie from a bottle with just the push of a button?

    Fraud Detection

    The advertising world can be tricky, where fraudulent activities can go unnoticed for months or even years. However, AI is rapidly changing this scenario.

    AI is being leveraged to detect and prevent advertising fraud with incredible high accuracy; making it a vital asset for both consumers and businesses. Thanks to big data analysis, AI can pore through endless gigabytes of ad data faster than you can say, “I’m not a robot.”

    AI models can scan through enormous amounts of ad data within seconds and detect patterns of fraudulent activity. May these involve fake clicks or bot views, advertisers can find and eliminate them.

    Implementing AI in fraud detection will provide improved security and protection for all involved parties — consumers, advertisers, and businesses alike.

    Customer Service

    Artificial intelligence has been a game-changer in the customer service industry. The implementation of smart automated tools has revolutionized the way businesses interact with their customers as they are able to provide personalized customer service, significantly improving the customer experience and boosting brand engagement.

    Here are some of the ways AI is implemented in customer service:

    • Intelligent Chatbots

    Imagine having a personal assistant on call 24/7 who can handle multiple tasks at once and never loses their cool. These chatbots can answer basic questions, process orders, and provide information about products and services. Using natural language processing and machine learning algorithms, they understand the nuances of customers’ queries to provide the most appropriate responses. 

    • Automated Email Responses

    We all know how annoying it can be to receive a generic and unhelpful email response from customer service. Like AI Chatbots, businesses can now provide automated responses tailored to address common customer inquiries. This not only lightens the load for busy customer service representatives but also improves response time and ensures that customers receive quick and accurate information.

    • Call Center Automation

    Routing calls, verifying customer information, and leaving voicemail messages for customers — AI can handle it all with ease. This means that human agents can focus on the more complex tasks that require their expertise and personal touch. 

    • Sentiment Analysis

    Imagine having a team of customer service experts analyzing every single feedback your business receives, identifying common themes and issues, and providing data-driven solutions to improve your customer experience.

    Not only does this streamline the process, but it also ensures that no customer feedback goes unnoticed.

    • Voice-based AI

    With AI-powered voice assistants like Siri, Alexa, and Google Assistant, customers can now easily make purchases, gather information on products and services, and even troubleshoot issues all through voice commands! It’s as easy as speaking to a friend! 

    Customer Lifetime Value (CLV) Prediction

    Customer Lifetime Value (CLV) Prediction is a marketing tool used to forecast the total amount of revenue a customer will generate for a business — from the time of their first purchase to the time they end their relationship with the company.

    This is a valuable metric for businesses, as it allows them to determine just how much a customer is worth to them, so they can allocate budget and resources to maintaining customer loyalty up to a certain point.

    Businesses can now predict CLV more accurately than ever before through the use of AI. Large amounts of data, including purchase history, online behavior, demographics, and more, are used by such programs to identify patterns and trends. No more guessing and waiting to lose customers to get an accurate reading!

    Product Delivery and Fulfillment

    Imagine a world where your package never arrives late or damaged. A world where you know the exact moment your item is out for delivery and precisely when it will arrive at your customer’s doorstep.

    With AI, companies can optimize their supply chain management, predict demand, and adjust their inventory levels accordingly. AI-powered algorithms can even take into account different shipping carriers, routes, and weather conditions to ensure your package arrives on time and in perfect condition. This lets you give your customers a close estimate of when their package will arrive, making them trust you more.


    Overall, the potential for AI to transform advertising is immense, with businesses set to benefit from increased engagement and conversion rates, and consumers benefiting from more targeted and personalized advertising.

    It’s truly astonishing to see the level at which AI has revolutionized marketing, and it’s exciting to watch as new advancements continue to emerge.

    You won’t have to wait too long or search too far to utilize AI-powered tools for your search engine marketing needs — Braxy is here! Book a free demo today and see how our program leverages AI and empowers small businesses through Google Ads.

    Leave a Reply

    Your email address will not be published. Required fields are marked *