In the rapidly evolving landscape of news publishing and advertising, artificial intelligence (AI) and automation are emerging as pivotal tools for unlocking new advertising opportunities. However, there is a growing sentiment within the industry that marketers have yet to fully harness the potential of these technologies, potentially forfeiting significant brand gains.
Recent data highlights that 42% of small and medium-sized enterprises (SMEs) acknowledge that not optimizing their AI usage places them at a competitive disadvantage. This concern stems from the advantages that AI-powered tools can offer in targeting affluent and educated audiences across the open internet—a demographic seen as highly valuable by around 80% of advertisers, agencies, and publishers.
Despite an anticipated £25 million-plus investment in AI by UK and US businesses in 2024, many companies are struggling to translate AI experimentation into effective practice. Challenges such as a lack of visionary leadership from the C-suite, data-related obstacles, and outdated technology are impeding broader AI adoption. Consequently, a significant portion of the global workforce—47%—finds themselves unable to meet AI-driven productivity expectations due to a lack of confidence in handling the technology.
SMEs, which are critical drivers of global economies, appear eager to accelerate their use of AI. Half of them report that insufficient automation and AI adoption are barriers to achieving their objectives. Alex Cheeseman, head of enterprise at Outbrain, emphasizes that the compelling potential of AI and automation tools can significantly enhance scalability and efficiency if optimally employed.
Cheeseman suggests that empowering human intelligence with AI can lead to improved strategic and innovative efforts. He points out that automating the complex details of advertising campaigns allows marketers to maximize creative performance and budget efficiency.
To bridge the gap between AI ambition and its effective implementation, the industry experts recommend several strategies:
Smarter Bidding with Automation: Marketers are encouraged to leverage predictive algorithms through bid automation technology. This approach can optimize real-time bids by analysing a multitude of bidding signals, which are otherwise difficult to manage manually. Automated bidding streamlines the process, freeing marketers to focus on other aspects of their campaigns while ensuring continuous optimization without constant supervision.
Utilizing Publisher Data for Privacy-First Targeting: With the emphasis on privacy in today's digital environment, advertisers face increasing challenges in engaging audiences meaningfully. Harnessing AI and machine learning in conjunction with advanced contextual signals allows for a more profound understanding of audiences, facilitating more relevant and efficient customer connections. Cheeseman cites the example of WeightWatchers, which successfully expanded its user base using Outbrain's platform while reducing costs significantly compared to social media strategies.
Enhancing Creative Customization: Continuous testing is vital to determine effective creative strategies as previous successful campaigns lose efficacy over time. AI-powered platforms can generate dynamic performance insights, transforming them into personalized ad creatives. Creative automation tools streamline the process, making it easier to develop contextually relevant imagery and titles that boost conversions and foster growth on a larger scale.
These approaches are seen as pathways for advertisers to effectively engage with audiences on the open internet by closely aligning AI capabilities with strategic marketing execution.
Source: Noah Wire Services