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  • Frank Gussoni

The Buzz Phrase for Advertising in 2023 ……. AI!

I receive multiple emails daily with the latest and greatest AI for advertisers and agencies.

What is AI?

Artificial intelligence (AI) is the intelligence of machines or software, as opposed to the intelligence of humans or animals. It is also the field of study in computer science that develops and studies intelligent machines. "AI" may also refer to the machines themselves.

AI automation supercharges campaign optimization and it’s doing it in real time. You can find AI as part of the equation in the following digital advertising areas:

  • Personalization: AI-powered algorithms can analyze consumer data and personalize ad experiences for individual users.

  • Targeting: AI can help identify the right target audience for an ad and place it in front of the most relevant users.

  • Marketing automation: AI adds layers to your marketing automation and helps measure and analyze campaign success with less manual work.

  • Optimization: AI optimizes ad campaigns based on performance metrics like click-through and conversion rates.

  • Predictive analytics: AI can use data and algorithms to predict consumer behavior and inform ad strategies.

  • Fraud detection: AI can help detect and prevent ad fraud, such as fake clicks and impressions.

Digital marketing is all about reaching the right audience with the right message at the right time. While this is not intended to diminish the advances AI can bring to the table. A few limitations:

  • All marketing is about reaching the right audience with the right message at the right time, not just digital marketing. Digital is projected to be more than 70% of the total US 2023 ad spend but that remaining 30% represents roughly $100 billion.

  • AI can’t calculate emotional connection in the equation. The most successful advertising evoked some connection. How many commercials have you seen that you just can’t forget, something made it memorable. AI can’t factor that in.

  • AI is programmed using historical data. In a constantly changing world decision-making based strictly on historical data may miss the mark, leaving your campaigns less effective than desired.

Traditional media is never going away, and for the first time in more than a decade, traditional media budgets may be on the rise for a variety of reasons. Check out the following article for more on the shift back to traditional media spending.

According to Statista, the global AI software market revenue will reach $126 billion by 2025, 12 ½ times the revenue generated in 2018. While this figure represents all AI revenue, not only AI for advertising, it’s a staggering increase in a relatively short window. On the plus side, expect further development and refinement of AI technology.

“Deploy AI for tactical objectives by using it to make small but impactful campaign optimization decisions, including creative, placement and more. As AI systems don’t “care” about the nature of their inputs, they can make optimization recommendations with smaller and noisier datasets than humans. Shy away from using AI for strategic decision making, which requires understanding of the specific roles of different inputs.” - Ajay Gupta, Statista

Good, bad, or indifferent, AI will continue to reshape how advertising works for years to come. Even skeptical marketers are jumping on board to ride the AI wave.



President & Founder of A3 media.

We’re Type A. We transform media from an expense into a smart investment.

Frank’s Take provides uncommon sense media buying advice for regional and mid-market businesses.

Read more about Frank

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President & Founder of A3 media. We’re Type A. We transform media from an expense into a smart investment.

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