23/03/2020

A brief guide to AI advertising for Ecommerce

It’s no secret that Artificial Intelligence (AI) is completely revolutionizing the world of online advertising. 

AI helps to streamline not only the process of building and creating ads and setting up online campaigns, but it also optimizes and maximizes advertising on every possible level, such as setting ad budgets, allocating budgets, audience targeting, and monitoring and improving performance.

AI advertising might seem overly complicated; however, it has already demonstrated many powerful benefits for ecommerce businesses

In this article, we will provide a brief guide on everything you need to know about AI advertising, including what it is, how it works, why it is beneficial, and why it is the future of AI advertising. 

What is AI advertising?

Artificial intelligence essentially uses machine learning, which is at the core of every AI-powered technology, platform, and device. This essentially means that AI technologies are designed to perform various cognitive tasks similar to a human. 

For example, AI technologies can read and interpret text and images, hear sounds and understand them, and even move around obstacles. In fact, we already use AI in our daily lives (think Siri, Alexa, and Google Maps).

In terms of AI advertising, one example is seeing an ad pop up while a user is searching Google or browsing Facebook for a store or business in their local area.

AI tools significantly transform and improve how work is performed, increase efficiency and productivity, and drastically reduce operational and labor costs. 

However, AI advertising can also do the following:

 

  • Identify target audiences
  • Segment audiences
  • Build and set up ad creatives
  • Test ad sets
  • Improve ad performance
  • Optimize and allocate ad budgets

What are the benefits of AI advertising?

Some of the greatest benefits of AI advertising is that it can do all this automatically, in real time, and at scale—all without human involvement. Not only does it help save businesses time and money, but it also significantly drives value.

Here are some of the primary benefits of AI advertising in greater detail:

Build and set up ads

As an ecommerce business or marketer, you likely know how much time, effort, and resources are required to build, set up, run, and monitor paid ad campaigns. 

Many tools, platforms, and frameworks designed for ecommerce businesses today are designed with AI capabilities and functionalities. Many of them are designed to build, create, and set up ads across various channels, such as Google Ads and Facebook. 

AI advertising tools use the product information available on the Ecommerce store to write compelling ad copy. In some cases, these tools can write ad copy better than a human and in a fraction of the time.

Target audience

Unless ecommerce businesses have access to mountains of data, and the time to analyze it all, they are likely spending more time guessing their target audience criteria when setting up campaigns, which is far from efficient. 

However, AI-powered tools and technologies can do this for you. Again, by using algorithms, AI tools can analyze numerous sets of consumer data to use as audience targeting data for ads. 

Furthermore, AI tools can also analyze previous campaigns and ad performance, KPIs, and industry benchmarks. Then they can fine-tune targeting audience demographics accordingly to the target audiences that are most likely to buy.

Optimize ad budgets

One of the biggest concerns for ecommerce businesses regarding their online advertising strategies is properly allocating ad budgets to the most effective channels where customers are most likely to buy.

As we mentioned briefly above, removing the guesswork from setting up and running digital ad campaigns is not only more efficient, but ecommerce businesses can rest assured that their marketing dollars are being allocated to the most effective channels.

Maximize performance

Another common reason why more and more ecommerce businesses today leverage AI advertising tools is performance optimization. AI advertising tools analyze how ads are performing across various platforms. 

They also provide users with recommendations on how to further optimize ads to improve performance (and maximize budgets). They do this by intelligently automating actions to maximize performance based on best practices. 

Furthermore, AI advertising tools also highlight performance risks or issues that users may not be aware of and even make decisions based on industry benchmarks and specific advertising KPIs.

Why AI advertising in ecommerce is the future

The digital age has provided businesses of all shapes, sizes, industries, and scope with more data than what they can handle. In most cases, business data contains insights that can help businesses drastically improve and scale.

However, most businesses lack the time and resources to thoroughly and accurately analyze and interpret that data to make more informed decisions, which ends up costing them more time and money in the long run.

 

As a result, businesses and forward-thinking marketers are leveraging AI tools to streamline campaign processes, optimize budgets, maximize performance, reduce costs, and gain a competitive edge.

AI advertising tools have completely changed how ecommerce businesses and brands manage their digital ad campaigns. In fact, more and more ecommerce businesses are progressing to and leveraging AI advertising tools to help them do just that. Therefore, it’s safe to say that AI advertising in the world of ecommerce is certainly the future. 

How to use AI advertising in your ecommerce business strategy

If you haven’t already implemented an AI advertising tool into your ecommerce business strategy, now is the time to do so. There are a number of AI advertising tools available today that not only provide ecommerce businesses with the capabilities and functionalities that we have outlined above in this article, but that can also be integrated into your existing ecommerce platform, system, or framework.

For example, AdScale, available on the PrestaShop Marketplace, is a great example of an AI advertising tool designed for Ecommerce. AdScale is a completely automated tool that helps optimize ads across various advertising channels, including Google Shipping, Google Search, Facebook, Instagram, and more and connects right to your store.

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