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The Rise of Generative AI in Digital Advertising
The Impact of Generative AI on the Digital Ad Industry
Shortly after ChatGPT hit the market last year and instantly captured headlines for its ability to appear human in answering user queries, digital marketing veteran Shane Rasnak began experimenting. As someone who had built a career in creating online ad campaigns for clients, Rasnak saw how generative artificial intelligence could transform his industry. Whether it was coming up with headlines for Facebook ads or short blurbs of ad copy, Rasnak said, jobs that would have taken him 30 minutes to an hour are now 15-minute projects. And that's just the beginning.
Rasnak is also playing with generative AI tools such as Midjourney, which turns text-based prompts into images, as he tries to dream up compelling visuals to accompany Facebook ads. The software is particularly handy for someone without a graphic design background, Rasnak said, and can help alongside popular graphic-editing tools from Canva and Adobe's Photoshop. While it's all still brand new, Rasnak said generative AI is "like the advent of social media" in terms of its impact on the digital ad industry. Facebook and Twitter made it possible for advertisers to target consumers based on their likes, friends, and interests, and generative AI now gives them the ability to create tailored messaging and visuals in building and polishing campaigns. "In terms of how we market our work, the output, the quality, and the volume that they're able to put out, and how personalized you can get as a result of that, that just completely changes everything," Rasnak said.
The Interest of Industry Giants in Generative AI
Rasnak is far from alone on the hype train. Meta, Alphabet, and Amazon, the leaders in online advertising, are all betting generative AI will eventually be core to their businesses. They've each recently debuted products or announced plans to develop various tools to help companies more easily create messages, images, and even videos for their respective platforms.
Their products are mostly still in trial phases and, in some cases, have been criticized for being rushed to market, but ad experts told CNBC that, taken as a whole, generative AI represents the next logical step in targeted online advertising. "This is going to have a seismic impact on digital advertising," said Cristina Lawrence, executive vice president of consumer and content experience at Razorfish, a digital marketing agency that's part of the ad giant Publicis Groupe.
The Potential of Generative AI for Personalized Advertising
As these new offerings improve over time, a bicycle company, for example, could theoretically target Facebook users in Utah by
Conclusion: Embracing Generative AI for Digital Advertising Success
The Rise of Generative AI in Digital Advertising
Generative AI has emerged as a game-changer in the digital advertising industry, streamlining tasks and revolutionizing the way campaigns are created. With tools like ChatGPT and Midjourney, professionals like Shane Rasnak have experienced significant time savings in generating compelling content and visuals for ads. This technology has the potential to reshape the entire industry, much like the impact of social media on marketing efforts.
The Interest of Industry Giants in Generative AI
Leading players in online advertising, including Meta, Alphabet, and Amazon, recognize the transformative power of generative AI and have already started investing in its potential. While some initial products have faced criticism, the overall progression towards leveraging generative AI for targeted advertising is undeniable. Industry experts like Cristina Lawrence believe that generative AI will cause seismic shifts in digital advertising.
The Potential of Generative AI for Personalized Advertising
As generative AI tools continue to evolve and improve, the possibilities for personalized advertising are boundless. Businesses can leverage this technology to craft tailored messages and visuals, presenting their products or services to the right audience at the right time. Imagine a bicycle company reaching Facebook users in Utah with targeted ads based on their preferences and interests.
A Hot Take: The Competitiveness of New Businesses
For new businesses, embracing generative AI in their digital advertising efforts can be a game-changer. It allows them to level the playing field with well-established competitors by efficiently creating high-quality, personalized campaigns that engage and resonate with their target audience. By capitalizing on generative AI, new businesses can achieve faster market penetration, expand their brand reach, and cultivate customer loyalty.
In conclusion, generative AI is poised to revolutionize the digital advertising landscape. Businesses that adapt and integrate this technology into their marketing strategies will gain a significant competitive advantage. As generative AI continues to advance, it will continue to unlock new possibilities for personalized advertising, paving the way for success in the rapidly evolving digital realm.
Article First Published at: https://www.cnbc.com/2023/07/08/how-the-generative-ai-boom-could-forever-change-online-advertising.html.svg)
