These days the world is turning to artificial intelligence (AI) to boost technological advance and economic growth. McKinsey research shows that AI could add 0.8 to 1.4 percentage points to GDP growth annually. Accenture determined that AI would help accelerate China's economic growth rate from 6.3% to 7.9% by 2035.
Many technology giants and small companies are investing billions of dollars in AI technology. For example, Facebook reportedly has a team of more than 150 people working on AI on the projects ranging from recognizing faces in photos to provide the right content in your newsfeed to targeting.
AI is definitely reshaping advertising technology. Below we'll discuss several trends where AI plays a major role.
AI will be used to understand buyer behaviour to target business marketing strategies towards consumer preferences. Currently, digital marketing makes educated guesses and experiments testing and adjusting results and experimenting to get a positive return on marketing dollars. It may take days or weeks to identify the right targeting strategy. With AI technology digital campaigns reach the right customer immediately by utilizing huge sets of data.
Marketing Focuses on Consumer Behavior
AI collects different data as a part of analyzing customer behaviour patterns to develop automated responses and answer consumer queries much quicker. AI-powered systems for things like product recommendations become very powerful. You do not have to spend hours to find the right hotel, for example. The system knows your preferences and will do that job for you in split seconds.
Semantic searching means that AI understands user searches and offers results that are customized to a specific user. The more AI knows about your search behaviour, the more it can understand the context of certain search phrases and patterns. What does this mean for search algorithms? It means that searching is becoming more user-centric and it will allow more targeted search with secondary and long tail keywords as a part of that search.
Creating dialogue with a customer
Thanks to AI, marketing is not a one-sided message anymore. AI won't just personalize content, it will allow consumers to provide feedback and ask questions. The results of such feedback are used instantly in digital marketing campaigns
AI also allows marketers to run dynamic creatives, testing different ads in seconds, as opposed to traditional A/B testing that may take weeks.
Moreover, the efficiency for advertising, publishers and user of AI becomes even more powerful when it is blended with blockchain technology. One of the great examples of such a blend,
is the company called Ubex, which created a platform for acquiring advertising slots and selecting the most effective websites for advertising placement.
By applying Ubex's AI algorithms, the advertiser can target customers based on the analysis of hundreds of parameters, such as target audience, geography, time of displays and many others.
More than 40% of digital advertising in the world does not reach its target audience according to research by Nielsen, and Ubex solves this problem.
Programmatic algorithms developed by Ubex allows significant increases in the effectiveness of targeted advertising. Programmatic assumes in-depth evaluation of target groups of users based on the history of their search requests, file downloads, application installs and online purchases.
Using neural networks and accumulated data, the Ubex algorithm selects the most current advertising offers relevant for certain visitors, maximizing the probability of obtaining the desired results. Moreover, the Ubex neural network evaluates the probability of targeted user actions. By applying such an approach, the Ubex algorithm estimates the economic efficiency of displaying various advertising options to each particular user. Thanks to the use of neural networks, the relevance of advertising displays is increased along with the predictability of advertising efficiency and the need to burn through budgets on trial and error approaches is reduced.
The Ubex platform is quite efficient in helping publishers to increase their revenues. Publishers are not getting enough revenue from their advertising slots because of a suboptimal sales system. There are several barriers that prevent publishers from maximizing revenue: low display utilization, low amount of targeted actions, traffic loss, unpaid debts.
Smart algorithms based on neural networks are able to optimally distribute thousands of ads from advertisers online. The Ubex algorithm maximizes the revenues of publishers with the most effective ad slots distribution to achieve their maximum load capacity.
Additionally, Ubex offers publishers the opportunity to tokenize their advertising slots. By utilizing all the statistics of users and advertising platforms available inside the platform, Ubex algorithms provide forecasts of potential publisher earnings and give an opportunity of forecasting future earnings provided the necessary rating is available. Thus, through tokenization, publishers can improve their financial performance.
AI is supported by blockchain solutions on the Ubex platform. The blockchain makes it possible to switch to a model of payment for targeted actions. Blockchain allows:
- the implementation of tracking of target actions and their saving in a database transparent for all participants;
- creating a trusted reputation rating;
- creating mechanisms for guaranteeing mutual settlements;
- tokenization of ad slots for publishers and factoring centres for advertisers;
- distributed data mining for consumer-related information.
Ubex opens a new era in digital marketing by introducing a new innovative AI technology. With transformative blockchain technology. Ubex not only creates solutions for burning marketing issues but also creates a mechanism protecting all participants and a system of motivation to use the platform.