Thus, ad targeting, content creation, ad placement optimization, performance tracking, and so on are examples of AI being used in advertising.
AI can target the proper audience with customised ads by analysing the data and behaviour of customers. Tools such as ChatGPT or DALL·E can be used to create ad messages, images, and even videos. Algorithms also determine the most effective platforms, ad types, and times to run the ads in order to achieve the greatest impact. Likewise, using data trends and patterns, AI can provide real-time analytics and suggest improvements. AI can also be used for customer service, lead generation, and feedback collection.
AI reduces human labour by automating processes like performance analysis, content production, and audience targeting. AI speeds up decision-making by making the campaigns dynamic. Additionally, the time required to develop ad material is decreased by tools like ChatGPT and image generators. AI reduces wasted ad spend by moving your money to the platforms, places, and devices where it works best. Only the appropriate individuals see advertisements, thanks to AI’s creation of hyper-targeted categories based on behavioural data. This improves cost per acquisition (CPA) and return on ad spend (ROAS) by lowering the expense of targeting indifferent users.
Although still in its infancy, AI adoption in advertising is expanding in Nepal. Brands are shifting from traditional to digital advertising, where AI tools are beginning to play a part, especially as a result of increased usage of social media and the internet. AI is used by several digital marketing companies in Nepal for analytics, audience segmentation, and campaign optimisation, particularly with Facebook Ads and Google Ads. Nuances of Nepali language are hard for AI algorithms to interpret correctly, which hinders automation at the stage of content generation. On the other hand, there is also a general lack of awareness and experience among firms in integrating AI into their advertising strategy conscientiously. They also have limited access to new and advanced AI tools.
Comparison with Traditional Advertising
- Workflow Shift
Traditional advertising is done mostly by hand, which eats up a lot of time and effort in idea generation, creative production, and campaign launching. Contrarily, AI in advertising uses automated or AI tools for assistance in ad creation, targeting, and performance monitoring. Not only does AI fast-track audience analysis and content creation, it also enables quicker campaign rollout by A/B testing.
- Targeting & Strategy
Conventional advertising depended heavily on client-provided data or general demographic assumptions. However, AI improves relevance and engagement by micro-targeting audiences based on real-time behavioural data, interests, and online activity.
- Budgeting
Due to its predetermined budgets and lack of flexibility, traditional advertising sometimes resulted in either excessive or insufficient spending. Thanks to AI, businesses can now automatically reallocate funds to the most effective platforms and advertisements, increasing return on investment.
- Content Strategy
Static content created for one-size-fits-all campaigns is used in conventional advertising. However, AI allows for the usage of dynamic and tailored material according to audience behaviour. Ad copy and images can be created in many versions to accommodate various audience segments with the aid of tools like ChatGPT and DALL·E.
Types of AI in Advertising
- AI Agents in Advertising
AI agents are autonomous systems made to carry out tasks with little to no input from humans. They are capable of campaign planning, execution, and management. AI agents are able to choose platforms, modify budgets, analyse audience behaviour, and even produce ad variations in real time. For instance, chatbots interact with people on websites, recommendation algorithms make product recommendations, or virtual assistants oversee advertising campaigns. These agents improve productivity and enable round-the-clock ad optimisation without continual human oversight.
- In-Built AI in Advertising Platforms
These days, a good many ad platforms have in-built AI mechanisms that aim to ease marketing work. TikTok Ads, Facebook Ads, and Google Ads AI handles automated targeting, placement, bidding, and performance optimisation. They also include audience insights, predictive metrics, automated A/B testing, and dynamic ad generation. These built-in AI tools allow marketers with little technological expertise to create successful campaigns.
- Data Study in AI Advertising
The foundation of AI in advertising is data. Large amounts of user data are necessary for AI systems to make decisions. To maximise ad distribution, AI examines user demographics, behaviour patterns, engagement metrics, and click-through rates. It enables extremely precise targeting and aids in determining consumer preferences and the effectiveness of campaigns. However, this creates ethical use and data protection concerns, particularly in light of laws like GDPR.
- Humanized AI Content in Advertising
Content created by AI that feels organic, captivating, and emotionally impactful as if it were created by a human, is referred to as humanised AI content. For instance, AI can create scripts, social media posts, and ad text with human-like emotion and tone. Humanised AI content typically involves generative AI tools like DALL·E for graphics, Sora for video, and ChatGPT for textual. It allows brands to benefit from speed and scale with AI while building an intimate human connection with customers still. However, finding the right balance between automation and humanistic interaction can be challenging.
Everest Ad & Event Management: Use of AI in Advertising
Based in Kathmandu, Nepal, Everest Ad & Event Management is a leading event planning company that provides a variety of services, such as destination weddings, corporate and social events, and advertising campaigns throughout Nepal’s major cities. Our advertising campaigns make use of a number of AI techniques.
AI Applications in Everest Ads’ Marketing
Audience Targeting and Personalization: AI discovers target audiences and personalises advertising material by analysing customer data, which increases engagement and conversion rates.
- Content Creation: AI can help produce original advertising content, including copy and design, fast-tracking the process. Although copywriters still handle the majority of copywriting, artificial intelligence (AI) solutions such as ChatGPT offer resources and ideas for appropriate content development.
- Campaign Optimization: AI tracks and evaluates the results of advertising campaigns in real time, enabling modifications to increase efficiency and Return of Investment.
- Customer Interaction: AI-powered chatbots respond to consumer questions and offer details about services 24/7, further increasing the effectiveness of customer support.
- AI agents: AI agents may choose platforms, adjust budgets, assess audience behaviour, and even create real-time ad versions. Even without constant human supervision, these agents increase output and allow 24/7 ad optimisation.
It’s Impact on Marketing
Everest Ads has seen increased customer satisfaction, cost savings, and operational efficiency since incorporating AI solutions into their marketing tactics. This helped produce more individualised and targeted services, which have increased customer loyalty and engagement. Additionally, that saved a great deal of money and time.
Future Vision or Roadmap/ What Everest Ads Plans to Do Next with AI
Everest Ads aims to pursue further integration of generative video tools such as Runway’s AI video editors or OpenAI’s Sora to create catchy and cheap video advertisements, especially useful for TikTok, Instagram Reels, and YouTube Shorts.
Similarly, Everest Ads intends to incorporate AI chatbots capable of conversing in Nepali and other regional languages to amplify engagement with consumers of regional businesses. Additionally, this will improve the processing of FAQs, event enquiries, and lead creation via websites and social media.
Everest Ads intends to estimate consumer preferences and campaign performance using AI to analyse historical behaviour and patterns. This would enable more proactive campaign planning as opposed to merely reactive changes. Future plans for Everest Ads include creating intelligent dashboards that provide clients with real-time data into the performance of their ads, along with AI-recommended enhancements.
Can AI-Generated Ad Content Be Bad or Penalized?
While AI has many benefits, there are some bad parts to it as well. Without a human touch, AI-generated material can appear generic or robotic. Heavy dependence on user data in generative AI models like ChatGPT raises ethical and legal concerns.
Apart from that, inherent biases in the training data can likewise be propagated by AI to give inaccurate targeting or messaging, which only serves to exacerbate social problems like racial discrimination. People relying too much on AI could also limit human oversight and creative thinking.
Google Ads & AI Use
Ads created by AI are not generally penalised by Google Ads simply for being AI generated. But although they receive no penalties, they might be reviewed. Google’s Ad Policies, which include the following, must be followed by all ad content, AI or not.
- No misleading claims
- No unoriginal or poor-quality content
- No advertising of goods that are prohibited such as fake or scam services, illegal deals, etc.
AI-written content that isn’t reviewed may sound robotic, lack emotion, or fail to resonate with target users, leading to low CTRs (click-through rates). Furthermore, in an ethnically diverse country like Nepal, AI may not comprehend the local humour, cultural tone, or linguistic nuances, which could harm advertisements or even offend some people.
Similarly, if AI is used exclusively, it may limit creativity and inhibit exploration. Testing with actual audience response is still very important. Your ad may be rejected, or your account may have its ad distribution restricted, if you utilise AI to automatically create spammy or deceptive advertising or repurpose content from other sources without making any changes.
Therefore, always verify tone, accuracy, and intent before running AI-generated ad content. The type of material that AI produces should always be guided by performance data. You can use Dynamic Keyword Insertion, Location Insertion, and Responsive Search Ads in Google Ads which are all tools enhanced by AI without the worry of penalty.
For regional and Nepali marketing, you can always combine AI tools with human input or support for the local language. Avoid spam tactics like AI-generated clickbait and deceptive wording, as these might result in a low Google Ads Quality Scores and also raise your cost per click (CPC).
