January 24, 2024

Shilpa Ramaswamy

How is AI Helping Advertisers Build Smarter Banner Ads?

As AI and machine learning technologies are becoming more widespread in the digital realm, marketers have jumped at the opportunity to use them for their banner ad campaigns.

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As AI and machine learning technologies are becoming more widespread in the digital realm, marketers have jumped at the opportunity to use them for their banner ad campaigns. Great strides have been made in leveraging artificial intelligence’s features, allowing brands to engage with customers through an understanding of real-time online behaviour. The potential of this technology is vast and now is the perfect time to take advantage of it.

Limitations of current banner ad technology

Traditional banner ads rely on outdated data or the profile of a prior consumer to interact with new visitors, likely leading to ineffective and unwelcome ads. This type of display advertising is no longer able to effectively serve the needs of an audience expecting personalization and customization. As a result, brands may find themselves in danger of consumers utilizing ad blockers or developing an unfavourable opinion of them as a consequence of dissatisfactory content.

Due to its reliance on earlier actions or data, the traditional “smart” banner ad is inadequate for the modern consumer’s needs. By merely attempting to match ads with previous behaviour or profiles, this strategy results in organizations pursuing their customers for products that have either already been purchased, refused, or are entirely wrong. This ends up generating limited ads that lead consumers to form a negative impression of the brands displaying these ads. Therefore, conventional banner ads relying mainly on past conduct enter a deadlock at a time when users call for immediate and personalized browsing experiences.

What are the benefits of using AI in banner ads?

The artificial intelligence revolution is shaking up the display advertising industry, and its benefits are already becoming apparent. AI-driven ads prove more effective than ever; though this technology has only just begun to be utilized, the opportunities are numerous for those who embrace it.

1. Move faster than your competitors

With AI-driven display ads, businesses now have the resources to quickly and accurately detect changing trends in consumer activity. By leveraging the predictive capabilities of artificial intelligence (AI), these banners are equipped with a heightened awareness of their intended audience. Companies that implement this cutting-edge technology can therefore stay ahead of the curve by predicting customer interests, engaging before competitors do, and actively participating in their marketplace without interruption. Therefore, utilizing AI in banner ads presents a unique opportunity to showcase personalized messages delivered faster than ever before; ultimately improving marketing efforts and increasing customer ROI.

2. Improve user experience

AI-driven banner ads are designed to give website visitors personalized online experiences. If a user visits a real estate website, for example, AI technology can recognize visuals such as images of houses and pools, then select thousands of potential ad images and messages to create the best possible campaign for that person. Vattenfall, one of Europe’s leading energy companies, recently implemented this same technology into their AI-centered marketing strategy. When users came across pictures featuring swimming pools in their browser window, they saw banner ads promoting Vattenfall’s smart thermometer app—allowing them to check water temperatures directly from their phones.

3. Deliver a higher quantity of quality ads

Thanks to AI, brands can close the gap between consumer expectations and existing ad technology. Pop-ups, auto-playing videos and other irrelevant ads have led to a surge in ad blocker adoption. To counteract these issues, traditional banner ad technology relies on guesses about user behaviour from device type and user demographics. Thanks to AI, companies can now create more personalized experiences that don’t require ‘guessing’, but instead leverage data from current browsing paths to drive greater ROI through effective targeting. With AI at their disposal, brands now have access to powerful tools that enable them to craft hyper-targeted ads that are sure to grab users’ attention while retaining trust.

4. Optimally use your resources

AI provides the tools to revolutionize the display advertising industry, taking us from wild guesses about consumer behavior into a data-driven age. Ad blockers have become increasingly popular due to disruptive, irrelevant ads like pop-ups and auto-playing videos. The current ad technology cannot always accurately match consumers and their browsing behavior with personalized ads, leading to mismatched experiences. AI revolutionizes this process by allowing brands to serve highly personalized content based on individual visitor’s current behaviors. This provides a way for advertisers to win back consumer trust while also providing more relevant content for viewers.

Shilpa Ramaswamy
Shilpa Ramaswamy