Artificial Intelligence (AI) is not just reshaping the future of advertising, it is empowering advertising professionals. It has become an essential tool that amplifies human expertise and drives greater campaign efficiency and effectiveness. As AI rapidly advances, it is crucial to understand its core aspects. Despite the current buzz around AI, it is a familiar phenomenon within our industry and in general. AI has been integrated into most advertising products for years, often referred to previously as machine learning or automation. Core components include Machine Learning (ML) teaching systems from structured data, Deep Learning (DL) processing unstructured data using neural networks, and Natural Language Processing (NLP) interpreting human language for intuitive technology interactions.

Core Components of Advertising

Machine Learning (ML): Teaching systems from structured data.

Deep Learning (DL): Processing unstructured data using neural networks.
Natural Language Processing (NLP): Interpreting human language for intuitive technology interactions.

AI’s evolution in Social Advertising

The evolution of AI in social advertising has been significantly shaped by major platforms like Meta. Their introduction of Campaign Budget Optimization (CBO) in 2017, a framework for automated optimization based on real-time data, has been a game-changer. This innovation has notably improved campaign performance by allowing flexible budget allocation based on performance signals, marking a transition from manual adjustments to AI-driven optimizations that amplify the efficiency and effectiveness of media buying.

AI-driven Media Buying and Targeting

The impact of AI on media purchasing has shifted from mere automation to a focus on targeting specific audiences and achieving goals. Modern platforms enable users to define high-level objectives while AI automates other aspects of the campaign. Understanding how social platforms leverage AI to optimize media performance and how advertisers can responsibly utilize these advancements is crucial in the current advertising landscape.

Automated Socutions across Platforms

The advertising landscape is evolving as platforms increasingly utilize automated solutions such as Advantage Shopping Campaigns (ASC+), Advantage App Campaigns on Meta, and Smart Performance Campaigns on TikTok. These solutions prioritize high-level objectives like budget, ROAS, and creative assets, enabling in-platform automation to oversee other campaign elements for optimal performance. Although these solutions can potentially increase campaign performance massively, it is crucial to take a gradual approach to adapting. It is imperative to learn and understand while we act.

Generative AI in Creative Production

Generative AI technologies such as DALL-E 3, Midjourney, and Adobe Firefly are available today, yet compliance and intellectual property challenges hinder widespread adoption across large organizations. Therefore, leveraging in-platform capabilities for advertising proves advantageous. This functionality seamlessly integrates into the native campaign build process across most social platforms. While Pinterest and Reddit have yet to introduce their generative AI creation solutions, platforms like Meta (AI Sandbox), TikTok (Creative Assistant and Symphony), and YouTube (Ads Creative Studio) lead in capabilities. Utilizing in-platform solutions ensures tailored output to the specific platform without incurring extra costs for advertisers. It is revolutionizing creative production in social advertising. It allows the generation of unique creative assets that can be tested and optimized with minimal effort. Platforms like TikTok and Meta empower brands to harness AI for more impactful and efficient advertising, simplifying complex processes and enhancing creative outputs.

Benefits and Challenges of AI Integration

As professionals in advertising, it is crucial to understand both the potential benefits and challenges of integrating AI into our practices. While AI-driven solutions offer faster time-to-market, improved optimization, and enhanced campaign performance, concerns about losing control over budget allocation, targeting, and creativity arise. It is essential to navigate these concerns by gaining a deep understanding of AI's capabilities and limitations.

OMG’s Approach to AI in Advertising

At OMG, we advocate for a cautious approach to AI-powered digital advertising, emphasizing quality assurance, client risk assessment via Auto QAi, and continuous learning. By embracing AI wisely and managing its risks, we can utilize its potential to create enduring strategies that yield significant results. This emphasis on continuous learning fosters anticipation about the future of advertising practices and keeps us engaged in the rapidly evolving industry.

OMG Activate AI X Partner Series

OMG acknowledges the significance of AI in shaping the future of advertising, and that is why we have launched the OMG Activate AI X Partner Series. This program aims to educate our specialists about AI's impact and potential, enabling them to integrate AI-driven features and products effectively into our strategies. Developed in partnership with key players in the digital advertising ecosystem, this initiative equips our teams with the knowledge and skills required to stay ahead in a fast-evolving industry.

AI and the impact on social advertising