Hello there, blog fam! Buckle up: today we’re deep diving into the mind-blowing world of generative AI in advertising platforms. If you think AI is just about robots taking over, think again: it’s all about giving us marketers superpowers (minus the capes, unfortunately). If you just can’t take our word for it, you got it 💃🕺🏻We decided to call in the cavalry and ask our CEO Gianluca Binelli to guide us all on this journey.
He’ll be sharing his insights on how this technology is revolutionising our industry, with a particular focus on advertising platforms. So, whether you’re sipping a double espresso (suggested) or a matcha smoothie (slightly less suggested, but accepted anyway), sit back, relax, and prepare for a dose of generative AI in advertising platforms wisdom that’s as refreshing as iced coffee.
Q1: Hey Gianluca, thank you for your time today! Let’s dive right in. How are leading advertising platforms utilising generative AI to enhance their offerings? And by the way, if AI starts writing ads, does that mean we get to spend more time on coffee breaks?
Gianluca: Thanks for having me!
Leading advertising platforms like Google, Microsoft, and Meta are heavily investing in generative AI to revolutionise ad creation and optimisation. For instance, Google now provides headline and description copy suggestions, as well as image generation for Performance Max and Demand Gen campaigns. Microsoft, with its ChatGPT integration, offers Copilot, an AI assistant that generates copy and images. Meta has also embraced AI with features like AI-generated headlines, background generation, and image expansion to fit various aspect ratios across different platforms such as Feed and Reels.
And, by the way, you’re free to spend as much time on coffee breaks as you need, when you need it 🙂 It shouldn’t take AI for that.
Q2: These tools sound incredibly powerful. Can you elaborate on the specific benefits these AI-driven solutions provide to advertisers? Also, do you think AI can come up with better headlines than my cat’s Instagram account?
Gianluca: That’s for sure.
One of the main benefits is the significant reduction in entry barriers for advertisers. Generative AI in advertising platforms democratises access to high-quality ad creation, allowing small and medium-sized businesses to compete more effectively. This is particularly impactful for those with limited resources or expertise.
Moreover, for larger brands, these tools streamline the creative process, making it easier to produce and optimise ads at scale. This efficiency allows marketers to focus more on strategy and less on repetitive tasks.
Wait, does your cat really have an Instagram account?
Q3: She does indeed, but sorry, that’s private. Back to business: with these advancements, are there any challenges or potential downsides that generative AI in advertising platforms can bring? Should we prepare for a future where our AI overlords take over our marketing departments?
Gianluca: Absolutely, there are a few challenges.
As the landscape becomes more accessible, it also gets more crowded, leading to higher ad fatigue and potentially lower CTRs and higher CPCs. Moreover, while AI tools are powerful, they’re not infallible. The quality of AI-generated content can vary, and human oversight is still crucial to ensure the ads align with brand values and strategic goals.
It’s also worth noting that these tools are still in their infancy, particularly when it comes to image generation. While the copy generated by AI is generally reliable, images might not always meet the desired standards without human intervention.
Q4: It’s clear that human oversight remains essential. How do you see the role of human marketers evolving in this AI-driven environment? Should we start calling ourselves ‘AI wranglers’?
Gianluca: You’re all free to be and call yourselves as you wish 🙂 but yes – human marketers will continue to play a critical role.
AI can handle many tasks, but it lacks creativity, strategic insight, and the nuanced understanding of consumer behaviour that humans bring. Marketers will need to focus on overseeing generative AI outputs within the advertising platforms, providing creative direction, and staying updated with the latest AI capabilities. This will ensure they can effectively leverage these tools to enhance their campaigns while maintaining a unique and authentic brand voice, for instance.
Q5: Given the rapid evolution of generative AI, how are advertising platforms like Google and Bing balancing these advancements with their existing business models? Do you think Google’s AI will start recommending our mum’s lasagna recipe next?
Gianluca: Well, if we start a business on our mum’s lasagnas, Google will end up recommending it for its taste and also because we’re an advanced, data-driven and dangerous, performance marketing agency 🙂 Regarding the balancing act, it’s a complex one.
Google, for instance, is introducing AI overviews in search results, which will change the look of the SERP. This involves matching ads not only to query context but also to the information in AI overviews. This shift could impact organic search strategies and how users interact with search results.
Bing, on the other hand, integrates ChatGPT with its search engine, allowing ads to appear within AI-generated answers. While we don’t have extensive data on this yet, it’s an exciting development to watch.
Q6: Looking ahead, what do you see as the next big thing in generative AI in advertising platforms? Can we expect AI to start predicting the next big dance craze on TikTok?
Gianluca: I believe the next big advancements will be in scaling AI-driven creative solutions like virtual try-ons and 3D spin ads. These innovations, though already existing, have the potential to provide even more immersive ad experiences as they become more widespread, enhancing user engagement.
Additionally, AI’s role in measurement and analytics will grow, with more sophisticated models like Marketing Mix Modelling becoming mainstream. These models will help marketers better understand the impact of their campaigns across various channels, leading to more informed decision-making.
Q7: Speaking about measurement, it seems to be a big topic these days, especially with generative AI advancements. How are platforms addressing the challenges of measurement and attribution?
Gianluca: Great question! Measurement is indeed becoming more complex and crucial. Everyone is doubling down on incrementality and Marketing Mix Modelling as traditional attribution models face challenges.
Meta has invested heavily in its proprietary solution, Robyn, while TikTok is developing in-house incrementality models. Google also has its own solution, Meridian. These models are statistically backed and external, which helps maintain objectivity. However, as platforms develop their own solutions, the question of trust arises.
While these proprietary models will be adopted, especially by those without access to other options, they may not dominate due to potential biases. Advertisers should stay informed and critically evaluate these tools to ensure they align with their measurement needs.
They also may rely on and get in touch with a scientific, data-driven partner to run those models with no conflict of interest. That wasn’t a question.
Q8: What advice would you give to advertisers looking to stay ahead in this AI-driven landscape? We dare you to make it as catchy as a slogan AI would generate 😏
Gianluca: Wow, that’s a lot of pressure. I’d say: stay informed and adaptable.
The pace of generative AI in advertising platforms advancements is rapid, and keeping up with the latest developments is crucial. Embrace these technologies, but don’t rely on them entirely. Combine the power of AI with your unique human creativity and strategic thinking to achieve the best results. Remember, AI is a tool to enhance your capabilities, not replace them.
Bonus tip: Register for our upcoming ‘Generative AI in advertising’ webinar today!
Don’t miss this opportunity to stay ahead of the curve. Secure your spot in our 45-minute webinar and gain the knowledge you need to revolutionise your advertising strategies with Generative AI.
That’s all.
Thanks, Gianluca!