This is how AI will impact advertising in 2024: personalization, optimization, and innovation

In the final stretch of the year, advertising and marketing professionals are contemplating what lies ahead in 2024, and, above all, how to tackle it. Expectations are high, especially when it comes to such a hot topic as artificial intelligence (AI). Its impact is global, and its integration is extensive, influencing the capabilities, technologies, workflows, and business models of many sectors.

"AI has been present in the digital advertising industry for years, but it was in 2023 that it took the definitive leap. We have witnessed the greatest advancement of this technology in history, and its evolution will continue at a rapid pace in the coming months, offering more opportunities than ever to brands and advertisers for its ability to optimize online campaigns," explains Alex Martinez , CSO of EXTE.

What are the 6 key innovations and trends driven by AI expected in the near future? Our team breaks them down for us!

1. Limitless Personalization

Thanks to AI, companies use highly sophisticated algorithms to collect and analyze data, including contextual and real-time information. As a result, brands can improve and tailor messages much more specifically, thus reaching the appropriate audience in the most effective way.

"We are developing levels of hyper-personalization that were unimaginable just a few years ago. We will find ourselves in a new era focused on the consumer, where campaigns truly connect with audiences," says Borja Valdivielso Pérez , Head of Digital at EXTE.

2. Campaign Optimization

The industry, accustomed to A/B testing, can now create many more variations of the same ad thanks to AI. These tests of increasingly modern design and texts allow for variations and comparison of user behavior. Another advantage is the optimization of content performance. Image recognition facilitates the measurement and improvement of visual quality, as well as the relevance and impact of images, videos, and graphics.

From assessing clarity to proposing adjustments to enhance appeal, this technology helps companies understand the effectiveness of their visual elements and optimize marketing strategies, especially on social networks, ensuring a strong position against the competition.

3. Contextual Advertising

While traditional advertising was based on superficial parameters such as age, gender, and geographic location, the integration of AI takes segmentation a step further by tracking spending habits, browsing behavior, and other more granular metrics to draw a more precise picture of consumers and their interests.

"AI will allow advertisers to better understand the context in which an ad is displayed, leading to more focused and less intrusive advertising. Ads will adapt to the consumer's situation and mood in real-time, improving the user experience and increasing the effectiveness of campaigns," comments Alvaro Pastor , CMO of EXTE.

4. Augmented and Virtual Reality Advertising

In 2023, the foundations of immersive advertising technologies were established, and Augmented Reality (AR) and Virtual Reality (VR) have become effective tools in the field of advertising creativity. These experiences allow consumers to interact with products and brands in a relevant and engaging way. The idea of walking through a virtual showroom or trying on clothes through a digital mirror not only enhances the brand experience but also promotes memory and awareness, simultaneously improving emotional connection and increasing engagement.

5. Innovation and Continuity Across Channels

As connected TV advertising gains momentum, the value of artificial intelligence and machine learning technology lies not only in its ability to handle massive datasets and streamline result prediction but also in facilitating smooth and real-time communication among stakeholders in the digital television ecosystem.

"As consumers use a greater number of platforms and channels to access content, and with increasingly strict user privacy updates, third-party cookie-based advertising is soon becoming obsolete. Therefore, emerging advertising channels must respond with innovative approaches to optimize the value of publisher ads and advertiser return on investment without compromising ethical data treatment," says Alex Martinez , CSO of the company.

6. Revaluation of Creativity

As technology advances and allows for greater personalization and optimization of ads, creativity remains the key factor for the success of advertising campaigns. AI can help brands identify insights and trends that enable them to create more effective and appealing ads for their audience. However, creatives are still essential for generating ideas and creating advertising content that connects with consumers and transcends culturally.

"Like all technologies that have preceded it, AI is nothing more than a tool, a very powerful and revolutionary one. Therefore, the challenge is to be more creative than ever and use it to generate new opportunities, more value, and growth," concludes Juan Miguel Lapido , CCO of EXTE.