By: Katie Wolf

There’s been a lot of buzz about AI in advertising, but how can marketers really benefit from all these advancements? At Peloton Media, we’re no strangers to AI. For instance, programmatic advertising uses AI through machine learning to automate ad buying and placement. It analyzes user data and makes real-time decisions about where to place ads, leading to more efficient spending and better targeting, so your ads reach the right people at the right time. But the recent advancements in AI offer even more exciting possibilities. Here’s what you need to know:

Generative AI: One of the most exciting advancements we’re exploring is generative AI, which can create original content like text, images, and videos based on specific inputs. Advertisers can use this technology to quickly produce a variety of ad creatives, keeping messaging fresh and dynamic across platforms. This helps us craft compelling headlines, engaging text, and visually appealing graphics tailored to different audience segments, enhancing the quality and effectiveness of our ads.

Google AI Tools: Google provides a variety of AI-powered tools for advertisers, including Responsive Search, Performance Max, and Demand Gen.

• Performance Max is a fully automated campaign type that leverages machine learning to optimize for specific conversion objectives like sales, leads, or website visits. It spans Google’s entire ecosystem, including Search, Display, YouTube, Gmail, and Shopping.
• Demand Gen is designed to reach users at the top of the funnel—those researching products or services but not yet ready to purchase. It caters particularly to social advertisers aiming to deliver visually compelling, multi-format ads across YouTube, including Shorts, Discover, and Gmail. Demand Gen campaigns help advertisers create personalized ads and refine targeting to effectively connect with their target audience.

These tools are crucial in crafting and optimizing ad content to resonate with audiences, ensuring impactful ad placements and enhanced campaign performance.

Meta’s Advantage+ Solutions:

Meta provides Advantage+ solutions, including Lookalike, Audience, Budget, Creative, and Placement optimization. These tools use AI to optimize ad targeting, creative content, and placements, ensuring ads reach the most relevant audiences with high engagement and conversion potential. By leveraging AI, Meta helps advertisers to streamline campaigns and achieve better outcomes through enhanced targeting and dynamic content optimization.

Impact on Digital Advertising:

AI is transforming three key areas in advertising: Creative, Media, and Measurement.

1. Creative: AI has revolutionized creative processes, allowing us to tweak copy for search and social ads and offering more options than traditional creative methods. Tools like ChatGPT have been invaluable for generating new copy and headlines. While AI-generated images can still have quirks, like anomalies in human and animal features, they’re excellent for tasks like changing backgrounds in product shots.
2. Media: AI is driving significant changes in media with new targeting options from Google and Meta, such as Performance Max, Demand Gen, and Advantage+. Our initial tests with clients have shown mixed results, partly due to the black-box nature of these tools and occasional deviations from branding guidelines. More testing is needed to refine and identify the best application of their use.
3. Measurement: The next big leap will be in measurement. AI will manage vast amounts of data to create charts, reports, and deeper insights. At Peloton Media, we are exploring how we can leverage AI for more sophisticated data analysis and reporting.

Moving Forward: At Peloton Media, our goal is to keep you updated with our learnings and leverage these opportunities to make your advertising more efficient. While these technologies are promising, they complement rather than replace the expertise of seasoned marketing professionals. We’re committed to integrating AI into our campaigns and will continue to refine our strategies with these advanced tools. Stay tuned for more updates as we navigate this exciting frontier!