The future of the advertising in the presence of AI and automation

Campaign ME

9 hours ago

An industry ruled predominantly by human creativity, now finds itself contemplating the creative capabilities of AI.
But to reduce such a diverse industry to just the mass production of creative content is to overlook the true breadth of marketing of AI.
Just as it is limiting to define marketing solely by one of its outputs, it is equally misleading to analyse it as if it exists in vacuum. It would be like assessing the benefits of a salad by looking only at the cucumber.
Marketing, by definition, is inseparable from markets. Its value emerges within the broader context of its interaction with the entire economic ecosystem, because marketing modernly is often described as the 'invisible hand' that nudges behaviour, what happens when that invisible hand becomes guided by algorithms capable of perfectly balancing supply and demand? Does marketing remain relevant?
To explore this question meaningfully we have to rise above the nuances and look at the convergence of marketing and AI from multiple perspectives: technical, behavioural, economic, and ethical.
Starting with 'Do we want to see ads made by AI?' which for now feels more like an advertising gimmick showcasing the creative ingenuity of the humans behind the tool, contributing to the adage of 'AI won't replace you, someone who knows AI will.' Reducing the question to a simpler reflection: if we trust AI in healthcare, or aviation, why are we hesitant to trust it with serving us ads?
Much of the reluctance centers around losing ourselves in an algorithm-driven echo chamber. Which brings up the topic of hyper-personalisation that would utilise the amount of data we generate. Consider an example of a running campaign when new insights are revealed and marketers know they need to pivot.
Advertising and data are inseparable, which is why regulation is important to preventing excessive data centralisation.
However, due to the current lengthy marketing process, by the time content is updated and approved the window of opportunity has closed. The result is scope creep with no real benefit for either the client or the agency.
In the future, Meta's advantage+ knows what you like and dislike, powered by advanced generative engine. Here you are scrolling Instagram at 12 pm like you do almost every day, hungry, your wearable device picks up on the biochemical cues, and delivers the data. Meta knows what your preferences are, serves you a soda ad, a model on the beach, soda bottle sweating, it's a diet soda, cause you are building that summer body, the ad has been generated in real time, Pepsi and Cola bid for it, Cola wins the bid, ad served, you are now having a cola with your lunch at 1pm.
Is this far-fetched? Maybe. Unrealistic? Not sure.
It's no surprise that marketing falls under the quaternary sector (the information or knowledge-based economy) alongside AI and machine learning.
Advertising and data are inseparable, which is why regulation is important to preventing excessive data centralisation.
Google's ad revenue outpacing Meta testifies to the advantage (real advantage) of intent-based advertising. SEO and it's future AI variants are key tools in the marketing toolkit and will see more emphasis on PR capabilities.
Finally, AI is more than just the generative tools we use, in other domains its ethical implications are profound.
Although machines are unbeatable, creativity still plays a critical role. Magnus Carlsen's unexpected pawn move in 2024 championship surprised even top chess engines. It served as a reminder that human creativity and intuition still matters. Elite chess players train alongside AI, creating human and machine teams. As a result we are witnessing the best chess seen in decades. Would we see the same for marketing?
Ultimately, data can inform forecasts, but cannot guarantee them, much like the weather, which might be predicted to be gray and rainy, only to wake up to the most beautiful, sunny day. AI can analyse countless data points and come up with insights, but the most important insight is that humans have always evolved, and will continue to do so.
For that reason the future of our industry lies in augmentation, much like the situation with chess, we rely on AI as much as it relies on us, so all we can do for now is learn from it, and learn about it, as much as it it learns from us, and learns about us.
By Mohamad Arnous, Account Director, Living Room Dubai.