As an independent ad tech advisor, Ivan provides professional advice to the CEO and C-level management of the company SmartyAds Inc.
ChatGPT was only released to the public four months ago, but businesses worldwide are already using it to automate their daily processes. Consider how its adoption compares to other companies: Netflix took more than three years to reach one million users, Twitter took two years and Instagram took 2.5 months. ChatGPT took five days.
ChatGPT’s capacity to replicate highly intelligent human speech has made it a sought-after tool for automating various digital advertising and marketing tasks, including article writing, calculating ad budgets and even compiling social media strategies. The technology will soon become even more sophisticated with support and investments from Microsoft.
Because of these developments, ad tech businesses need to learn how to harness their capabilities in order to compete in today’s market.
Tapping Into The Golden Age Of AI
While AI and ML have been involved in ad tech and programmatic advertising for many years, smart algorithms now play a more significant role in various aspects of ad campaign management. Digital advertising based on smart algorithms has a distinct advantage over non-AI tech platforms because they have the ability to learn from new patterns and adjust decision making according to them.
For instance, ad tech platforms, such as a demand-side platform (DSP), can have an in-built campaign optimization that constantly analyzes the bidding process to determine the most optimal bid sum for an ad impression. Optimization prevents the advertiser from overpaying and makes winning this impression in the real-time bidding auction possible. Likewise, the platform can analyze and then give preference to the web sources that provide the best ad click-through rates for a particular advertiser.
In short, AI and ML influence a lot of different aspects of programmatic advertising, and ChatGPT might be the next step forward.
How ChatGPT Can Be Used In Ad Tech: Seven Use Cases
ChatGPT can be advantageous for digital marketers and brands seeking to enhance their campaigns, establish a connection with their target audiences and achieve better advertising outcomes. Here are some examples of technology applications in ad tech.
1. Writing Slogan Variations For Ad Creatives
With technologies like ChatGPT, advertisers can quickly generate numerous alternative slogans for A/B creative testing.
2. Creating Content For Commercials And Ad Creatives
Other brands have also employed ChatGPT in their advertising campaigns. For instance, Storied, a genealogy website, recently utilized ChatGPT alongside the AI art generator Midjourney to design video ads.
It’s important to note that while writing full-fledged commercial video scripts is possible with ChatGPT, it requires—at least for now—human retouching and editing as a human-language model can sometimes provide biased or incorrect information.
3. Helping With Personalization And Targeting
Before crafting creatives, advertisers can ask ChatGPT to suggest different ideas for personalizing banners for each audience segment. Additionally, they can create audience segments and collect and analyze data based on chosen segmentation criteria. Advertisers can also pinpoint suitable keywords to target their audiences in PPC campaigns.
4. Handling Support And Troubleshooting
The majority of customer service interactions involve basic queries, such as operating hours, product specifics and onboarding questions, which can be resolved easily if ChatGPT is integrated into platforms. For example, Ada, a Toronto-based company, partnered with OpenAI to use GPT-3.5 to manage billions of customer interactions.
5. Providing Explanations
For small brands and novice advertisers, it is sometimes a struggle to understand how to configure their platform to achieve better campaign outcomes. ChatGPT, if built into platforms, can help to solve these queries.
6. Advising On Optimization
ChatGPT can also provide recommendations for optimizing campaigns. Here are a few ways to consider using it to do so.
• Ask for recommendations regarding ad formats that will work best for campaigns.
• Ask for budget recommendations that ChatGPT, such as on a DSP.
• Ask general marketing questions to determine a brand’s target audience.
7. Running Usability Tests
Usability is crucial for ad tech platforms to ensure that users can effectively utilize the platform’s features and functionalities to achieve their advertising goals. You can ask ChatGPT to write open-ended questions for usability questioning or list tasks to accomplish within UX improvement.
The Future Of ChatGPT In The Ad Tech Scene
One of the core purposes of the ChatGPT application in ad tech in the near future will be automating ad operations and ad content creation.
Ad tech companies and agencies will likely expand their capabilities by developing their own platforms based on OpenAI technology. For instance, Fluency recently equipped their platform with Muse, using ChatGPT and AI to enhance the efficiency of essential yet routine aspects of the digital marketing process. The Uncreative Agency, the first AI-only agency, also created a big buzz by generating pitches with Open AI and sending them to recipients.
Of course, while ChatGPT is becoming a game changer for advertisers, marketers, ad tech companies and agencies, remember that this tool should complement human efforts rather than replace them. The human element remains crucial for reviewing and adjusting outputs to align with a company’s business strategy, vision and values.
ChatGPT has the potential to redefine the advertising industry. In fact, most companies in the space will be investing in AI in order to remain competitive. With this technology, they can significantly strengthen and bolster their advertising operations, and they can optimize their workflow, achieve better results and scale while streamlining internal tasks.