In a rapidly evolving world where new products hit the market constantly , every company strives for maximizing their sales and improving their bottom line .One of the ways to do this is to increase visibility and brand recognition for which they may use a powerful marketing tool in their arsenal: Advertising.
However, as the world changes, so do the strategies and technologies
utilized by people, and one such transformative force is Artificial
Intelligence (AI).Artificial intelligence is a field of computer
science that focuses on creating systems and technologies capable of
performing tasks that typically require human intelligence. In the
confluence of these two fields emerges the realm of computational
advertising. This atypical field combines the best of both worlds
and enables the use of data driven insights in advertising.It
facilitates the effective allocation of resources and elevates the
overall effectiveness of marketing campaigns.
The primary goal of computational advertising is to deliver the
right ad to the right person at the right time in a highly
personalized and relevant manner. This involves analyzing vast
amounts of data, including user behavior, demographics, and context,
to determine the most suitable ad to display.
One of the ways we can implement computational advertising is
through reinforcement learning.. Reinforcement Learning enhances the
precision and efficiency of marketing campaigns in many ways
It helps determine the best placements for ads across different
platforms and publishers. This ensures that ads are featured in the
most relevant and high-performing locations. It optimizes resource
allocation and budgetingIt learns from user behavior to offer
personalized product or service recommendations, increasing the
likelihood of conversions. And it maximizes user engagement. Using
Reinforcement Learning , the advertiser can constantly refine the
advertisements.
But it doesn't come without its drawbacks, the primary cause for
concern being privacy. As reinforcement learning algorithms train on
user data, customer data may be exploited for nefarious
purposes.Advertisers must be careful to adhere to privacy
regulations and ensure the protection of user data. It is also quite
complex and resource intensive and often requires teams of employees
trained in data analytics and machine learning.And conversion rates
alone do not equate to meaningful user engagement.Metrics alone may
not capture the full picture of a campaign's success
As a field at the intersection of machine learning and advertising,
computational advertising is susceptible to the inherent weaknesses
and challenges that both of these domains encounter. computational
advertising algorithms can face algorithmic biases reaching only a
fraction of the desired target demographic and they are vulnerable
to Ad blockers as well . This reduces the overall efficiency of the
marketing campaign.
Interdisciplinary Collaboration :
Having considered the merits and drawbacks of computational
advertising, we can now make an informed assessment regarding
whether a specific company should make the transition from their
conventional advertising approach to this innovative method.
Nevertheless, the decision to adopt this approach ultimately rests
with the company's management.