The Transformation of Advertising Through AI
Artificial intelligence is changing advertising by enabling sophisticated analytics and predictive capabilities. It powers automated bidding and campaign automation tools, boosting efficiency and relevance behind the scenes. Now, with generative AI, marketers face a new reality that requires embracing a more connected and dynamic consumer landscape.
More than 80% of advertisers already use at least one AI-powered search ads product. This adoption is delivering results: marketers deeply integrating AI tools report 60% higher revenue growth compared to their peers. Yet, this is only the beginning. AI continues to open new opportunities to enhance digital advertising and keep pace with consumer behavior.
Adapting to Fluid Consumer Behavior
Time spent online is becoming unpredictable and multi-modal. Actions like taking a photo can turn into a search, scrolling can happen on connected TVs, and users can stream, scroll, search, and shop simultaneously. This fluid behavior means marketers must move beyond siloed tactics.
Brands need to reach consumers consistently across every moment of influence—from discovery to decision—using the right platforms. Whether someone is researching a brand, watching creator videos, or checking maps, marketing strategies must reflect this seamless journey.
Showing Up Where It Matters Across Video, Search, and Visual Discovery
Viewing habits are shifting, especially with the rise of streaming on connected TVs. Globally, billions of hours of YouTube content are watched on these devices, with Asia showing particularly strong growth. In many APAC countries, connected TV watch times have more than doubled in recent years; in Taiwan, they have tripled.
Advertisers who include connected TV in their media plans are seeing strong results, especially among younger, action-oriented audiences. For example, research shows young adults in South Korea respond better to connected TV ads than to traditional linear TV ads.
Search behavior is evolving too. AI tools encourage users to explore more and visit diverse websites, creating additional opportunities for brands to appear in front of customers with purchase intent.
Balancing AI and User Privacy
As AI helps marketers deliver relevant ads and keep up with consumer behavior, privacy remains a critical concern. Transparency and control over data used in advertising are essential. Achieving a balance between personalization and privacy will define this era of marketing.
Innovations such as confidential matching use privacy-enhancing technologies to offer added security and transparency by default, helping marketers respect user privacy while leveraging AI.
Practical Focus Areas for Marketers
- Reach consumers in the moments that matter. Consumer behavior is fluid, so marketing strategies must integrate across all touchpoints. AI-powered tools can help place ads on the right platforms, at the right time, when audiences are most receptive.
- Prioritize video as a core outreach tool. In Southeast Asia, YouTube users account for 20% of global video consumption, with 80% watching online video daily. Brands leveraging AI to create diverse and relevant video content at scale can connect more effectively. For instance, Agoda generated over 1,000 creative assets in seven languages using AI, driving clicks and app engagement. Features like YouTube Shopping now enable direct purchases from videos and livestreams, making video a powerful channel for conversion.
- Turn measurement into a predictive tool. AI allows marketers to adjust strategies in real-time, making measurement proactive rather than retrospective. High-quality first-party data is crucial to feed these tools. Using a combination of attribution, media mix modeling, and incrementality testing ensures marketing efforts align directly with business outcomes.
- Drive AI adoption company-wide. The fast pace of AI development requires a proactive approach. Encourage teams to explore AI tools and new functionalities regularly. AI is a competitive advantage—embracing it strategically and with user trust in mind is essential. The question isn’t whether to adopt AI, but whether you can afford not to.
Case Examples of AI Impact
L’Oréal Thailand used AI-powered ads across Search, Google Shopping, and YouTube to drive customers to their Shopee Mall stores. This integrated approach led to a 15% increase in sales and a $5 return for every $1 invested.
Agoda’s AI-driven video asset creation allowed them to deliver highly relevant content across multiple languages, effectively converting viewers into app users and website visitors.
For marketers looking to deepen their AI skills and implement these strategies, exploring specialized AI marketing courses can provide practical knowledge and tools. Resources such as AI certification for marketing specialists offer valuable training to stay competitive in this evolving field.
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