AI’s Role in Smarter, More Strategic Advertising

Marketers are just beginning to experience the potential positive benefits of AI, especially more advanced forms like deep learning. Like with any exciting new technologies, there is a learning curve as marketers test what it can do and work it into their wider strategies. The good news is that AI creates major efficiencies, freeing advertisers to focus on more strategic business objectives.

To gauge where brands are on their AI journey, we surveyed a group of senior marketing professionals and found that 64% of respondents are optimistic about the prospects for AI in advertising, with 26% registering as uncertain. With only 6% fearful, the overall sentiment is positive. Despite the high levels of optimism, there is still a need for testing, education, and advancement to harness its full potential.

AI Has Plenty of Room To Grow

Marketers are already using AI in advertising, primarily for its powerful capabilities in predictive targeting, contextual relevance, content creation, and audience segmentation. However, our research reveals that beyond the AI hype, only 32% of senior marketers use it extensively, while 46% apply AI in limited ways and 11% have not considered it.  

Many advertisers have already begun testing AI for campaign targeting and optimization. Our data shows that 60% of marketers have tested AI for campaign optimization, and 55% have implemented it for advertising placements. 

When applied as a single use case versus holistically, AI can only help drive higher performance for a single campaign or KPI. The real value shines through when marketers apply AI at a strategic level. Deep Learning, a subset of Machine Learning under the AI umbrella, drives a more effective approach to media-buying, improving multiple key performance indicators (KPIs) at once, understanding where a campaign can optimize itself after each user engagement rather than merely enhancing individual campaign metrics. This approach can take holistic strategies to the next level, driving advanced outcomes by applying data that has “learned” over time what works best.

AI Is a Tool for Smarter Advertising Decisions

At its core, AI has the power to make advertising more intelligent, particularly when used for more complex, long-term objectives. Survey respondents identified two top priorities when using AI: improved targeting (38%) and enhanced data analysis (32%). Cognitiv has found that AI-powered audience discovery consistently leads to more effective advertising campaigns and actionable, business-driven insights.

Cognitiv’s deep learning models analyze thousands of data points to predict consumer behavior, creating a clear path for advertisers to more deeply understand their customers and fine-tune targeting strategies. For example, working with a luxury cruise line, Cognitiv used browsing behavior intelligence to separate the ‘daydreamers’ from the true bookers who would convert sales for the cruise line. For a luxury brand, Cognitiv’s technology differentiated between digital window shoppers and serious buyers who would purchase products. This approach to audience discovery indicates how AI can make campaign strategies smarter, and more responsive to changing consumer dynamics, ensuring advertisers are spending effectively.

Realizing ROI: Educating Advertisers on AI’s Value Beyond KPIs

One of the challenges facing AI adoption in advertising is a lack of understanding of its ROI. According to the survey, only 17% of respondents perceive AI can deliver substantial ROI, highlighting a crucial area for industry education.

There is a viable ROI in applying deep learning AI in advertising. When advertisers understand the comprehensive advantages of AI—including enhanced targeting precision, optimized budget allocation, and greater adaptability—they can better appreciate how the technology contributes to ROI beyond individual campaign metrics. For instance, by integrating AI across their advertising strategy, brands can maintain relevance in a fast-evolving digital landscape and unlock long-term growth opportunities. 

• • For a luxury winter apparel brand struggling with post-COVID sales, Cognitiv’s custom deep learning model drove a 17x increase in ROAS and reduced cost per transaction by 10%, helping the brand regain momentum during peak season.
• • A prominent fashion retailer saw a 29% lift in incremental store visits and boosted average in-store cart value by 16%, capitalizing on Cognitiv’s precise audience targeting and behavior insights to influence downstream behavior.
• • An online mattress retailer aiming to discover new customer segments achieved an incredible 10x increase in ROAS and hit 69x that on a single day.

AI-driven ad strategies let you go beyond raw volume and basic efficiency advertising metrics and make sure the traffic sent to you is in the right mindset to buy, this pays off in spades for ROI and ROAS, and even lifetime value of the customers you do win.

The Path Forward for Advertisers: Maximize AI’s Potential With Thought Leadership and Education

AI’s potential in advertising is clear, but industry education is needed to bridge the gap between current applications and the full capabilities of AI. According to the survey, 68% of respondents desire additional training and resources to learn about AI applications, and 63% seek tools and software recommendations to support their efforts. This desire for knowledge reflects a shared sentiment across the industry: many advertisers are eager to learn but need guidance and resources.

As AI reshapes advertising, Cognitiv remains committed to guiding the industry forward. By providing advanced AI solutions, targeted education, and hands-on training, Cognitiv empowers advertisers to realize their full potential. 

Cognitiv plays a significant role in filling the knowledge gap around AI by offering a range of educational opportunities, like our Deep Learning Roadshow, taking place regionally across the US, and our Neural Networking events, which recently expanded beyond New York to educate industry leaders in Chicago on relevant, trending industry challenges and questions. 

Rather than relying solely on traditional learning formats like webinars, Cognitiv emphasizes high-impact, personalized learning experiences that empower advertisers to understand AI’s operational and strategic benefits. Through these efforts, Cognitiv helps marketers use AI more effectively and appreciate its potential to drive substantial ROI.

In short, AI is reshaping the advertising industry. Its ability to optimize targeting, enhance inclusivity, and provide insightful data analysis stands out as a game-changer. While excitement around AI is reaching a high, and the outlook is primarily positive, there is a clear opportunity to demystify its applications and increase adoption through education and real-world examples. Advertisers can confidently harness AI’s potential by leaning into transparent use cases and targeted educational resources to unlock enhanced engagement and measurable ROI in a modern market.

Source: Based on a survey conducted by Centiment and Manual Labor in partnership with Cognitiv in October 2024