How Artificial Intelligence will Change Advertising.

https://www.forbes.com/sites/charlesrtaylor/2021/03/01/how-online-privacy-issues-will-shape-future-use-of-artificial-intelligence-in-advertising/?sh=1ebf69722262

Privacy issues have been a huge deal the past few years as many companies are being forced to take them more and more seriously. Companies have realized that people value their information and it is becoming harder for advertisers to target their specific audiences with these restrictions. I am commenting on the Forbes' article linked above, in which Charles Taylor interviews IBM's Global Head of Watson Advertising, Sheri Bachstein. They focus on Bachstein's personal opinions on what the future of privacy regulations will look like and how it will directly affect advertisers.

Bachstein's 3 major takeaways from her interview were: "How the need for standard federal regulation of data privacy in the U.S. is pressing", "Artificial intelligence is part of the solution to balancing privacy with the consumer’s right to choose" , and "The use of artificial intelligence is growing, leading to additional innovation, and driving the future of digital advertising".

I agree with Bachstein when she discusses how their is a need for uniform regulation. With all of these privacy restrictions, it puts advertisers into somewhat of a grey area on what they can and can't do. It is interesting how some companies are noticing this trend of people wanting more privacy on their sensitive data and taking advantage of it. For example, Apple with their new IOS 15 that released on September 15th, have made them become somewhat of a leader for customer privacy. This new IOS specifically aims to protect data from third parties and really gives the user the choice on who is receiving their data. This is being used as a huge selling point for Apple as consumers know their information is safe with them.

I also appreciate Bachstein's heavy emphasis on artificial intelligence becoming a huge part in the future of targeting an advertiser's audience. I especially agree with this since it will help consumers see less "extremely targeted" messages. This meaning seeing an advertisement for something you were just talking about earlier, etc. As Bachstein says, AI can help a company reach their target without having to directly know who the target is. AI will help end consumers seeing advertisements that they find too invasive or uncomfortable.

Though Bachstein talks about how there may be a grey area for advertising and marketing with AI, some companies have already begun using it effectively. One example is Starbucks. Starbucks uses artificial intelligence within their mobile app. The AI has helped them build a brand new marketing experience. The app tracks things like where each purchase is made and at what time the consumer made it. They use this info for predictive analytics and serve customers with personalized marketing messages through the app. These messages appear on the app when they are nearing a Starbucks location and offers the customers personal recommendations and deals aimed at increasing their average order value.

I wholeheartedly agree with this Forbes' article and believe that AI will be the future of advertising and marketing.

Thanks for reading!