Artificial Intelligence (AI) is revolutionizing the advertising industry by enhancing data analysis, automating processes, and improving ad targeting.
Perion Marketing
15th Sep 2025
Artificial Intelligence (AI) is revolutionizing the advertising industry by enhancing data analysis, automating processes, and improving ad targeting. AI transforms how brands connect with consumers, making campaigns more efficient and impactful.
This article will explore AI´s key applications and its benefits for marketers. It will also address challenges and future trends, making it a comprehensive guide for businesses looking to leverage AI in their campaigns.
Key highlights
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AI-powered tools are optimizing ad campaigns by making them more efficient, data-driven, and personalized. From automating ad placements to predicting consumer behavior, AI enables marketers to create more impactful advertising strategies.
AI-driven personalization is transforming digital advertising by leveraging vast datasets to create hyper-relevant ad experiences. By analyzing user behavior, purchase history, browsing patterns, and engagement metrics, AI can segment audiences with remarkable precision. Therefore, brands can serve highly personalized ads that resonate with individual consumers.
Machine learning models, for instance, predict user intent and optimize ad delivery in real time. Perion’s AI technology leverages machine learning and predictive analytics to identify when and where an ad will be most effective. This ensures that brands can reach their target audience at the optimal moment, maximizing engagement and conversions.
Dynamic Creative Optimization (DCO) is a key component of the use of AI for personalization and targeting. DCO customizes ad content based on real-time user interactions. Perion’s platforms use AI to tailor ad creatives—modifying images, text, and calls to action—to match individual preferences, which results in higher click-through rates and improved campaign performance.
Artificial intelligence revolutionizes how programmatic advertising operates by streamlining campaign processes and enhancing decision-making. AI-driven technologies help brands make data-backed decisions in real-time, optimize their ad spend and placement, and improve campaign performance. The role of AI in programmatic advertising simplifies the process of having the ads reach the right audience.
Some applications of AI in programmatic advertising include:
Real-time analysis – AI continuously monitors interactions, website visits, and engagement metrics to adjust ad placements dynamically. AI-powered solutions analyze massive datasets to refine targeting and reduce wasted ad spend and conversions.
Automated bidding strategies – They further enhance efficiency by adjusting bids in milliseconds based on behavior and campaign goals. AI-powered programmatic platforms optimize cost per acquisition (CPA) and return on ad spend (ROAS) by intelligently managing bid adjustments.
Predictive analysis – It is used to anticipate user intent. Programmatic platforms leverage predictive analysis to evaluate past behaviors and forecast future actions, enabling advertisers to proactively serve relevant ads.
An example of AI-driven programmatic success is Perion’s campaign for Samsung Galaxy A. Samsung Malaysia utilized Dynamic Creative Optimization (DCO) to serve 105 tailored ad versions across 50 DOOH screens, showcasing features like Samsung Wallet, Quick Share, and Nightography.
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Source: Perion.com
The campaign leveraged Perion technology to activate dayparting, ensuring Nightography ads ran from 6 PM – 6 AM, while daytime creatives played between 6 AM – 6 PM.
Real-time audience targeting optimized ad delivery based on audience density. The campaign delivered 3M+ impressions, reached 2.1M users, and identified peak engagement hours, demonstrating the power of AI-driven DCO in programmatic DOOH.
Real-time bidding (RTB) changed the way advertisers purchase ad impressions. Artificial Intelligence (AI) is what makes it possible, automating the ad-buying process and ensuring the most cost-effective placements. Through AI-driven RTB, advertisers can purchase ad impressions in milliseconds, optimizing budget allocation and audience reach. The result is an exponential growth in the RTB market, which is projected to reach $33 billion by 2031.
This system benefits both advertisers, who get higher targeting efficiency, and publishers, who maximize their ad revenue. For instance, AI-powered demand-side platforms (DSPs) further enhance audience segmentation by analyzing vast amounts of data, allowing brands to bid strategically on high-value impressions.
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AI-driven analytics tools provide advertisers with deep insights into campaign performance, tracking metrics such as engagement, conversion rates, and audience behavior in real-time. With predictive analytics, brands can forecast consumer trends and adjust strategies proactively, ensuring better ROI.
An application of AI in advertising analytics is fraud detection. AI-powered systems can identify anomalies in traffic patterns, detecting and minimizing ad fraud.
AI is redefining the advertising landscape by making campaigns more efficient, targeted, and creative. As AI continues to evolve, businesses that embrace AI-driven advertising will gain a competitive edge. From automation to personalization, AI is not just the future of advertising—it’s the present. Brands that adapt to this technological shift in AI-driven advertising will gain a significant competitive edge, maximizing their ROI and staying ahead in an increasingly digital marketplace. Here are some of the top challenges AI helps solve:
Ad at scale – AI enables brands to deliver highly personalized ads by analyzing user behavior, demographics, and engagement patterns in real-time.
Dynamic Creative Optimization (DCO) – Dynamic creative optimization is one of AI’s most transformative applications, which tailors ad content in real-time based on user behavior, demographics, and engagement patterns. Perion’s AI-powered advertising platform uses DCO to create hyper-relevant ad experiences that adapt to consumer preferences, increasing engagement and conversions.
Bid optimization and budget allocation – AI automates bidding strategies and allocates ad spend efficiently to maximize performance across channels.
Audience targeting and segmentation – AI enhances audience segmentation by identifying patterns and predicting user intent, ensuring ads reach the right people at the right time.
Performance measurement and attribution – AI provides real-time insights into campaign effectiveness, helping advertisers refine strategies and improve ROI.
Fraud detection and brand safety – AI detects fraudulent clicks, invalid traffic, and harmful content, ensuring ad budgets are spent effectively while protecting brand reputation.
Discover the power of AI in advertising. Contact our experts at Perion today.
While AI has transformed advertising by improving efficiency and targeting, it also presents several challenges for marketers to navigate. From ethical concerns to technical limitations, AI is not a perfect solution. Some of the limitations of AI for advertisers include:
Data privacy and compliance – AI relies on vast amounts of user data, raising concerns about privacy, security, and regulatory compliance, such as GDPR and CCPA.
Lack of human creativity- AI-generated content may be efficient, but it often lacks emotional depth, originality, and human tone and voice.
Algorithmic bias – Since AI models are trained based on existing data, they can reinforce biases and errors in targeting.
Dependence on data quality – AI’s effectiveness depends on accurate and diverse data; poor-quality data can result in misleading insights and ineffective campaigns.
How is AI transforming the creative process in advertising? AI enhances creativity by generating ad copy, designing visuals, personalizing content, and analyzing performance data to optimize campaigns in real time.
What are the top AI tools for marketing and advertising? Perion’s advertising solutions for omnichannel and cross-channel advertising sit at the top AI tools for advertising. Other popular AI tools include MidJourney for image generation and Google Performance Max for automated ad optimization.
How does social media use AI for advertising? Social media platforms use AI to analyze user behavior, optimize ad targeting, automate content recommendations, and enhance engagement with chatbots and dynamic creatives.
How to use AI for PPC advertising? AI optimizes PPC campaigns by automating bid strategies, predicting high-performing keywords, personalizing ad creatives, and improving targeting based on real-time data.
How effective is AI in marketing? AI significantly improves marketing efficiency by enhancing targeting, automating processes, and optimizing campaigns, leading to higher engagement, conversions, and ROI.
Key metrics and effective strategies for analyzing the impact of Digital Out-of-Home advertising
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If an ad runs and no one pays attention, can it be effective?
