The ongoing scrutiny of Big Tech in the US underscores the importance of smaller players developing their own advanced alternatives in digital ad technologies. Advertisers and platforms alike must turn to AI to enhance competitiveness, drive innovation, and maintain a level playing field for customers.
The convergence of these two news items brings AI in advertising into the spotlight. Businesses failing to adopt AI risk being left behind, while competing advertising platforms need to harness AI to counter Google’s market power.
For businesses in the industry, understanding AI’s key benefits in advertising in a straightforward and digestible manner is crucial as this transformation continues to unfold, and competition grows both domestically and internationally.
At the heart of AI’s role in advertising is its ability to automate complex tasks, process massive amounts of data in real-time, and make predictive decisions that were once the domain of human marketers.
Put simply, the power of AI lies not only in efficiency but also in its potential to deliver more targeted, relevant, and effective ad campaigns.
Gone are the days when advertisers relied on manual processes and gut instinct to make decisions about media buying and ad placements. AI takes center stage now in making data-driven decisions that significantly reduce waste, maximize return on investment (ROI), and allow for highly personalized advertising.
One of the most significant contributions AI brings to the table is efficiency. Traditional advertising often involved lengthy negotiations, manual ad placements, and generalized audience targeting.
With AI-driven programmatic advertising, these processes are now automated. AI-powered algorithms can handle everything from bidding for ad space to optimizing the timing and placement of ads in real-time, ensuring that each advertisement reaches the most relevant audience at the optimal moment.
For example, real-time bidding (RTB) allows advertisers to automatically bid for ad space as a web page loads, determining if the viewer fits their target demographic.
The decision to bid, and how much to bid, is made within milliseconds based on user data—like browsing history, interests, and even current geolocation—allowing brands to serve ads that resonate with individual users.
This precision targeting leads to better conversion rates because ads are no longer “one size fits all.” Instead, AI helps deliver personalized ads, reducing waste and ensuring that marketing dollars are spent wisely.
Such a targeted approach is particularly useful for companies with tight budgets, as it minimizes ad spend while maximizing engagement. AI also makes advertising more cost-effective. In traditional advertising, companies often waste money on audiences that are unlikely to convert.
AI, however, uses predictive analytics to anticipate user behavior and adjust campaigns in real-time, ensuring that each dollar spent has the highest chance of driving a desired action—whether it be a purchase, sign-up, or other forms of engagement.
This capability extends to optimizing bidding strategies. Machine learning models assess countless factors, such as user intent, time of day, and even environmental variables like weather, to adjust bids automatically.
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As a result, advertisers can avoid overpaying for ad impressions that aren’t likely to convert, thereby maximizing ROI. Perhaps one of AI’s most exciting features in advertising is its ability to optimize campaigns in real-time.
Unlike traditional campaigns that required lengthy review periods to assess performance, AI can track key performance indicators (KPIs) like click-through rates (CTR) and conversion rates and make immediate adjustments.
An obvious example would be if an ad is not performing well on a specific platform, AI algorithms can reallocate the budget to better-performing channels without any manual intervention. This flexibility ensures that campaigns are constantly fine-tuned for peak efficiency.
Analysis of user interactions with ads and adjusting future content based on what resonates most is also boosted by AI. Whether it’s tweaking ad copy, altering visuals, or changing the target audience, AI helps advertisers continuously improve their campaigns.
The U.S. Department of Justice’s new antitrust case against Google underscores the need for robust competition in the advertising sector.
Google’s dominance — controlling over 85% of the market for ad networks and more than half of the market for ad exchanges — rightly raises concerns about stifling innovation and increasing costs for advertisers.
This is where AI becomes vital. Competing ad platforms must leverage best-in-class AI technologies to create a viable alternative to Google’s advertising ecosystem.
By offering smarter, more efficient ad-serving capabilities, these platforms can level the playing field and attract advertisers who are looking for cost-effective, innovative solutions outside of Google’s control.
AI enables smaller players to innovate rapidly by offering advanced targeting, real-time bidding, and dynamic ad placement strategies that can rival Google’s ad tech. This not only fosters healthier competition but also benefits advertisers by providing them with more choices and potentially lower costs.
Beyond improving efficiency and targeting, AI is also transforming the creative aspect of advertising. With tools like dynamic creative optimization (DCO), AI can automatically generate multiple versions of an ad and test them in real-time to identify which one performs best.
The continuous optimization of creative elements ensures that the right message is delivered in the most engaging way possible.
Natural language processing (NLP) and computer vision are helping advertisers understand user sentiment and visual preferences, enabling them to craft ads that resonate more deeply with audiences, without requiring any or as much private data as old paradigms.
As anyone who has used DALL-E or Midjourney will know, AI-generated content is fast gaining traction, with companies using AI to create everything from personalized ad copy to interactive video ads.
But while AI offers numerous benefits, its adoption also comes with challenges. Chief among these is the issue of data privacy.
Relying on vast amounts of user data to function effectively means advertisers must navigate an increasingly complex landscape of data protection regulations, such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the U.S.
Moreover, the lack of transparency in some AI algorithms — often referred to as “black boxes” — raises concerns about bias and fairness in ad placements. Advertisers and regulators alike will need to address these issues to maintain consumer trust and ensure that AI-driven advertising is both ethical and effective.
In any case, the future trajectory is clear: as AI continues to evolve, its role in advertising will only grow. Innovations in machine learning, predictive analytics, and creative optimization will help advertisers stay ahead of the curve in an increasingly competitive landscape.
Businesses that embrace AI-driven solutions will be well-positioned to meet the demands of modern consumers, delivering more personalized, efficient, and impactful advertising experiences.
In an industry where the ability to reach the right audience at the right time is paramount, AI offers advertisers a powerful tool to sharpen their strategies, enhance creativity, and drive better results — all while offering a counterbalance to dominant players like Google.
The future of advertising is undoubtedly AI-driven, and businesses that fail to adopt this technology risk being left behind. As both a competitive necessity and an innovation enabler, AI is not just transforming advertising; it’s reshaping the entire marketing landscape.
We may even see the day soon where, thanks to AI, ads on the open Internet rival or surpass those in “walled gardens” and hero apps and platforms that rely on users signing away their data in exchange for access.
By Clement Cao, CEO, Mobvista
Clement is the co-founder and CEO of Mobvista Group, overseeing the company’s overall strategic advancement and business development. His strategies have significantly enhanced the efficiency of advertising products and technology, enabling Mobvista to evolve from an affiliate ad network service provider to a leading tech platform providing tools and traffic for mobile growth.
Recognizing the growth potential within the developer ecosystem, Clement proposed the “Growth Hub” strategy for Mobvista. Under his leadership, Mobvista has gradually developed a comprehensive solution for global developers. This includes services such as creative automation, user acquisition, ad monetization, cross-channel app marketing, programmatic creativity, attribution, and cloud server optimization and management.
About Mobvista
Mobvista (1860.HK) is a leading mobile technology company providing a complete suite of advertising and analytics tools for app developers and marketers seeking global growth. Providing a range of tailored solutions, such as user acquisition, monetization, analytics, creative automation, and cross-channel media buying, Mobvista enables mobile businesses to maximize their potential.
