The Intersection of AI and Paid Media: Why Humans Still Matter

Hey there! Curtiss Gulash here, the Director of Paid Media at Be Found Online (BFO). Today, we're diving into the world of Artificial Intelligence (AI) and paid media, unpacking its impact and why human expertise remains a game-changer. If you’ve heard me speak about this in person at a recent conference or event, consider this a cheatsheet!

AI in Marketing: From Sci-Fi to Reality

Remember Terminator? Yeah, AI's everywhere these days, and marketing is no exception. It's revolutionized the way we reach audiences, but with all the hype, a big question lingers: 

How does AI affect our relationship with paid media and the inherently human side of digital marketing?

Let's explore this intersection and understand why humans are still vital in this ever-changing landscape.

A Journey Through AI in Paid Media

The Evolution of a Marketing Powerhouse

AI's journey in marketing began with Google's innovations (if you read our blog, this shouldn’t be a surprise):

• 2000: Google Ads launched, kicking off a new era in online advertising.
• 2001: Google started correcting typos to improve ad targeting.
• 2002: Google Shopping arrived, automating ad creation.
• 2005: Google Analytics and Ad tracking debuted, giving us deeper campaign insights.
• 2013: In-market audiences allowed us to target users based on their buying behavior.
• 2014: Close variants and enhanced campaigns improved keyword matching.
• 2016: Smart bidding automated adjustments for better performance.
• 2023: Bard (now Gemini) chatbot launched, taking customer interactions to a new level.
• 2024: Google announced ads in the AI overview, marking a new chapter in paid media.

These milestones showcase AI's growing influence and how early it was helping to direct digital marketing - but where does AI shine, and where does it fall short?

AI's Strengths: Efficiency, Automation, and Analysis

AI excels in making our lives easier and our work more efficient:

• Efficiency and Automation: From keyword bidding to ad testing, AI automates repetitive tasks. Remember the days of keyword-level bidding? AI handles it now, freeing up time to focus on strategic thinking (more on that below).
• Processing and Analysis: AI can crunch massive amounts of data in a flash, uncovering insights that would take humans ages. Tools like ChatGPT analyze data and provide actionable recommendations, boosting our reporting capabilities.
• Ad Creative and Content: Platforms like Canva leverage AI to assist with design, making visually appealing content creation accessible to everyone. Building on that, AI helps generate fresh ideas and optimize ad combinations.
• Predictions and Forecasting: AI's unbiased nature allows it to make accurate predictions and recommendations. Lookalike audiences and budget recommendations are examples of AI's predictive power, helping us optimize campaigns effectively.

AI's Limitations: Where the Human Touch Matters

Despite its strengths, AI has limitations that highlight the need for human involvement:

• Strategic Thinking: AI lacks the ability to think strategically and consider context. It “sees” data in black and white, missing the nuances and insights that humans bring. Understanding why an ad resonates requires human intuition and experience.
• Data Dependence: AI is only as good as the data it's fed. Bad data leads to bad optimizations leads to bad results. Humans are needed to clean, interpret, and make sense of data, ensuring AI works with accurate information.
• Creativity and Nuance: AI can generate content, but it doesn't understand human emotions or cultural context. Crafting a compelling message that resonates on an emotional level is still a human skill.
• Adaptability to Unexpected Events: AI struggles with unforeseen circumstances. Humans can pivot strategies and adapt to new situations, while AI needs clear parameters and data to function effectively.

I recently spoke on this topic at a few conferences, and, after one event, I was given a quote from another speaker, that I will share with you:

"AI can read the internet, but it cannot read the room."

So, put that in your back pocket for the next time someone asks you why you’re not using AI for all of the things.

BFO Examples of Human and AI Success Stories

At BFO, we've leveraged AI to achieve some incredible results for our clients:

• B2C Beauty Client: We managed campaigns for a beauty client with over 150 locations. Using AI-driven multi-channel demand-side platform (DSP), we increased new customers by 16%, boosted lapsed customers by 24%, and improved click-through rates by 108%. Most importantly, cost per booking decreased by a whopping 58%.
• Entertainment Client: In a competitive space, we used predictive audiences and AI-driven ad combinations to drive 86% of conversions at a cost-per-acquisition (CPA) that was 84% lower than previous audiences. AI helped us optimize our limited resources effectively.

If you'd like to see more BFO case studies, you're just a click away!

AI Fails: When Things Go Wrong on Autopilot and Why We Still Need Humans Driving

AI is a powerful tool, but it's not foolproof. Leaving things on autopilot can lead to some major blunders, as these cautionary tales illustrate:

• Bunk Bed Bonanza: An overzealous AI misinterpreted "add to cart" clicks as conversions, leading to a $20,000 spending spree for a custom bunk bed company...with zero sales! A human eye would have caught this discrepancy quickly.
• Keyword Kerfuffle: Broad match keywords can wreak havoc on your budget. One auto manufacturer saw their ad spend skyrocket thanks to irrelevant searches like "car accident." Thankfully, a human intervened to clean up the mess as well as control the messaging (and site experience) for terms like “lawsuit,” “recall,” and “accident.”
• Soccer Snafu: A surge in traffic from unrelated searches crashed a women's soccer sponsor's server. AI couldn't tell the difference between genuine interest and a random traffic spike. Lesson learned: Keep a human on watch!
• Ad Placement Fail: Imagine your animated family movie ad displayed next to a heartbreaking and tragic news story. That's exactly what happened when AI placed an ad without considering the surrounding content. A human touch could have prevented this PR disaster.

The Human Edge: Why We Still Rule the Game

AI might be impressive, but it can't completely substitute the irreplaceable human touch needed in paid media. Here's why we're still at the top of the food chain for marketing (for now at least):

• Thinking Caps On: AI struggles with strategic thinking and understanding the bigger picture. It sees data in black and white, but humans can interpret the nuances and use their intuition to craft winning campaigns.
• Building Bridges: Relationships are the cornerstone of any successful business. AI can't build rapport or foster trust with clients or customers. That's where human empathy, experience, and communication skills come in.
• Creative Spark: AI can churn out content, but it lacks the creativity and emotional intelligence to craft messages that resonate with people. Humans can brainstorm fresh ideas and tailor content to specific audiences.
• Brand Guardians: Protecting your brand reputation is crucial. Humans can ensure campaigns align with your brand values and avoid any potential missteps.

The Takeaway: AI + People = Success

The future of marketing is a powerful blend of AI and human expertise. Here's what you need to remember:

• AI Is an Unpaid Intern: AI automates tasks, streamlines workflows, and unlocks valuable insights. It's a marketer's best friend and tool, but it does not inherently know your brand, company values, or business objectives..
• Humans are Strategic Thinkers: We bring the strategic thinking, emotional intelligence, and creativity that AI lacks. Humans are the masterminds behind successful marketing campaigns.
• Together, Were Stronger: The key to marketing mastery lies in collaboration. When AI and humans work together, we achieve incredible results.
• Stay Agile, Stay Ahead: The marketing landscape is constantly evolving. Embrace AI's capabilities, but keep a watchful eye and be prepared to intervene when needed. The human touch is essential to maximizing AI's potential and avoiding costly mistakes.

Remember, AI is here to empower us, not replace us. By leveraging our unique strengths, we can create marketing campaigns that are both effective and impactful.