AI and Machine Learning set to drive India's $8 billion digital advertising industry, say experts

Industry experts expect AI and operational machine learning will have a transformative effect on communication sectors such as advertising, public relations, and content creation, according to PTI.

As per the report, these technologies, including generative intelligence and machine learning, are expected to have a significant impact on India's digital advertising industry, which is currently estimated at around USD 8 billion (about Rs 66,142 crore) as stated by Siddharth Jhawar,  the General Manager of Moloco in India.

"Advertisers have long pondered the effectiveness of their ads, and many rely on intuition alone. However, operational machine learning has the potential to revolutionize India's USD 8 billion digital advertising industry, as it can run thousands of mini-experiments to decide which ad creative appeals to which type of users," said Jhawar.

He noted that given India's diverse linguistic and cultural landscape, this holds particular significance.

Notably, Google has introduced ad campaign operations and automatic creation of ads using language learning models (LLMs) and generative artificial intelligence within Google Ads.

According to Dan Taylor, Vice President of Global Ads at Google, leading companies such as Myntra, Samsung, HDFC and Tata AIG have experienced growth rates of up to 18% using Performance Max. This advertising tool incorporates Google's artificial intelligence technologies for bidding, budget optimization, audience targeting, creative development, and attribution.

Jhawar also emphasized that companies have an opportunity to take advantage of deep neural networks, which fuel machine learning, to boost revenue using first-party data. Most importantly, this can be achieved by keeping data private and providing personalized customer experiences.

Wizikey, a communications software-as-a-service provider, introduced Imara, an AI avatar designed for public relations and communications. Imara utilizes generative AI to analyze news data and derive valuable insights. This development is in line with the growing trend of brands integrating generative AI into their operations, which has also sparked interest and debate within the workforce.

Archana Jain, founder, and CEO of PR Pundit, an integrated communications consultancy firm, emphasized that public relations must embrace the continuous transformation driven by AI. She believes that the public relations industry is poised for more turmoil in the coming years.

Jain highlighted the benefits of AI in public relations, saying that professionals can now quickly and efficiently analyze massive amounts of data. This skill allows them to make informed decisions and develop more effective public relations strategies. In addition, AI facilitates the creation of innovative content adapted to a target audience focused on digital technology. Even in basic tasks like tracking media coverage, AI plays a critical role in improving overall efficiency within an industry.

Google has reportedly been testing a product designed to generate news articles by processing ingested information. The product was positioned as a tool to help journalists and was offered to media organizations including The New York Times, The Washington Post, and News Corp, owner of The Wall Street Journal, according to the report.

According to a McKinsey study, the implementation of AI has the most significant reported revenue impact on marketing and sales.

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