- The Traditional Approach: Manual Segmentation
- Challenges of Manual Segmentation
- The AI Revolution in Audience Segmentation
- The Impact of AI on Audience Segmentation
- Conclusion
In today’s rapid landscape of digital advertising, media planners and media professionals in agencies face a challenge of preparing and creating effective audience segments for targeting. This process, once a time-consuming and complex task, has been changed by the smart implementation of AI technology and LLM models.
The Traditional Approach: Manual Segmentation
Media planners still manage the segment creation manually through going a point-by-point process:
- Criteria Selection: Choosing specific targeting criteria such as demographics, interests, purchase intentions, events or brands for each segment.
- Segment Creation: Manually setting up each segment in DMPs or DSPs.
- Testing and Refinement: Running campaigns and adjusting segments based on performance.
Challenges of Manual Segmentation
This traditional method, while thorough, comes with several significant challenges:
- Time-Consuming: The process can take days or even weeks, delaying campaign launches.
- Human Error: Manual data interpretation and entry are prone to mistakes.
- Limited Scope: Humans can only process and correlate a limited amount of data points effectively.
- Scalability Issues: Creating segments for multiple campaigns or markets simultaneously is extremely challenging.
- Inconsistency: Different planners might interpret data differently, leading to inconsistent segmentation across campaigns.
The AI Revolution in Audience Segmentation
Using AI in the process of preparing and creating audience segments for advertising targeting streamlines the process and supports the media planners and professionals in preparing audiences that significantly impact the campaign effectiveness and results e.i.:
- Speed and Efficiency – AI can process vast amounts of data in seconds, creating segments that would take humans long hours to choose from. The AI system allows to prepare the segments taking into account all criteria in the brief and fit the right data points.
- Accuracy and Consistency – Machine learning and Large Language Models (LLM) algorithms eliminate human errors and incorrect interpretation of brief criteria in the segment creation, which positively impacts on the segment reach and scale.
- Scalability – AI systems can create multiple audience segments in a matter of seconds, therefore media planners can manage the creation and launch of various campaigns daily instead of days.
- Personalization – The choice of the right data points is driven by the intelligent AI system. It analyzes all criteria from the brief, ensuring no crucial information is overlooked. As a result, it significantly improves the quality and suitability of the audience.
The Impact of AI on Audience Segmentation
The integration of AI into audience creation and segmentation is yielding remarkable results.
Accurate segments created by AI lead to better targeting and higher return on investment for campaigns. Therefore, media planners can dedicate more time to strategy instead of manually processing data, optimizing their resources.
What is more, AI-generated segments allow for quicker campaign launches, reducing the time it takes to get to market. The usage of AI in audience segment creation enables more informed strategic decisions based on solid data.
Companies that use AI for segmentation can adapt more quickly to market changes, giving them a competitive edge.
Conclusion
AI is becoming an essential extension for creating and preparing audience groups for targeting in digital advertising while providing great quality and efficiency. Solving the issue for media planners and media professionals with the AI usage in this manual process opens up new possibilities. Implementing AI into the audience segment creation is a step forward towards automated future and intelligent campaign optimization.
