AI Transforms Digital Marketing: Challenges & Opportunities
Artificial Intelligence (AI) is revolutionising digital marketing, transforming how brands reach consumers. It's reshaping search results, enabling smarter budgeting, and driving entire campaign types. However, it also presents challenges like increased competition and evolving user behaviour.
AI's impact on search is significant. It's pushing paid and organic listings down in Google Search Engine Results Pages (SERPs) with larger AI overviews, altering click patterns. Meanwhile, Large Language Models (LLMs) like ChatGPT and Gemini are serving as research tools, reducing traditional ad interactions at the top of the funnel.
AI is driving entire campaign types across major platforms. Google's Performance Max and AI Max, Meta's Advantage, TikTok's Smart Performance Campaign, and LinkedIn's dynamic creative optimization are all AI-driven. This shift allows AI to handle repetitive tasks, freeing practitioners to focus on strategy and cross-channel measurement.
The competition for ad inventory is intensifying. Cost-per-click (CPC) rates are rising, pushing brands to explore a broader channel mix and strengthen their brand presence. The traditional marketing funnel is evolving, with the buying journey becoming more fragmented and conversational.
AI's role in paid media is expanding, from background optimisation to powering entire campaign formats. To stay competitive, brands must be discoverable across the AI-driven journey, not just within a single channel. While challenges like increased competition exist, AI also offers opportunities for smarter budgeting, targeting, and campaign management.
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