The Impact of Artificial Intelligence on Digital Advertising: Automation, Personalization, and Efficiency

Abstract

This paper examines the transformative role of Artificial Intelligence (AI) in digital advertising, focusing on its contributions to automation, personalization, and operational efficiency. With the rapid growth of social media platforms like Instagram and TikTok, AI technologies have significantly altered the landscape of digital marketing. By analyzing user behavior, AI enables advertisers to deliver highly personalized content, while also automating campaign management to enhance targeting accuracy and reduce costs. This study examines the theoretical underpinnings of AI in advertising, explores core impacts such as improved ROI and campaign effectiveness, and presents case studies on the application of AI in platforms like Instagram and TikTok. Additionally, the research highlights the challenges, including privacy concerns and data protection issues, and discusses future opportunities for AI advancements in digital advertising. The findings offer valuable insights for brands seeking to leverage AI to optimize their advertising strategies and maximize engagement.