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Use of Artificial Intelligence in Advertising Agencies: Opportunities and Challenges
This paper’s overall objective is to identify the opportunities, challenges, and effects of artificial intelligence in advertising agencies. The theoretical approach of the key concept of artificial intelligence - its definition, typologies and effects, is followed by a particularization of the term in the advertising sector, based on a synthetic review, through a secondary analysis of statistical data, of the main trends in the AI use in current Romanian and international advertising. Subsequently, the paper focuses on the applied approach, based on qualitative research carried out through interviews with both employees from advertising agencies without management positions and managers of departments and advertising agencies where the former work, in order to identify the advantages and disadvantages of working with AI, but also positive and negative effects of using AI in advertising organizations, proposals for improving activities in which AI is used and, not least, ethical challenges related to working with AI. The integration of artificial intelligence in the advertising industry presents remarkable potential for innovation and efficiency, but also the need for a responsible approach to emerging challenges. The research provided a solid foundation for understanding the complexity and dynamism of the relationship between AI and advertising, highlighting that long-term success depends on the industry's ability to navigate this ever-evolving technology landscape with caution. By fostering a harmonious collaboration between technology and creativity, the advertising sector can maximize the benefits of AI while ethically addressing the associated challenges.
Journal Article
The role of managers in driving effective paid media strategies in an advertising agency
Purpose: This paper develops a practical model for the critical activities of the paid media manager in driving the successful implementation of digital paid advertising campaigns. Originality/value: Based on previous articles about the revolution in the advertising sector through digital and social media (Araújo et al., 2020; Helberger et al., 2020; Liu-Thompkins, 2019), the study responds to latent calls for further research on the roles and skills required by advertising professionals in the face of the digital transformation of advertising practices. In addition, we also related these professionals' skills to the campaigns' perceived success. Design/methodology/approach: We undertook a qualitative multi-case study, conducting semi-structured interviews involving paid media firms investing in digital advertising. The interviews were analyzed using the Gioia Methodology to ensure qualitative rigor in performing inductive research. Findings: We found that paid media managers must challenge client briefings, collaborate with creative teams, and dynamically adjust campaign elements for optimization. The key skills must include technical proficiency, information management, critical thinking, creativity, collaboration, and communication. Successful implementation leads to efficient targeting, real-time content adaptation, and cost-effectiveness. The study offers a roadmap for advertising agencies to effectively implement digital ad campaigns, namely from the recruiting and continuous upskilling of Paid Media Managers by identifying their critical roles to the businesses' assistance in allocating advertising budgets more effectively by providing a thorough understanding of the benefits inherent in digital advertising investments.
Journal Article
Broadcasting Hollywood
Broadcasting Hollywood: The Struggle Over Feature Films on
Early Television uses extensive archival research into the
files of studios, networks, advertising agencies, unions and
guilds, theatre associations, the FCC, and key legal cases to
analyze the tensions and synergies between the film and television
industries in the early years of television. This analysis of the
case study of the struggle over Hollywood's feature films appearing
on television in the 1940s and 1950s illustrates that the notion of
an industry misunderstands the complex array of
stakeholders who work in and profit from a media sector, and models
a variegated examination of the history of media industries.
Ultimately, it draws a parallel to the contemporary period and the
introduction of digital media to highlight the fact that history
repeats itself and can therefore play a key role in helping media
industry scholars and practitioners to understand and navigate
contemporary industrial phenomena.
eBook
The Role of Social Media in Creativity Management in Advertising Agencies
Social media has changed traditional advertising, driving, expanding, and shaping creativity in an advertising agency and challenging its existing creativity management. As such, it represents one of the most transformative impacts of information technology on advertising agency business and its management. Social media has altered dramatically the ways organizations relate to the markets and society, creating a new world of possibilities and challenges many aspects of an advertising agency, from organization and operations to innovation and creativity management. Furthermore, it outlines a broad research agenda for understanding the relationships among social media, advertising agencies, and creativity management. The goal of the paper is to propose the framework featuring the role of social media in creativity management and the connection with the creative process and successful management of an advertising agency. The contribution of this paper is the exploration of the social media role in advancing creativity management in advertising agencies.
Journal Article
A Comparison of Approaches to Advertising Measurement: Evidence from Big Field Experiments at Facebook
Observational methods often fail to accurately recover the treatment effects generated from randomized advertising experiments on Facebook.
Measuring the causal effects of digital advertising remains challenging despite the availability of granular data. Unobservable factors make exposure endogenous, and advertising’s effect on outcomes tends to be small. In principle, these concerns could be addressed using randomized controlled trials (RCTs). In practice, few online ad campaigns rely on RCTs and instead use observational methods to estimate ad effects. We assess empirically whether the variation in data typically available in the advertising industry enables observational methods to recover the causal effects of online advertising. Using data from 15 U.S. advertising experiments at Facebook comprising 500 million user-experiment observations and 1.6 billion ad impressions, we contrast the experimental results to those obtained from multiple observational models. The observational methods often fail to produce the same effects as the randomized experiments, even after conditioning on extensive demographic and behavioral variables. In our setting, advances in causal inference methods do not allow us to isolate the exogenous variation needed to estimate the treatment effects. We also characterize the incremental explanatory power our data would require to enable observational methods to successfully measure advertising effects. Our findings suggest that commonly used observational approaches based on the data usually available in the industry often fail to accurately measure the true effect of advertising.
The online appendix and data files are available at
https://doi.org/10.1287/mksc.2018.1135
.
Journal Article