Using AI for Marketing Your Small to Medium-Sized Business, Part 2

07.19.2023 Nick Zinkie5 min

In part 1 of using Artificial intelligence (AI) for marketing your small to medium-sized business, we covered how you could quickly start leveraging generative AI tools like Chat GPT and Google Bard to improve your digital presence. In part 2 we are covering how AI is rapidly changing the face of advertising. With the global market revenues of AI in marketing expected to grow from 27.4 billion U.S. dollars in 2023 to 107.4 billion in 2028 it’s important for every business owner to start wrapping their head around what this could mean for their marketing investments.  

In this blog post, we will explore the top five ways that AI is changing advertisements online. We will discuss the legal and privacy concerns regarding AI in advertising. Additionally, we will explore how businesses can choose suitable AI partners to enhance their marketing strategies. 

Considerations for talking about AI in marketing with your media partner

1. Personalized Advertising 

One of the most popular uses of AI in advertising is personalized advertising. This is no shock as 80% of consumers are opting to buy from companies offering personalized experiences. Personalized ads are targeted advertising campaigns to specific individuals based on their interests, demographics, and online behavior. 

For example, a retailer might use AI to target ads for shoes to people who have recently searched for shoes online. Or a streaming service might use AI to recommend movies to people who have watched similar movies in the past. 

Personalized advertising can be highly effective at reaching and engaging with potential customers. However, it is important to note that personalized advertising can also raise privacy concerns with your current and prospective customers. 

2. Predictive Marketing 

Another way that AI is changing advertising is through predictive marketing. Predictive marketing uses AI to predict future customer behavior. This data helps show ads to people who are likely interested in a product or service. 

For example, a bank might use predictive marketing to identify customers who are likely to default on their loans. The bank could then target these customers with ads for financial products that could help them avoid defaulting. 

Predictive marketing can be a powerful tool for advertisers. However, it is important to use this tool responsibly. Advertisers should put checks in place to ensure their predictive marketing is not discriminating against certain customer groups. 

3. Conversational Advertising 

Conversational advertising is a new type of advertising that uses chatbots to interact with potential customers. Chatbots are computer programs that can simulate human conversation. 

This type of advertising can be used to provide customer service, answer questions, and even sell products. For example, a clothing retailer might use a chatbot to help customers find the perfect outfit. 

Conversational advertising is still in its preliminary stages, but it has the potential to revolutionize the way brands interact with their customers. 

4. Programmatic Advertising 

Programmatic advertising is a type of online advertising that uses software to automate the buying and selling of ad space. This means that advertisers can buy ad space without having to manually contact publishers. 

Programmatic advertising is becoming increasingly popular because it is more efficient and effective than traditional methods of buying ad space. AI is being used to improve programmatic ads by automating the process of targeting ads and measuring results. 

5. Legal and Privacy Concerns 

With 35% of marketers concerned about risk and governance issues related to AI use in marketing, some legal and privacy concerns need to be addressed. 

One of the biggest concerns is that AI could be used to discriminate against certain customer groups. For example, an advertiser might use AI to target ads for products that are not relevant to certain demographics. 

Another concern is that AI could be used to collect and use personal data without the consent of consumers. This information can be used to show ads to people who are likely to be interested in a product or service. 

It is important for advertisers to be aware of these concerns and to take steps to mitigate them. Advertisers should choose an AI partner that has a strong track record of compliance and ethics. They should also carefully consider the specific tasks that they want AI to perform in their marketing campaigns. 

Choosing the Right AI Partner 

When choosing an AI partner, it is important to consider the following factors: 

  • The company’s track record of compliance and ethics. 
  • The company’s expertise in the specific tasks that you want AI to perform. 
  • The company’s ability to integrate AI into your existing marketing campaigns. 

It is also important to get a clear understanding of the costs involved in using AI in advertising. AI can be a valuable tool for advertisers, but it is important to ensure you are getting a return on your investment. 


AI is rapidly changing the face of advertising. Businesses that want to stay ahead of the curve need to be aware of the latest trends and technologies. They also need to choose the right AI partner to help them achieve their marketing goals. 

I hope this blog post has given you a better understanding of how AI is changing the advertising industry. Have any questions? Submit our contact form to speak with one of our marketing experts. 

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About the Author

Nick Zinkie

Nick is the Sr. Performance Marketing Manager for Cox Media’s corporate team with over 8 years of experience designing and implementing digital programs within B2B, B2C, and D2C (DTC) environments. He started his career as a web designer/developer and is passionate about telling compelling stories that help connect customers to brands through digital experiences. Outside of the digital world, you can find Nick having dance parties with his cute little toddler Cora, supporting his favorite soccer team Atlanta United, and enjoying a fresh cup of coffee.

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