Artificial Intelligence in Advertising: Advancements, challenges, and ethical considerations in targeting, personalization, content creation, and ad optimization

Abstract

With the rapid advancement of artificial intelligence (AI) technology, the advertising industry is at a crossroads of new opportunities and challenges. This pioneering study provides an in-depth review of AI’s application in advertising, focusing especially on four key elements: Targeting, Personalization, Content Creation, and Ad Optimization. By delving deep into these areas, we uncover the potential of AI in revolutionizing the advertising sector. At the same time, we discuss the pressing ethical issues arising from the current applications of AI in advertising-related fields. Using the VOSviewer software, this study conducts an in-depth analysis of the literature, revealing the intrinsic connections of these four key elements in AI advertising based on computational advertising: Targeting and Personalization are closely linked, jointly determining who gets shown which advertisements. Content Creation generates appealing advertising content through AI during the Personalization process, while Ad Optimization relies on the outcomes of the first three elements, adjusting ad displays to achieve the highest return on investment. This research offers a fresh perspective on understanding AI’s application in advertising, aiding in the responsible and effective use of AI technology for superior ad delivery.