IDEAS home Printed from https://ideas.repec.org/a/sae/sagope/v13y2023i4p21582440231210759.html
   My bibliography  Save this article

Artificial Intelligence in Advertising: Advancements, Challenges, and Ethical Considerations in Targeting, Personalization, Content Creation, and Ad Optimization

Author

Listed:
  • Biao Gao
  • Yiming Wang
  • Huiqin Xie
  • Yi Hu
  • Yi Hu

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.

Suggested Citation

  • Biao Gao & Yiming Wang & Huiqin Xie & Yi Hu & Yi Hu, 2023. "Artificial Intelligence in Advertising: Advancements, Challenges, and Ethical Considerations in Targeting, Personalization, Content Creation, and Ad Optimization," SAGE Open, , vol. 13(4), pages 21582440231, November.
    • Handle: RePEc:sae:sagope:v:13:y:2023:i:4:p:21582440231210759
    DOI: 10.1177/21582440231210759
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/21582440231210759
    Download Restriction: no
    File URL: https://libkey.io/10.1177/21582440231210759?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Raminta Pranckutė, 2021. "Web of Science (WoS) and Scopus: The Titans of Bibliographic Information in Today’s Academic World," Publications, MDPI, vol. 9(1), pages 1-59, March.
    2. Siliang Tong & Xueming Luo & Bo Xu, 2020. "Personalized mobile marketing strategies," Journal of the Academy of Marketing Science, Springer, vol. 48(1), pages 64-78, January.
    3. Robert W. Palmatier & Mark B. Houston & John Hulland, 2018. "Review articles: purpose, process, and structure," Journal of the Academy of Marketing Science, Springer, vol. 46(1), pages 1-5, January.
    4. Mariani, Marcello M. & Hashemi, Novin & Wirtz, Jochen, 2023. "Artificial intelligence empowered conversational agents: A systematic literature review and research agenda," Journal of Business Research, Elsevier, vol. 161(C).
    5. Paschen, Jeannette & Wilson, Matthew & Ferreira, João J., 2020. "Collaborative intelligence: How human and artificial intelligence create value along the B2B sales funnel," Business Horizons, Elsevier, vol. 63(3), pages 403-414.
    6. Ming-Hui Huang & Roland T. Rust, 2021. "A strategic framework for artificial intelligence in marketing," Journal of the Academy of Marketing Science, Springer, vol. 49(1), pages 30-50, January.
    7. Chuan-Hoo Tan & Hock-Hai Teo & Izak Benbasat, 2010. "Assessing Screening and Evaluation Decision Support Systems: A Resource-Matching Approach," Information Systems Research, INFORMS, vol. 21(2), pages 305-326, June.
    8. Neha MUNJAL, 2016. "A Study On Ethical Issues In Advertising And Analyzing Different Unethical Advertisements With Results Of Asci Decisions: An Indian Perspective," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 5(2), pages 1-34, July.
    9. Xueming Luo & Siliang Tong & Zheng Fang & Zhe Qu, 2019. "Frontiers: Machines vs. Humans: The Impact of Artificial Intelligence Chatbot Disclosure on Customer Purchases," Marketing Science, INFORMS, vol. 38(6), pages 937-947, November.
    10. Kent Baker, H. & Pandey, Nitesh & Kumar, Satish & Haldar, Arunima, 2020. "A bibliometric analysis of board diversity: Current status, development, and future research directions," Journal of Business Research, Elsevier, vol. 108(C), pages 232-246.
    11. Donthu, Naveen & Kumar, Satish & Pattnaik, Debidutta, 2020. "Forty-five years of Journal of Business Research: A bibliometric analysis," Journal of Business Research, Elsevier, vol. 109(C), pages 1-14.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shome, Samik & Hassan, M. Kabir & Verma, Sushma & Panigrahi, Tushar Ranjan, 2023. "Impact investment for sustainable development: A bibliometric analysis," International Review of Economics & Finance, Elsevier, vol. 84(C), pages 770-800.
    2. Donthu, Naveen & Kumar, Satish & Mukherjee, Debmalya & Pandey, Nitesh & Lim, Weng Marc, 2021. "How to conduct a bibliometric analysis: An overview and guidelines," Journal of Business Research, Elsevier, vol. 133(C), pages 285-296.
    3. Erik Hermann, 2022. "Leveraging Artificial Intelligence in Marketing for Social Good—An Ethical Perspective," Journal of Business Ethics, Springer, vol. 179(1), pages 43-61, August.
    4. Sascha Kraus & Matthias Breier & Weng Marc Lim & Marina Dabić & Satish Kumar & Dominik Kanbach & Debmalya Mukherjee & Vincenzo Corvello & Juan Piñeiro-Chousa & Eric Liguori & Daniel Palacios-Marqués &, 2022. "Literature reviews as independent studies: guidelines for academic practice," Review of Managerial Science, Springer, vol. 16(8), pages 2577-2595, November.
    5. Muhammad Nur Firdaus Nasir & Iqbal Jaapar & Walid Muhmmad Syafrien Effendi & Fadly Mohamed Sharif & Khairulwafi Mamat & Nurul Farhana Nasir, 2024. "Exploring the Role of Artificial Intelligence in the Design Industry: Client Satisfaction through Enhancing Quality while Preserving Human Creativity," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(3s), pages 4538-4543, October.
    6. Leah Warfield Smith & Randall Lee Rose & Alex R. Zablah & Heath McCullough & Mohammad “Mike” Saljoughian, 2023. "Examining post-purchase consumer responses to product automation," Journal of the Academy of Marketing Science, Springer, vol. 51(3), pages 530-550, May.
    7. Chen, Yanyan & Mandler, Timo & Meyer-Waarden, Lars, 2021. "Three decades of research on loyalty programs: A literature review and future research agenda," Journal of Business Research, Elsevier, vol. 124(C), pages 179-197.
    8. Uchendu Eugene Chigbu & Sulaiman Olusegun Atiku & Cherley C. Du Plessis, 2023. "The Science of Literature Reviews: Searching, Identifying, Selecting, and Synthesising," Publications, MDPI, vol. 11(1), pages 1-16, January.
    9. Mari, Alex & Mandelli, Andreina & Algesheimer, René, 2024. "Empathic voice assistants: Enhancing consumer responses in voice commerce," Journal of Business Research, Elsevier, vol. 175(C).
    10. Yadav, Neetu & Kumar, Roopesh & Malik, Ashish, 2022. "Global developments in coopetition research: A bibliometric analysis of research articles published between 2010 and 2020," Journal of Business Research, Elsevier, vol. 145(C), pages 495-508.
    11. David Fehrenbach & Carolina Herrando & María José Martín-De Hoyos, 2024. "Co-Creation with AI in B2B Markets: A Systematic Literature Review," Sustainability, MDPI, vol. 16(18), pages 1-13, September.
    12. Weidig, Jakob & Weippert, Marco & Kuehnl, Christina, 2024. "Personalized touchpoints and customer experience: A conceptual synthesis," Journal of Business Research, Elsevier, vol. 177(C).
    13. Jan, Ihsan Ullah & Ji, Seonggoo & Kim, Changju, 2023. "What (de) motivates customers to use AI-powered conversational agents for shopping? The extended behavioral reasoning perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    14. Lu, Li & Norder, Kurt A. & Sawhney, Aman & Emich, Kyle J., 2023. "Setting the programmatic agenda: A comprehensive bibliometric overview of team mechanism research," Journal of Business Research, Elsevier, vol. 154(C).
    15. Vlačić, Božidar & Corbo, Leonardo & Costa e Silva, Susana & Dabić, Marina, 2021. "The evolving role of artificial intelligence in marketing: A review and research agenda," Journal of Business Research, Elsevier, vol. 128(C), pages 187-203.
    16. Akter, Shahriar & Hossain, Md Afnan & Sajib, Shahriar & Sultana, Saida & Rahman, Mahfuzur & Vrontis, Demetris & McCarthy, Grace, 2023. "A framework for AI-powered service innovation capability: Review and agenda for future research," Technovation, Elsevier, vol. 125(C).
    17. Shakeel ul Rehman & Rafia Gulzar & Wajeeha Aslam, 2022. "Developing the Integrated Marketing Communication (IMC) through Social Media (SM): The Modern Marketing Communication Approach," SAGE Open, , vol. 12(2), pages 21582440221, May.
    18. Ngai, Eric W.T. & Wu, Yuanyuan, 2022. "Machine learning in marketing: A literature review, conceptual framework, and research agenda," Journal of Business Research, Elsevier, vol. 145(C), pages 35-48.
    19. Grewal, Dhruv & Guha, Abhijit & Satornino, Cinthia B. & Schweiger, Elisa B., 2021. "Artificial intelligence: The light and the darkness," Journal of Business Research, Elsevier, vol. 136(C), pages 229-236.
    20. Yuhui Jing & Leying Zhao & Keke Zhu & Haoming Wang & Chengliang Wang & Qi Xia, 2023. "Research Landscape of Adaptive Learning in Education: A Bibliometric Study on Research Publications from 2000 to 2022," Sustainability, MDPI, vol. 15(4), pages 1-21, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:sagope:v:13:y:2023:i:4:p:21582440231210759. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.