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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
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    Cited by:

    1. Adesina, Toheeb, 2025. "AI Agents in the Advertising Industry," MPRA Paper 123413, University Library of Munich, Germany.
    2. Zámečník Robert, 2024. "Intelligent systems and consumer neuroscience in the age of computational advertising," Management & Marketing, Sciendo, vol. 19(3), pages 441-470.
    3. Ahmad Ismail & Hardiyanti Munsi & Andi Muhammad Yusuf & Pawennari Hijjang, 2025. "Mapping One Decade of Identity Studies: A Comprehensive Bibliometric Analysis of Global Trends and Scholarly Impact," Social Sciences, MDPI, vol. 14(2), pages 1-32, February.
    4. José Ramón Saura, 2024. "Algorithms in Digital Marketing: Does Smart Personalization Promote a Privacy Paradox?," FIIB Business Review, , vol. 13(5), pages 499-502, October.

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