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IBM Rolls Out New AI Products for Enhancing Advertising Reach

Zacks Equity Research
·4 mins read

At Advertising Week 2020, International Business Machines Corporation IBM announced the addition of three new AI-enabled offerings that will help advertising businesses to expand business reach while maintaining data privacy of the consumers.

The company added extensions to its Watson Advertising Accelerator solution and expanded IBM Watson Advertising solutions’ suite with IBM Watson Advertising Attribution and IBM Watson Advertising Predictive Audiences solutions.

Advertising Predictive Audiences solution will utilize Watson Discovery feature to assist marketers to expand reach among consumers who display similar behavioural pattern as their existing consumers.

International Business Machines Corporation Price and Consensus

International Business Machines Corporation Price and Consensus
International Business Machines Corporation Price and Consensus

International Business Machines Corporation price-consensus-chart | International Business Machines Corporation Quote

Advertising Attribution Solution (beta version) will deploy Watson’s ML to facilitate marketers assess performance drivers and gauge the effectiveness of advertising campaign expenditure.

Extensions made to IBM Watson Advertising Accelerator solution will provide marketers with improved video and OTT capabilities to change marketing narrative according to reactions of each individual consumer. The solution will leverage Watson ML technique.

Markedly, in January 2020, IBM rolled out Advertising Accelerator with Watson, with predictive analytics capabilities to boost audience engagement.

IBM stated that it was having definitive discussions with advertising giants like AT&T’s T Xandr along with Magnite for its latest AI advertising/marketing solutions, while it expects to bring on board other advertising giants like MediaMath, Nielsen NLSN, LiveRamp RAMP and Beeswax.

These innovative solutions aided by IBM Watson positions the company to gain momentum and boost confidence in the stock among the investor community.

Growth in AI-enabled Ad Solutions

The demand for AI driven advertising solutions has been on the rise for enhancing digital experience for customers. The businesses can benefit from better knowledge of ongoing trends, improved engagement of customer base and new brand insights.

Most of the digital ads are expected to leverage AI to effectively target users  in the upcoming days.

Per Mordor Intelligence data, spending on online advertising is expected to witness a CAGR of 21.6% to $982.82 billion by 2025 from $304 billion in 2019.

Per an Industry Stats Report, AI in marketing market is envisioned to witness a CAGR of 26.98% and reach $37.08 billion by 2025 from $6.99 billion in 2018. AI in marketing refers to deploying of algorithms and data models to generate insights for making decisions regarding advertising strategy and spending.

Also, increased advertising on social media channels and focus on customer-focused marketing tactics will drive the demand for AI-enabled advertising solutions, added the report.

As a result, IBM’s Watson ad solutions seems well-positioned to take advantage of projected growth.

The advertising industry is undergoing radical changes due to higher need for ensuring privacy of customer data along with increased need for adherence to stringent compliance measures.

IBM believes that AI will assist advertising and media industry to keep up with these transformative changes and deliver greater performance by making data-driven and informed decisions.

IBM, currently carrying a Zacks Rank #3 (Hold), is well poised to capitalize on growth prospects that the digital advertising market offers. Increasing spending in this regard is a positive. Moreover, the aforementioned reports reinforce our belief that Watson Ad solutions suite gaining rapid adoption hold promise.

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