The Role of Artificial Intelligence Tools in Targeted Advertising: A Case Study of Digital Marketing Agencies in Abuja, FCT
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1.1 Background of the Study
The rapid proliferation of digital technologies has transformed the advertising landscape globally. Artificial Intelligence (AI) tools, such as predictive analytics, natural language processing (NLP), and machine learning algorithms, have emerged as pivotal in creating and delivering highly targeted advertising campaigns. In Abuja, FCT, digital marketing agencies have increasingly embraced these tools to analyze consumer behavior, predict purchasing trends, and optimize advertising strategies (Adebayo & Yusuf, 2024).
AI's capability to process vast amounts of data in real-time allows marketers to segment audiences, personalize messages, and select the most effective channels for advertising. Through predictive models, businesses can anticipate customer needs and preferences, thus improving engagement and conversion rates. This study investigates the role of AI tools in enhancing targeted advertising in digital marketing agencies in Abuja, with a focus on their impact on efficiency, audience targeting accuracy, and return on investment (ROI).
1.2 Statement of the Problem
Traditional advertising methods often lack precision, leading to wastage of resources and poor targeting. Although AI tools have proven effective in improving targeted advertising, their adoption among digital marketing agencies in Abuja faces challenges such as high implementation costs and limited technical expertise. This study explores how these tools are utilized, their effectiveness, and the barriers to their adoption in Abuja's marketing ecosystem.
1.3 Objectives of the Study
- To examine the effectiveness of AI tools in targeted advertising among digital marketing agencies in Abuja.
- To assess the impact of AI-driven advertising on customer engagement and ROI.
- To identify the challenges faced by agencies in adopting AI tools.
1.4 Research Questions
- How effective are AI tools in enhancing targeted advertising?
- What is the impact of AI-driven advertising on customer engagement and ROI?
- What challenges hinder the adoption of AI tools in Abuja’s digital marketing agencies?
1.5 Research Hypothesis
- AI tools significantly enhance the effectiveness of targeted advertising in Abuja.
- AI-driven advertising improves customer engagement and ROI.
- Implementation costs and lack of expertise hinder the adoption of AI tools.
1.6 Significance of the Study
This study underscores the importance of AI in revolutionizing targeted advertising. Its findings provide valuable insights for marketers, policymakers, and technology developers seeking to enhance advertising efficiency in Nigeria.
1.7 Scope and Limitations of the Study
The study focuses on digital marketing agencies in Abuja, excluding other regions and non-digital advertising channels. Limitations include the availability of data on AI adoption and the evolving nature of AI technologies in advertising.
1.8 Operational Definition of Terms
- Targeted Advertising: The delivery of specific ads to defined audience segments based on preferences and behaviors.
- Artificial Intelligence (AI): Computational technologies that mimic human decision-making and learning.
- Predictive Analytics: Techniques used to forecast future outcomes based on historical data.
- Natural Language Processing (NLP): AI techniques for understanding and generating human language.
- Return on Investment (ROI): A measure of the profitability of advertising campaigns.
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