A Critical Evaluation of the Impact of Artificial Intelligence on Corporate Advertising ROI: A Case Study of Startups in Gombe State
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1.1 Background of the Study
Return on Investment (ROI) is a critical metric in evaluating the success of corporate advertising. The advent of Artificial Intelligence (AI) has significantly enhanced the efficiency and effectiveness of advertising by automating processes, optimizing ad placement, and personalizing content. For startups in Gombe State, where budget constraints are a major challenge, AI offers a cost-effective solution to maximize advertising ROI.
AI tools such as predictive analytics, programmatic advertising, and real-time bidding algorithms enable startups to target specific audiences with precision. Furthermore, AI-driven platforms like Google Ads and Meta’s ad manager provide startups with actionable insights to optimize campaigns (Obasi & Ibrahim, 2025). This study critically examines the impact of AI on the advertising ROI of startups in Gombe State, focusing on its applications, benefits, and challenges.
1.2 Statement of the Problem
Startups in Gombe State often struggle to achieve significant returns on their advertising investments due to limited resources and reliance on traditional methods. While AI tools promise higher ROI, their adoption among startups remains low, primarily due to knowledge gaps, cost barriers, and skepticism about effectiveness.
1.3 Objectives of the Study
- To assess the adoption of AI tools for corporate advertising by startups in Gombe State.
- To evaluate the impact of AI-driven advertising on ROI.
- To identify challenges hindering the effective use of AI in corporate advertising.
1.4 Research Questions
- How are startups in Gombe State adopting AI tools for corporate advertising?
- What impact does AI have on advertising ROI for startups?
- What challenges do startups face in implementing AI-driven advertising?
1.5 Research Hypothesis
- AI tools significantly enhance the ROI of corporate advertising.
- Startups that adopt AI-driven advertising achieve better ROI compared to those using traditional methods.
- Limited knowledge and high costs are significant barriers to AI adoption in advertising.
1.6 Significance of the Study
This research highlights the benefits of AI in corporate advertising, providing startups with actionable insights to improve their ROI. It also informs policymakers on ways to support AI adoption in the advertising sector.
1.7 Scope and Limitations of the Study
The study focuses on startups in Gombe State and their use of AI tools in corporate advertising. Limitations include varying levels of AI literacy among respondents and the fast-paced evolution of AI technologies.
1.8 Operational Definition of Terms
- Corporate Advertising: Marketing efforts aimed at promoting a company’s brand or products.
- Return on Investment (ROI): A performance measure used to evaluate the efficiency of an investment.
- Programmatic Advertising: Automated buying and selling of online advertising space.
- Predictive Analytics: AI tools that forecast future outcomes based on historical data.
- Real-Time Bidding: Automated auctions for ad space conducted in milliseconds.
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