The Effectiveness of AI-driven Advertising (Google Ads or Meta Ads) on Consumer Purchase Decisions

Abstract

This research study, “The Effectiveness of AI-driven Advertising (Google Ads or Meta Ads) on Consumer Purchase Decisions” provides the practices, effectiveness and limitations of the AI-based advertising to assess the role of the Google and Meta digital duopoly ads system. The central hypothesis claims That AI based ad are effective. In changing consumer buying behavior pattern, the effectiveness is increasingly tempered by the tempered by consumer trust and quality of data in addition to an increasingly complex ethical and regulatory landscape. Ultimately, the research concludes that modern digital ads are no longer manual, but instead AI-based and even necessary for increasing Competition. This is supported by findings from Alphabet (parent company of Google) and Meta who each see Rapid growth in revenue hoarding as their ad systems now operate themselves with custom targeting, bidding and creative development rationalized on millisecond scales. Google uses Google's Performance Max (PMax) to run ads across all Google’s channels like YouTube, Gmail, Maps etc. It’s a solution that turns every google channel into one single goal-oriented campaign. Meta’s Advantage+ Suite on the other hand is a “demand-generation” Model Which is the collection of automation product within meta. It streamlines the ads campaign setup and optimizes the performance in real time. The report analyzed the psychological effect of advertising tool and highlighting the privacy paradox where consumer desire and personalization Data are used to make ad campaigning, specifically targeting them and changing their perception and encouraging them to purchase the products. It also highlights the challenges and the mistrusts because of these types of campaigning and how the brands deal with such situations.