The Rise of AI in Mobile Advertising: Unlocking New Potential for Indian Brands

In the rapidly evolving world of digital advertising, Indian brands find themselves at a pivotal crossroad, where innovation meets tradition. With mobile devices becoming the primary screen for consumers, the demand for effective mobile advertising has never been greater. However, brands in India face unique challenges that can hinder their ability to connect with the right audience. From the complexities of diverse consumer behaviour to the intricacies of measuring return on investment (ROI), the path to successful mobile advertising is fraught with hurdles.

Enter artificial intelligence: the game-changing technology that promises to redefine how these brands approach their advertising strategies. AI-powered ad tech solutions are stepping in to help navigate these challenges, offering unparalleled capabilities in targeting specific demographics, personalizing user experiences, and accurately measuring campaign effectiveness. This feature story delves into the specific pain points faced by Indian brands in the mobile advertising arena, exploring how advanced AI tools are transforming their strategies for better engagement and return on investment.

While India’s digital population of 750 million continues to grow, achieving a growing share of voice and market penetration and doing so profitably is a key challenge for Indian advertisers, states Sudeep Singh, Senior Growth Manager, Moloco.

According to Singh, digital ad spending in India has reached approximately $9.5 billion to $10 billion in 2023. With this significant investment, advertisers are increasingly leveraging data and exploring new channels that use advanced technology to maximize their return on investment (ROI).

“Operational Machine Learning addresses these challenges by focusing on three core factors: models, infrastructure, and data. These pillars work behind the scenes to deliver ads tailored to individual user behaviour. By analysing patterns in data, ML-powered systems ensure ads are relevant and impactful, whether by recommending products based on past interactions or adjusting creatives for specific cultural and linguistic contexts,” says Singh.

This approach, says Singh, boils down to showing the right ad to the right user at the right time and in the right context. For example, he adds, ML models predict user intent and optimize campaign delivery dynamically, while robust infrastructure ensures scalability, and data-driven insights drive personalization at scale. He points out that in India’s complex and competitive market, ML-powered solutions empower advertisers to navigate diverse audience needs, connect meaningfully, and drive measurable outcomes.

AI-powered technology is transforming mobile advertising, with conversational engagement emerging as a key trend, states Milind Pathak, Executive Vice President- Product & Marketing, Route Mobile.

“Brands are increasingly leveraging platforms like WhatsApp, RCS, and voice assistants to foster real-time, two-way interactions with their audiences. These channels, powered by AI and cloud communications, enable hyper-personalized experiences by analysing customer data to deliver relevant, targeted campaigns,” says Pathak.

AI-driven ad formats

Indian brands are leveraging AI-driven ad formats, such as interactive ads, video ads, and programmatic ads, to enhance customer engagement and conversions on mobile devices at scale.

In today’s attention economy, where people’s attention spans are rapidly decreasing, brands face a significant challenge: finding ways to capture and hold consumers’ attention.

According to Sudeep Singh, the key is to create “stop-scroller” ads that grab users’ attention in a world where attention spans are extremely short.

“4hrs:17mins and growing – That’s the average activity time of a user today. However, the attention span of a user is at a meagre 3 seconds and dwindling! With shrinking attention spans, creating “stop-scroller” ads that grab attention within the first three seconds is crucial,” points out Sudeep Singh.

“In a programmatic landscape, videos and interactive creatives have become key formats which are able to do just that! AI-powered interactive ads enable users to actively engage by swiping, tapping, or answering questions, creating immersive experiences that drive higher engagement, brand recall, and audience connections. Meanwhile, personalized video ads analyse user preferences and demographics to deliver highly relevant content. This helps increase watch times, engagement rates, and conversion potential,” he adds.

According to him, AI supports creative variation by generating multiple assets for A/B testing, while machine learning (ML) optimizes real-time bidding and dynamic targeting. By analysing vast data sets, ML ensures that the right ads reach the right audience at the right time, refining targeting to maximize ROI and scale effectively.

“By combining AI for creative assets generation, ML for performance measurement, and continuous experimentation, advertisers can refine the entire creative lifecycle – ideation, deployment, measurement, analysis, and optimization while ensuring that users experience is at the core of any asset creation process,” says Singh.

Milind Pathak highlights a significant trend: the emergence of AI-powered chatbots that offer personalized recommendations, streamlined transactions, and a more human-like experience, going beyond just answering basic questions.

“Another is the integration of generative AI to create dynamic, context-aware conversations, enhancing customer engagement. For example, an FMCG brand could use AI to engage users with tailored offers based on their location or previous interactions, creating a highly relevant, localized experience. As conversational engagement evolves, the focus is shifting from one-sided advertising to interactive, value-driven communication that strengthens customer relationships and drives measurable outcomes,” says Pathak.

Data analytics and transparency

Data analytics and transparency play a significant role in AI-powered mobile advertising, making it imperative for Indian brands to ensure accountability and measurability in their AI-driven ad campaigns.

Sudeep Singh reckons that data is a cornerstone of any successful advertising platform along with being transparent to the advertiser – understanding where campaigns ran, what impressions were shown to users, and the entire user journey beyond traditional attribution mechanism!

He adds that AI-driven analytics empower advertisers with deeper insights into user behaviour, enabling precise targeting and real-time performance measurement.

By analysing large datasets they can uncover trends, preferences, and engagement patterns, allowing advertisers to deliver highly tailored messaging to the right audience. This targeted approach not only enhances relevance, but also drives higher engagement and conversions, he adds.

“To ensure accountability, third-party mobile measurement partners (MMPs) are plugged in with our platforms and use sophisticated attribution models to track every touch-point in the user journey. These models accurately attribute as well as show contributing channels to enable precise ROI measurement and reveal the truly incremental channels that contribute to conversions.AI tools further enhance accountability by tracking advertiser key performance indicators (KPIs), such as click-through rates (CTRs), Installs per mille (IPMs) and conversions. This data-driven approach allows brands to continuously evaluate and refine their campaigns, improving overall performance. Data-driven analytical approach and transparency of a channel form the basis of running successful campaigns and ensuring marketing dollars are spent on incremental avenues,” Singh concludes.

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