By Bobby Carlton
As digital advertising continues to evolve, data will become more important. This is why it’s important that marketing organizations have the necessary tools and resources to access and use high-quality data. Unfortunately, it can be hard to get access to data that is both clean and unbiased.
A type of artificial intelligence (AI) known as synthetic data is capable of improving the quality of data and preserving its privacy. It is created through the artificial creation of data sets that are not derived from real-world observations. This method ensures that the behavioral and statistical aspects of the data are not compromised.
Despite marketers' concerns about the potential impact of synthetic data, it can actually be very powerful. Because of its ability to create data sets that are both clean and unbiased, it can be used to improve the effectiveness of marketing campaigns.
Within the next couple of years, the use of artificial intelligence in targeted advertising is expected to become more prevalent. As a result, marketers should start preparing for the day they will start accepting synthetic data as a standard part of their operations.
One of the most important factors that marketers should consider when it comes to using synthetic data is its ability to address the privacy concerns associated with sharing data across multiple partners.
In addition to being beneficial for targeted digital marketing campaigns, synthetic data can also help solve the privacy issues associated with sharing data with other partners.
Although the technology used to anonymize data sets is still in its infancy, synthetic data can be used to protect the sensitive information that customers provide. This includes their social security numbers, email addresses and phone numbers.
Unfortunately, the process of anonymizing and sharing real first-party information can be very time-consuming and expensive. With the creation of synthetic data, it takes only a fraction of the time and effort to create a completely new set of data.
An insurance company in the U.S. used synthetic data to create a new set of data that was completely anonymous and did not contain any original information. This method ensured that the company was following proper regulations and protecting the privacy of its customers.
Through the use of synthetic data, the company was able to analyze its customers' transactions in three days instead of six months. This method could also help them create customized customer journeys and improve the effectiveness of their marketing campaigns.
According to Gartner, by 2025, the use of synthetic data will help companies reduce their personal data collection efforts. This method will allow them to avoid around 70% of privacy violation penalties.
Synthetic Data Helps Marketing Professionals Advance Ad Creatives
Machine learning and artificial intelligence are becoming more prevalent in marketing. One of the technologies being used by marketers to benefit from the use of synthetic information is deepfake, which is a type of artificial media that can replace audio or videos.
Despite the controversy surrounding the use of deepfake technology, it has been used in successful marketing campaigns.
A beauty company used deepfake technology to create stand-ins for mothers who were being urged to use harmful beauty advice on social media. The results of the campaign were shocking, as the mothers were disgusted by the messages their digital selves were delivering.
They were then motivated to have more informed conversations with kids about what they were seeing on their feeds, and the beauty brand was able to use deepfake technology to deliver a more authentic campaign message, which resulted in lower production efforts and costs.
As the field of digital marketing continues to evolve, the use of deepfake technology will become more prevalent in advertising. By 2025, Gartner projects that 30% of all outbound marketing messages will be generated using synthetic data.
Synthetic Data Enhances Product Testing and Development
According to Gartner, by 2030, almost all artificial intelligence models being used will be based on video and image-related data. One of the most common applications of synthetic data is training models to develop new products. This method can help improve the quality of products and reduce costs.
Another example is how an auto maker used training videos, which are presented using synthetically generated scenarios that are impractical to capture in real life. Through the data collected from these tests, the AI can then be trained on how to react to different scenarios without putting humans in danger.
As a result of this approach, Gartner projects that the amount of real data that will be required for machine learning will decrease by 70% within three years.
Marketing professionals can use AI and synthetic data to help a company create thousands of different versions of a commercial or ad campaign in just a fraction of the time it would typically take. What normally took years of planning would only take weeks. This method would use synthetic data to help a company better connect with its customers and deliver a more authentic and relatable message that was more engaging and meaningful.
Today, marketers are faced with the practical implications of synthetic data. They need to start thinking about how they can use it in their marketing strategies. In addition to the practical implications, marketers also need to consider the various regulations that apply to the use of synthetic data.
Before implementing synthetic data, marketers should first confirm the claims of the vendors that provide it. They should also choose platforms that can create and preserve data sets that contain behavioral and statistical attributes.
Before implementing deepfakes, it is also important that marketers thoroughly analyze the potential of this technology to improve their ad campaigns and should partner with experts from various departments such as R&D and IT to analyze the potential of the technology.
Due to the security and privacy concerns surrounding the use of real-world data, it has become harder for marketers to access the necessary tools and insights to improve their marketing. With the help of synthetic data, they can now circumvent these restrictions and gain access to various applications and techniques.