A Study Assessing the Influence of AI-Based Targeted Advertising on Digital Engagement of Consumers

Abstract

Artificial Intelligence is transforming how efficiently targeted advertising works in digital marketing. Unlike traditional methods, AI advertising leverages big data, predictive analytics, and machine learning algorithms, allowing for the automated creation of personalized marketing messages for online consumers at scale. This research seeks to assess the impact of AI-enabled targeted advertising on online consumer engagement through the constructs of attention, interaction, and trust, in addition to imprinting purchase intention. This research employs secondary data. This research determined that AI-targeted advertising has improved the precision targeting of consumers relative to the relevance and effectiveness of digital marketing campaigns overall, which led to enhanced consumer engagement and higher conversion rates. Positive consumer experiences can arise from the tailoring of marketing messages. On the downside, lax data privacy, perceived intrusiveness, and ethics can erode trust and, ultimately, engagement. Sustainability of loyalty calls for a fusion of personalization and transparency. In the context of online shopping platforms, strengthened consumer engagement is primarily attributable to AI-targeted advertising. It enhances customer experiences and brand loyalty when it is utilized effectively and properly. There should be transparency and ethical data usage while optimizing the benefits of AI-based personalization strategies