Deconstructing the role of artificial intelligence in programmatic advertising: at the intersection of automation and transparency

Abstract

ABSTRACT With the increasingly sophisticated improvements in artificial intelligence (AI) technologies in marketing communications, a gap prevails between heightened levels of excitement around it and high-level application. Consequently, this topic necessitates in-depth investigation to prepare for future changes. This study examines the role of AI in programmatic advertising through a quantitative content analysis of AI-enabled digital programmatic advertisements. Although the idea that sponsorship disclosure, appeals, and sentiments are important in persuasive messages has been documented, this study extends existing literature by examining these concepts within AI-enabled programmatic advertising. Sponsorship-linked marketing and congruence theory guided this study. The results showed that only about half of the ads revealed sponsorship information. Further, the brand-sponsor association was not clearly established in the ads. A sentiment analysis showed the prominence of positive sentiments in the ads. Additionally, the ads mostly used product- and consumer-focused appeals. Theoretical and research contributions and strategic marketing implications are discussed.