How Generative AI is Changing Digital Advertising for Franchises in 2025

December 20, 2024
By   Steve Buors
Category   Franchise Marketing
How Generative AI is Changing Digital Advertising for Franchises in 2025

Generative AI will become a foundational gamechanger for franchise marketers in 2025. Discover how this technology is reshaping marketing.

Generative AI is transforming the way marketers create content, personalize customer experiences, and target advertising. In 2025, we will continue to see a proliferation of AI-driven tools that produce personalized ads, videos, and written content, allowing companies to connect with their target audiences on a more intimate level. These AI-generated materials are not only tailored to individual preferences but also optimized for engagement, improving click-through rates and conversions. Brands and marketing platforms like Meta, Google, TikTok and others will continue to leverage AI to refine their targeting and messaging to deliver hyper-personalized interactions that resonate with consumers.

This article is part of a series that examines major digital marketing trends that franchise systems should be aware of in 2025. Check out our other articles in the series.

Artificial intelligence (AI) is being actively integrated into all major advertising platforms to enable greater automation, personalization, and measurement. Ad platforms such as Meta and Google have incorporated predictive analytics and machine learning to allow generative AI to serve dynamically created ads and/or suggest products that are in line with the user’s past behavior, established needs, and potential preferences, resulting in better customer experience and increased likelihood of sales.

Generative AI can adjust to real-time shifts in customer behavior and preferences. For instance, if a customer views a product on the website and later engages with a chatbot, Generative AI can use this data in the conversation, offering a smooth, context-aware experience.

Customers say they value the convenience of personalization. Approximately 47% of people indicate that they appreciate personalized deals aligned with their buying needs, with 42% interested in customized product recommendations. Personalization has also found to increase trust by 25% and make shopping less overwhelming (38%).

In addition to making content and advertising personalized to the individual based on behaviors and attributes, franchise companies have the unique opportunity to use their multi-location footprint to programmatically create content unique to the markets where they operate. This involves personalizing content based on where the person lives or works.

This can be as simple as incorporating the name of the pertinent city/neighborhood or using local photography. Combining personalization and localization in this way allows franchise companies to create advertising designed to stand out to consumers, which dramatically increases conversion at the local level.

Generative AI is changing digital advertising for franchise companies

Personalization and localization are powerful tools for franchise companies, and we strongly recommend actively exploring them to see how they can be applied to your business.  Although the concept of personalization may seem overwhelming to implement, most major advertising platforms have incorporated easy-to-use tools that are openly available to anyone:

Google Performance Max

Performance Max uses machine learning to dynamically create promotions across all of Google’s properties, including YouTube, Display, Maps, Gmail, Discover, and Search. All the advertiser needs to do is set a conversion objective (such as website sales or form completions), upload a company logo and provide some creative options (images, video, copy). Google then combines the assets in different combinations to create ads that are optimized both for the platform they are being displayed on and the user who is viewing them. As the system gains data, it “learns” how best to optimize ad delivery based on the advertiser’s business objectives.

Meta’s dynamic creative

By leveraging advanced algorithms and real-time data, Meta can personalize ad content to maximize engagement and conversion rates. Dynamic creative combines various media elements, like images and videos, with ad components such as text, audio, and calls-to-action, and rearranges them in different ways to enhance ad performance. Meta may also add elements such as music and text overlays based on user preferences or vary the aspect ratio based on the placement. This approach enables automatic creation of personalized ad variations for each viewer, delivering scalable results. Meta has also introduced generative AI creative tools that quickly create different image backgrounds, generate alternate captions, and more, allowing marketers to easily create and test ad variations.

TikTok Dynamic Showcase Ads

TikTok’s dynamic ads are called Dynamic Showcase Ads (DSA). They are personalized video advertisements generated in real time from an ad template. This template contains product information from a constantly updated product catalog. The main advantage of Dynamic Showcase Ads is the fact that they are fully automated and require only a well-prepared product feed from the advertiser.

Top Franchise Digital Marketing Trends for 2025

 

Interested in learning more about the topics presented in this article and other franchise digital marketing trends for 2025? Be sure to download our guidebook here.

 

 

Check out the other articles in our series below:

WRITTEN BY

Steve Buors

Steve has over 20 years of digital marketing experience and has earned a reputation for being at the forefront of emerging digital trends. As the CEO of Reshift Media, Steve specializes in crafting digital strategies that help businesses attract loyal and repeat customers, expand brand awareness, and ignite innovation. A tenacious and innovative powerhouse, Steve is a sought-after consultant and speaker. His knack for uncovering hidden opportunities and driving growth is unparalleled.

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