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By Jesus Mesa
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Have you ever felt like your phone or computer is reading your mind? You search for a new pair of running shoes, and suddenly, ads for sneakers appear on every website and social media platform you visit. Or maybe you casually mention a vacation to Mexico in a DM, and before you know it, your Instagram feed is flooded with hotel deals in Cancun.
It's no coincidence. As marketing embraces the latest technological trends, AI-powered advertising—using advanced data collection, prediction, and personalization—has transformed how advertisers connect with consumers.
The Context
Unlike past digital advertising methods that relied on cookies and device tracking, modern identity graphs connect real people across multiple platforms. In a recent presentation, Publicis Groupe, one of the world's largest advertising firms, detailed just how sophisticated these systems have become.
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"We address real people, not devices or cookies," said Arthur Sadoun, CEO of Publicis in the video, which is posted on YouTube. "AI is nothing without data."
Publicis and other AI-driven advertisers and data brokers argue that these technologies enhance the user experience by making ads more relevant.
What to Know
In the same presentation, Sadoun explained how Cori, Publicis' new AI-driven system, can track and engage with 91 percent of all adults connected to the internet.
"At the base level, we know who [the consumer] is, what they watch, what they read, and who they live with," Sadoun said in the presentation. "Through the power of connected identity, we also know who they follow on social media, what they buy online and offline, where they buy, when they buy, and, more importantly, why they buy."
Publicis claims its Epsilon database tracks 2.3 billion people worldwide, with 7,000 individual data points per person in the U.S. alone. It doesn't just track online purchases—it also monitors 75 percent of in-store transactions.
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With this level of insight, companies using Publicis' AI can predict not just what consumers will buy next, but when and why they'll make those purchases.
To illustrate the precision of their tracking, Publicis introduced Lola, a fictional shopper whose profile is based on real consumer data.
"At the base level, we know who Lola is, what she watches, what she reads, and who she lives with," Sadoun said. "Through the power of connected identity, we also know who she follows on social media, what she buys online and offline, where and when she buys, and, more importantly, why she buys."
But it doesn't stop there. AI can anticipate economic behaviors and shifts in brand loyalty. If data shows Lola's favorite premium juice brand is becoming more expensive while her income remains the same, Publicis' AI predicts she'll switch to a lower-priced alternative.
Instead of continuing to show her ads for the premium brand, the system automatically adjusts its messaging to promote a budget-friendly alternative from the same company. "Thanks to AI, we can do that with 91 percent of adults around the world," Sadoun said.
This kind of real-time ad targeting is becoming the norm across the industry.
Reshaping Advertising
Publicis is far from the only company using AI to refine its marketing strategies for the digital age. Major brands and advertising firms have embraced AI-driven platforms to track, predict, and influence consumer behavior.
Meta, the parent company of Facebook and Instagram, has introduced AI-powered tools that refine ad targeting in real time, leveraging user engagement, past interactions and behavioral predictions. Adobe has also integrated AI into its advertising strategy, launching a framework to manage AI-driven campaigns that promises to enhance customer experiences through generative AI.
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However, while AI makes advertising more far more personal and effective, it also raises concerns about data privacy and surveillance. Critics argue that as companies collect and analyze vast amounts of consumer data, individuals have less control over how their personal information is used.
Even when users opt out of tracking, studies suggest their data is often still collected. A 2022 report published on Arxiv.org found that many advertisers continue processing and exchanging user data despite privacy laws like Europe's General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).
What People Are Saying
Publicis Groupe CEO Arthur Sadoun: "For years, it was said that half of marketing budgets were wasted, but no one knew which half. Today, thanks to our connected model, our clients do."
Adobe CFO Dan Durn: "Our ambition is for all Adobe revenue to be influenced by AI."
What Happens Next?
While AI is making digital advertising ever more targeted, concerns about data privacy and surveillance persist. Publicis and other advertising firms argue that these new AI tools makes marketing more relevant to customers and less wasteful, but regulators — particularly in Europe — remain wary of systems that commodify vast amounts of personal data.
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