The increased use of Artificial Intelligence (AI) in marketing has ushered in a new era of personalized advertising, changing how brands interact with consumers. This thesis aims to understand how AI-powered ads affect consumer behavior, focusing on personalization, engagement, and ethics. Our research explores this relatively new field. While previous studies have looked at AI's technical side, advertising metrics, and advantages over traditional methods, the unique nature of AI-driven advertising means there's more to learn about how it impacts consumers. We have several objectives: to understand how consumers view AI ads compared to traditional ones, to uncover feelings about personalized content and targeting, to explore how personalized ads affect consumer engagement and attention, to assess trust in AI ads, and to examine privacy concerns. We also study how AI-generated product recommendations influence buying intentions. Our research provides valuable insights for marketers, businesses, and academia. We shed light on AI's role in advertising and how it influences consumer behavior. Understanding how consumers react to AI ads helps with marketing strategies, improves customer experiences, and helps businesses allocate resources more effectively. The thesis is organized into sections, including a thorough review of existing literature, an exploration of AI's role in advertising, ethical considerations, and a detailed look at consumer behavior in the context of AI ads. We also include case studies and discussions on future trends in AI advertising. As we study the changing landscape of AI-powered advertising, we uncover emerging trends and challenges that affect consumer behavior. We address these trends, highlighting potential opportunities and concerns as AI technology evolves in advertising. In our quest for practical insights, we offer actionable recommendations for marketers and advertisers entering the world of AI advertising. These insights prioritize ethical and consumer-centered approaches, ensuring that AI ads are optimized while maintaining consumer trust. In summary, this thesis illuminates the intricate relationship between AI-powered ads and consumer behavior. By analyzing personalization, engagement, and ethical considerations, we offer valuable insights that contribute to the fields of AI advertising and consumer behavior, providing a robust foundation for future exploration and study.
(EN)
Technical University of Crete
