Mahdiye Sadedasht; reza saberii
Abstract
Artificial intelligence has revolutionized various industries over the past few years, and the advertising industry is no exception. Integrating AI into different stages of advertising ...
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Artificial intelligence has revolutionized various industries over the past few years, and the advertising industry is no exception. Integrating AI into different stages of advertising has become increasingly prevalent. This research aims to investigate the applications of AI in global advertising and to answer the question of how AI has been utilized in the Iranian advertising industry. Additionally, we seek to identify the challenges and opportunities presented by AI for the Iranian advertising sector. A qualitative research approach was employed, using snowball sampling to conduct in-depth, semi-structured interviews with six experts in the fields of advertising and AI. Following data collection, transcription, and initial coding, 20 primary codes were identified and subsequently categorized into three core categories in the second stage of coding. The first core category, "Challenges facing the Iranian advertising industry in adopting AI," addresses issues such as sanctions, internet filtering, limited big data availability in Iran, the dollar-based pricing of AI services, and other relevant factors. The second core category, "Opportunities presented by AI for the Iranian advertising industry," focuses on cost reduction, increased speed of ad production, and optimized human resources. The third core category, "Necessary actions for advertising companies to adopt AI," was the main topic of discussion. This research reveals a two-fold categorization of artificial intelligence (AI) utilization in Iranian advertising: individual and industrialized. Individual AI utilization involves advertising professionals independently learning and employing a limited set of AI tools to meet specific job requirements. This approach encounters various challenges, including the financial burden of purchasing accounts, big data complexities, language compatibility issues (particularly with Persian), and other obstacles. Industrialized AI utilization refers to the commercial development and integration of AI into advertising processes. This necessitates paid AI solutions, enabling the input of textual data for training AI models for advertising purposes. Industrialization can mitigate many challenges faced by individuals, as large advertising firms possess greater financial resources to acquire AI tools, circumvent sanctions and censorship, and justify the cost of multiple AI accounts due to diverse clientele. The industrialization of AI in advertising has seemingly created a novel business model unprecedented in scale. This new business segment may potentially surpass the entire pre-AI advertising industry. Given that the adoption of AI in Iranian advertising is still in its early stages, there is currently no systematic framework or widespread use. Limited endeavors have been undertaken in "consumer insight discovery" utilizing AI. These efforts primarily involve serving tailored advertisements based on a few consumer queries or website dwell time. However, comprehensive consumer insight discovery necessitates the collection of big data and data mining. In other stages of the advertising process, AI utilization is either non-existent or rudimentary. Currently, Iran's advertising industry prioritizes AI for designing and producing advertising content. The most common application of AI in the Iranian advertising industry is in the design and production of advertising content. Consequently, there is a growing focus on prompt writing, aiming to optimize AI outputs through precise instructions. Few applications were identified for the 'media planning' and 'evaluation and feedback' stages in Iran. One reason cited for the underutilization of AI in these stages was the perception that they are part of the broader marketing process, distinct from advertising, and that the Iranian advertising industry is more focused on content creation. Another limiting factor is the scarcity of domestic big data and challenges in accessing it. It is important to note that AI-generated advertising is still heavily reliant on human intervention, and the entire advertising production process is not fully automated. A major challenge in the adoption of artificial intelligence (AI) within Iran's advertising industry is the reductionist tendency to view AI as a mere 'tool' and its limited, personalized use. This perspective confines AI to a narrow range of applications, failing to recognize its potential to revolutionize industries. While AI has introduced a new paradigm into the global landscape, its portrayal as a content generation tool falls short of capturing its full potential in advertising. The industrialization of AI, enabling personalized content creation for each brand, is of greater significance than simple content generation. The desire of advertising companies to grow and develop is a crucial factor in their willingness to embark on this new path. Understanding AI and leveraging the vast opportunities it presents has become an undeniable necessity for advertising professionals.
Extended Abstract:
Introduction
In recent years, artificial intelligence (AI) has significantly influenced a wide range of industries. AI technologies are increasingly being adopted in sectors such as defense, healthcare, agriculture, transportation, education, and media. Among these, the advertising industry has also undergone a noticeable transformation. AI is now being integrated into various stages of advertising processes, with traditional workflows evolving to leverage AI-driven tools and strategies for improved outcomes. AI technologies have had a substantial impact on advertising processes. While the core structure of traditional advertising has not been entirely disrupted, it has been systematically enhanced and reorganized through the integration of new stages—such as consumer insight discovery, creative development, media planning and buying, and advertising performance evaluation.
At the same time, AI has enabled greater efficiency by automating many operational aspects of advertising, ushering the industry into a new phase of development. Globally, the adoption of AI in advertising is expanding rapidly. In Iran, efforts to harness AI technologies across various sectors—including advertising—have also gained momentum. For instance, the first fully AI-generated commercial was unveiled by the Iran Novin advertising agency in celebration of Yalda Night 1402 (2023) on its official Instagram page. Moreover, several Iranian companies are actively engaged in developing AI-based platforms and chatbots. Notable examples include the Persian-language chatbots “Batava” and “Chaata.” In this study, we aim to explore the global applications of AI in advertising and examine the extent to which these technologies have been adopted within the Iranian advertising industry. Furthermore, we seek to identify the key opportunities and challenges that AI presents for the future development of advertising in Iran.
Methods
Given the qualitative nature of the research questions, a qualitative approach was deemed appropriate for collecting in-depth and context-rich data from experts and practitioners in the fields of advertising and artificial intelligence. Data collection was conducted using purposive sampling through semi-structured interviews with six individuals whose professional expertise and work experience were directly relevant to the subject of the study. All participants had practical experience using AI technologies in the design and execution of advertising campaigns. They represented various organizational levels, from senior managers to operational specialists, and their hands-on engagement with the challenges of AI integration in advertising projects provided valuable insights for this research. Data were analyzed using qualitative thematic analysis. From a research purpose perspective, this study is classified as applied research, as it seeks to generate practical knowledge with real-world relevance for the advertising industry.
Findings
Following the interviews, transcription, and initial coding, a total of 20 preliminary codes were identified. In the second phase of analysis, these codes were grouped into three main thematic categories. One of the key categories pertains to the challenges faced by the Iranian advertising industry in adopting artificial intelligence. The findings revealed a range of barriers impeding the effective and timely integration of AI into advertising practices. These include hesitation and uncertainty among industry stakeholders regarding the use of AI, as well as the broader impact of international sanctions, which restrict access to advanced AI tools and platforms. Additionally, internet filtering in Iran and the limitations it imposes on digital operations emerged as significant concerns, alongside the need to strengthen the country’s internet infrastructure to support the deployment of AI technologies. The high cost of AI services—many of which are priced in foreign currencies such as U.S. dollars—was also cited as a constraint. Another critical issue is the lack of compatibility between many AI systems and the Persian language, as well as the limited availability of Iran-specific big data within global AI ecosystems. Furthermore, a general lack of interest or readiness among employers to adopt AI in advertising projects was identified as a hindrance. Collectively, these challenges illustrate the complex environment in which AI adoption in the Iranian advertising sector is unfolding.
The second main category identified in the analysis pertains to the opportunities that artificial intelligence presents for the Iranian advertising industry. In many instances, AI facilitates a reduction in fieldwork activities, a decrease in the required human workforce, cost savings, and accelerated workflows. This, in turn, allows human resources to concentrate more on creativity and other uniquely human capabilities that lie beyond the scope of AI. Specifically, these opportunities include minimizing on-site tasks within the advertising production process, optimizing the allocation of human labor, lowering production costs in large-scale advertising projects, and enhancing the speed of advertising creation.
The final category was classified as the necessary actions that advertising companies must undertake to effectively utilize artificial intelligence. This section emphasizes critical measures such as empowering human resources both psychologically and skill-wise to work with AI, enhancing proficiency in the English language, identifying and selecting AI technologies relevant to the advertising industry, and ultimately industrializing the application of AI within advertising practices.
Discussion and Conclusion
The adoption of artificial intelligence in Iran’s advertising industry remains in its early stages. AI presents both unique challenges and opportunities for this sector, necessitating strategic actions by advertising companies to leverage its benefits and overcome obstacles. Key measures include empowering human resources psychologically and technically, enhancing English language proficiency, and industrializing AI applications within the advertising process.
This study identifies two primary modes of AI use in Iranian advertising. The first is "personal use," where individual professionals adopt limited AI tools tailored to their job requirements. As highlighted in the findings, this approach faces several challenges, such as the financial burden of subscription costs, difficulties related to big data access, linguistic incompatibilities with Persian, and other technical barriers. Moreover, it is often neither feasible nor economically justified for individuals to bear such costs alone.
The second mode involves the "industrialization of AI in advertising." This requires companies to procure paid AI services essential for integrating textual data sources and training AI models for advertising purposes. Industrial adoption can mitigate many of the aforementioned challenges, as large advertising firms possess greater financial and material resources to manage AI expenses, circumvent sanctions and internet filtering, and justify diversified AI subscriptions due to their extensive client bases. The industrialization of AI thus heralds a new business model in Iranian advertising, potentially surpassing the scale of the traditional advertising industry.
Since AI use in Iran’s advertising is still emerging, systematic organization and widespread application across its four stages (consumer insight discovery, ad creation, media planning and buying, and ad effectiveness evaluation) have yet to materialize. Consequently, the bulk of AI utilization currently centers on the ad creation phase. This involves leveraging prompt engineering to optimize AI-generated content, although human involvement remains indispensable throughout the creative process. AI’s application in media planning, buying, and effectiveness evaluation is minimal in Iran. This limited use partly stems from perceptions that these stages belong to broader marketing functions rather than advertising itself, which in Iran emphasizes content production. Additionally, restricted access to relevant domestic big data hampers AI deployment in these phases.
A fundamental challenge is the prevalent perception of AI merely as a "tool" for limited and personal use. Such a narrow view restricts its potential. AI represents a transformative paradigm shift, far beyond simple content generation. Personalized content production and industrialized AI adoption hold far greater strategic importance for the industry. Advertising firms should embrace AI as an organizational solution spanning all stages of the advertising process—including text, image, and brand identity creation. Ultimately, a comprehensive understanding of AI and its vast opportunities is essential for the advancement of Iran’s advertising sector, underscoring the urgent need for industry professionals to recognize and harness this transformative technology.
