Enhancing Ad Targeting Optimization through AI-Driven Techniques: Utilizing Reinforcement Learning and Genetic Algorithms

Abstract

This research paper explores the integration of artificial intelligence-driven techniques, specifically reinforcement learning and genetic algorithms, to enhance ad targeting optimization in digital marketing. The study begins by identifying the limitations of traditional ad targeting methods, which often rely on static models or heuristics that do not adapt efficiently to the dynamic nature of consumer behavior and preferences. Through a detailed examination of reinforcement learning, the paper demonstrates how this technique can facilitate continuous learning and decision-making by modeling the ad targeting problem as a Markov Decision Process. Reinforcement learning agents are trained to maximize a long-term reward function, which is designed to optimize key performance indicators such as click-through rate and conversion rate. Concurrently, genetic algorithms are employed to fine-tune the parameters and structures of the targeting models, simulating the principles of natural selection and evolution to discover optimal solutions in a high-dimensional space. The integration of these two approaches creates a robust framework that adapts in real-time, leveraging large datasets to refine targeting strategies that are both personalized and scalable. Experimental results from field trials indicate a substantial improvement in ad performance metrics compared to baseline models. The study also investigates the computational efficiency and scalability of the proposed methods, ensuring their applicability in real-world marketing platforms with vast user bases. The paper concludes with a discussion on the implications of AI-driven ad targeting on consumer privacy and ethical considerations, proposing guidelines to balance technical advancements with user trust and data security. This research advances the field of digital marketing by providing a sophisticated toolset for advertisers aiming to deliver highly targeted and effective ad campaigns.