As of early 2026, AI significantly enhances ad targeting by analysing vast datasets to predict which customers are most likely to convert, moving beyond simple demographic targeting to behavioural and intent-based approaches.
- Predictive Audience Modelling: Current systems include AI algorithms that build detailed profiles of your ideal customer based on first-party data (your website visitors, customer lists) and aggregated third-party data.
- Dynamic Creative Optimisation (DCO): Platforms now features AI that automatically adjusts ad copy, images, and calls-to-action in real-time, personalising ads for each individual user.
- Lookalike Audience Expansion: AI identifies users with similar characteristics to your existing customers, expanding your reach to highly relevant potential clients.
- Automated Bid Management: AI algorithms optimise bids across platforms like Google Ads and Meta Ads, maximising your return on ad spend (ROAS).
In 2026, Australian businesses must also consider the evolving privacy landscape. AI-powered targeting is increasingly focused on consented data and privacy-safe methods, aligning with updated Australian Privacy Principles (APPs). Platforms are prioritising features like differential privacy and federated learning to protect user data while still delivering effective targeting. This means a greater emphasis on first-party data strategies and transparent data usage policies.
Instead of navigating these complex AI systems and ensuring compliance yourself, let ROI.com.au handle the intricacies of AI-powered ad targeting for your business. We can take care of all this for you. Contact our team today to discuss how we can optimise your campaigns and drive growth.