Numbers, Equations and Ads. Part 2: The A.I. Code of Advertising Success

There is an old saying that goes: "What's the use of running if you are not on the right road." If we are to follow the same notion, then Artificial Intelligence technologies are the game-changer that helps decision-makers not only find the right path for their strategies but to also run faster than the others. In Part 1 of these series we spoke about the reason behind the use of Mathematics in the development of programmatic advertising technologies. Now, we’ll let you discover how Artificial Intelligence Engines used in digital advertising transform the way advertisers connect and create experiences for their consumers.

As we have often stated before, the advances of the programmatic technologies in the digital advertising industry benefit businesses on а complex level - higher ROAS, better understanding of audience behaviour, in-depth market research and business intelligence.

And it is all done through the power of Mathematics.

 

Code: Veni Vidi Vici

Here is the breakdown: 1) Machine Learning is the core function of A.I. engines; 2) Machine Learning is based on algorithms that can learn from data.

Put so simply maybe it takes away from the magic but on another level this demonstrates the ingenious nature of Mathematics - a complex process of exploring vast amounts of information is shrunken down to a powerful equation. Now combine this with the natural ability of AI engines (i.e. robots) to be 24/7 active in the marketplace and you’ll see the difference they make. The understanding of the market dynamics and the cracking through the consumer behaviour patterns is transformed into a much more simple and advanced process.

The algorithmic nature of the AI engines, allows them to act swiftly in real-time and to easily track the right audience segments for the advertising message. They can learn when is the optimal time of interaction and decide at what price it will be most appropriate to bid for the right ad space. Robots can also act on a more comprehensive strategic level. With the help of their fast-learning nature, AI engines can spot a change in the market and understand the need to go and investigate the reasons behind it. Furthermore, they can also decide when is best to exploit a proven effective buying strategy and when is better to explore new tactics.

 

The new algorithmic boost

Until recently, and because the only available practice was such, the only way for advertisers to use AI engines for their campaigns, was to entrust them completely in the hands of the robot. This of course only fueled the debate of the use of technology in our work and how they might take away the “human touch” in digital advertising. Are we entering a new industrial revolution? Are robots going to take control of the advertising process?

No. As specialized mathematicians ourselves, we in Skylads endeavoured to find the solution for this issue. The industry is yet to develop further and mathematical models are already effectively changing the available technologies. Laveraging on this, we formulated a new breed of campaign optimization robot - R.Skott.io - which acts as trusted co-pilot whenever needed. Unlike the other available models, R.Skott is entirely under the control of his users - they decide if, when and for how long to trust him to empower their campaigns.

As opposed to the famous notion that AI will cause the downfall of humanity, rather so their implication is significantly more positive and less so dark-futuristic. In Skylads we aim to prove that AI technologies are valuable addition in the digital advertising market that reshape the industry one campaign at the time.