What Does the AI Revolution Mean for the Digital Programmatic Advertising?

Artificial Intelligence (AI) is becoming a more integral part of our lives than you might suspect. From Siri to BMW’s iGenius, leading businesses are already dedicating large portion of their time and money to the AI advancement. A brief glance at the numbers only in the last 5 years shows the vivid change. According to AI company Quid, the global spend on AI has jumped from USD$1.7bn in 2010 to USD$14.9bn in 2014, with 50% year-on-year growth predicted in 2015. Wired states that in 2014 Google, Microsoft, IBM, and Pinterest all acquired AI companies, with spend on AI growing 62% year-on-year since 2010.

AI is no longer something we read about in the books. It is here, transforming our world and leading it to a new age of business opportunities.

What does this mean in terms of the advertising sector?

Well, we have already felt the change - thanks to the programmatic media buying AI-powered solutions (e.g. Campaign Optimization Engines) are already part of our digital advertising landscape. Indeed, the global digitization has brought up a wave of AI innovation in the advertising sector that we as technological vendors can be only proud of.

Here we have outlined two specific directions in which the AI advancement has and will continue to have even more effect in the years to come:

 

1. Stronger Advertising Strategy

Machine Learning algorithms, which constitute most of the AI solutions in the AdTech field, allow a new level of market explorations. 24/7 market exploration to be more precise.

Let’s take for example the Campaign Optimization Robots - a trademark for the programmatic advertising sector. From one side the robot finetunes buying bids and helps advertisers reach significantly better results with their campaigns. From another - it enables advertisers to expand their horizons. The robot doesn’t need sleep nor rest, it is always always active in the market. This allows him to notice every slight change in the market behaviour and adapt accordingly. This also enables him to explore and see opportunities that weren’t noticeable before. Moreover, its algorithms can calculate the certainty of the opportunity and act only if the action is going to bring value to the campaign.

Having such aid at your side is an immense advantage from a strategic point a view. Advertisers can now expand, modify and adapt their decisions, already ensured of the outcome.

 

2. Improved consumer knowledge

We have already reached a turning point in the industry when to speak about Big Data and data-driven decisions is completely normal. Indeed data has transformed the way marketing and advertising work.

The massive data stream coming from social media channels only presents an incredible opportunity to understand better consumer interactions and behaviour. The need to find effective and easy solutions to manage this bulk of information has never been more pressing. Where there is a need, there is a solution. The AdTech market has particularly focused on developing new and better algorithms to help advertisers unravel the mystery of their data coming from social media channels (as mentioned earlier) plus their CRM systems and websites too.

The essence of the Data Management Platforms is not only to collect all this input in one place but to produce useful and concrete information out of it. Its AI-powered algorithms explore the data received and build unique consumer profiles and audience segments which shed more light into the consumer path to purchase. Thus they enrich the knowledge and understanding of the consumer behaviour and enable advertisers to act in a more relevant way.

The most important advantage in a strict organizational perspective is that AI solutions provide output that is easily accessible to all employees without the need for them to have a degree in Data Science.

We are at the beginning of the AI revolution and this topic will continue to be passionately discussed for some time to come. Whatever the discussions may be one thing remains undisputable. AI lies in the heart of the digital advertising industry today. And it will be there tomorrow.