The usage of artificial intelligence (AI) in programmatic advertising was not brought about by the launch of ChatGPT in November 2022. The advertising industry was much faster to notice the potential of the technology, and
-based ad tech quickly mushroomed into a flourishing sector. Now the assistance of AI can be applied in every stage of the
process, and the scope of tasks delegated to AI is broad. It may range from simple data collection and analysis to creating consumer segments and ad targeting. AI can also be entrusted with money. It can be tasked with optimizing how the ad budget is spent and with the programmatic bidding process. Among many other applications, AI can help detect programmatic ad fraud or use facial recognition to target ads. This technique is used in
, which adjust the ads they present to the age, gender, or even mood of the passing audience.
Benefits of AI in programmatic advertising
Among the most basic motivations to incorporate machines in any process is relieving humans of repetitive and mundane tasks and delegating them to automation management and quality control. However, in programmatic advertising, AI can do much more than that. It can save time by doing away with lengthy negotiations between advertisers and publishers – decisions are taken instantaneously. If paired with analytics tools, AI-driven data collection can deliver deeper insights into audiences and competitors. This provides a more complete understanding of the market and the needs and wants of the consumer. Such knowledge, supplemented with targeting, tends to achieve higher effectiveness and a better return on advertising spending (ROAS). AI-powered
ad fraud prevention platforms also contribute to higher ROAS. Additionally, marketers name ad effectiveness measurement possibilities as one of the key
benefits of AI use in digital advertising.
Success stories
As the sector develops and matures, AI tools will be asked to solve most of the
challenges advertising faces. Some platforms are already firmly established solutions. AdRoll, founded in 2007, applies artificial intelligence to consumer data analysis and retargeting. TubeMogul – a part of the
Adobe Advertising Cloud family – is a programmatic video advertising platform that uses AI to personalize ads based on user behavior. Snorkel AI, on the other hand, was founded as recently as 2019 and employs AI to do a mundane, repetitive job that would otherwise have to be done manually: programmatic data labeling. In this process, raw data such as images, videos, or text files receive a label to be used in the next step of the programmatic advertising process (e.g. analysis and segmentation). The company’s automatized approach gained popularity, and as a result, it became one of few AI companies to reach a billion-dollar valuation in less than two years.
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