AI For Advetising
Buying and selling of Ads used to be mediated by humans but with the advent of new technologies and advanced software this is now programmatically done by computers.
What is programmatic advertising?
Programmatic Advertising is the technology infrastructure that enables the buying and selling of digital advertising. There are two sides at play here. The demand side and the supply side. The demand side is used by brands and agencies to decide which impressions to buy and how much to pay for them and the supply side is used by publishers to sell ad space to brands. This process used to be handled by humans but with the advent of modern technology, this was soon automated by computers.
As the popularity of programmatic advertising grew, another subset of technology grew with this known as Real Time Bidding (RTB). RTB involves automated buying and selling of ad impressions in real time through auctions. Here’s how RTB works
When a visitor lands on a web page, a request is sent to an ad server by the browser. This ad request is put on an exchange where software can bid on the impressions. Advertiser’s software analyzes the impressions and decide if they want to bid or not and if they do decide to bid then how would that happen. The exchange collects all the bids and awards the ad spot to the winner or the highest bidder. This all happens at frictions of seconds while the web page is loading. According to this report from eMarketer, 44% of the digital display ads will be brought in via RTB.
Existing rule based algorithms can execute rapid bids but they cannot predict consumer behaviour and make decisions on what bids to place and for how much. With growing datasets, it is now important to transition to the next stage of technology which can learn patterns hidden in huge data sets and optimize bidding and delivery to achieve higher ROI.
AI Software can transform how impressions are bid on, how ads are created and served to customers. This will enable companies and business to gain significant competitive advantage and yield phenomenal results. AI software can group or cluster this data to create user profiles. It learn complex patterns hidden in the data that are impossible for humans to see or understand. With all the data and prediction capabilities, the AI software can enter into an RTB auction and will know how to maximize conversion rates by serving the right ads to the right customers.
AI can also maximize the effectiveness of the creative assets. Marketers can create of pool of ad creatives and the AI software can automatically serve the best ad to the user which it thinks will result in highest conversion. This process is called Dynamic Creative Optimization. The software continually tests the creatives in order to learn which creative is converting better with which user group.
Deploying AI powered RTB and Ads system can be extremely beneficial for business.
A lingerie brand called Cosabella saw an increase of 336% return on ad spend after deploying AI powered ad tech.
A New York based Harley Davidson dealer saw an increase of 2930% in it’s lead activity in just 3 months of deploying an AI powered Ad tech solution. The year after that they tripled their sales.
Interested in finding out how this new technology can help your business?
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