Artificial Intelligence: The Next Frontier Of Programmatic Buying

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Spark Foundry

Artificial Intelligence (AI) and machine learning are on the verge of revolutionizing programmatic media buying, and the reason is simple: In today’s marketplace, AI has the ability to do far more than humans can handle on their own. Machine Learning, a broad area of computer-aided decision making, has been used in many aspects of marketing for years.

Now in 2017, more powerful Deep Learning technology, often synonymously referred to as Artificial Intelligence, has become increasingly valuable for marketers with useful products like chatbots and insight tools.

For the first time, humans are successfully teaching machines to learn because we’re getting smarter at building them. Human limitations and inefficiencies are mitigated thanks to AI and machine learning, which work around the clock and continuously improve: When a machine is wrong, it can now correct itself, further improving its accuracy, speed, direction, and ability to avoid future mistakes.

Also Read: Programmatic Clean-Up on Brand Safety: It’s Just a Conscious Process

Humans Are Key to Unlocking AI’s Potential to Maximize Programmatic Buying

While efficiencies from AI will help revolutionize programmatic jobs, human intelligence is still crucial to unlocking its potential while maximizing programmatic buying. Although tech and other industry leaders have raised concerns about the potential negative effects of AI development on jobs, in media, it serves an enhancement rather than a replacement. Humans are instrumental in feeding data and innovation into DSPs to oversee and power AI algorithms, and have the ability to hand over operational tasks to AI in order focus increased attention on strategizing refined and more sophisticated ways of measuring performance across channels and screens to drive efficiencies faster than ever before.

Also Read:  Why The World Needs 5G And How It Will Impact The Programmatic Advertising & Publisher Industries

AI-Powered Programmatic Buying Is Delivering

At Spark Foundry, our Ad Tech team and partners have been actively working at the forefront of this new wave of advanced prediction technology by testing out new ways to more effectively spend clients’ media budgets. Our team works with programmatic partners like Cognitiv that are incorporating deep learning into their algorithms.

These efforts effectively harness the power of AI to dynamically score each user, allowing them to accurately differentiate, bid on the most valuable consumers, and drive more efficient conversions.

Through the development of Deep Learning buying technologies from partners like Cognitiv, we’ve been able to make large improvements in clients’ ROI. Another big advantage Deep Learning provides is the ability to automatically build separate, custom buying algorithms for each client that scale and learn on their own.

The more data that is given to one of Spark Foundry’s Deep Learning algorithms, the better the results – meaning over time, the algorithm gets older and “wiser.” These technologies also provide the ability to automatically adjust activations in response to changing market dynamics – including amending new creative, changing website content, or incorporating seasonal differences. Early successes have shown that robots working while we sleep identify audiences who are more likely to convert or yield an action faster than a human, given the fact that humans take time to do basic things like eating and sleeping.

We have seen early-stage efficiency gains and are working with our partners to scale the buys and tweak the algorithms accordingly.

Also Read:  Decoding The State of Programmatic Advertising and Ad Formats in 2018

The Next Frontier

Throughout the rest of 2017 and beyond, brands and advertisers need to embrace the power and opportunities that AI, bots, and digital assistants provide. While these products represent a new and somewhat daunting evolution in the industry, leveraging these technologies is easier than it seems.

Marketers who explore this new frontier will realize significant enhancements that maximize ROI for their brands and clients utilizing the latest and greatest technology the industry has to offer.

Also Read:  Five Key Trends for Programmatic Advertising in 2018

  1. […] Artificial intelligence (AI) is playing a role in many tech-centered industries with a dynamic market structure, such as the airline business and retail companies, so it’s no surprise that ad sales management is next. […]

  2. […] Artificial Intelligence: The Next Frontier Of Programmatic Buying […]

  3. […] Artificial intelligence (AI) has been playing a role in a number of technology-centered industries with a dynamic market structure such as retail companies, hotels, and airlines. Therefore, it is no surprise that AI is on the rise in ad sales management. […]

  4. […] Künstliche Intelligenz (KI) spielt eine Rolle in einer Reihe von technologieorientierten Branchen mit einer dynamischen Marktstruktur wie Handelsunternehmen, Hotels und Fluggesellschaften. Daher ist es nicht verwunderlich, dass die KI im Bereich des Anzeigenverkaufsmanagements auf dem Vormarsch ist. […]

  5. […] combination with AI, programmatic technology will continue to put down roots as it expands from media buying into the ad […]

  6. […] Programmatic advertising is the use of automation in buying and selling adverts. The thought process behind it is you pass the reins onto a computer that crunches data for you to make informed, relevant purchase decisions. This has been going on for years, but recent advancements in artificial intelligence and machine learning mean there’s a smarter system on the horizon – and it has the ability to outperform you. […]

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