Artificial Intelligence applications in programmatic advertising

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The programmatic advertising emerged with the idea of automating the process of creating digital ads, from the purchase of spaces at the lowest price, placement of ads with the highest profit and the choice of the users that have the characteristics that the advertiser requires.

Unlike the traditional process in which many interactions between people, requests, exchange of documents, manual data capture, negotiations and approvals are required, to name a few.

It’s doing it completely between computers.

Auction optimization

Within the programmatic purchase of advertising, when a user enters a site, an auction is conducted in real time and according to their profile, several advertisers who are interested, enter a contest in which the highest bid wins the right to present its ad.

With artificial intelligence one could determine which advertisers will have more possibilities to bid and win in the auctions at the most reasonable price for them, to avoid participating in bids that are outside their threshold and reduce administration costs.

This application helps lower the cost of infrastructure and improve response times by filtering the number of participants in each auction by staying only with those who have a greater chance of winning.

Reorder data efficiently

When you have huge amounts of structured data, such as those generated in digital marketing, you need a tool that is able to take, process and order it, both existing and new ones that are created every moment, in order to take advantage of them and react proactively to changes in the market and demand.

In this way, the manual tasks necessary to extract it from the sources from which it is obtained will be reduced, transform it to adapt them to the needs of the business and finally load it to use it. Although this process can be automated, every time there are changes in the sources or business requirements, the processes have to be updated, which entails a great investment of time by trained personnel, with a great cost for the company.

This would improve the cost of keeping the data updated and reduce the time to have it available and ready to use it. And the time it takes to collect data will be invested in analyzing it to derive better results to the business.

Tag and organize the inventory

Traditionally, companies use content management systems (CMS) to tag and assign categories to them; This process is done manually, the categories and labels are assigned based on the criteria of who does it or the guidelines of each company or line of business, although it is still of a high or general level.

Uniting several different categories or from different suppliers and aligning them with a single vision to use them is an enormous and time-consuming task.

Using artificial intelligence, after teaching the way you want to categorize and label the content, you can do it with existing inventory and add new automatically as it is generated.

Another advantage is that you can take the context of the images to make the most of them where they are needed, taking into account the objective of the brand that will use it; Campaigns that use context to place the right ads generally have much better performance and are more relevant to consumers than using generic creatives.

For example, a brand of orange juice can position its ads next to breakfast sites, advertisers could place their ads next to recipes that use a specific ingredient such as cereal or look for events related to cooking, such as meetings of chefs.

The advantage of using artificial intelligence is that with natural language (NLP), you can understand the real meaning of the content of a site and an ad to find the best match between the two, while using only traditional labels leads to many confusions

With this technology, the categorization will be increasingly deeper, based on the meaning of each creative and can be used across several different domains and that today lend themselves to confusion because they are subjective.

This will lower the cost of managing the creatives and maximize the ROI of having them since they can be used in more media in an accessible way and will improve the performance of the campaigns.

Understand context and sentiment

A key to placing the perfect creative for an ad is to understand the context of the page and its specific content so that this way the creative that accompanies my ad makes sense and does not feel out of place within the whole page.

Thus, depending on the content of each publication, the creatives would be adapted at the time, of the available ones it would be possible to choose the one that goes in agreement with the objective and the other creatives of the page, so that the user perceives it as of value and less intrusive since it will not break the visit experience so drastically.

On the side of sentiment is important to improve the direction of the promotional according to the issue that is talking about the publication and the way it does to align the advertising message to the tone it uses.

In this way the creative can be automatically chosen according to the situation, whether it is images, videos or even the text (copywriting) to choose the right words that resonate with the audience and generate interest.

Understanding the context and sentiment of the content where the ads will be placed is an incentive to improve the prevention of advertising fraud and increase the security of the brands, since if the theme, tone or background of the content goes against the guidelines or values of a brand, the ad may be blocked to prevent it from being displayed next to inappropriate content.

Brand Safety

Understanding the context and sentiment of the content where the ads will be placed is an incentive to improve the prevention of advertising fraud and increase the brand safety, since if the theme, tone or background of the content goes against the guidelines or values of a brand, the ad must be blocked to prevent it from being displayed next to inappropriate content.

Example of unfortunate ad placement for the brand.

Dynamic creative optimization

Change the ads that will be shown to users in real time, optimize not only the audiences you want to reach, but also the creatives that will be used. With dynamic creatives it will be possible for platforms to use artificial intelligence to gather data about the user that is on the site to ensure that the ad is aligned not only with its demographics, but also with the site it is visiting at that moment, the sentiment that It has the content, its context and browsing history and thus customize what will be presented to him.

This will increase the ROI of the campaigns by making ads tailored to each individual situation.

Do you see any other improvement that can be achieved in digital advertising using artificial intelligence?

Tell me about it in @gabojimenez_

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Artificial Intelligence applications in programmatic advertising