How AI & ML are reprograming programmatic advertising

Artificial Intelligence is all over the news now, leading to reactions ranging from favour (it will drive efficiency and save effort) to fury (robots/software will steal our jobs) to fatuous (the machines are taking over). Irrespective of opinions, the fact is that AI is here to stay, permeating every industry, tech or otherwise.

And while we’ve already covered the broad strokes of the generalized impact of AI on the advertising & media industry, much like in vogue data lakes, there’s always more to dive into, especially in the tech heavy domains of programmatic marketing, which are already heavily reliant on software and predictive technology. With AI being added to the equation, this may just lead to a theory of everything, at least in marketing.   

According to various industry sources, the global AI market is valued at over $136 billion, and the AI industry value is projected to increase by over 13X over the next seven years. This means that the AI market is expanding at a CAGR of 38.1% between 2022 and 2030.

Suraj Nambiar, National Media Head, Tonic Worldwide, says that the increasing use of AI/ML programs in programmatic marketing has several implications: improved efficiency and accuracy; personalization; cost savings; data privacy and ethics; and skill gaps.

“AI/ML algorithms can analyze large amounts of data and make data-driven decisions faster and more accurately than humans. This can lead to improved efficiency in media buying and better targeting of advertising. AI/ML can help to personalize advertising to individual users based on their behaviour, preferences, and interests. This can lead to higher engagement rates and better customer experiences,” he says.

Tejinder Gill, General Manager, The Trade Desk India, agrees that the increasing use of AI and machine learning programs in programmatic marketing has significant implications for the industry. “These AI-powered platforms enable advertisers to make data work smarter and drive better business results. By leveraging AI in programmatic marketing, advertisers can gain more precise targeting, better ad placements, and improved campaign performance. As AI continues to evolve, it will unlock even more sophisticated and effective tools for programmatic marketing.”

As an instance of the potentiality of AI, The Trade Desk's advanced AI technology, KOA, can recognize patterns and interpret them to surface precise media buying strategies, allowing advertisers to evaluate massive amounts of data and optimize campaigns in real-time. On average, the platform sees more than 1 trillion ad opportunities per day – that’s roughly 13 million ad opportunities every second, which is well over 100 times the volume of global search.

Every brand has a target consumer base that they want to engage with. Reaching out to target audiences will most certainly lead to more business conversions and sales than choosing the sites for brands’ advertising and marketing campaigns.

Harsh S. Kedia, CEO, Auburn Digital Solutions notes, “Everybody stores information on their gadgets. Instead of dispersing their advertisements across the digital space in the hopes of attracting the audience they need, marketers can concentrate on the exact audience they are trying to reach with the help of AI and ML by accumulating individualized data.”

He adds that for brands, choosing an ad unit is now easier due to AI and ML. “Marketers used to have to carefully analyze and evaluate which ad space would provide them the most conversions. Because of AI and ML, they can now not only distinguish between the ad-space but also assist in recommending suitable display positions. With targeted customer data, brands can quickly establish connections with customers based on their consumption patterns and interests.”

Joyeeta Ghosal, Director, Brand Marketing, Gokwik, agrees, saying, “Analyzing data and optimizing ads on the basis of deep customer behaviour can help drive higher marketing conversion rates in relevant audiences. There’s a lot of transparency that comes with these martech tools and helps in displaying ads only on high performing media platforms.”

Indeed, many digital brands such as Swiggy, Myntra, etc are using these tools in their programmatic campaigns to lower their CAC while driving higher quality conversions in real time.

Nambiar concludes the increasing use of AI/ML in programmatic marketing has the potential to revolutionize the advertising industry, but it also requires careful consideration of the ethical and privacy implications. And as AI/ML becomes more prevalent in programmatic marketing, there is a growing need for professionals with the skills to develop and implement these technologies.