Artificial intelligence is the revolution that changed the face of the world, a revolution that the digital and physical worlds have long been waiting for. Since the start of this decade, artificial intelligence has been in talks. But as ChatGPT gained momentum in the market, AI has once again gained attention. Artificial intelligence has made the world easier in every sector, and today, we will see how it helps in advertising or performance marketing through programmatic advertising.
So, let us start with the meaning of programmatic advertising!
Programmatic advertising is a form of advertising that uses automated tools and software to buy and sell ads. Thanks to AI and machine learning technologies, programmatic ads learn and modify their activities in response to new patterns they encounter. Because of this capability, they are incredibly well-suited to the dynamic nature of programmatic advertising.
These are also capable of processing vast volumes of data rapidly, enabling them to make data-driven judgments at lightning speed to maximise the effectiveness of advertising campaigns. This enables optimised bidding tactics, ongoing campaign optimisation, and highly targeted ad distribution.
According to recent studies, 80% of programmatic marketers are using AI. Consequently, the AI industry for programmatic advertising is expected to develop at a rapid rate of around 30% per year, reaching $38.7 billion by 2028.
Benefits of AI in Programmatic Advertising
1.Ad Targeting
Customer behaviour, preferences, and prior purchase patterns are analysed using machine learning algorithms. This creates different customer groups, which helps in better targeting and displaying relevant ads to customers. Audience segmentation driven by AI improves consumer engagement, lowers ad waste through relevancy, and boosts campaign success.
2.Real-time Bidding
Real-time evaluation of numerous factors and data points by machine learning algorithms helps advertisers make more informed spending and bidding decisions. It maximises return on investment, improves targeting, and uses less time and resources than traditional ad placement.
3.Fraud Detection
Programmatic advertising uses artificial intelligence (AI) to identify click, impression, and domain fraud by using machine learning algorithms. By preventing fraudulent behaviour, this revolutionary technology shows campaign data that is based on actual engagement. Also, it keeps one’s reputation with ad networks and ad exchanges positive by preventing blacklisting.
3.Personalised Ad Delivery
AI-driven consumer behaviour and preference analysis enable hyper-personalised ad serving. It helps in creating customised experiences for each customer, including tailored ad messaging, targeted advertisements, and effective product, service, or solution suggestions.
4.AI-Powered Creative Optimisation
AI helps focus on creativity by doing the rest of the work including examining trending topics, audience tastes, and successful content formats It enables the focus on the strategic end by simplifying research and content production, which promotes increased productivity in creative processes. Some helpful platforms include Midjourney, ChatGPT, and others.
5.Supply Side Platform
When used with SSPs, AI analyses vast amounts of data, such as past ad performance, user bids, and market trends. As a result, it is possible to predict which ad units will be most effective for a given segment, on a variety of pages, and at what time. It can accelerate the sales of premium inventory, suggest direct transactions, and instantly identify high-value advertisers and ad networks.
6.Demand Side Platform
By providing better audience targeting, site/ad network platform selection, bid management, and simple budget allocation for increased return on investment, AI in DSP improves the media buying strategy. Machine learning algorithms predict view-through conversions which are learned by auction results.
Challenges in Programmatic Advertising
1.Data Privacy
Unauthorised access and data breaches involving vast amounts of information pose serious risks in the field of programmatic advertising. Data privacy problems have increased as a result of businesses’ acquisition and usage of large user databases. Establishing openness and transparency while handling this data is essential to gain trust.
2.Ad Fraud Risks
In order to combat ad fraud, AI systems should have fraud detection systems that can recognise and stop fraudulent activity. When using AI-driven strategies to combat ad fraud, maintaining data integrity is still crucial. AI must be continuously monitored and its detection algorithms must be regularly improved to effectively mitigate ad fraud.
Future of Programmatic Advertising
1.Voice and visual search integration
Looking ahead, voice and visual search integration looks like the widely used form. Ads, as our space is evolving, will turn out to be more interactive with the use of speakers and microphones, AR and virtual search platforms. A more immersive experience is not far from us.
2.Improved ad creative
AI-generated content will improve extensively. In just a year, AI has placed itself as a great player for creative content execution. In some years, with enough data, AI platforms like ChatGPT, Midjourney and more will generate visuals and content that will attract enough people to leave us in awe. This will make advertising far easier than ever.
Frequently Asked Questions
How do Meta Ads and Google Ads differ in targeting options?
Meta Ads offer broad targeting based on age, income, interests, and other factors. You can also create a lookalike audience to target new users with similar behaviours as your current customers. Google Ads are used for precise targeting where users have a specific intent and are actively searching for specific products or services.
Which platform is better for brand awareness?
Meta Ads are better for brand awareness as they are visually appealing and reach millions of users active on social media.
How can I measure the success of my campaigns on both platforms?
Measuring the success of your ad campaigns depends on your objectives. For Meta Ads, impressions, engagement and CTR are important metrics while for Google Ads, cost-per-click (CPC) and conversion rate are crucial.
How do I determine which platform is best for my business?
To determine which platform is best for your business, you need to consider your objectives. Both platforms are necessary to target your potential customers at different stages of their buying journey.
