By Iryna Kozirevych
Artificial Intelligence has many business applications, from automating manual tasks and real-time data monitoring to achieving more precise customer targeting. All-in-all, AI helps you save time and money. According to a report by Grand View Research, the global AI advertising market will surpass $1,811 billion by 2030.
What role does it play for ad exchanges and the programmatic advertising industry? Let’s find out.
Benefits of AI for Programmatic Advertising and Ad Exchanges
Better Targeting and Personalization
The primary benefit is targeting. Artificial Intelligence analyses previously collected consumer data to create demographic profiles and track purchasing preferences, helping marketers determine their campaign’s target audience.
For example, both Netflix and Spotify use AI to curate custom mixtapes and watchlists for their users based on their previous consumption patterns. If done right, AI can accurately determine the timing, placement, and content of ads to precisely target a certain individual, ensuring a highly personalized experience.
Cost-Effective Advertising
AI assists advertisers in optimizing ad spend by analyzing data and identifying the most effective ads and targeting strategies. It means that advertisers increase their return on investment (ROI) and receive excellent value for their money.
For instance, advertisers might have particular goals, like selling a $20 game install to a 19-year-old player. They might not think about a 65-year-old man. But AI techniques may reveal that this man will likely spend about $4 over four days. And if the acquisition cost is 80 cents, it yields as good ROI as higher-dollar goals for more typical ad targets.
Artificial Intelligence is excellent for uncovering revenue opportunities that budget and human assumptions may limit.
Improved Ad Creatives
Smart algorithms adapt creative resolutions so your ad unit easily fits popular ad placements. This feature can be especially beneficial for advertisers needing more traffic since their advertising creatives are non-standard and don’t fit most available ad placements. The creative with optimized resolutions will fit more ad slots, thus promoting more ad impressions for the advertiser.
Moreover, AI can provide insights about what creatives with more color contrast perform better at night or ads that feature sports stars do best on the weekend.
With AI, brands can better understand how messaging, fonts, colors, imagery, button sizes, or formats impact overall campaign performance. Incorporating vast audio formats can enhance the user experience, offering advertisers a dynamic way to engage with their audience through immersive sound.
Aside from this, in the future, AI in programmatic will be used for generating creatives based on prompts and descriptions. Below, you can see the best examples of AI art generators that are already used to ease the daily grind for designers.
Bing Image Creator
DALL-E by OpenAI
Accelerated and Enhanced Copywriting
Moreover, you should remember about AI copywriting tools to improve your ad campaigns. ChatGPT is one of the best examples, particularly for content marketers. It helps to scale up the production of articles, reports, or other ongoing publishing needs.
For instance, we asked ChatGPT to give us some blog topic ideas:
Fraud Prevention
As fraudsters employ new techniques that can imitate human behavior, AI algorithms can assist marketers in identifying fraudulent behavior that is not immediately apparent to the human eye. It is crucial in the case of app installs, where detecting fraudulent clicks and impressions before installation becomes vital.
The second scenario is “the chameleon”, in which fraudsters imitate legitimate publishers and generate installs later when user retention is predicted to decrease.
The third scenario is an “inventory burst”, in which a suspicious publisher’s inventory count spikes when in-app registration is typically declining.
AI techniques can identify these sophisticated ad patterns and feed them back into the filters to enhance future detection. By detecting ad fraud cases, marketers can eliminate low-quality traffic and more accurately calculate their returns on advertising spend (ROAS).
The sellers.json file also plays a crucial role in providing a transparent view of the entities involved in selling digital ad inventory. Additionally, implementing ads.txt can provide transparency and security in the programmatic advertising ecosystem, ensuring that only authorized sellers can sell a publisher’s inventory.
The Future of AI in Programmatic Advertising and Ad Exchanges
AI influences many different aspects of programmatic advertising, and the famous ChatGPT could be the next step forward in terms of opportunities. Firstly, with technologies like ChatGPT, generating numerous alternative slogans for creative ads has become a reality. Secondly, ChatGPT creates content for commercials and ad creatives. The Mint Mobile ad created by Ryan Reynolds using ChatGPT is an excellent example of an advertisement created solely using ChatGPT’s capabilities.
Moreover, it can be integrated into ad exchanges and DSPs to provide users with recommendations and responses to their requests. ChatGPT could also be embedded in programmatic platforms, contributing to the automated creation of campaigns, creatives, and slogans.
However, AI is not only about ChatGPT. Already offering multiple benefits for the programmatic industry players, it evolves continuously. Therefore, we can expect even more applications and tools to enter the stage in the near future.
Conclusions
Artificial intelligence in programmatic advertising has huge advantages ranging from time savings and ad optimization to hitting campaign goals and increasing revenue. Modern advertising technologies are complicated to imagine without the skills of using the most recent technological developments like AI.
Keep in mind that joining the programmatic industry does not have to be a challenging and time-consuming task. With ad exchange solutions from Attekmi, you can do this in no time and start earning on media trading straight away. Additionally, we offer custom AdTech development services, so if you need, for instance, a DSP, our team would be happy to help.
Start managing your own marketplace today with Attekmi!