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Applications of Artificial Intelligence in Programmatic Advertising

John Lahr
August 14, 2017

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This is one post in a series on Artificial Intelligence’s implications on marketing, analytics, and you. We will cover a definition of AI, what it means for marketers, marketing applications, and how to implement AI technology in your company.

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AI for Programmatic Advertising

Developing relevant messaging is the first step in running a successful ad campaign.

Next, you want to make sure messages appear in the right context for your consumers. You wouldn't try to sell sunscreen when it's raining or umbrellas when it's sunny. You also don't want to advertise a product to someone who has just purchased it. AI can improve decision-making for companies regarding their advertising campaigns.

As in the Target case, brands can use artificial intelligence to serve more relevant, targeted messages in the right places, at the right times by providing data-driven insights. AI advertising has been on the increase due to the ability to tailor interest-based ads for each individual customer. Predictive analytics enable companies to better target and efficiently use their ad campaigns for their brands on potential consumers.

Additionally, if the computer is given different customer segments with varying lifetime values (CLV), AI can adjust bidding strategies and spend more for higher-value target customers.

Emarsys CMO, Allen Nance, agrees AI will increase creativity in marketing. In Why Emarsys' marketing chief thinks AI will trigger a creative response, he says, with the adoption of artificial intelligence “marketers are going to gain the opportunity to go back to strategy, content and creative,” letting AI do the hard work.

Case Study: Cosabella Ditches Marketing Agency for AI

Lingerie brand Cosabella was seeing diminishing returns from their agency's campaigns, so they decided to consider other options. Instead of hiring a new agency or bringing resources in-house, they decided to use artificial intelligence. After a brief teaching period, where they gave it parameters for targeting and KPIs, they left the AI to itself.

The results were impressive:

“After three months with [the AI] Albert, Cosabella saw a 336% increase in return on ad spend. In Q4, revenues increased 155% and the brand saw 1,500 more transactions year over year, 30% of which came from new customers. In Albert’s first month, Cosabella decreased costs by 12% by increasing returns by 50%."

Cosabella’s team was able to turn insights into action and spend more time working on more creative strategies.

Other Posts in the Series:

What is AI? A Marketing Primer

The New Marketing Landscape

AI in Marketing Data Analysis

AI for Consumer Insights

AI for ABM & Personalized Messaging

AI for Marketing Communication

AI for Content Creation

Artificial Intelligence Limitations and Implementation

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