If programmatic advertising is the car you are driving, machine language is what you will find powering your vehicle. Not all buying services and advertising agencies use it, and not all the ones that do can get the job done efficiently. Make sure the company you partner with has the right tools and the knowledge to use them.
Algorithms can process massive amounts of data, analyze what it does, and how well it works. This allows it to learn from things that happen, preferences, and actions, in a faster way than ever before possible. It’s that artificial intelligence, and the capacity to learn from interactions, that allows you to continually optimize your advertising campaign. The more you use, the more efficient the campaign becomes by targeting more of the people that react to your message, serving the right message that gets results, and showing it to them in the right places.
Machine-learning technology is the bread and butter of digital advertising today, especially because it enables marketers to gain competitive advantage with their digital advertising initiatives to increase brand awareness, drive greater share of attention, and grow revenues.
Algorithms Are Here To Stay
When you think of algorithms, you may think of how Google finds the best possible results when you are searching for something, or how Facebook weeds through millions of posts to display the things you are most likely to read. The same theory works on the advertising side as well. Algorithm’s are here to stay in the digital advertising industry as they continue to be the unheralded secret sauce of today’s most demanding and successful digital marketers.
Digital marketing companies have been developing and using algorithm’s for years in order to help advertisers better predict which ads to serve to which consumers at the right time, all based on dozens of inputs, including their online behavior. With an RTB (Real Time Bidding) platform they do this all while bidding against other advertisers that are vying for the same consumer share of attention – all in less than 100 milliseconds, or about the time it takes you to swat a fly on your desk.
Since the first ad was launched, it has always taken people to power it – two or more individuals going back and forth and negotiating rates, placement, and creative. With the staggering amount of data that is available, including deep profiles on online users, it would be simply impossible for human beings to sort through that much data, let alone in real-time. Machine learning allows for a greater depth of knowledge and the ability to make buying and placement decisions instantly.
How Machine Learning Can Optimize Your Campaigns
With the ability to monitor real-time data and make adjustments, artificial intelligence can handle all aspects of your campaign once it’s up and running. By making micro adjustments, the longer the campaign runs, the more efficient it becomes.
Optimize Creative & Targeting
Multiple ad campaigns can run simultaneously with different creative, different ad copy, and different offers. Winners get served more. Losers get dumped. Customers reacting to specific campaigns can be modeled. When a certain type of consumer converts, find more of them! Audience modeling, custom consumer profiles, lookalike audiences, and affinity groups, can be targeted. AI allows for continuous optimization to meet your specific marketing goals.
It is not just the targeting and creative that benefits from machine learning, though. Automated bidding and budgeting can be funneled into the equation. With real-time bidding (RTB), connected to demand-side platforms (DSP), buying decisions can be automated to allocate spending levels in the most efficient ways.
A Deep Understanding
Make sure the company you trust with your programmatic advertising campaign has a deep understanding of machine learning, artificial intelligence, and how it all works together to optimize your campaign for increased efficiency.