How Does AI Fuel A Programmatic Advertising Platform?
Programmatic advertising offers advertisers a real-time and programmatic way to digital advertising. A demand-side platform (DSP) is a growing platform in this category. AI, specifically Machine learning, and Natural Language Processing all help the development of DSP.
What is DSP?
The demand-side platform usually appears as DSP, is a programmatic advertising platform that automates the buying of ads for advertisers. Still confused? Take an example, if you use Amazon Ads, you can bid on available ad positions on Amazon search result pages, and product detail pages. But for Amazon DSP, advertisers can programmatically purchase banner ads, mobile device ads, and in-stream videos on and off Amazon platforms.
What is AI's role in DSP?
A built DSP must have two attributes, the first one is a strong algorithm for Real-Time Bidding, and the second one is advanced Audience Targeting.
Real-time bidding: AI algorithm can learn from the large amount of data that generates in million secs before the web page loads. They adapt their actions based on the patterns encountered, which makes the real-time bidding suitable in every situation.
More specifically about AI in real-time bidding, it can also adjust the bidding based on customer information to make sure the price is suitable for the bidding and save ad spend.
Audience Targeting: A different purpose of DSP from the Supply-side platform is to reach a target audience and build up relationships. The accuracy in audience targeting is significant for the delivery. Marketer faces the challenges of losing access to third-party cookie data. This makes it hard for audience discovery and identification. However, Natural Language Processing (NLP), part of AI, can help solve this issue by building audience profiles based on language keywords queries.
In addition, NLP can be used to compare the ad's content to the website content. As a result, it improves the relevance of the ad context.
AI has always been used for future purchase prediction. AI can consider multiple factors, such as customer browsing history, installed app, and past purchases, to determine who’s most likely to buy.
