Artificial intelligence in marketing: how AI algorithms advance online advertising Artificial intelligence in marketing: how AI algorithms advance online advertising

AI technologies are being rapidly developed and integrated into various industries. Currently, AI algorithms are used in marketing: they help to determine what platforms are the most efficient for placing promotion banners and to optimize marketing processes.

Let’s figure out how artificial intelligence operates in programmatic advertising and how AI algorithms help to conduct ad campaigns.

What is programmatic advertising?

The application of AI in marketing, i.e. the automation of advertising processes, can be described as programmatic advertising.

In other words, it is algorithmic media buying, whereby advertisers utilize user data for more efficient targeting.

Such data include:

  • demographic and social designations;
  • preferences and interests;
  • gender and age;
  • profit and marital status.

Operational concept of programmatic advertising

A significant element of automated advertising is a RTB auction used by such major platforms as Yandex.Direct and Google Ads.

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RTB (Real Time Bidding) algorithmic auction means real-time trading between a purchasing platform and a selling platform.

During this auction, a user enters the website of ad network participant and the network transfers user data to the purchasing platform. The platform analyzes data using artificial intelligence and selects ads that can be shown to the certain visitor.

Using the auction, the advertising network chooses promotion banners and show them to the user. The whole process is fast due to AI algorithms and automated system.

Advantages of AI in advertising

Programmatic advertising, i.e. the application of AI in marketing, has replaced a human factor, substantially speeding up user data processing.

Computer algorithms have made media buying quicker, cheaper, and more efficient.

Advertisers’ opening to platforms

The application of AI in advertising does not require intermediaries between advertisers and platforms.

AI models allow marketers to control ad campaigns, determining goals and all necessary settings on their own.

Clear analysis of target audience

Deep learning algorithms allow to collect full and verified information about consumers.

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Besides, artificial intelligence helps not only to define a platform for placing promotion banners but also to find out what audience they will be shown to. Therefore, each user will see a banner with the highest click potential for this very person.

Predicting audience wishes, AI is able to attract appropriate customers, enhancing the amount of clicks, accurately adjusting ad campaigns, and optimizing marketing processes.

Case studies of AI application in advertising

Independent Media

Independent Media (IM) publishing house has already integrated artificial intelligence into its operation in order to optimize sales of programmatic advertising.

Technology is able to analyze advertising selling auctions and predict how much money an advertiser is ready to pay each user for ad impression.

According to Anastasia Kapitanova, Head of programmatic and data at Independent Media, the growth of income was 15% after the integration of AI.

Getintent

The platform’s mission is to assist advertisers and agencies in showing only interesting and relevant ads to the audience.

Getintent uses AI predictive technology allowing to perform only efficient ad impressions. Artificial intelligence algorithms analyze data and figure out how users will respond to ads. It allows to select the most relevant audience for banner impressions.

Artificial intelligence in marketing increases the efficiency of advertising and helps marketing specialists to understand consumers. Due to AI algorithms, brands attract engaged users and thoroughly adjust ad campaigns, which brings meaningful results.

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