Just a decade ago, sci-fi movies showcasing self-programming computers were closer to a dream than reality. Nowadays, we are fighting a war against online data privacy while talking to Alexa and being astonished that an app or website displays advertisements of (related) products we just searched for. Artificial Intelligence (AI) has already been introduced into all segments of our lives, business, education, medicine, etc., and rapidly took the leading position among the main driving technologies of our times.
“In our business, we talk about emerging technologies and how they impact society. We have never seen a technology move as fast as AI has to impact society and technology. This is by far the fastest-moving technology that we have ever tracked in terms of its impact, and we are just getting started”, said Paul Daugherty, Chief Technology and Innovation Officer at Accenture.
The digital advertising industry is undergoing a significant progressive transformation with AI, adapting this technology to its needs. In fact, AI transforms digital advertising in many ways, from personalization to customizing content to enhanced reporting. Thanks to automatization, many manual and repetitive tasks can be substituted by AI, improving workflow and collaboration among teams.
Machine Learning (ML) – being the central theme of AI offers a variety of benefits:
AI and Big Data in Mobile Advertising ROI
An experiment conducted by the Alibaba Group and the University College London proves that algorithms perform far better than humans. The data showed that where manual bidding achieved a ROI of 100% with 99.52% budget spent, 340% ROI was generated with 99.51% budget by algorithmic bidding. So, it is obvious who is winning in this highly competitive environment!
Algorithms not only analyze the broad demographic data but also incorporate real-time online browsing behavior to effectively group and cluster the audience. This way, they create a rich user profile to pursue a niche audience for your product much faster and more precisely than a person ever could, boosting your ad performance. For example, Adello AI’s multiple awarded Technology AdCTRL™ computes data combinations >100,000 times/second to understand what made potential customers convert.
Automated creative building and reporting
There are self-service platforms out there that enable marketers to build their mobile ads efficiently. On Adello.Direct, for example, marketers can use Ad Unit builder to create stunning creative formats such as award-winning Cube or interactive ads such as Booklet or Peel. All they need is only to upload the pictures on the platform, and the creative is ready to go. Adello’s patented AI enables you to go live with a mobile advertising campaign in just a couple of clicks.
Creative reporting provides unique insights into user interaction behavior with ad creatives. The heatmap below indicates the user click pattern. The darker the color, the more clicks users made in this certain part of the ad unit. Our AI makes decisions on audience targeting improvements and inventory choices based on such heatmaps collected from different publishers.
AI in mobile ad-fraud
The issue of mobile ad fraud, such as bot fraud, device farms, etc., has increased from 2019 to 2020 by nearly 200%. To monitor, analyze and spot abnormalities in the real-time incoming data 24/7 manually is near to impossible. With its capability of big data analysis in real-time, an AI-driven fraud prevention system can recognize invalid traffic, bots, and malicious applications with even a small sample size, thus saving campaign budget.
As Dr. Augustine Fou advised in an interview for AD.Insider, before choosing a fraud prevention partner, marketers should answer the following two questions:
1) do they have different tags for in-ad versus on-site measurement?
2) do they measure for humans, in addition to measure for bots/IVT?
If both answers are negative, their job is not good enough, and you need to look further.
Advanced reporting and valuable insights
AI-driven technologies play a crucial role in organizing high-performance ad campaigns. They combine machine power, excellent cognitive skills, the ability to analyze large amounts of data, accurate calculations, predictions, and delivery of almost real-time reports in presentable and easy to interpret formats.
AI is mainly engaged in analyzing Big Data and making decisions and predictive analytics based on it. With every analyzed data byte, AI creates new algorithms and – by “learning” independently – improves its capabilities. As a result, AI has achieved tremendous progress and lasting results since its introduction to digital adverting.
And the disadvantages?
The dark side of the advertising industry does not sleep. While algorithms optimize campaigns, viewability, placement, and engagement, digital advertising is also vulnerable to fraudulent attacks. Approximately 25% of campaign spending is flushed on fake bots, device farm downloads, or other fraudulent activities. So, to avoid losses, make sure to do business with adtech companies, which use AI and ML to detect, fight and prevent fraudulent traffic. For example, Adello uses multiple-awarded AI with complimentary integrated fraud prevention for its operations. This way, Adello’s clients identify and reach out to real people, save up their marketing budget, and grow their business.
Do not hesitate to contact us to learn more about mobile advertising for your business 😉