Sci-fi movies showcasing self-programming computers was closer to a dream than reality just a decade ago. Today, we are fighting a war against online data-privacy while talking to Siri and being astonished how an app or site in displaying advertisements of (related) products we just searched for. Artificial intelligence (AI) has already been introduced into all segments of our lives: business, education, and medicine, etc. AI rapidly took the leading position among the main driving technologies of our times.
Digital advertising has adopted AI trends and is now developing and adapting these technologies to its needs. Digital advertising industry is undergoing a progressive significant transformation with the use of AI. In fact, AI transforms digital advertising in many ways from machine learning to customizing content to enhance reporting. Machine Learning (ML) – being the center theme of AI offers a variety of benefits:
AI and Big Data in Mobile Advertising ROI
A recent experiment conducted by Alibaba group and University College London proves the algorithms performing far better than humans. The data showed that where manual bidding achieved ROI of 100% with 99.52% budget spent, 340% ROI was generated with 99.51% budget by algorithmic bidding. 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 to create a rich user profile to pursue niche audience for your product much faster and much more precise than man ever could and it will boost your ad performance. As an example, Adello AI’s multiple awarded Technology AdCTRL™ computes data combinations >100,000 times/second to understand what made potential customers convert.
AI in mobile ad-fraud
Although this is a vast topic and deserves a separate blog post, but just to summarize in few words; the issue of mobile ad-fraud such as bot fraud, device farms etc. have increased by nearly 200% in just last year but to 24×7 monitor, analyze and spot abnormalities in the real-time incoming data is humanly near to impossible. AI-driven fraud prevention systems with its capability of big data analysis in real-time can recognize invalid traffic, bots and malicious applications with even a small sample size thus saving your budget from loss. Adello’s CEO Mark E. Forster published an eye-opening article about fraud and fraud protection a few months ago.
Advanced reporting and valuable insights
AI-driven technologies play a crucial role in organizing high-performance ad campaigns. Combining machine power, excellent cognitive skills, the ability to analyze large amounts of data, produce accurate calculations, predictions and deliver 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. Since the introduction of AI in digital advertising, it has achieved tremendous progress and lasting results.
And the disadvantages?
Let’s phrase it this way: the dark side of the advertising industry doesn’t sleep. While algorithms optimize campaigns, viewability, placement and engagement, digital advertising is also vulnerable for fraudulent attacks. Approximately up to 25% of campaign spending is spent on fake bots, downloads by device farms or other fradulent activities. Adello is using Machine Learning to fight fraudulent traffic using multiple-awarded AI with complimentary integrated fraud prevention.
Contact our sales team to find out more!
This blog post was originally published Jan 28th 2020 and was last updated September 3rd 2020