Digital Marketing

Programmatic Advertising: How AI Can Help Automate Ad Buying

By Editorial Staff

It’s no secret that 2020 might be considered the year where artificial intelligence (AI) truly took off. For a long time now, industry leaders have pointed to the notion that AI would control the heart of global business in the future. Emerging from this class is programmatic advertising.

In July 2017, Gartner released a prediction that, by 2020, AI technologies will be present in almost every new software product. This was a bold prediction at the time, considering the term “artificial intelligence” wasn’t even a top 100 search term on their website. However, in just a year, the term jumped to number 7 on the list, as businesses across the globe discovered the potential that came with implementing the technology into their strategies.

They weren’t the only ones. Techgrabyte explained, “Artificial Intelligence is the biggest commercial opportunity for companies, industries, and nations over the next few decades.” They also went on to predict it will, “increase global GDP by up to 14% between now and 2030.”

If these predictions hold true, it would mean that late adopters to the AI movement will face a serious competitive disadvantage in the coming years. These are some more specific reasons for adopting AI from a survey conducted by Single Grain:

Reasons for Adopting AI

How can AI be used in content marketing? 

The role of AI is too broad to be explicitly defined. It can help advertisers and marketers easily find and categorize data online, accelerate the content creation process, help with personalized advertising, and so much more. 

1. Discover Data Insights 

With data available online increasing by the day, online marketing has become largely dependent upon how it’s analyzed. With AI, marketers will soon be able to automatically categorize and interpret information from the web, allowing them to reach audiences more quickly and accurately than ever before.

2. Accelerate Predictive Analytics

Building upon the idea of data insights, predictive analytics deals with the ability to use past data in algorithms that predict an outcome. In marketing, these predictions involve consumers’ behaviors and help marketers understand trends before they occur. Being ahead of these events makes it easier to reach audiences with content they’re more likely to engage with. This is where the concept of programmatic advertising comes in, which we’ll discuss in great detail later. 

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3. Personalization

Consumers prefer personalized content, according to a Statista study that said 90% of adults find it very or somewhat appealing. The problem, however, is that it’s very hard to do manually. AI helps marketers create personalized messages that allow brands to have one-on-one engagement with each customer. 


4. Content Automation 

Marketers often don’t have the time to continuously produce content for their brands. AI, through Natural Language Generation (NLG), has shown its ability to write simple posts and blogs without any human guidance. Many news sources, like the Washington Post, are already beginning to use AI to write articles about topics such as the weather and sports. 

Check out this blog for more information on how artificial intelligence can transform influencer marketing.

Programmatic Advertising

Programmatic advertising is a result of the AI movement in marketing that has taken the industry by storm. It involves utilizing AI’s ability to automate ad buying so brands can reach more specific audiences. It’s faster and it’s more efficient, which creates higher conversion rates for lower costs. 

Digital display ads are auctioned off to the highest bidder by websites. With programmatic advertising, marketers can tell AI which types of ads they’d like to bid on and where they would like their ads to be placed. The AI then successfully bids within the limits of the marketer’s budget. All the marketers are left to do is monitor their ad’s success and tweak their programmatic advertising settings. 

Check out this blog for Google Discovery ads, a new approach to digital display ads!

It’s becoming so popular that, according to eMarketer, 89.2% of digital display ads will be the result of programmatic advertising by 2020. 

Here’s a flowchart by Single Grain that explains the programmatic advertising process: 

How programmatic advertising works

With AI becoming increasingly popular, it’s the perfect time to start using it in your marketing efforts. As technology rapidly advances, companies that implement strategies like programmatic advertising and advanced data insights will benefit from the lower costs with greater efficiency.

This article was written by Ryan Eaton

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