Why ad agencies should use AI enabled programmatic ad server
Programmatic ad buying has completely transformed the way publishers and advertisers transact in the ad marketplace. Whereas traditional online advertising involves a lot of manual work that can stretch from a few days to months, programmatic advertising makes it possible to buy and sell ad space almost instantaneously. This has resulted in more and more brands and agencies adapting this method of ad buying. Research from 2018 shows that two-thirds of digital ad spending and 85% of digital advertising in the U.S. is programmatic. This means that a staggering $80 billion has been allotted to programmatic media buying.
Before we dive into what it can do for your brand or company, let’s first define what programmatic advertising is. Put simply, it is the automated process of buying advertising space from publishers. This can be on a website or an app. It utilizes AI-powered algorithms and real-time data insights to determine which ads should be displayed to a particular user.
Ad agencies should consider incorporating AI-enabled programmatic ad servers into their strategies for several compelling reasons:
- Precision Targeting:
- Audience Segmentation: AI algorithms analyze vast datasets to identify patterns and behaviors. This enables precise audience segmentation, allowing ad agencies to target specific demographics, interests, and behaviors with a high level of accuracy. This targeted approach enhances the relevance of ads, increasing the likelihood of engagement and conversions.
- Efficient Campaign Management:
- Automation: AI-powered programmatic ad servers automate various aspects of campaign management, including ad placements, bidding, and budget allocation. This automation streamlines the workflow for ad agencies, saving time and resources. Advertisers can focus on strategic planning and creative aspects, while the AI optimizes the technical aspects of campaign execution.
- Real-Time Optimization:
- Dynamic Decision-Making: AI-driven programmatic systems operate in real-time, making split-second decisions based on incoming data. This real-time optimization ensures that ads are delivered to the right audience at the most opportune moments, improving campaign performance and maximizing return on investment.
- Cross-Channel Consistency:
- Omni-Channel Approach: AI-enabled programmatic ad servers facilitate an omni-channel approach, allowing agencies to reach audiences seamlessly across various platforms and channels. This ensures a consistent brand experience for users, regardless of the channels they engage with. Maintaining this consistency is crucial for reinforcing brand messaging and building brand recognition.
- Data-Driven Insights:
- Comprehensive Analytics: AI technology provides agencies with comprehensive analytics and insights into campaign performance. This data-driven approach allows for a deeper understanding of audience behavior, enabling agencies to refine strategies, optimize campaigns, and demonstrate measurable results to clients.
- Ad Fraud Prevention:
- Advanced Fraud Detection: AI algorithms can identify and mitigate ad fraud more effectively than traditional methods. Ad agencies utilizing AI-enabled programmatic ad servers benefit from enhanced security measures, ensuring that ad budgets are spent on genuine impressions and interactions rather than falling victim to fraudulent activities.
- Cost-Effectiveness:
- Optimized Ad Spend: AI’s ability to analyze data and make data-driven decisions contributes to more efficient ad spend. Ad agencies can allocate budgets more effectively, focusing on high-performing channels and audiences. This optimization reduces the risk of wasted ad spend on ineffective placements.
- Scalability:
- Adaptability to Scale: AI-enabled programmatic ad servers are scalable, making them suitable for campaigns of various sizes. Whether an agency is managing small, targeted campaigns or large-scale, complex initiatives, the adaptability of AI allows for seamless scalability.
In conclusion, the adoption of AI-enabled programmatic ad servers empowers ad agencies to enhance the precision, efficiency, and effectiveness of their campaigns. The technology’s ability to automate tasks, optimize in real-time, provide data-driven insights, and ensure cross-channel consistency makes it a valuable asset in the ever-evolving landscape of digital advertising.