Future of AI in Adtech: Opportunities and Speculations
AI has become a transformative force in various industries, and Adtech is no exception. With the potential to revolutionize advertising, AI holds the promise of enhancing targeting, personalization, and efficiency. In this comprehensive article, we delve into the various aspects of
AI and its implications for Adtech, exploring its different types, current applications, and the exciting prospects it holds for the future. Before we dive into the exciting possibilities AI offers for Adtech, let's clarify the different types of AI currently in use. 1. Narrow AI
(Weak AI): Narrow AI is designed to perform specific tasks and lacks the general human-like intelligence portrayed in sci-fi movies. Common subtypes include Natural Language Processing (NLP) and Recommendation Systems. NLP enables computers to interact with humans using natural language, while Recommendation Systems offer personalized suggestions based on user behavior. 2.
General AI: Often depicted in science fiction, General AI refers to machines capable of understanding, learning, and performing any intellectual task a human can do. However, we are yet to witness the realization of General AI, and it remains a theoretical concept. While AI's potential to revolutionize the advertising industry is undeniable, it's essential to approach AI-driven
solutions with caution. Current AI tools, though powerful, may struggle with context, nuance, and creativity – crucial elements in crafting compelling ads. Understanding human emotions and cultural subtleties might elude current AI capabilities, leading to potentially nonsensical or inappropriate advertisements. When it comes to Adtech, there is a lot of B.S. out there.
Many companies claim to have entirely AI-driven solutions, but the truth is that most tools use a combination of rules-based decision-making, data mining, benchmarks, and AI. It's important to carefully evaluate the maturity and capabilities of AI-driven solutions to ensure they align with campaign goals and deliver desired results without compromising on quality. In other
words, don't believe the hype when it comes to AI-powered Adtech solutions. Take the time to do your research and make informed decisions. The world of Adtech has already witnessed the influence of AI, particularly in predictive AI technologies and generative AI content creation. Predictive AI empowers ad networks and traffic monetization platforms to process vast amounts of requests within
milliseconds, making it indispensable for programmatic advertising. Programmatic advertising revolves around efficient ads rotation and relevant ad placements for advertisers. This process involves monitoring and processing large volumes of data, including bid information, user requests, performance metrics, and more. AI-powered recommendation engines play a crucial role in optimizing
campaigns, cutting poorly performing traffic slices, and finding the best placements for advertisers. AI-enabled CPA Goal formats, for instance, optimize conversion costs by accurately estimating campaign performance and traffic prices using around 50 constantly updated models. The main benefit of using AI for recommendation engines is streamlining processes for publishers and advertisers,
enhancing the workflow for programmatic advertising. The rise of ad fraud has become a major concern for the Adtech industry. AI anti-fraud systems are vital in detecting and combating fraudulent activities, including bot traffic and other sophisticated scams. With AI's ability to process massive amounts of data and identify anomalies, it becomes an indispensable tool
in ensuring ad campaign integrity. One such example is AdTech Holding's ADEX, an AI system designed to recognize and stop bot and fraud traffic in real-time. Constantly learning and adapting, AI anti-fraud systems stay ahead of ever-evolving fraudulent techniques. Generative AI has
captured attention for its ability to produce diverse content, from marketing posts and translations to video scripts and personalized creatives. While AI content generation is gaining popularity among digital marketers, concerns about data privacy and intellectual property rights have emerged. AI-powered language models like ChatGPT are transforming content creation, but the industry
grapples with questions about the quality of generated content in relation to ad spend. There are rising concerns about funding low-quality content inadvertently, leading to increased emphasis on influencer marketing strategies and digital experiences to deliver authentic, targeted content to consumers. The increasing prevalence of AI-generated content has posed new challenges for brand
safety and content quality. Agencies and advertisers are faced with the dilemma of identifying AI-generated websites and avoiding wasted media dollars on fake or low-quality impressions. DoubleVerify and other companies are rising to the occasion, providing brand safety tech to address AI-related brand safety concerns. Adtech's focus is shifting toward safeguarding content quality, which is
crucial as AI-generated websites proliferate and AI's scale makes brand suitability more challenging. Advertisers need to exercise more control over their ad placements and prioritize inclusion lists to ensure their ads appear on reputable and relevant websites. As AI continues to evolve, the future of AI in Adtech holds limitless possibilities. Predictive AI will likely witness further
developments in bidding strategies to accommodate the growing number of traffic sources. Enhanced real-time bidding technologies will enable quicker and more accurate ad placement predictions. Generative AI in Adtech will offer new avenues for personalized creatives, allowing quick and effortless automatic redesigns to match specific brand palettes. While AI-generated content poses
challenges, the industry can adapt by emphasizing authentic influencer content and ensuring advertisers fund quality content through more targeted strategies. AI's potential in Adtech is undeniably exciting, offering numerous opportunities for enhancing advertising efficiency, targeting, and personalization. However, caution is necessary to avoid overhyped claims and assess AI-driven
solutions' true capabilities. As AI continues to shape the future of Adtech, striking the right balance between technology and human creativity will be essential to create impactful, authentic, and engaging advertisements. As we navigate the ever-changing landscape of AI and Adtech, staying vigilant and adapting to new challenges will be crucial in realizing AI's true potential in transforming the advertising industry.Artificial Intelligence (AI) has
emerged.
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All the news you need today, in a format that isn't TL:DR summarized for the busy executive.
📢 Playground xyz Attention Intelligence Solution (AIP) introduces its actionable attention solution for YouTube ads, providing advertisers with valuable insights to optimize their campaigns. Through successful trials, blue chip advertisers gained significant learnings, such as
detecting creative burnout, identifying optimal time slots for ads, and determining more effective strategies. The data reveals that YouTube Bumper Ads receive 45% of attention, 20% more than Skippable Ads, and ads between 10 and 15 seconds attract the highest Attention Time. AIP's tech stack, trained with real eye-tracking data and advanced AI models, makes attention measurement actionable and opens up exciting possibilities for future social capabilities. 🎯📈📊
📽️💕🧨 "Barbie" and "Oppenheimer" movies, opening on the same day, have sparked the internet meme "Barbenheimer" or "Barbieheiemer." Warner Bros.' "Barbie" broke records with a $155 million domestic opening and $182 million internationally, making a staggering $337 million in the three-day opening. On the other hand, Universal Pictures' "Oppenheimer," a dark, male-targeted film about the man behind the atomic bomb, over-delivered with an $80.5 million
opening. The memes highlight the stark contrast between the light, comedic, and pink Barbie movie and the dark, brooding "Oppenheimer" film. Warner Bros. spent $10.6 million in TV advertising, while Universal Pictures invested $28 million for a big campaign. 🎬💼🌟
📺 Amid an uncertain TV advertising marketplace and ongoing strikes, NBCUniversal has completed its upfront deal-making roughly in line with last year, with estimated revenues of $7
billion. The entire upfront TV advertising market, usually totaling around $20 billion, is expected to see a rare decline of around 5%. NBCU's streamer Peacock has placed 30% more in upfront commitments, while sports TV advertising revenue witnessed a 50% increase. Programmatic advertising has also seen significant growth, up 50% compared to last year. Telemundo saw double-digit upfront growth, its highest volume since the 2019-2020 season.
📰🚀 In a crowded market, emerging "MorningBrew for X" newsletters are using data analytics and social integration to set themselves apart. These newsletters prioritize curated content and loyalty programs, going beyond traditional sponsorships to offer memberships and merchandise for subscribers. Building a strong personality and fostering engagement are crucial for retaining subscribers and driving revenue growth in the fiercely competitive inbox
landscape. Despite the competition, there is still a significant addressable market for those who strike the right tone with their audience. 🎯📈
🦊📢 Fox host Tucker Carlson plans to launch his media company on Twitter, seeking substantial funding in the hundreds of millions. While free content will remain accessible, full-length videos will be gated behind a paywall. Carlson intends to leverage his existing Twitter following and
bring in other hosts to expand the venture. However, the reliance on a free platform now owned by Elon Musk raises questions about the subscription model's success. Carlson seems confident that Twitter's chaotic environment will drive users towards paid content and foster a strong community. Only time will tell how this unique approach will fare in the competitive media landscape. 📈🤔
Netflix's subscriber growth in Q2 was marked by the rollout
of paid sharing, gaining 5.9 million net subscribers globally. However, average revenue per member (ARPU) declined in almost every region, leading to a 9.4% drop in Netflix shares. The company expects to convert password sharers to paid subscribers gradually, and they are positive about the revenue and subscriber impacts of paid sharing. Engaged password sharers are likely to convert first, while mechanisms to prevent password sharing will be implemented over time. Netflix aims to drive
revenue growth primarily through subscriber volume, with new paid memberships driven by the paid sharing rollout. While ads are still nascent to the business, Netflix is optimistic about their impact on revenue. The company recently dropped its cheapest commercial-free plan in the US and UK, focusing on offering a wide range of price points to optimize long-term revenue.
🐦🆚🅰️
Elon Musk, the owner of Twitter, announced a sweeping rebrand of the platform, changing the famous bird logo to an "X." The transition from Twitter to X is part of Musk's vision to turn the platform into an "everything app" centered around audio, video, messaging, payments, and powered by artificial intelligence. The name of Twitter Inc. changed to X Corp. in April, and now tweets will be called "x's." Musk's affinity for the letter "X" is evident in his other ventures, including SpaceX
and xAI. The domain X.com now directs users to Twitter's homepage. 🚀📱💬💸
📊💡 Ah, the thrilling world of ad tech and its Twitter debates! 🌐 Polidiot Savant, the master of industry insights, starts by slamming the shady practice of bid density through duplicative bid responses, calling it a disingenuous business model that pubs (publishers) shouldn't rely on. Then, AdTechGod enters the ring with a question about the worst-case
scenario for TTD (The Trade Desk) if UID2 fails to become the industry standard. AdTechGod seems confident that UID2 is already an established standard, dismissing any chance of failure. Polidiot Savant counters, saying large publishers haven't committed to sharing in TTD auctions despite growing support from UID2 ad tech vendors. Rob Haile jumps in with a witty twist, suggesting that while TTD is a custodian of UID2, an impartial industry body could take over, sparking a discussion about what
happens if no identifier gains critical mass. 🔥💬 The Twitter ad tech drama never disappoints! ENTER THE DEBATE!
📢🛍️ IPG Mediabrands launches Unified Retail Media Solution, a new unit to manage clients' investments in the growing retail media
networks. It evaluates retail media buys based on audience, measurement, optimization, and intelligence to identify top-performing networks. Automated cross-retailer activation optimizes campaigns by moving media among networks. The move comes as retailers like Amazon and Walmart build digital media networks, increasing the need for standards. IPG's platform already beta-tested by CPG, gaming, and OTC clients, with plans for 10,000 audiences by year's end. Retail media has seen
significant growth, accounting for $88 billion in revenue in 2022, and expected to reach $101 billion in 2023, representing 18% of global digital ad spending. Despite investment, marketers question its value, seeking standardization and transparency in the retail landscape. 💼📈
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SCHILLER’S SHOWTIME: A MEDIA MAVERICK’S INSIGHTS UNVEILED In this exclusive two-part series, we dive
deep into the world of media and advertising with industry luminary Scott Schiller. With an illustrious career at the forefront of media giants like NBCUniversal and Glam Media, Schiller's strategic insights and innovative thinking have shaped the landscape of programmatic advertising. As an Adjunct Associate Professor at NYU Stern School of Business and an Executive-in-Residence at Progress Partners, he continues to mentor the next generation of talent and advise companies on navigating the ever-evolving digital terrain. Join us as we uncover Schiller's vision for the future of media, the rise of Connected TV (CTV), and the
transformative potential of Shoppable TV. Get inspired by the wit and wisdom of this media maverick, and discover how his expertise continues to drive innovation in the dynamic world of advertising and media consumption. Start with Part One only on ADOTAT.com
THE RIGHT WAY TO MEASURE MEDIA “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”
The quote, from retail magnate and marketing pioneer John Wanamaker, is over 100 years old. Despite digital media’s promise of accountability, many retailers still struggle with this attribution conundrum. We’ve written this paper because we’ve witnessed first-hand the misleading results of ham-fisted and sometimes lazy models. At Undertone, we offer unique High Impact digital circulars,
recipe ads, and more, all personalized through a slew of AI- driven selected variables that drive sales lifts leading to 15x to 19x ROAS. These state-of-the-art products can stymie old and tired media models. This is because, in some retailer attribution models, high-impact display is treated with the same modeling considerations as boring, small, and entirely missable standard display ads. READ MORE OF THIS WONDERFUL ARTICLE
UNRAVELING THE EFFECTS OF MEDIAMATH’S BANKRUPTCY ON THE ADVERTISING ECOSYSTEM The recent Chapter 11 bankruptcy filing of MediaMath, once celebrated as a leading player in programmatic advertising, has sent shockwaves throughout the advertising ecosystem. With substantial debts owed to a vast array of ad tech businesses and creditors, the collapse of MediaMath is expected to have profound implications for various stakeholders within the industry. This comprehensive article delves into the financial
turmoil faced by MediaMath, the extent of its creditor obligations, and the far-reaching effects of its bankruptcy on the advertising ecosystem. READ THIS IN-DEPTH STORY
INSIDE THE GOOGLE VIDEO AD SCAM It’s bad. It’s actually worse than everyone was saying. Google may owe advertisers
billions of dollars and face huge lawsuits after scamming advertisers. For years, many people, including myself, have questioned the ecosystem of online advertising, particularly Google’s enormous advertising growth that seems to be backed by junk and scam sites. Now, new research reveals that Google has violated its promised standards when placing video ads on other websites, raising serious concerns about the transparency and integrity of the tech giant’s online ad business. READ THE FULL EXCITING STORY
THE FUTURE OF PROGRAMMATIC: MATT BARASH DEFENDS THE SSP. In an exclusive interview with VideoWeek, Matt Barash, Vice President at IndexExchange, provides valuable insights into the ever-evolving programmatic advertising landscape. With over 20 years of experience, IndexExchange has transformed from an ad network into a formidable exchange model, helping publishers monetize their assets. Barash highlights the seismic shifts witnessed in the industry, emphasizing the rise
of quality and video as paramount factors driving change. READ THE INTERVIEW
CRITEO’S COMPLIANCE WOES: REGULATORS SHOW THEY MEAN BUSINESS In a stunning turn of events, adtech firm Criteo has found itself in hot water with regulators, facing a hefty penalty of 40 million euros (U.S. $44 million) for multiple alleged violations of the General Data Protection Regulation (GDPR). The French data protection authority, CNIL, recently announced the fine, which sent shockwaves through the industry and left Criteo employees feeling like their yacht had suddenly transformed into a funeral barge, with no
explanation for this colossal punishment. READ MORE NOW |
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