Rise Data Science

18.01.2024

How AI reshapes programmatic advertising in 2024

The global artificial intelligence market size is projected to reach $1,811.8 billion by 2030. Let’s put this into perspective, shall we? AI in general is expected to contribute more to the world economy by 2030 than the current output of India and China together. But where does that meet programmatic advertising?

The scope of tasks delegated to AI seems endless, ranging from data collection and analysis to creating customized advertisements and much more. Publishers need to future-proof their businesses by utilizing smarter advertising solutions, which are more efficient and hence more profitable. 

These smarter advertising solutions are reshaping publishers’ programmatic approaches. Let’s dive into how AI reshapes programmatic advertising by transforming buying and selling processes. 

Traffic shaping

Traffic shaping or Supply Path Optimization (SPO) is a powerful tool that helps publishers to streamline and optimize their supply chain. Meaning, traffic shaping helps publishers be more thoughtful about what ad requests are sent to intermediaries. 

Imagine you could choose the most direct and cost-effective path for an advertisement to be displayed on your inventory. This reduces operational costs, enhances transparency, and empowers publishers to make informed decisions that align with their campaign goals.

Floor Price Optimization

Floor price optimization (FPO) is yet another great tool that enables publishers to optimize their supply chain by adapting the pricing of ad inventory in response to real-time demand and other contextual factors. 

By adjusting the floor price of ad inventory based on real-time insights, publishers can be in the right place at the right time, meaning they are able to reach the most relevant audience at the right moment. This not not only provides publishers with  maximum value from their ad spaces but also contributes to a more customized user experience and ultimately fosters brand loyalty.

Optimizing Ad Placement

Optimizing the placements of ads is important for their precise positioning. This helps publishers to capture user attention effectively. By utilizing insights, like geographies, browsers, devices, etc. a  tech provider can help publishers to determine contextual relevance to find the best possible space to display an ad. This creates a more engaging and relevant user experience.

With the help of AI and machine learning, publishers can foster a stronger connection with their audience, delivering thoughtfully crafted content, which creates a more compelling and immersive digital experience.

AI integration & Unified Ad Revenue Management

AI integration allows publishers to make more informed decisions, optimize targeting strategies, and enhance overall campaign effectiveness. Imagine your data is centralized in one platform which makes it more convenient to monitor the efficient allocation of resources, which ultimately helps publishers to develop strategies for maximizing revenue.

The benefits of a unified ad revenue management and AI integration gives publishers a more holistic understanding of the programmatic advertising landscape and allows them to quickly adapt to the ever-changing market dynamics.

Bottom Line

AI isn’t something that’s nice to have, it’s a necessity. Meaning, publishers who don’t want to fall behind need to embrace the power of AI to stay relevant and competitive. Integrating the above mentioned tools help publishers to enhance the user experience and relevance as well as drive revenue growth.

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