Why Machine Learning Elevates Programmatic Advertising
January 30, 2018
If programmatic is the car you’re driving, machine learning is the engine that powers it.
Often spoken about interchangeably with a number of other topics like Artificial Intelligence (AI), programmatic buying and deep learning, machine learning is a type of AI that provides computers with the ability to learn things by being programmed specifically to certain tasks.
A programmatic technology platform employs programmatic buying, which is the automated buying and selling of media using technology. This replaces a great number of manual tasks that a traditional advertiser would need to perform such as the creation of insertion orders (IO’s) for digital ads.
A machine learning algorithm can be used as a component of the programmatic technology to identify patterns and signals that allow for real-time, actionable decision making, performance optimizations and significant increases in efficiency.
Acuity has a proprietary machine learning algorithm that has been optimizing digital campaign performance helping customers spend ad dollars intelligently to connect with valuable audiences across the internet since 2007.
Are Machine Learning and Artificial Intelligence the Same?
When you think of technology that replicates human intelligence to perform activities, your brain may set out in a number of different directions like:
- How Google optimizes search engine content to your tastes
- How Facebook filters posts to display those you’re most likely to read
- How Alexa tells you what to wear each morning based on the weather forecast
- How an advertising platform can successfully reach exactly the right customer at exactly the right time in exactly the right place…
At a very high level, these topics all fall under the umbrella of Artificial Intelligence. In fact, they’re just a tiny sampling of the various applications of AI.
However, each of these tasks has its own descriptor, like deep learning, machine learning, natural language processing, etc. So it’s important to recognize that the applications of AI in technology are vast and quite distinct. AI represents a larger category that machine learning falls within.
What does this have to do with elevating programmatic advertising?
Technology now gets to know users and delivers content that will be of interest to them based on data. Within our programmatic platform, the technology gets to know the best approach for bidding and targeting, based on an advertiser’s campaign performance data. The KPI (key performance indicator) established by the advertiser dictates the focus of the algorithm for optimization purposes.
Machine learning’s most significant benefit to digital advertisers is its ability to continuously learn from data produced by any campaign. This allows the programmatic technology to react to changes in campaign performance to continuously improve results.
In conclusion, the incredible amount of data available to advertisers makes it possible to create genuinely informative audience segments for digital advertising campaigns. This level of audience intelligence wouldn’t be possible for humans to produce on their own, let alone in real-time. Machine learning delivers a greater depth of knowledge and the ability to make buying and placement decisions instantly.