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AI in programmatic advertising

Finding the perfect balance between the right people, the right time, and the right message has proven to be the hardest hurdle in digital marketing so far. Advertisers can achieve this previously unattainable goal by combining the power of AI with programmatic advertising (RTB-based). Artificial intelligence (AI) enables technology to learn and adapt to user behavior by putting data sets into the model, where the AI can learn, discover trends, and make predictions based on those patterns. Demis Hassabis, founder of the AI company DeepMind, describes AI as the “science of making machines smart.” As additional data is supplied to the system, the AI may learn and develop over time. Delivering more tailored, pertinent, and genuine client experiences is made possible by AI in advertising.

Another term that you might have heard of is “machine learning”. Most of the time, these terms are used interchangeably. However, there are differences between them. 

While artificial intelligence is a more general term, machine learning refers to a specific method in which machines use data to “learn” and enhance their performance. It refers to technological solutions that can carry out operations that normally require human intellect. As a result, machine learning is a component of artificial intelligence but is not the same as AI.

What is programmatic advertising?

Programmatic advertising is the activity of buying and selling ad inventory in real time using software that operates on an auction model as opposed to more conventional techniques. Instead of paying a fixed CPM for all impressions on a website, this enables an advertiser to pay for impressions based on the number of eyeballs viewing their ad. The software sends a bid for the ad view based on the value the advertiser has allocated to elements like the time of day, device, website, and audience cookie information, among others. This improves targeting precision and advertising efficacy.

Programmatic advertising has transformed the way adverts are displayed to users by enabling the use of data to give a more tailored experience to the customer. Programmatic advertising platforms are increasingly leveraging machine learning to make real-time decisions, ensuring the delivery is more efficient and accurate rather than relying on human interactions such as opinion-based optimization’s. 

AI’s role in Programmatic Advertising

In a realm where personalization in advertising has become crucial for optimizing the return on investment, the application of AI allows us to grasp customer intent and thinking processes better, increasing ad relevance and consumption. We’re getting closer to creating an expert system that analyzes a variety of data sources to determine if a user is likely to convert, make a purchase from, or otherwise connect with a business. These user data points include information on location, context, demographics, and interests related to online behavior. 

Here are some benefits of using AI-driven Advertising:

  • Faster optimization’s and decision-making versus human involvement
  • Predictive algorithms based on a machine learning-fueled data set
  • More accurate lookalike audiences based on models 
  • Dynamic Personalization leads to better customer experience
  • A variety of analytical models to extract insights from campaigns 

Aside from that, AI advertising may use contextual cues like the page content, weather data, and location to identify which advertisements are relevant to a person. Machine learning can also predict which users are most likely to take an action, ensuring that your target customers are more likely to convert. 


Artificial intelligence is not a new concept in advertising. But when used in new and innovative ways, its data mining capabilities may help marketers achieve more efficiency, more conversions, and accurate decision-making. The ability of AI to quickly analyze data and make decisions is at the core of everything. Although we may not yet be aware of it, AI is undeniably transforming the advertising industry, easing its strategies and simplifying its techniques. From modifying the way advertisements are served to improving ad relevance to checking the ad quality, AI has put in the hard work in every field. This allows advertisers to get the most out of their advertising budgets.

For advertisers seeking to deploy a machine learning algorithm to further refine their performance or interested in learning about the benefits of the concept. Reach out to the Bidmath team to learn more. 


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