• June 22, 2020

From online advertising to AI-driven programmatic advertising

From online advertising to AI-driven programmatic advertising

From online advertising to AI-driven programmatic advertising 800 521 DataLit

Author: Marco Belmondo (Chief Marketing Officer at Datrix group)

Let’s start from a well-known quote: “Half the money I spend on advertising is wasted; the trouble is I don’t know which half” cit. John Wanamaker (1838-1922). When advertising was totally out-of-home, radio or television, this quote was true. 

And what about now? We have many different channels (websites, social networks, online videos, voice assistants and so on..) and – even more important – we have impressive capabilities and tools to collect data on each banner, click, mouse movement or mobile app use. 

In this article, we start from the definition of online advertising to analyze the evolution of digital advertising towards a stronger and stronger data-driven impulse. Which is the role of Augmented Analytics and Artificial Intelligence in this context? Why is so important to have an experienced partner to manage your digital advertising strategy? Let’s go through it.

Online Advertising: definitions and opportunities

Online Advertising: what does it mean? It can be called in many ways (Digital Advertising, web advertising, digital marketing) and it basically refers to every paid communication or marketing actions taken on different digital communication channels, aimed to promote your own products or services. 

According to Warc Data (State of the industry: 2020), online advertising worldwide is growing extremely faster than traditional media, at 13.2%. Who led this growth? Major digital Over The Top (OTT) players. 

 But first of all, why online advertising is so important? We can identify three main points: 

  • Hyper-personalized communication: analyzing customer behaviour online, you can propone to each customer a different communication.
  • There are no big initial investments. For instance, you can use Pay Per Click campaign. In this way, you pay only if your campaign generates traffic.
  • It can be totally data driven! You can – and you should – monitor real-time all the actions on your advertising and, thanks to that, you can easily measure your Return of Investment. 

How can you succeed with online advertising? The more you are able to identify your target (or your micro-target), the more you can understand which part of your investment would be quite wasted. That’s what Over the Top players do, analyzing huge amount of data.

How to improve your online advertising strategy: programmatic advertising

You can use different strategies to generate traffic – and consequently conversion – to your website. As macro-categories, we can divide organic and inorganic (or paid) mode. 

Organic mode means to generate traffic without a direct investment, for example you can decide to work on your content and pages to reach the first positions of Google SERP (Search Engine Results Page). In this way, when a user looks for a specific keyword, your website will appear first, and it will be more likely that the customer will visit it. That is what is called Search Engine Optimization (SEO). From the other side, you can decide to invest in Paid mode. In this article, we focus on this second one, specifically on banner and Pay-per-Click Ads, but it is important to highlight that a good online strategy should be composed by the two ways. It is not a matter of choose one!

The most innovative trend in paid advertising world is Programmatic Advertising. 

Programmatic Advertising can be defined as a digital process that allows publishers and bloggers to buy – automatically – advertising spaces. 

This process is quite similar to a commercial auction but, what is more important, it is characterized by a strong data-driven focus. The process, indeed, begins with the collection of first, second and third-party data, it passes through monitoring systems that support the identification of the right target and at the end, it uses ad-hoc technological tools to bid and sell advertising spaces.

Does it seem quite complex? Publishers & Bloggers claim lack of specific expertise and, in consequence, they struggle to have a strategic approach to this issue. It is both a matter of technology and Data & Analytics skills and it could be difficult if you are not equipped with both. 

A consulting partner could be the right choice to manage the Programmatic Advertising world, while your company can remain focused on its core business and on the content creation aspects.

Programmatic Advertising, Augmented Analytics and AI: where are the connections

As we have seen so far, programmatic advertising is based on an automated mechanism, that generates a virtual auction where bidders and sellers automatically match. Obviously, the matching process is totally driven by data. But there is more.

The more you are able to use sophisticated algorithms on data, the more you will be able to extract information from your data and consequently you will be more effective in bringing your communications to the right person. This is the reason why you should apply augmented analytics algorithms.

The term Augmented Analytics basically refers to predictive, prescriptive, and automated algorithms that are able to learn from data day after day. Using these methodologies, your programmatic strategy could identify your target, predicting which customer could be more likely to buy your product. This strategy in the short run could be very important to increase your conversion rate, in the middle run it could be a matter of brand reputation, as well. Customers receive everyday thousands of communications; it is important to be unobtrusive in yours. 

What can DataLit.AI do for you: AI for data monetization and programmatic advertising

DataLit.AI is a platform developed by the tech company PaperLit (part of Datrix group). The platform provides your company with the right skills and experience to manage Programmatic Advertising. DataLit.AI bases its strategy on Artificial Intelligence to help you monetize your data.

Using this platform, you can achieve three main objectives:

  • Hyper-profile your audience, basing on characteristics, interests, behaviors: DataLit tool is able to identify granular users ‘interests and segment users into clusters with similar characteristics. Consequently, the platform helps you to estimate the propensity to purchase of each reader.
  • Monetize your audience, building hyper-targeted advertising campaigns.
  • Drive more traffic to your website/app through data collection, Push Notifications, Email Notifications and SEO support