5 Examples Of How Digital Advertising Benefits From Machine Learning

Machine learning has a strong potential for making predictions because it can simultaneously process enormous amounts of data. Thanks to built-in machine learning algorithms in ad tech platforms, ads are becoming increasingly relevant and can deliver the ROI marketers expect from their digital campaigns. 

Even if you have clever digital ad copy and creatives, it is unlikely that the overall campaign will ever reach its highest potential if you do not place them in the right location at the right time for the right people. That is why programmatic advertising enhanced with ML-based optimization is a game-changer for advertisers. And now, let’s dig deeper!

Example #1: Data-Driven Traffic Source Selection 

Understanding the target audience in an ad campaign at a more granular level requires an in-depth analysis of user data. When digital advertising decisions are driven by real-time and big data analytics, it is easier to continuously improve performance and make more accurate predictions for the future. 

Programmatic platforms can strategically change bidding strategies and events through auto-optimization algorithms powered by machine learning. Therefore, programmatic advertising campaigns can be refined and improved as they happen without having to wait until the end of the campaign to measure their success and make changes after.

Example #2: Customized Ad Targeting

Traditional advertising used to rely on generalized demographic information they collected from surveys and research to target their ads. Digital advertising, even in its infancy, has had cleverer means and tools to target audiences in more sophisticated and efficient ways. Machine learning takes those customized ad targeting capabilities in digital advertising to a whole new level. 

ML allows advertisers to decipher the demographics of a specific target audience with extreme accuracy and detail, allowing them to pick the exact audience they require to get the best possible ROI for their advertising campaigns.

Example #3: Customers’ Experience Personalization 

Providing deeper targeting and highly personalized customer experiences is another massive perk of using ML in digital advertising. It directly results in growing customer engagement and improving conversion rates. 

It also helps companies create unique differentiation in a highly saturated digital world. 

For instance, many digital advertisers merely show their customers ads for their most popular products without real personalization. Unfortunately, this often dilutes the customer experience and prevents new customers from discovering new items in the company’s catalog. 

Machine learning enables advertisers to scale their reach and make their advertising campaigns more customer-centric. 

Example #4: Advertising Budget Optimization 

Achieving a high ROI in paid advertising campaigns requires optimal budget allocation at the channel and campaign levels. Using ML-driven strategies to optimize ad spending would help companies to maximize the value of their digital advertising data. 

By analyzing historical campaign data, ML helps automatically detect anomalies that help make informed decisions on ad spending. It also helps run ad performance and revenue predictions for each campaign and then analyzes the combinations of all possible predictions to find the most effective budget allocation to reach all the campaign goals.

Example #5: Transparent Reporting In Real-Time

Getting real-time reports on all the KPIs of the campaign is another benefit you get from programmatic advertising equipped by ML to boost your digital advertising campaigns. 

Live and detailed performance reports help edit and improve advertising campaigns as and when they happen. You can also automate the performance and KPIs of those campaigns to keep them optimized even if you are offline using so-called bidding rules. 

Machine learning helps automate the ad buying process and remove time-consuming manual tasks, laser-focus on targeting audiences, optimizes the ad spend for better ROI, get real-time reports, and optimize the reach and the relevancy of your ad campaigns. With the advent of programmatic advertising in the ever-evolving digital advertising landscape, the days of manually gathering data and performing ad campaign analytics are becoming obsolete.