MarkLives MEDIA: AI & programmatic advertising: Tips for media planners
MarkLives.com
MarkLives.com — independent industry news for marketing, advertising & media execs. Credible. Insightful. Essential.
By Charles Lee Mathews (they/them) Artificial intelligence is making major inroads into programmatic advertising, fuelling growth and reshaping media buying practices. Charles Lee Mathews chats to leading media specialists to get their perspective on the shifting landscape.
Speed and enhanced integrity are among the big benefits AI brings to programmatic advertising. AI “analyses data faster and the quality of our programmatic buys is more accurate as a result of using AI tools,” says Kagiso Musi , group managing director of Meta Media . She notes that advanced AI algorithms enable “quicker machine learning, more precise targeting, real-time bidding, and more accurate performance optimisation”.
Razor-sharp campaign strategy
Programmatic platforms now integrate AI to manage predictive analytics, audience segmentation, creative customisation, and real-time optimisation, adds Musi. Because of these advances in AI, it’s vital to keep up with innovations.
“On Google Ads, various updates have been made with AI campaign types and media and creative consolidation in setups, which allows our teams to launch more effective and efficient ad campaigns. The AI in predictive analytics helps us bid more strategically because the AI forecasts user behaviour and ad performance,” says Musi. AI also helps her agency automate advertising optimisation, and target audiences more precisely to maximise return on investment.
Double-edged impact
Danny Greeff , managing director of Nettrade Programmatic , sees AI’s impact as two-fold: “On the positive side, we’re seeing demand-side platforms take full advantage of the advanced models now available to build enhanced versions of the tools and products that we use daily. Areas like custom bidding and audience modelling are seeing great improvements, and we know of a number of exciting applications currently on the roadmap,” he says.
However, Greeff cautions that AI's growth has led to an increase in "made for advertising" traffic in exchanges, where buyers purchase inventory. This trend potentially diverts marketing spend away from legitimate publishers, worsening existing fraud issues in the industry.
Scott Reinders , digital media partner at M&C Saatchi Connect says here’s what advertisers and media buyers need to watch out for: “As generative AI moves from muse to co-pilot to tool, the integration of it can, ironically, add quite a lot of complexity to programmatic platforms. This will require specialised knowledge and skills to manage effectively.”
“Given how quickly AI is developing, there are not many people with these skills right now. There are also concerns in the industry about the transparency of AI-driven decisions, as algorithms can be ‘black boxes’ with unclear logic behind their choices,” Reinders adds.
Despite these challenges, Reinders sees potential in AI's ability to bridge gaps in advertising technology. "Because AI analyses audience behaviour at scale, agencies can still create detailed audience segments, with more personalised and effective targeting. AI is also great for audience Lookalike Modelling, to help target potential new customers for clients by finding users with similar characteristics as existing customers/audiences," he says.
Human touch remains essential
Yvette Naidu , MD of Lucid (MetaMedia's performance unit), emphasises the importance of human strategic oversight and creativity. "There are vast differences between those that have learnt to use AI to support their job functions versus those that have fully replaced their deliverables with AI," she observes.
"Strategic oversight is an important factor that only humans can fulfil. Our strategists set the strategic direction and objectives of the campaigns that guide AI actions and ensure alignment with the brand, campaign or business goals," Gengan adds.
Musi echoes this sentiment: "What is important is that skilled specialists execute the campaigns because they understand the capabilities of the AI. AI updates are powerful, and if not used correctly can result in watered-down results. A skilled specialist will understand the power of the enhancement and decipher the insight that the AI generates." Following that, specialists can act on insights from real-time data by making informed strategic decisions and adjusting campaigns to market conditions. “There is an immediacy filter we now have, which we didn’t before,” Musi adds. Reinders warns against over-reliance on AI. "Campaign management teams can become too reliant on AI, potentially leading to complacency in campaign builds and strategy development. AI is not always right, and it often takes a skilled eye to be able to detect the gaps," he says.
Recommended by LinkedIn
The future is AI and human
Statista projects AI-enabled spending will soar to one trillion US dollars within the next decade. The technology's future influence is undeniable, but, while AI excels in data processing and automation, it falls short in grasping nuance in human culture, ethics, and morality.
The experts agree that the true sea change lies in the synergy between AI and human intelligence. "You can't start a creative process without intuition, which is essential in ideating and developing compelling advertising campaigns and story narratives that resonate with our consumers," says Gengan. "That is the space of emotions. Machines can't do that."
Charles Lee Mathews is a contributing writer to MarkLives MEDIA, as well as co-founder of The Writers, a writing consultancy.
#OnTheMEDIARadar in MarkLives Media:
Never miss an edition. Sign up here.
ID, please
MarkLives & MarkLives MEDIA editor & publisher: Herman Manson MarkLives MEDIA production editor: Jessica Ross MarkLives chief production editor & ed-at-large: Simone Puterman MarkLives & MarkLives MEDIA contributing writers: Carey Finn, Charles Mathews MarkLives MEDIA columnist: Graham Deneys MarkLives MEDIA editorial advisory board: Ana Carrapichano, Celia Collins, Gareth Cliff, Graham Deneys, Kagiso Musi, Jane Ashforth, Marvin Kgasoane, Merissa Himraj, Wayne Wilson
Partners: Ramify.biz Ramify production: Lunga Biyela Images: We thank Pixabay, Pexels and Unsplash for the use of their pictures for the majority of our featured images.
Useful MarkLives & MarkLives MEDIA links: Subscription queries/FAQ • About MarkLives • About MarkLives MEDIA • Submit news & opinion • PR mailing list (for advance notice of features lists) • Browse MarkLives articles • Browse MarkLives newsletters • Browse MarkLives MEDIA articles • YouTube • Facebook • LinkedIn • X/Twitter
Useful Ramify links: Agency search • Brand partner search • Service supplier search • Browse all • Register as marketer • Latest company news • Facebook • X/Twitter