Advertising technology is a fast paced business driven by trends in innovation. In the last twelve months, the video industry has been dominated by headlines devoted to the rise of header bidding and brand safety. But what is next on the horizon? For advertisers and media owners, streamlining costs and efficiency in video advertising remains paramount, which is why the latest trend is the adoption of artificial intelligence (AI). But what exactly is it and why is it such a hot topic right now?
AI is the ability for computers to perform tasks that are traditionally considered representative of human intelligence such as decision making, visualization, language translation or speech interpretation. The ad tech industry operates on a large scale with billions of transactions completed daily in a largely automated fashion, making AI a natural fit. Some video ad tech companies have already begun to see the benefit of AI and adopted the technology to eliminate inefficiencies.
For example, Demand-Side Platforms (DSPs) have begun to leverage AI to reduce infrastructure costs. With the advent of video header bidding and server-side ad insertion (SSAI), DSPs must evaluate more impressions than ever before and infrastructure costs have skyrocketed as a result. To adapt, several demand-side platforms have begun to leverage AI as a potential solution. By trimming out opportunities they are unlikely to win, DSPs can avoid unproductive bidding and reduce their infrastructure costs as a result.
On the supply side, publisher CafeMedia is using AI to more efficiently categorize and tag their inventory. This is traditionally a very manual process for publishers, requiring humans to individually categorize inventory within a content management system. It’s important for buyers to know what type of content is present where their video ads are playing. It is equally as important that publishers and media owners know the types of ads being served on their properties. The opportunity to automate the process of reviewing and classifying all programmatic ad creatives could be transformative if applied in the correct way.
So if advertisers and media owners are considering incorporating AI into their video advertising strategies, what are the pros and cons to consider?
Getting started with AI isn’t easy and shouldn’t be taken lightly. Trends can be unpredictable so implementing something new into a video advertising strategy needs to be done with care. If considering implementing an AI program, advertisers and media owners should keep in mind that success begins and ends with data strategy. Even if AI is the industry’s biggest buzzword these days, that’s all it is. A buzzword. It’s not magic, and it’s not a guarantee. However, if an AI strategy is executed with plenty of time and research, there is enormous potential for success as this exciting technology continues to evolve the video advertising landscape.