CXO Bytes

How Mobile and Programmatic Marketing Have Now Become AI-driven More Than Ever

The AI-driven market has witnessed a massive transition in recent years, which is evident with reports suggesting that the global AI market is projected to reach $1394.30 billion in 2029. We can already see the impact of machine learning, and natural language processing in marketing and sales, healthcare, education, cybersecurity, and many more. The strength of artificial intelligence lies in its adaptability and ever-growing possibilities, with a profound ripple effect even in the field of mobile marketing.

Earlier, the biggest challenge for marketers was ad blockers, allowing consumers to block out unnecessary and irrelevant ads. But with AI in the picture, designed to create tailor-made ad experiences, ad blockers will become passe. Now, algorithms combine a customer’s short-term and long-term interests in real-time to display not just the right kind of ads but also better content that matches the taste of a user. Simply put, trackers record our online activity which is analysed by AI to show better advertisements.

AI also has a growing impact on connected TV (CTV) advertising, changing the way video content is consumed. It is an improved marketing strategy that provides better ROI than TV advertisements. Due to its ability to provide a wide range of formats, it targets a spectrum of audiences at the same time. It comes as no surprise that CTV ad spend is expected to grow to USD 38.83 billion by the end of 2026.

However, matching a user’s taste is just the tip of the iceberg in AI. It improves an advertiser’s content performance, generating higher return-on-investments and better analytical functions. When it comes to media planning and buying, algorithms play a huge role in ensuring that a campaign provides impressive output for advertisers. Although this automatic media buying will not completely replace the manual, a lot of mobile advertising agencies are rapidly adopting technology for an improved customer experience.

A recent study shows that almost 62% of the respondents say that they will lose a brand’s loyalty if it does not provide a personalised experience. This is where AI comes into the picture, as it offers the right solution for target marketing and a massive opportunity for mobile marketers who want to be game changers in the industry. How so? AI enables businesses to automatically set dynamic prices rather than fixed prices to maximize profits. It automatically adjusts dynamic pricing in real time based on market demand and on how much a customer is willing to pay. For instance, AI predicts which potential consumers will convert by offering them discounts and which consumers might convert without a deal.

Coming to programmatic marketing, AI algorithms can learn and adopt their actions based on new patterns they encounter, making them highly suitable for real-time environments. Artificial intelligence impacts various aspects of programmatic advertising, such as:


  • Personalisation:

AI gathers and divides user data into individual segments, based on their interests and browsing pattern. The result is relevant and personalised ad content for the right audience. It is even possible to modify the ad creative based on what the AI knows about a user or a potential consumer.


  • Predictive Analytics:

AI provides analysed insights of a user based on multiple factors such as user-downloaded apps, browsing history, previous purchases, interests, ad interactions and relevance, and a user’s resemblance to a previously identified high-value customer. These reduce CAC (Customer Acquisition Cost) with intelligent customer segmentation and personalisation.


  • Content Match:

A lot of marketing companies use NLP or Natural Language Processing – an AI element. NLP is used to improve the contextual relevance of ads by comparing the ad content to the content of a platform, such as mobiles and websites, and then making sure they are displayed consequently. This also helps to protect brand image by ensuring that ads do not appear in an inappropriate context.


  • Budgeting:

With the help of AI in programmatic marketing, advertisers can adjust their bidding strategies based on user data and determine the right price for an ad space they want to purchase. Thereby reducing ad spending and increasing their ROIs. AI also helps determine which advertiser is more likely to succeed with their bids for ad space and limits the auction to only the most suitable bidders, eventually benefitting publishers.

In this AI-driven world, we are witnessing a tailor-made ad experience with an intelligent approach that will block out irrelevant ads, providing a seamless experience. With Google looking to abolish cookies by the end of 2023, advertisers have already begun exploring alternate methods to gain user insights. By investing in consumer data management and collaborating with publishers to obtain legitimate second-party data, AI and Machine Learning will continue to help companies build a foundation and a safe route to gain consumer insight, assisting performance scale-up with smart budgeting.


(The author is Mr. Bhavesh Talreja, Founder & CEO, Globale Media and the views expressed in this article are his own)

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