Q&A: What You Need to Know About
AI-Powered Programmatic Advertising

Simplaex Co-Founder & CTO Moti Tal helps untangle the benefits of using AI-powered programmatic advertising to increase reach and income.

Q: What are the essentials for publishers and advertisers to consider when it comes to Artificial Intelligence (AI) powered programmatic advertising?

A: AI-powered programmatic advertising is the real paradigm shift that brings more efficiency to publishers and advertisers. AI is here to facilitate marketers’ lives for better automation and decision-making while being able to deliver personalized end-user experiences. Nowadays, the walled gardens are dominating the digital advertising market by managing the ROI of advertisers and the revenues of publishers as they have created a sustainable ecosystem.

Artificial Intelligence is, therefore, the best bet for the distributed programmatic ecosystem in order to sustainably compete against the duopoly as it streamlines the demand targeting with supply monetization. It, on one hand, optimizes the use of demand’s resources by better user classification thus reducing waste, which on the other hand enables monetization of more relevant supply. 

Unlike the duopoly, that mainly operates in a self-regulated environment like moving on a railroad track. On the contrary, the programmatic ecosystem the bid stream is like a busy intersection with a large amount of traffic in perpetual movement. 

Analogous to autonomous cars, AI applied to programmatic advertising can navigate on its own within the environment and is able to give granular insights in order to find an economical path connecting advertisers and publishers.

Q: How does AI improve audience targeting for publishers and advertisers?

 A: The creation of the audience is based on smart interest discovery. It has the ability to evaluate different traffic sources and bidding strategies in order to better understand the patterns of audiences intent behavior in the short term and long term interests which refine the classification. The AI layer enables you to leverage that during real-time targeting. You need to be able to react on the basis of both the demand requirements and the user interests. This makes advertising less intrusive and more relevant.

Analogous to a human brain, AI applied to programmatic advertising behaves like a central nervous system. It consumes information for a large number of sensory organs, i.e., supervised and unsupervised machine learning algorithms. In order to take effective real-time decisions, this AI takes optimal autonomous actions to adapt to changes in significant factors governing the demand and supply. It has the potential to optimize towards a sustainable ecosystem.

At the same time, it keeps up to speed with dynamically evolving user behavior, constantly updating user valuation.

Q: As the GDPR deadline is approaching, this means many companies will need to become compliant. Any advice for the players within the programmatic ecosystem as they explore the benefits of becoming GDPR compliant and any main issues to consider? 

 A: GDPR was designed to address consumers’ concerns about the privacy of their personally identifiable data and how companies are using it. The version of the GDPR, which was adopted by the European Parliament, includes new rules around individual data. Customers must now be able to consent to the use of their data and also have the right to erase that data upon request. By May 25, 2018, companies doing business in the EU with access to customer data will need to be compliant.

Although the GDPR was passed in the EU, it does not only encompass marketers in the EU but all companies that process data from consumers within the EU. Organizations that remain non-compliant come May will face fines of up to 20 million euros ($24 million) or 4 percent of the organization’s annual global revenue –whichever is greater. According to a recent report from Iotec that polled 250 senior marketers, 66 percent of respondents cited transparency in data use as the area in which they expect transparency from ad tech vendors.

In light of recent events, distributed advertising systems also offer the added advantage of better privacy protection by default as a virtue of its distributed design. Since the identification information, and the insights from AI do not reside with the same business entity,  impact of compromise of any individual entity is likely to be very limited. Also, potential of misuse of the compromised information is greatly reduced. 

GDPR is, therefore, a force for good as it will help cleaning the ad-tech industry from bad actors and help advertisers, publishers, and ad-tech vendors to grow in a better user-centric ecosystem. However, advertising ecosystem still needs to take more initiatives to self regulate and promote good ethical practices, alongside compliance to existing regulations. 

Q: What trends do you believe will emerge in the next year in regards to  AI-powered programmatic advertising? 

 A: With AI on the rise, we should expect to see more products that streamline the interactions of the different actors across the programmatic advertising value chain. Hence, with the help of AI, advertising will be more personalized and as a consequence more relevant and less intrusive, which is a step forward towards a positive browsing experience, making the freemium content model sustainable.

LATEST NEWS

Simplaex Is Leading The Next Mobile Wave In Transforming Data Into Insights And Insights Into Action

Simplaex, experts in marketing mobile games, has recently closed its successful A-round funding. The Berlin-based company will use the capital to expand into new verticals and deliver its proprietary technology to a broader customer base. To this end, Simplaex is positioning itself as the most advanced data insight & activation platform. Below is our recent interview with Jeff van Ede, Co Founder & CEO of Simplaex:

First-party Data Innovator Simplaex Closes $2.6 Million Funding Round

Simplaex, experts in marketing mobile games, has successfully closed its A-round funding. The Berlin-based company will use the capital to expand into new verticals and deliver its proprietary technology to a broader customer base. Helping to drive this expansion will be Perry Ofir, Simplaex's newly-appointed CRO who was formerly VP of Sales & Business Development at Adgorithms.Simplaex launched in April 2016 as a groundbreaking marketing platform for game developers. In the twelve months since, it has grown into a sophisticated data marketplace with over 300 million unique user profiles. On the back of this impressive growth, the company is now looking to expand beyond the gaming industry.

Simplaex Surpasses 150 Million Players for Game Developer Platform

Simplaex, a revolutionary peer-to-peer platform for game developers, now offers direct access to over 150 million players. The important milestone comes just ten months after the Berlin-based start-up set out to transform game marketing. Developed together with some of the world's leading game companies, Simplaex is laser focused on the two main pillars of the industry's business model: Acquiring players and finding a way to monetize them. The groundbreaking technology completely bypasses the traditional way of game marketing, giving developers immediate access to a transparent and effective player marketplace.

First-party Data Innovator Simplaex Closes $2.6 Million Funding Round

Simplaex, experts in marketing mobile games, has successfully closed its A-round funding. The Berlin-based company will use the capital to expand into new verticals and deliver its proprietary technology to a broader customer base. Helping to drive this expansion will be Perry Ofir, Simplaex's newly-appointed CRO who was formerly VP of Sales & Business Development at Adgorithms.Simplaex launched in April 2016 as a groundbreaking marketing platform for game developers. In the twelve months since, it has grown into a sophisticated data marketplace with over 300 million unique user profiles. On the back of this impressive growth, the company is now looking to expand beyond the gaming industry.

Simplaex Surpasses 150 Million Players for Game Developer Platform

Simplaex, a revolutionary peer-to-peer platform for game developers, now offers direct access to over 150 million players. The important milestone comes just ten months after the Berlin-based start-up set out to transform game marketing. Developed together with some of the world's leading game companies, Simplaex is laser focused on the two main pillars of the industry's business model: Acquiring players and finding a way to monetize them. The groundbreaking technology completely bypasses the traditional way of game marketing, giving developers immediate access to a transparent and effective player marketplace.

Simplaex launches the first peer-to-peer marketing platform for game developers to buy, engage and sell players

Simplaex is officially launching its next generation marketing technology platform at GDC 2016 in San Francisco that solves the problem of today's user acquisition and retention in both mobile and online gaming. Since the introduction of the F2P business model the gaming advertising industry has developed into an ecosystem that is controlled by networks, agencies, brokers and resellers. Game developers and game players are more disconnected than ever before.

Why the game marketing ecosystem is ripe for disruption

For many game developers, the traditional way of promoting their products online is broken beyond repair. With no direct digital access to potential customers, they depend on an ungainly mix of ad exchanges, media buying platforms, data aggregators, agencies, and resellers. The results of such a tangled web are predictable: Unfair prices, low-quality leads and surging churn rates. This unsatisfying situation has led many game developers to shift their focus from customer acquisition to retention in the hope of boosting the cost-effectiveness of their marketing strategies.

Why game developers are neglecting their players

Can you imagine going to a restaurant that made it increasingly harder to get through each course of a meal? Sure, you can have your appetizers, but to eat your entrée you’ll have to cross the street to another location. And don’t forget to bring your spoon with you — otherwise you can forget dessert! No, I can’t imagine that either. But that’s exactly what the game industry does to its customers. It makes products that are by their nature progressively more difficult to consume. It’s the developer’s conundrum: Every gamer is intrinsically different yet they’re all playing the same game. They have various levels of skill and determination, as well as a range of ideas about what constitutes success and brings gaming satisfaction. It’s impossible to make a game that’s a perfect fit for everyone, but you can try to look after your active users and make sure they’re happy.

Why game developers should embrace player churn

Churn. It’s an ugly word. Game developers are naturally concerned about player retention. But eventually even the most ardent player loses interest in a game. It’s normal. It’s part of the cycle. And so it’s also normal when developers are inclined to squeeze the absolute maximum revenue out of people before they’re gone forever. However, trying desperately to monetize your players only increases churn, aggravating the problem.

Why game developers must rethink their advertising strategy

What if you could go to the movies for free, but every 15 minutes the film would stop for a commercial break? A few very cost-conscious people might tolerate it, but I reckon most would refuse to ruin their cinema experience that way. Similarly, there’s a good reason game developers dislike in-app advertisements: They distract your customers — and frequently discourage them from using your product. “Gamers want to game. So disturbing the gamer’s experience, even if it brings value, isn’t always the way to go,” wrote Avi Hadas, in a recent guest column on in-game advertising for VentureBeat. The stakes are high. In an industry concerned about churn, retention, and monetization of players, in-game ads might save your business — or end up killing it.

Simplaex UK country manager