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How AI is becoming the superpower of programmatic advertising

Artificial intelligence has been used in programmatic advertising for years. But it will take on even more functions in the future. A number of experts from the marketing industry discuss what these are in HORIZONT.

The forecasts only know one direction: upwards. The share of programmatic advertising in the digital advertising market has been increasing for years and will continue to do so. Statista Market Insights expects annual growth of one to two percent, with almost 70 percent of digital advertising being automated by 2028. Looking at the display ads segment, the programmatic share is already higher today. The Online-Vermarkterkreis (OVK) has calculated that 72% of display advertising revenue is now generated via automated and data-based mechanisms.

Programmatic advertising is a global success story, but it would be inconceivable without technological innovations. Only the ability to collect and process a vast amount of data and link the most diverse players in a digital ecosystem formed the basis for automated advertising trading. AI was therefore an early topic.

Predictive personalization pushes CTV

To a certain extent, AI should therefore keep programmatic advertising at its current level. However, this view would be too short-sighted. The industry is expecting significant improvements in the area of personalized targeting thanks to AI. Expectations in terms of personalized brand experience are high, confirms Tom Peruzzi, CEO and CTO at Virtual Minds. And this is forcing companies to consistently use data-based communication. Artificial intelligence forms the basis for this. It has the task of analyzing the behaviour of target groups with the help of a large number of data points and deriving forecasts from this.

According to Mario Neumann, Director Business Development at Goldbach Germany, this "predictive personalization" could lead to a breakthrough in the area of connected TV (CTV). This is because it could be used to predict future viewer behavior based on behavioral patterns. Neumann: "This groundbreaking 'predictive personalization' will represent a decisive step forward in the field of programmatic advertising."

Further statements can be found here on the HORIZONT website.