A new study by Juniper Research has predicted that ads bought by AI – machine learning algorithms – will generate $US42 billion ($A55 billion) in annual ad spend by 2021.
The report, titled A1 & Machine Learning: Media Dynamics, Disruption & Future Opportunities 2016-2021, says the technology will increasingly fall in price making it far more accessible and affordable for media buyers. Big media players such as Facebook and Google have been using AI technology over real-time bidding for some time.
“Typical real-time bidding (RTB) allows the advertiser to target demographics or various population subsets,” said the report’s author Steffen Sorrell. “Adding machine learning into the mix effectively allows RTB networks to target the individual. This is a much more powerful tool.”
The other advantage of buying ads with machine learning algorithms is not only the cost effectiveness, but it can also predict the success of an impression and thus can quickly adjust the bid amount. It can also ensure that users aren’t served similar ads twice and is able to serve bespoke ads to a user.