The digital ecosystem is experiencing unprecedented growth across the globe, offering businesses unparalleled opportunities to create deeper connections with their audiences through technological advances. The evolution of advertising technology has seen several phases, from the introduction of digital advertising in the 2000s), the shift to programmatic in the 2010s, and now the revolution through artificial intelligence (AI) in this decade.
The APAC digital advertising market is poised to grow[1] by 9.2% this year. However, this potential growth comes with challenges for the industry, such as acquiring the right talent to manage the increasing volume of available data.
DV’s Global Insights: 2024 APAC Report highlights an 23% increase[2] in new fraud schemes and variants compared to the previous year. This underscores the need for marketers to make sure that their campaigns are not wasting media dollars without driving real business impact.
Harnessing AI for Optimized Media Buying
Data is everywhere. And digital data, which includes every single interaction on the internet, has the advantage of measurability. Every time a consumer logs on to the web, data points are generated that can be used to gauge the likelihood of the consumer engaging with the brand.
However, the sheer volume of data produced daily is beyond human capacity to analyze. While humans excel at making intuitive decisions, understanding human emotions, and translating client briefs into campaign strategies, AI can process data accurately at an astonishing rate. AI, with the ability to consider each data point related to a campaign in real time, creates an immense opportunity for marketers and is transforming the way that we understand programmatic advertising today.
Predictive AI employs machine learning to predict future outcomes based on data pattern recognition. This technology has driven vast amounts of data in web and mobile advertising that can be automatically analyzed to recognize patterns and predict future trends and behaviors. More sophisticated AI tools offer customisable algorithms that continually learn and enhance the media buying process, aligning with an advertiser’s unique goals and KPIs. Investing in AI for marketing can equip companies with a probability engine that fuels growth.
The Impact of AI on the Marketing Industry
As the marketing landscape becomes increasingly saturated, particularly in regions like Indonesia, AI will be a game-changer. AI-powered tools can analyze the vast amounts of data in digital advertising to identify patterns and trends that human marketers might miss. These tools can predict consumer behavior, enabling brands to tailor their marketing strategies to individual customer preferences and habits. This level of personalization can significantly increase customer engagement and conversion rates.
AI can also help brands optimize their ad spend by identifying the most effective messages, channels and times to reach their target audience. By analyzing data on consumer behavior, AI can predict where and when a brand’s ads are most likely to be seen and engaged with. In essence, AI not only automates and streamlines the media buying process, saving valuable time for marketers to focus on strategic planning, but it also maximizes return on investment.
Predictive AI Drives Significant ROI
Media buyers reportedly spend nearly a quarter (24%) of their time manually optimizing digital media campaigns.[3] However, automated optimization strategies can drastically reduce hours spent on operational workflows.
AI-based optimization tools can help marketers significantly reduce this effort. With algorithmic bidding, advertisers can efficiently optimize toward their KPIs without the manual lift. In addition to saving time, AI can also increase ROI for advertising campaigns. For example, on average, an ROI of $4 is delivered for every $1 invested in DV Scibids AI, an AI-powered marketing platform that automates optimization towards multiple KPIs. On top of this approximately 38% of media cost is saved versus cost that is spent.
The report also reveals that 55% of media buyers say AI-driven campaign optimization positively impacts media quality. As investment continues growing in programmatic advertising, with over 84% of digital advertising spend projected to be programmatic by 2028, maximizing the value of each media dollar becomes exceedingly important.[4] With algorithmic bidding, advertisers can efficiently optimize toward their KPIs without the manual lift.
AI is more than a tech trend; it’s a revolution reshaping the world and redefining the boundaries of what’s possible. AI technology will continue to evolve – transforming the marketing and business landscape, changing everything from media consumption to media buying. Indonesian marketers can leverage AI to keep pace with this evolution and drive growth, in digital advertising and beyond.
[1] Ethan Cramer-Flood, “Worldwide Digital Ad Spending Forecast H2 2024 Update”, EMarketer, May 29, 2024.
[2] DoubleVerify Global Insights Report, 2024
[3] Ibid.
[4] Ibid.
