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Artificial Intelligence & the Future of Data-Driven Advertising Artificial Intelligence & The Future of Data-Driven Advertising Dr. Jochen Schlosser Chief Strategy Officer [email protected] 1 Dr. Jochen Schlosser Chief Strategy Officer Adform Owner of Adform’s strategy with dedicated responsibility for Product & Technology. • Broad Paid / Rented / Owned Media Experience • Trained Data and Computer Scientist with minor degree in psychology • Happy to have survived 10+ years in Advertising General Introduction What is Artificial Intelligence? A computer program which has the ability to think, solve problems, learn, set goals, and create. It is the science and engineering of making intelligent machines, especially intelligent computer programs. 4 - John McCarthy, 2002 Deep, Machine, Intelligence Learning? Deep Learning Machine Learning Artificial Intelligence Subarea of ML Subarea of AI Highly Simplified Where multi-layered Neural Algorithms that enable machines to A program that can “sense”, reason, Networks learn based on make decisions and improve by act, and adapt. high volumes of data learning over time. 5 Brief Timeline Deep Learning Machine Learning Artificial Intelligence 1965 1805-1957 Since 2000s - GAME CHANGER ”Birth”* of deep learning Algorithm groundwork and first self- Cost of computations and storage drop (Ukraine) learning algorithm * Principle of automatic models generation, inconclusive decisions, and selection by external criteria by Alexey Ivakhnenko 6 Keeping the Perspective That is what we mostly do Accomplishment of one or a very few goals NARROW AI 7 SUPERVISED Learning 8 UNSUPERVISED Learning 9 Some examples on how that works today What exactly is this about? What exactly is this about? It is about GO and MOVE 37 AI vs HI - Humans still are still able to win!!! A Major Challenge ExampleThe TRANSPARENCY on TRUST buildingProblem Even if the outcome is correct, the path to it might not necessarily be the one you expected. The more HIV prediction for medication combinatorics A,B,C or D,A,Z complex the algorithm, the more difficult to explain in human terms, the less we initially do trust them. The TRAINING Problem There is no such thing as free lunch and data plus “the lab” to be trained in needs to be funded. If the lab can’t be simulated (as in Gaming), the question of money is - to no surprise - connected to real budgets. Trust me - I am a scientist (algorithm) Prof. Dr. Dr. Thomas Lengauer The AI (r)evolution will take time More than 1 million predictions for HIV drug resistance since ... Dr. degree in Mathematics (FU Berlin) Ph.D. in Computer Science (Stanford) To the real world and some opportunities GETWhat BETTER Is AI? Insurance Example 23 INNOVATIONWhat Is AI?Irrelevant Treatments / Leakage Detection 24 AI in Advertising But how is this sensor data turned into something useful? The Internet: Trillions of signals Adform’s Artificial Intelligence Trading Algorithms Forecasting Dynamic Ads Product Retargeting Audience Extension Cross-Device Fraud Detection Smart Throttling WORKING DRAFT How Adform Trading Algorithms use AI Adform example of AI Example of mined consumer interaction patterns Exemplary bid change based on random consumer pattern Consumer journey1 Conv. likelihood, % Delta Bid (CPM) Electronic Impression (1 sec, 53%) 1.03 1.03 0.10 EUR News Impression (4 sec, 35%) 2.31 1.28 0.23 EUR Video view (completed) 10.32 8.01 1.03 EUR Campaign click 18.43 8.11 1.84 EUR Product Search Time on site (90 sec) 21.48 3.05 2.15 EUR Publisher’s website Publisher’s Price Comparison Search click (product search) 43.98 22.50 4.40 EUR Time on site (3 sec) 36.98 - 7.00 3.70 EUR Impression (1 sec, 15%) 34.65 - 2.33 3.47 EUR Product Details Visited comparison site 56.67 22.02 5.67 EUR Product Information Social click 60.16 3.49 6.02 EUR App Sale Sign up for offers 94.60 34.44 9.46 EUR Download Offer Advertiser’s Advertiser’s website Signup Video view (completed) 94.98 0.38 9.50 EUR Non-value adding signal Value adding signal Customer Journey Category In-banner engagement 97.83 2.85 9.78 EUR Billions of signals are mined for patterns Each interaction1 influences maximum bid price 1) Hundreds of parameters or combinations of these are used to determine the conversion likelihood, e.g., Domain, URL, Time of Day, Date, Weekday, Category, Browser, Format, Banner Interactions, Viewability, Time on Site, Channel, Campaign, Media Type, … 28 WORKING DRAFT How Adform Trading Algorithms use AI Adform example of AI Example of mined consumer interaction patterns Exemplary bid change based on random consumer pattern Consumer journey1 Conv. likelihood, % Delta Bid (CPM) Electronic Impression (1 sec, 53%) 1.03 1.03 0.10 EUR News Impression (4 sec, 35%) 2.31 1.28 0.23 EUR Video view (completed) 10.32 8.01 1.03 EUR Campaign click 18.43 8.11 1.84 EUR Product Search Time on site (90 sec) 21.48 3.05 2.15 EUR Publisher’s website Publisher’s Price WHAT IF MORE Comparison Search click (product search) 43.98 22.50 4.40 EUR Time on site (3 sec) MORE36.98 - 7.00 3.70 EUR Impression (1 sec, 15%) 34.65 - 2.33 3.47 EUR Product DATA IS FED Details Visited comparison site 56.67 22.02 5.67 EUR Product INTO THE SYSTEM Information Social click 60.16 3.49 6.02 EUR App Sale Sign up for offers 94.60 34.44 9.46 EUR Download Offer Advertiser’s Advertiser’s website Signup Video view (completed) 94.98 0.38 9.50 EUR Non-value adding signal Value adding signal Customer Journey Category In-banner engagement 97.83 2.85 9.78 EUR Billions of signals are mined for patterns Each interaction1 influences maximum bid price 1) Hundreds of parameters or combinations of these are used to determine the conversion likelihood, e.g., Domain, URL, Time of Day, Date, Weekday, Category, Browser, Format, Banner Interactions, Viewability, Time on Site, Channel, Campaign, Media Type, … 29 WORKING DRAFT How Adform Trading Algorithms use AI Adform example of AI Example of mined consumer interaction patterns Exemplary bid change based on random consumer pattern Consumer journey1 Conv. likelihood, % Delta Bid (CPM) Impression (1 sec, 53%) 1.03 1.03 0.10 EUR Social Clicks Impression (4 sec, 35%) 2.31 1.28 0.23 EUR Video view (completed) 10.32 8.01 1.03 EUR Campaign click 18.43 8.11 1.84 EUR Product Search Time on site (90 sec) 21.48 3.05 2.15 EUR Publisher’s website Publisher’s Price Comparison Search click (product search) 33.98 12.50 3.40 EUR Time on site (3 sec) 26.98 - 7.00 2.70 EUR Impression (1 sec, 15%) 24.65 - 2.33 2.47 EUR Product Details Visited comparison site 36.67 12.02 3.67 EUR Product Information Social click 60.16 23.49 5.02 EUR Net Sign up for offers 92.60 34.44 8.46 EUR Offer Sale Advertiser’s Advertiser’s website Signup Video view (completed) 92.98 0.38 8.50 EUR Non-value adding signal Value adding signal Customer Journey Category In-banner engagement 97.83 2.85 8.78 EUR Billions of signals are mined for patterns Each interaction1 influences maximum bid price 1) Hundreds of parameters or combinations of these are used to determine the conversion likelihood, e.g., Domain, URL, Time of Day, Date, Weekday, Category, Browser, Format, Banner Interactions, Viewability, Time on Site, Channel, Campaign, Media Type, … 30 What’s next? The Future The New Marketing Human Natural Language Processing Voice Synthesis Classification & Offer Optimization Computer Vision Emotional Intelligence 33 Adform POC with Amazon Alexa API Access to user microphone HTTPS Security and Consent must be in place for cam Cloud speech API enables Alexa functionality in Ads Alexa environment test interface pulled in through iFrame with added events 34 NEWS from the past … The Intelligent Personal Assistant will be compatible with other digital voice assistants, thereby providing a link to other rapidly growing ecosystems. 36 Good morning, you are driving by a local VF store, with free parking in 5 minutes, would you like to pickup your new iPhone? Done ... While being there, you can also upgrade your contract and pickup the new GC which you showed interest in some weeks ago. Exactly this one! There is a 4 week free trial which gives you access to it during your vacation in 2 weeks. 37 Machine-to-Machine Marketing Which Leaves Us… The Value of Human Intelligence Let’s CREATE something NEW [email protected].
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