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Sponsored by Seedtag • January 30, 2024 • 4 min read •
Chad Schulte, senior vice president of agency partnerships and strategy, Seedtag
Discover the Power of Custom AI in Digital Advertising
Custom AI has become an indispensable tool for agencies seeking a competitive edge in the rapidly evolving digital marketing landscape.
Beyond its initial application in audience targeting, custom AI — i.e., artificial intelligence solutions built with an organization’s specific goals in mind — is revolutionizing various aspects of digital advertising, from lookalike audiences and bidding strategies to measurement and optimization. Its most profound impact, however, lies in infusing campaign objectives into automated decision-making across marketing organizations, heralding a new era in contextual advertising strategy.
Unlocking Cookieless Audience Targeting with Custom AI
Digital advertising has shifted from predefined audience targeting to adopting more sophisticated, custom AI-driven methods. Initially, brands relied on predefined audiences for user targeting, a necessary compromise given the technological limitations of the time. However, this approach often sacrificed accuracy for simplicity.
Lookalike modeling represented a significant leap forward, enabling brands to expand their target audiences by identifying users with characteristics akin to their specific brand audience. This technique became a staple in the toolkits of major platforms like Facebook and Google.
The latest advancement in this evolution is fully customized targeting designed for the cookieless web.
This approach employs custom AI to build campaign-specific machine-learning models using first-party data and contextual signals. These models analyze URLs, scoring them based on their semantic relevance to a brand’s campaign brief. The result is a refined selection of content that aligns closely with the campaign’s objectives, surpassing the accuracy of standard segments.
Unlocking the Power of Accurate Data
A critical aspect of audience targeting with custom AI is the quality of the underlying audience data and the integrity of the matching process. A study by Truthset highlighted the reliability issues in data used for ad targeting and audience measurement. The study found that matches between hashed email addresses and postal addresses across various data providers were accurate only about 51% of the time, casting doubt on the accuracy of such audience data matches.
The efficacy of custom contextual AI is evident in its results.