Machine Learning; 7 Algorithms In Digital Advertising Platform [Part 2/2]

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Click Here to read part 1 of this blog

Few points which can help Ad-Network do more business with same setup [macro-optimization]

Dear marketers and brands, please ignore whatever you read in this section 🙂 Helping brands reach & interact with their consumers is the most important thing; similarly, it is equally important for an ad-server to make money out of it & meet the ROI. There must be a sweet spot between these two goals – and when an ad-server system achieves this, it is a win-win situation for both – marketers/brands and the ad-server agency/network.

5. Dynamic Floor Price

80-20 rule says, 80 percent of revenue is generated from 20% of the clients (brands). In an ad-network ecosystem, the rule is a bit different – 90% of the revenue is generated from 10% of the SSPs. It is a game of demand and supply where ad-server system is the referee. When all demand players land the battlefield, they all want to hunt THAT user (most relevant & likely to interact with the brand) & ad unit. This is the opportunity for a referee to change the rules of the game and make it expensive to yield maximum.

Yeah, it is very cool thing to have an any RTB based ad-serving system; but there are two BIG challenges over here:

  1. It is not merely the site content that makes brands attract and bid higher, but it is majorly the quality and relevancy of the user that plays the vital role. So, defining a set of discrete rules to raise or lower down the floor price won’t help here. Again, Machine learning algorithms which continuously track demands at user and ad unit level would only help tackle the problem.
  2. Second challenge here is – if your ad-server keeps raising floor price then at one point in time, no/very few bidders will bid for the ad slot and most of your inventory will get unsold. And once your system gets a “Expensive” label, it becomes difficult to retain and gain more demand. So, the system should be intelligent enough to know if demand is consistent and the floor price is just below the optimal point beyond which if it is increased, they are not going to be satisfied with.

6. Know Your Inventory Treasure

What if your ad-server is not RTB based and still want to take benefit of variable pricing? Well, there are ways.

 

ML algorithms can keep a watch on inventory parameters like:

  • Site/Brand Popularity – based on trending/viral content being published
  • Monthly Traffic
  • Alexa Rank
  • Content Quality – based continuous sentiment analysis, reader engagements & sessions durations
  • Audience Quality – it is completely based on user’s response towards ads being served to it – it is measured in KPIs like ads visibility, user interaction with ads, clicks, leads and brand engagement
  • Inventory Type – it can be anything – a social media platform, SEM, websites, mobile app, push notifications etc. but the behaviour of each one of these is different – ML tracks the changes in the behaviour

So, the ultimate mantra here is to make marketers spend more on inventory in demand.

7. Platform Secrete Survey

It is ad-servers responsibility to make brands happy with quality performance of ads, best picked inventory and reach the unreachable audience. Similarly, the usability and experience of platform plays an important role to make brands happy and helps retaining them for product lifetime. So, the goal here is to understand user’s behaviour on the platform and mould the platform accordingly.

Make FAQs interactive as if a human is interacting with the user. This requires a very popular machine learning algorithm – Natural Language Processing. Again, a heavy piece of data required here to make system precise and accurate while answering the user’s questions.

Another example would be to track user’s interactions through click events, time taken to complete a process – say setting up a campaign. Using this data, system can make inferences as in – which features are most favourite, which are very rarely being used, which processes are time consuming and which quick ones. All the inferences made by the system if it consolidates and conveys to the project/product manager, they can work on the pain areas and work towards the betterment of user experience.

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Apurv Lungade
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Apurv Lungade

An amateur photographer, Apurv loves wildlife photography and is a Rubik's cube enthusiast. He works on bringing new products to the market.

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