The Future of Data-Driven Advertising · Example of mined consumer interaction patterns Exemplary...

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Dr. Jochen Schlosser Chief Strategy Officer [email protected] 1 Artificial Intelligence & The Future of Data-Driven Advertising

Transcript of The Future of Data-Driven Advertising · Example of mined consumer interaction patterns Exemplary...

Page 1: The Future of Data-Driven Advertising · Example of mined consumer interaction patterns Exemplary bid change based on random consumer pattern te te Sale Non-value adding signal Value

Dr. Jochen Schlosser

Chief Strategy Officer

[email protected]

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Artificial Intelligence &

The Future of Data-Driven

Advertising

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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

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General Introduction

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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. - John McCarthy, 2002

What is Artificial Intelligence?

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Deep, Machine, Intelligence Learning?

Artificial Intelligence

Highly Simplified

A program that can “sense”, reason,

act, and adapt.

Machine Learning

Subarea of AI

Algorithms that enable machines to

make decisions and improve by

learning over time.

Deep Learning

Subarea of ML

Where multi-layered Neural

Networks learn based on

high volumes of data

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Brief Timeline

Artificial Intelligence

Since 2000s - GAME CHANGER

Cost of computations and storage drop

Machine Learning

1805-1957

Algorithm groundwork and first self-

learning algorithm

Deep Learning

1965

”Birth”* of deep learning

(Ukraine)

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* Principle of automatic models generation, inconclusive decisions, and selection by external criteria by Alexey Ivakhnenko

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Keeping the Perspective

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That is what we mostly doAccomplishment of one or a very few goals NARROW AI

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SUPERVISED Learning

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UNSUPERVISED Learning

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Some examples on how that

works today

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What exactly is

this about?

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What exactly is

this about?

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It is about GO and MOVE 37

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AI vs HI - Humans still are still able to win!!!

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A Major Challenge

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Example on TRUST building

HIV prediction for medication combinatorics A,B,C or D,A,Z

The TRANSPARENCY Problem

Even if the outcome is correct, the path to it might not necessarily be the one you expected. The more

complex the algorithm, the more difficult to explain in human terms, the less we initially do trust them.

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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.

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The AI (r)evolution will take time

More than 1 million predictions for HIV drug resistance since ...

Trust me - I am a scientist (algorithm)

Prof. Dr. Dr. Thomas Lengauer

Dr. degree in Mathematics (FU Berlin)

Ph.D. in Computer Science (Stanford)

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To the real world and some

opportunities

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What Is AI?

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Insurance ExampleGET BETTER

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What Is AI?

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Irrelevant Treatments / Leakage DetectionINNOVATION

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AI in Advertising

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The Internet: Trillions of signals

But how is this sensor data turned into something useful?

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Adform’s Artificial Intelligence

Trading Algorithms Forecasting Dynamic Ads Product Retargeting

Audience Extension Cross-Device Fraud Detection Smart Throttling

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WORKING DRAFT

1.03

2.31

10.32

18.43

21.48

43.98

36.98

34.65

56.67

60.16

94.60

94.98

97.83

0.10 EUR

0.23 EUR

1.03 EUR

1.84 EUR

2.15 EUR

4.40 EUR

3.70 EUR

3.47 EUR

5.67 EUR

6.02 EUR

9.46 EUR

9.50 EUR

9.78 EUR

1.03

1.28

8.01

8.11

3.05

22.50

- 7.00

- 2.33

22.02

3.49

34.44

0.38

2.85

Consumer journey1 Bid (CPM)Conv. likelihood, %

Impression (1 sec, 53%)

Impression (4 sec, 35%)

Video view (completed)

Campaign click

Time on site (90 sec)

Search click (product search)

Time on site (3 sec)

Impression (1 sec, 15%)

Visited comparison site

Social click

Sign up for offers

Video view (completed)

In-banner engagement

Example of mined consumer interaction patterns Exemplary bid change based on random consumer pattern

Advert

iser’s w

ebsite

Publis

her’s w

ebsite

Sale

Non-value adding signal Value adding signal Customer Journey

Billions of signals are mined for patterns Each interaction1 influences maximum bid price

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Adform example of AI

Product

Information

Price

Comparison

App

DownloadOffer

Signup

Product

Search

Electronic

News

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, …

Product

Details

Delta

Category

How Adform Trading Algorithms use AI

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WORKING DRAFT

1.03

2.31

10.32

18.43

21.48

43.98

36.98

34.65

56.67

60.16

94.60

94.98

97.83

0.10 EUR

0.23 EUR

1.03 EUR

1.84 EUR

2.15 EUR

4.40 EUR

3.70 EUR

3.47 EUR

5.67 EUR

6.02 EUR

9.46 EUR

9.50 EUR

9.78 EUR

1.03

1.28

8.01

8.11

3.05

22.50

- 7.00

- 2.33

22.02

3.49

34.44

0.38

2.85

Consumer journey1 Bid (CPM)Conv. likelihood, %

Impression (1 sec, 53%)

Impression (4 sec, 35%)

Video view (completed)

Campaign click

Time on site (90 sec)

Search click (product search)

Time on site (3 sec)

Impression (1 sec, 15%)

Visited comparison site

Social click

Sign up for offers

Video view (completed)

In-banner engagement

Example of mined consumer interaction patterns Exemplary bid change based on random consumer pattern

Advert

iser’s w

ebsite

Publis

her’s w

ebsite

Sale

Non-value adding signal Value adding signal Customer Journey

Billions of signals are mined for patterns Each interaction1 influences maximum bid price

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Adform example of AI

Product

Information

Price

Comparison

App

DownloadOffer

Signup

Product

Search

Electronic

News

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, …

Product

Details

Delta

Category

How Adform Trading Algorithms use AI

WHAT IF MORE

MOREDATA IS FED

INTO THE SYSTEM

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WORKING DRAFT

Consumer journey1 Bid (CPM)Conv. likelihood, %

Impression (1 sec, 53%)

Impression (4 sec, 35%)

Video view (completed)

Campaign click

Time on site (90 sec)

Search click (product search)

Time on site (3 sec)

Impression (1 sec, 15%)

Visited comparison site

Social click

Sign up for offers

Video view (completed)

In-banner engagement

Example of mined consumer interaction patterns Exemplary bid change based on random consumer pattern

Advert

iser’s w

ebsite

Publis

her’s w

ebsite

Net

Sale

Non-value adding signal Value adding signal Customer Journey

Billions of signals are mined for patterns Each interaction1 influences maximum bid price

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Adform example of AI

Product

Information

Price

Comparison

Offer

Signup

Social

Clicks

Product

Search

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, …

Product

Details

Delta

Category

How Adform Trading Algorithms use AI

1.03

2.31

10.32

18.43

21.48

33.98

26.98

24.65

36.67

60.16

92.60

92.98

97.83

0.10 EUR

0.23 EUR

1.03 EUR

1.84 EUR

2.15 EUR

3.40 EUR

2.70 EUR

2.47 EUR

3.67 EUR

5.02 EUR

8.46 EUR

8.50 EUR

8.78 EUR

1.03

1.28

8.01

8.11

3.05

12.50

- 7.00

- 2.33

12.02

23.49

34.44

0.38

2.85

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What’s next?

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The Future

The New Marketing Human

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Natural Language Processing

Voice Synthesis

Classification & Offer Optimization

Computer Vision

Emotional Intelligence

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Adform POC with Amazon Alexa API

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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

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The Intelligent Personal Assistant will be compatible with other digital voice assistants, thereby

providing a link to other rapidly growing ecosystems.

NEWS from the past …

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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.

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Machine-to-Machine Marketing

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Which Leaves Us…

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The Value ofHuman Intelligence

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Let’s CREATE something NEW