At a time when technology is advancing rapidly and the way we consume advertising is constantly changing, publishers, advertisers and technology providers are facing increasingly complex challenges.
In particular, the integration of artificial intelligence (AI) is having an ever-increasing impact on how companies advertise and how advertising is perceived. At the same time, advertisers are facing an increasingly fragmented market, making it more difficult to capture the attention of consumers.
In this interview, Virtual Minds CTO and adtech expert Tom Peruzzi explains how companies can maintain their place in the advertising landscape amid this fragmentation, which trends and developments they should keep an eye on and what options they have to prepare for the use of new technologies.
What impact have recent advances in artificial intelligence and machine learning had on the development and effectiveness of advertising platforms and how could these technologies be used to improve personalized advertising in the future?
Tom Peruzzi: “At Virtual Minds, we have been quietly working with machine learning and artificial intelligence for a long time, especially in areas such as data processing, twinning and lookalike modeling. In addition, the increased use of AI in areas of creative work in general, such as copywriting and slogans, but also in the creation of visuals, is clearly evident. We believe that the right use of artificial intelligence can be very value-adding, especially within inventory usage (keyword: forecasting), but also in monetization, when it comes to reaching customers as much as necessary and as accurately as possible. However, one thing should always be borne in mind: Machine learning and artificial intelligence are very resource-intensive technologies, so it is always important to weigh up whether the added value is justified in terms of sustainability.”
How will the ongoing fragmentation of the market affect the effectiveness of advertising and the work of adtech companies?
Peruzzi: “Fragmentation ensures that representatives of the Open Internet are pushing to get into the platforms, while at the same time the platforms are flocking to the Open Internet. Unfortunately, this is not a balanced and fair game, especially because this situation is at the expense of the ecosystem. However, we will have to bear this situation for a few more years. However, it is always important to remember – and this applies to everyone – that cross-publishing and cross-offers as well as measurement and delivery must always be carried out in the interests of the advertising customers.
We see that the trend towards omni-channel advertising continues to grow, especially when it comes to cross-channel storytelling.
How can personalized advertising be implemented in a way that meets the needs of consumers?
Peruzzi: “The personalized or pseudonymized direct approach is the highest art in the excellence view, insofar as it can be used in harmony with data protection and consumer interests. This approach also makes sense, as it is in the interests of all market players to advertise as precisely and in the right amount as possible while remaining in line with interests: advertisers want to target efficiently and directly, publishers aim to maintain their inventory well and sensibly and consumers do not want to see atypical and irrelevant advertising. And the advertising they see should be as unobtrusive as possible and not repetitive.”
What trends and developments are emerging in the programmatic advertising market?
Peruzzi: “We are seeing an increasing trend towards omni-channel advertising, especially when it comes to cross-channel storytelling. As long as the framework conditions allow, the dosage of advertising and consumer approach is also an important topic – more is not always better. We are also seeing that the topic of sustainability is becoming increasingly relevant and that is a very good thing. Sustainability is essential for all companies as it ensures that current needs are met without compromising the ability of future generations to meet their own needs. Through responsible resource management, it also ensures the long-term success of companies and can strengthen their position in the market through a more positive reputation. Legal requirements and employee engagement are further key factors that make sustainability a strategic necessity.”
