Personalisation at scale: How AI fuels customised CX in programmatic advertising

Today's digital-first society demands that brands know their consumers' needs and provide them with timely, relevant, and personalised experiences. AI transforms programmatic advertising by providing personalisation at scale. It allows advertisers to analyse huge quantities of data, anticipate consumer actions, and offer personalised messaging in real time.

The evolution of ad personalisation

Ad personalisation has come a long way since its inception. Advertisers initially used demographic information and simple segmentation to target consumers. With the development of technology, behavioural and contextual targeting became the focal point, allowing more accurate audience segmentation.

With AI, personalisation has become a totally different phenomenon by using machine learning, predictive analytics, and real-time decision-making to develop very personalised customer journeys.

The role of AI in personalisation at scale

AI revolutionises programmatic advertising by means of three fundamental strengths:

1. Data processing and audience insights

Algorithms driven by AI are able to analyse huge volumes of structured and unstructured data from various sources—web interactions, purchase history, social media activity, and even contextual signals. AI analyses this data to identify patterns and segment audiences with unprecedented accuracy.

For instance, an AI-based demand-side platform can identify which users are likely to convert based on their browsing history and previous engagement.

2. Predictive analytics for hyper-personalisation

AI not only examines historical behaviour; it forecasts future behaviour. Machine learning algorithms review past data to predict customer intent and preference. This enables advertisers to serve hyper-personalised ads based on a person's exact interests.

If a user is repeatedly visiting running shoes, AI can forecast the optimal time to serve an ad for a limited-time offer on athletic shoes, maximising the chance of conversion.

3. Real-time decision-making and dynamic creative optimisation (DCO)

Dynamic Creative Optimisation is perhaps the most robust application of AI in programmatic marketing. AI constantly tests and optimises various ad creatives, varying elements like images, copy, and CTAs to optimise user engagement.

If a consumer is more responsive to video advertisements compared to static imagery, AI ensures that they are served video, thus improving advertising effectiveness and presence.

Use cases of AI-driven personalisation in programmatic advertising

AI-driven personalisation is transforming digital advertising across industries. Below are some effective use cases:

Retail & e-commerce: AI powers product recommendations, cart abandonment retargeting, and location-based offers. For example, an e-fashion retailer can utilise AI to present customised product recommendations to a user based on their previous purchases and site visit history.

Connected TV (CTV) & video advertising: AI-driven programmatic advertising ensures viewers receive relevant ads based on their streaming habits. A sports enthusiast watching live football on a streaming platform may receive ads for sports gear, enhancing ad relevance and engagement.

Healthcare & pharma: Contextual targeting driven by AI makes sure that health advertisements reach the intended audience without infringing on privacy laws. For instance, we can show advertisements for nutrition supplements to a person searching for wellness tips based on their interests.

Privacy-first personalisation: AI in the cookieless era

With increased focus on data privacy and the withdrawal of third-party cookies, AI is stepping in to ensure personalisation while adhering to compliance. AI-powered contextual targeting uses the content of websites and user behaviour to show appropriate ads without the use of cookies.

AI-fuelled identity resolution solutions also assist in creating first-party data strategies, enabling brands to connect with audiences in a privacy-compliant environment.

The future of AI-powered personalisation in programmatic advertising

AI is constantly changing, and its influence on programmatic advertising will only intensify. The future holds:

Conversational AI & chatbots: Brands are incorporating AI-powered chat experiences inside ads to deliver real-time support.

AI-powered voice search advertising: With the growth of smart speakers, AI will have a pivotal role in voice search ad optimisation.

Advanced emotional AI: Future AI systems could evaluate emotional signals from consumer behaviour to present highly empathetic and contextually appropriate ads.

(Ramya Parashar is the Chief Operating Officer at MiQ. She specialises in scaling both early-stage and established companies, leading complex business and technology teams with a people-first approach.)