Exploring the role of AI and programmatic advertising in shaping the future of marketing

Artificial Intelligence today is not just a buzzword, but a transformative force that has enabled brands to harness the power of data, predict consumer behaviour, and drive engagement. The convergence of AI and programmatic advertising is paving the way for more effective and efficient marketing campaigns, ensuring that every advertising dollar is well spent. In this rapidly evolving landscape, agencies are embracing agility and innovation, with a keen focus on delivering results and ROI.

AI technology company Bobble.ai has been helping brands acquire their ideal consumers using the most powerful programmatic ads. Bobble.ai aids brands in fueling their campaigns with exclusive consumer insights across smartphone usage, such as actionable intents derived from chats, Web and in-app search queries, and App sessions & time spent.

Bobble.ai also facilitates ROI-optimised media buying with:

• AI-based smart bidding (in less than 10ms)
• Bespoke impressions to suit your campaign
• Concurrent strategies to achieve your goal
• Fraud detection and resolution

During ‘Step Ahead’, a recently held day-long insightful event organised by Bobble.ai and Adgully, the discussion shed light on the importance of staying ahead of the curve, adapting to new technologies, and collaborating with platforms like Bobble.ai to leverage the potential of AI-driven advertising. As the marketing world moves forward, the future promises even greater advancements in AI and programmatic advertising, opening up new possibilities for brands to connect with their audiences in more meaningful ways. The world looks forward to witnessing the continued evolution of AI in the marketing world, thanks to trailblazing companies like Bobble.ai. Taking part in the discussions were Tabrez Alam, Chief Data & Strategy Officer, Bobble.ai; Kunal Danda, VP - Client Service, Essence MediaCom; and Dimpy Yadav, General Manager, Xaxis.

At the outset, Tabrez Alam, Chief Data & Strategy Officer, Bobble.ai, highlighted the key discussions dominating the preceding sessions, which revolved around AI and how AI has been benefiting brands, as well as the evolution of AI. “We’ve also discussed the new strategies that have been adopted, particularly in the realm of conversational AI. In the past, we relied on Google Search as one of the primary conversational AI tools for our campaign needs, aiming for reach, personalisation, targeting, and different text or search ads,” he said. Alam went on to ask Essence MediaCom’s Kunal Danda what he thought are the new-age strategies that have become prominent in his work with Essence.

Kunal Danda, VP - Client Service, Essence MediaCom, responded, “When we look back, conversations were happening even before data and tech became so prevalent. Back then, we referred to it as direct marketing. What has changed significantly are two key factors: the enormous amount of data available at every consumer touchpoint, and the ability to predict and harness that data.”

In terms of strategy, Danda did not see a significant shift from what his group has adopted. “Six months ago, Essence and MediaCom merged, and one of the first things our global product head emphasised was the need for a comprehensive tool suite. We now have a generative AI team based in New York and London. The goal is to internalise AI within our agency ecosystem, because there’s a lot of knowledge and, at times, half-knowledge in the industry and among agency professionals. Over the next year, we plan to integrate AI into the tools we use, not just to augment our planners, but to enhance overall strategy. This doesn’t mean it is eliminating jobs; rather, it is aiding and complementing our efforts. The focus is on familiarising everyone with AI’s capabilities and potential applications. It is not just about AI’s front-facing role in campaigns; it is also about its role as a backbone for internal processes,” Danda added.

Alam noted here, “From a programmatic perspective, AI’s role in engagement is crucial. With a significant portion of the population engaged with smartphones and the Internet, brands need to understand user affinity and behaviour.” He asked Dimpy Yadav of Xaxis if she is seeing engagement on smartphones generating valuable data for programmatic advertising.

Replying in the affirmative, Dimpy Yadav, General Manager, Xaxis, said, “It is highly relevant, especially in the post-pandemic world where rapid evolution is the norm. Long gone are the days of planning annual strategies; now, we need to reassess our strategies every few months. AI has evolved from being simply artificial intelligence to amplified intelligence, permeating every aspect, including generative content.”

Speaking on programmatic advertising, Yadav said, “It used to be seen as a performance enabler, but it has now become the norm, serving both branding and performance goals. Engagement is a vital part of this journey, and AI plays a significant role in driving engagement, from awareness to conversion.”

Yadav further said that predictive models are instrumental in reaching out to audiences with similar attributes to converters. However, it is not just about reaching the right audiences; it is also about delivering relevant content. AI is increasingly vital in ensuring content relevancy.

Alam then asked Danda, “As you handle portfolios in direct-to-consumer (D2C) and other sectors with a strong focus on growth, how do you view the role of conversational AI in moving audiences down the conversion funnel?”

“Indeed, the D2C sector places a strong emphasis on growth marketing, and patience among founders is limited,” remarked Danda, adding, “Whether it is D2C, food, cloud kitchens, or gaming, the goal is to move down the conversion funnel. While branding and awareness are important, conversions and profitability matter most in today’s marketing landscape. We’ve transitioned from annual operating plans (AOP) to quarterly operating plans (QOP) and are now moving toward monthly operating plans (MOP). The speed at which we work has increased significantly, and every dollar spent on marketing is closely scrutinised. Conversions and profitability are top priorities.”

Alam then shifted the focus to conversational mediums like WhatsApp and other AI-driven platforms. He asked if these platforms can play a significant role in driving traffic and generating transactions, especially in a landscape where conversations and searches are fragmented across various platforms. He asked Yadav if her organisation has adopted WhatsApp or other AI mediums for this purpose.

Responding to this, Yadav remarked that the industry is not taking conversational AI seriously. “We’ve only been two years into the post-pandemic era, and these two years have been anything but normal. The market has been highly disrupted, and we’re in a constant state of flux. Clients are grappling with the challenge of achieving a positive ROI in such uncertain times. They’re focused on maximising returns from their existing strategies rather than experimenting with new ones. So, in short, conversational AI is not being fully utilised right now,” Yadav said.

But will it become important in the future? Yadav’s response was a resounding “Yes.” According to her, there are two driving forces behind this. First, there’s the intent to try something new and innovative, which often involves pilot campaigns. Second, there’s a growing need for a return on investment (ROI), pushing the industry to deliver more effective strategies.

Regarding the role of conversational AI in the future, Yadav said, “There’s a significant potential for non-intrusive advertising based on user intent. Currently, we target intent primarily through platforms like Google searches; but these searches are now scattered across various platforms like Amazon, Flipkart, Swiggy, and Zomato. As a result, publishers may become less relevant as the platform itself comes to the forefront. This is where AI comes in. Instead of directly showing ads on a publisher’s platform, we can create a layer on top of it to maintain non-intrusive engagement while delivering the message. However, a key consideration is the readiness of the market, not just from an advertiser’s perspective, but also from a publisher’s perspective. Programmatic advertising is the future, but some publishers may struggle to keep up with technological advancements. It is essential for them to adapt and keep pace with technology for this vision to become a reality.”

Danda added here, “To build on your point about conversational AI, Dimpy, let’s consider WhatsApp as an example. WhatsApp is primarily a platform for connecting with family and friends, and as consumers, we don’t necessarily want advertisements there as they can be intrusive. However, WhatsApp does offer a unique brand engagement opportunity. Brands can use WhatsApp not for direct advertisements, but for enhancing the overall brand experience.”

He cited the example of WhatsApp being used for customer service, order tracking, and other interactions related to a purchase. These interactions, he said, may not seem like traditional advertising, but they contribute to the brand’s persona and customer experience, which is a form of marketing in itself.

In terms of the future, Danda believes that conversational AI has a significant role to play.

He noted, the advertising landscape has changed dramatically, and traditional methods have been disrupted. Clients are now looking for strategies that bridge the gap between online and offline, especially in sectors like FMCG and retail, where the main focus used to be on physical stores.

“Clients are challenging us to drive conversions online and link online efforts to offline sales. In this scenario, the bottom two stages of the funnel – engagement and conversion – become crucial. There’s no one-size-fits-all strategy, and we need to consider competing with walled gardens because clients want more insights and control over their campaigns. In the future, I see programmatic advertising as a strong pillar in the industry, where experts work closely with partners to create strategies aligned with clients’ objectives. This programmatic stack will involve various partners, including inventory, measurement, technology, and data partners, and it will be designed to provide clients with a deeper understanding of their audiences and campaign impact beyond basic metrics,” Danda predicted.

Speaking about the festive season just around the corner, Danda noted that there is a noticeable upswing in advertising and intent. “This quarter is crucial for all agencies and individuals. India is ready for the festive season and cricket, no doubt about that,” he affirmed.

Regarding the creative aspect and formats, Danda said that advertising has evolved from 30-second commercials to shorter durations like 20, 10, 6, and even 5 seconds, and now stickers. “They say a picture speaks a thousand words, but perhaps a sticker conveys a million words. This evolution is driven by the attention-deficit economy we live in. People want information quickly, and if a smart meme or a sticker can do the job, that's a significant shift. Even marketers and brands are trying to understand this shift. They are open to experimentation but often find themselves at a crossroads between sticking to tried-and-tested methods or taking a more innovative approach. As agency partners, we push boundaries, and when they see the success of a campaign, they realize they should have been more daring,” he added.

Bobble.ai offers more than 100K stickers and GIFs. Bobble’s conversational content solutions make conversations expressive, localised and personalised through a vast content repository of indexed stickers, movie GIFs, and more. Brands can also turn their customers into brand ambassadors and micro influencers with Bobble.ai’s exclusive Selfie-to-Bobblehead technology.

Steering the conversation towards measurement, Alam noted, “We are moving away from CPM-based advertising, and metrics like CPC, VTRs, and CTRs are evolving dynamically. Will the economics of budget constraints push brands towards innovation when connecting with audiences during festive seasons and sports events?”

Danda said here that he did not like the term “innovation” and added, “Personally, I believe that any marketing move should drive either a brand metric or a business metric. If it happens to be innovative and generates PR or word of mouth, that’s a bonus. But from a metric perspective, whether it is TV or any other platform, it is all about outcome-driven results. While CPMs remain important within the intermediary matrix of media, ultimately, it is about ROI and measuring outcomes in terms of brand metrics or business metrics. Platforms come and go, but fundamentals remain the same.”

According to Dimpy Yadav, clients are adapting to the disruptive marketing landscape, and agencies need to make their strategies relevant. “We must be agile in our media strategies and understand that partnerships with various platforms, such as DSPs, are crucial. As clients focus on collecting first-party data and navigate data protection policies, agencies need to be available on these platforms to receive data in API-integrated formats. It’s a two-way road, and innovation will continue to evolve,” she concluded.