The Transformative Role of AI in Programmatic Advertising

Programmatic advertising is evolving rapidly, with AI and machine learning driving significant advancements. At IndieAd, we had the chance to sit down with Wandrille Leroy – who was, at the time of this conversation, VP of Partnerships at Scibids – to explore how AI in programmatic advertising revolutionizes campaign performance and optimization.

Originally presented in our podcast, this article dives into key trends like custom bidding algorithms, smarter data usage, and adapting to privacy-first environments. If the term “bring your own algorithm” sounds unfamiliar, this episode will shed light on how AI-powered solutions can elevate programmatic campaigns across industries.

AI’s Role in Optimizing Programmatic Campaigns

AI in programmatic advertising allows marketers to go beyond standard bidding strategies, tailoring campaigns to specific goals such as increasing conversions, improving viewability, or reducing costs. Machine learning algorithms analyze large datasets, identify patterns, and adjust in real-time to maximize campaign efficiency.

“Each campaign is unique and deserves a customized approach,” explains Wandrille. “AI enables us to fine-tune strategies for specific KPIs, whether it’s awareness, conversions, or attention.”

Instead of a one-size-fits-all model, AI-driven solutions consider a variety of inputs, including:

Campaign objectives (e.g., CPA, viewability, attention)
Real-time signals, such as user behavior or placement performance
Contextual data for privacy-friendly targeting

By leveraging AI, advertisers can move away from generic approaches and achieve laser-focused precision in their campaigns.

When Does AI in Programmatic Advertising Shine?

AI excels when there’s enough data and a clear set of objectives. However, even smaller campaigns can benefit. For example:

Performance-driven campaigns: AI can optimize for key metrics like cost per acquisition or return on ad spend
Awareness campaigns: AI tools can use contextual signals to place ads effectively, even without user-specific data
Short bursts or ongoing campaigns: While AI performs well in always-on campaigns, it thrives in short bursts with specific goals, such as maximizing completed views or attention metrics

“A lot of advertisers think AI requires massive budgets, but that’s not the case,” Wandrille shares. “Even campaigns with daily budgets of €50 can see significant improvements with the right AI tools.”

Navigating Privacy and Contextual Targeting with AI

With the deprecation of third-party cookies and stricter privacy regulations, AI in programmatic advertising is proving indispensable. Instead of relying on user-specific identifiers, AI leverages contextual signals, focusing on where ads are shown rather than who sees them.

“Contextual targeting has become a powerful alternative,” Wandrille points out. “AI analyzes everything from the type of content to the placement, ensuring relevance even without cookies.”

This approach allows advertisers to deliver effective campaigns while adhering to privacy-first principles.

AI in programmatic advertising is like Optimus Prime leading the Autobots - intelligent, adaptable, and capable of transforming strategies in real-time to respond to changing conditions and audience behaviors.

The Human Touch in an AI-Driven Industry

The rise of AI raises a recurring question: what role do humans play in a world of automated decisions?

“Machines are great at calculations, but they can’t replace human creativity and strategic thinking,” says Wandrille. “AI takes care of the technical heavy lifting, but marketers remain essential for setting the vision and interpreting results.”

AI empowers marketers to shift their focus from manual tasks like bid adjustments to higher-level strategies such as audience insights and creative innovation. Those who can combine human expertise with AI-driven tools will lead the future of programmatic advertising.

Key Takeaways for Marketers

Define your KPIs:
AI delivers the best results when campaign goals are clearly established
Leverage contextual data:
Privacy-first environments don’t mean you can’t optimize – use contextual signals to guide decisions
Focus on measurement:
Ensure you have the tools to measure the full impact of AI-driven optimizations across your funnel
Balance AI & human expertise:
Use AI for efficiency but rely on human insights for strategic direction

Conclusion

AI in programmatic advertising is redefining how campaigns are executed and optimized. By combining advanced algorithms with a clear strategy, marketers can achieve previously unattainable results. Whether driving conversions, maximizing awareness, or navigating privacy challenges, AI empowers advertisers to make smarter decisions at scale.

“AI isn’t about replacing people,” Wandrille concludes. “It’s about enhancing their capabilities and unlocking opportunities that weren’t possible before.”

>> PERSONAL COMMENT OF INDIEAD'S CEO <<

If you found this article relevant, I recommend reading also this one:
Navigating DSP Programmatic Advertising: Embracing Customization for Tomorrow’s Success

Those 2 articles really offer a holistic understanding of customization in the programmatic advertising landscape, from off-the-shelf DSPs with customized bidders to in-housing a fully customized DSP.

Which one is the right option for your company depends on many factors, but for most B2B advertisers in lead generation, both options could be an “overkill.” Working with a highly professional agency and off-the-shelf DSPs would be more than enough to help you reach your growth targets, whether it is lead generation or branding awareness and recognition you’re trying to achieve.