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How AI Eliminates CPC/CPM in Programmatic Native Advertising

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AI is most impactful when it has very big structured and/or unstructured data to access. The more data it has the better and faster it learns. Even though almost all the programmatic native advertising platforms charge based on impressions or clicks, it’s possible to use an AI layer to move into a cost per engagement (CPE) model with pricing that dynamically drops lower over time (dCPE).

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How AI Eliminates CPC/CPM in Programmatic Native Advertising

  1. 1. How AI Eliminates CPC/CPM in Programmatic Native Advertising
  2. 2. Add Articles and Videos
  3. 3. “We’re going to Mars” “SpaceX Reaching for the stars” “Make Mars Great Again!” Headline Image 3 Articles, 2 Videos Input Headlines & Images
  4. 4. Locations San Francisco, CA Ages All Ages Interests Space Spacetravel Engineering SpaceX Elon Musk Astrophysics Rockets Space Tourism Los Angeles, CA Portland, OR Genders All Genders 3 Headlines, 3 Images Channels 26 Channels 3 Articles, 2 Videos Select Target Audience 46 Audience Segments, 26 Channels Devices All Devices
  5. 5. 3 Headlines, 3 Images 1.00$ 46 Audience Segments, 26 Channels3 Articles, 2 Videos We set a Max CPE bid
  6. 6. 2,072 Permutations Generated
  7. 7. SpaceX is aiming for the stars US / Female / 18 -30 / Space travel, Elon Musk We’re going to Mars US / Male / 18 -25 / Space travel, Engineering Why is Mars red?? US / Female / 30 -62 / Space travel, Engineering SpaceX is aiming for the stars US / Female / 18 -30 / Space travel, Elon Musk We’re going to Mars US / Male / 18 -25 / Space travel, Engineering SpaceX is aiming for the stars US / Female / 18 -32 / Space travel, Elon Musk $0.38 $0.32 $0.36 $0.34 $0.31 $0.40 16 Permutations Optimized Engagement Optimizer tests and optimizes towards most efficient content/creative/audience/channel permutations
  8. 8. $0.95 $0.83 $0.80 $0.71 $0.90 02 Feb 2017 $0.64 07 Feb 2017 13 Feb 2017 18 Feb 2017 23 Feb 2017 03 Mar 2017 Date dCPEMax CPE $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 Engagement Pacing 105,263 120,481 125,000 140,845 111,111 156,250 AI-Driven optimization delivers greatest efficiency
  9. 9. AI-Driven optimization continuously learns & lowers your CPE $0.89 $0.97 $0.97 $0.96 $0.89 $0.71 $0.80 $0.74 $0.75 8% -3% -4% -11% -29% -20% -26% -25% -35% -30% -25% -20% -15% -10% -5% 0% 5% 10% $0.50 $0.55 $0.60 $0.65 $0.70 $0.75 $0.80 $0.85 $0.90 $0.95 $1.00 Apr May Jun Jul Aug Sep Oct Nov Dec eCPE Drop %

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