Posted on May 2, 2023

The Rising Role of AI in Ad Exchange and Programmatic Advertising

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This article will discuss how AI can help marketers improve targeting and ad creatives. It also explores the function of AI in detecting ad fraud and improving return on investment (ROI). Moreover, you will know everything about the potential of AI in programmatic advertising and ad exchange and its impact on the future of advertising.

Artificial Intelligence has many business applications, from automating manual tasks and real-time data monitoring to achieving more precise customer targeting. All-in-all, AI helps you save time and money. 

With programmatic advertising advancing ever-increasingly, automation is essential to keeping up with the trends.

Generative AI tools like ChatGPT and DALL-E are captivating the public’s attention, with ChatGPT alone garnering 10 million daily users in 40 days. It took 355 days for Instagram to get to 10 million registered users. 

According to a report by Grand View Research, the global AI advertising market will reach $107.5 billion by 2027.

Let’s explore the AI benefits for white label programmatic advertising and ad exchange. Understanding why white label programmatic platform solutions are essential can provide businesses with a competitive edge in the rapidly evolving adtech landscape.

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Benefits of AI for programmatic advertising and ad exchange

Better Targeting and Personalization 

The primary benefit is targeting. 

Artificial Intelligence analyses previously collected consumer data to create demographic profiles and track purchasing preferences, helping marketers determine their campaign’s target audience. 

For example, both Netflix and Spotify use AI to curate custom mixtapes and watchlists for their users based on their previous consumption patterns. If done right, AI can accurately determine the timing, placement, and content of ads to precisely target a certain individual, ensuring a highly personalized experience.

Each audience should have an ad personalized based on the audience’s data. And to continue that experience, each ad should direct users to a post-click page that is equally personalized for boosting conversions.


Cost-Effective Advertising

AI assists advertisers in optimizing ad spend by analyzing data and identifying the most effective ads and targeting strategies. It means that advertisers increase their return on investment (ROI) and receive excellent value for their money.

For instance, advertisers might have particular goals, like selling a $20 game install to a 19-year-old player. They might not think about a 65-year-old man. But AI techniques may reveal that this man will likely spend about $4 over four days. And if the acquisition cost is 80 cents, it yields as good ROI as higher-dollar goals for more typical ad targets.

Artificial Intelligence is excellent for uncovering revenue opportunities that budget and human assumptions may limit.

Improved Ad Creatives

Smart algorithms adapt creative resolutions so your ad unit easily fits popular ad placements.

This feature can be especially beneficial for advertisers needing more traffic since their advertising creatives are non-standard and don’t fit most available ad placements. 

The creative with optimized resolutions will fit more ad slots, thus promoting more ad impressions for the advertiser.

Moreover, AI can provide insights about what creatives with more color contrast perform better at night or ads that feature sports stars do best on the weekend. 

With AI, brands can better understand how messaging, fonts, colors, imagery, button sizes, or formats impact overall campaign performance. Incorporating vast audio formats can enhance the user experience, offering advertisers a dynamic way to engage with their audience through immersive sound.

Aside from this, in the future, AI in programmatic will be used for generating creatives based on prompts and descriptions. Below, you can see the best examples of AI art generators that are already used to ease the daily grind for designers. 

Bing Image Creator

AI in Ad Exchange and Programmatic Advertising by SmartHub. DALL-E 2 by OpenAI. Screenshot by Sabrina Ortiz/ZDNET

DALL-E 2 by OpenAI

AI in Ad Exchange and Programmatic Advertising by SmartHub. DALL-E 2 by OpenAI. Screenshot by Sabrina Ortiz/ZDNET

Moreover, you should remember about AI copywriting tools to improve your ad campaigns.  


ChatGPT is one of the best examples, particularly for content marketers. It helps to scale up the production of articles, reports, or other ongoing publishing needs. 

For instance, we asked ChatGPT to give us some blog topic ideas:

AI in programmatic by SmartHub. GPT
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Fraud Prevention

As fraudsters employ new techniques that can imitate human behavior, AI algorithms can assist marketers in identifying fraudulent behavior that is not immediately apparent to the human eye. It is crucial in the case of app installs, where detecting fraudulent clicks and impressions before installation becomes vital.

The second scenario is “the chameleon”, in which fraudsters imitate legitimate publishers and generate installs later when user retention is predicted to decrease.

The third scenario is an “inventory burst”, in which a suspicious publisher’s inventory count spikes when in-app registration is typically declining. 

AI techniques can identify these sophisticated ad patterns and feed them back into the filters to enhance future detection.

By detecting ad fraud cases, marketers can eliminate low-quality traffic and more accurately calculate their returns on advertising spend (ROAS).

For instance, Appier examined data from over 5 billion campaign data points through its network, including ad clicks and app installs.

As a result, the AI-based fraud detection model identified twice as many fraudulent transactions as the traditional rule-based model.

The AI-based model also proved more cost-efficient for advertisers, generating a 4 percent higher ROAS than the traditional model.

The sellers json file plays a crucial role in providing a transparent view of the entities involved in selling digital ad inventory. Implementing ads.txt can provide transparency and security in the programmatic advertising ecosystem, ensuring that only authorized sellers can sell a publisher’s inventory.

The Future of AI in Programmatic Advertising and Ad Exchange

AI influences many different aspects of programmatic advertising, and the famous ChatGPT could be the next step forward in terms of opportunities. 

Firstly, with technologies like ChatGPT, generating numerous alternative slogans for creative ads has become a reality.

The SmartHub team tried the power of ChatGPT in creating slogans for a white-label ad exchange. Here are what we have gotten: 

AI in programmatic by SmartHub. GPT

Secondly, ChatGPT creates content for commercials and ad creatives. 

The Mint Mobile ad created by Ryan Reynolds using ChatGPT is an excellent example of an advertisement created solely using ChatGPT’s capabilities.

Moreover, it can be integrated into ad exchanges and DSPs to provide users with recommendations and responses to their requests. 

ChatGPT could also be embedded in programmatic platforms, contributing to the automated creation of campaigns, creatives, and slogans.

To sum up, it will benefit digital marketers and brands looking to improve their campaigns, interact with their target audiences, and achieve better advertising results.

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Artificial intelligence in programmatic advertising has huge advantages ranging from time savings to ad optimization to hitting campaign goals and increasing revenue.

ChatGPT has the potential to significantly support and reinforce advertising operations in ad exchanges and DSPs. 

Modern advertising technologies are complicated to imagine without the skills of using the most recent technological developments like AI.

Embracing white label advertising solutions can empower businesses to offer tailored ad services under their own brand, enhancing their market presence. With SmartHub, you can always easily create your own safe marketplace to help you achieve your goals. SmartHub is s based on the white-label prebuilt technology designed to provide owners with all possible leverages that boost their marketplace effectiveness using AI.

It analyzes statistics, increases CTR, and collects publisher data to predict a second price, with which it will be easier to plan your advertising budget. In addition, you will get a quick interaction between bidders in real time within a few seconds, allowing you to pay the lowest possible price for the best displays.

As a result, you can take full control of your platform, customize it to your brand’s needs, and increase your profits.

Start managing your own marketplace today with SmartHub!

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