Q&A: Transforming Customer Acquisition with AI-Powered Innovation 

February 13, 2024

The rise of Artificial Intelligence (AI) in advertising marks a paradigm shift in how businesses connect with their audiences. 25% of businesses across the US and UK are already making material investments in AI technology, and another 44% expect to do so within the next two years.

From fueling personalized recommendations to delivering targeted offers, AI’s significance lies in its ability to decipher vast datasets and predict behaviors with unprecedented accuracy.

We spoke with Farbod Kamiab, Director of Data Science at Fluent, to learn how he and his team use AI to drive innovation for Fluent’s suite of customer acquisition and monetization solutions. Read the Q&A below to see how AI is helping to enhance the consumer experience and maximize results for both advertisers and publishers.

AI in Advertising Q&A

What are some of the ways you and your team are leveraging AI to enhance Fluent’s ad-serving technology?

At the core of Fluent’s operational excellence is our advanced AI-driven ranking system. This system is pivotal in modeling user behavior and optimizing the placement and performance of ads. By analyzing historical data, including user clicks/conversions, and attributes such as age, income, location, gender, and device type, our AI algorithms predict the likelihood of user interactions with specific ads.

How are these AI algorithms contributing to more effective segmentation and targeting? 

Our data scientists use sophisticated machine learning models to segment even niche user populations. For example, we leverage gradient boosting to predict which ads will interest users the most. Think of it as a sophisticated system that learns from past advertising interactions, such as clicks, by analyzing patterns. This process involves building a series of simple models that, when combined, provide a highly accurate prediction tool.

What are the key features and benefits of Fluent’s AI strategy, particularly in terms of personalization and the consumer experience?

Personalization isn’t just a feature; it’s the essence of our AI strategy. Our machine-learning models are intricately designed to cater to users’ unique behaviors and attributes. This individualized approach ensures that the advertisements served are not just ads, but tailored experiences, significantly boosting user engagement.

How are Fluent’s AI initiatives helping maximize results for publisher partners and advertisers?

We leverage a dual-focus optimization strategy, meticulously balancing click-through rates and conversion quality. These models identify high-converting users, enabling advertisers to allocate budgets more effectively. More effective ad placements lead to higher conversion rates and increased revenue per session (RPS) for publisher partners.

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What use cases exemplify the impact of Fluent’s AI initiatives?

One of our most impactful use cases involves running sophisticated simulations to demonstrate how AI can significantly enhance the ad ranking system. By comparing the revenue projection from both traditional ranking methods, which typically rely on ad groups, and our AI-driven approach, we measure the tangible impact of our AI initiatives.

As we look ahead to the future of digital advertising, what advancements in AI technology do you believe will have the most profound impact on targeting and personalization in the next five years?

The future of digital advertising is set for remarkable changes with advancements in AI. Predictive analytics will delve deeper into consumer behavior, predicting future purchasing patterns for more precise targeting. Natural Language Processing (NLP) will evolve to interpret user-generated content and voice commands better. Augmented and Virtual Reality (AR/VR) will create immersive advertising experiences, merging digital and physical realms and offering personalized virtual experiences. 

Privacy-preserving techniques like federated learning and differential privacy will become crucial, enabling personalization while safeguarding user privacy. Additionally, automated creative generation will allow for the production of personalized ad content at scale, increasing the relevance and appeal of campaigns to a broader audience. These advancements will collectively transform how brands connect with consumers, making advertising more relevant, engaging, and effective.

With the rise of AI in advertising, how do you anticipate the role of data scientists will evolve? What new skills will be essential for success?

Data scientists will be pivotal in harnessing AI’s potential in the evolving digital advertising landscape. They will need to master advanced AI and machine learning technologies, including sophisticated models like reinforcement learning and GANs, while also gaining deep insights into the digital advertising domain to ensure their solutions align with consumer behaviors. Ethical considerations in AI use will also become a priority, requiring data scientists to ensure fairness, transparency, and privacy in their models.

How are you leveraging AI to streamline workflows and boost productivity within your team?

To streamline workflows and boost productivity within our team, we’re leveraging AI across several dimensions:

  • Automating routine data processing to free up time for complex analysis
  • Utilizing collaborative AI tools for improved project management and communication
  • Employing AI for accelerated research and insights gathering
  • Optimizing and testing our models with AI algorithms for quicker iteration cycles
  • Enhancing creativity and innovation by generating new ideas and optimizing content

This multifaceted approach allows us to work more efficiently, focus on strategic initiatives, and foster an environment of continuous improvement and innovation.

Ready to harness the power of AI to level up your customer acquisition and monetization strategies? Get in touch with us here.

Check out more resources to get fluent in:

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