Applying AI algorithms to help advertisers discover the most effective third party audience segments

Marketers are looking for ways to economically use third-party data for customer acquisition rather than audience buying based on intuition. To date, this has not been effective because the incremental cost of buying audience segments. This talk discusses dataxu’s Open AI for Advertisers (OAIFA) algorithm, which is the first scalable ROI positive 3rd party data algorithm that can be used for customer acquisition. OAIFA allows advertisers to automatically evaluate the effectiveness of several thousand third party data segment using sophisticated AI algorithms, and add the most influential segments to dataxu’s machine learning models. Our extensive evaluation on hundreds of live campaigns demonstrates that OAIFA reduces the cost of customer acquisition by almost 30% while allowing advertisers to spend on third-party segments that are curated and updated by an AI algorithm. The talk provides an insight in our experiences when designing this algorithm, and how AI helped us solve a classic advertising problem.