The AI Ad Strategy That Works in 100 Milliseconds
Yanadoo, a self-development and education platform, has built a strong community of 1.68 million learners in South Korea. However, with 50 million internet users across the country, the company recognised an even bigger opportunity. Determined to expand its reach while keeping existing users engaged, Yanadoo set its sights on scaling its impact even further. Yanadoo partnered with Criteo to embrace AI-driven advertising. Using Criteo’s OneTag with Dynamic Loader, it tracked user interactions from course sign-ups to consultation requests across its site. Criteo’s AI then used this data to build detailed customer profiles, optimising ad targeting and bidding strategies in real time. The result was a 138% jump in conversion rates and a 34% boost in average order value. By letting AI refine its advertising approach, Yanadoo turned insights into action, proving that smart targeting can make all the difference. Now, the company is doubling down on AI-powered full-funnel campaigns to drive even more growth. Platforms are now increasingly using AI to deliver personalised ad experiences by analysing user behaviour, preferences, and demographics. For example, Google Ads uses generative AI to create customised ads based on user search intent and behaviour. Adobe Advertising Cloud employs Adobe Sensei to tailor ad experiences across channels. Moreover, HubSpot marketing embraces AI to personalise content based on customer relationship management (CRM) data. Criteo’s Game of Ad Strategies A crucial differentiator for Criteo, a France-based advertising company, has always been its strategic use of data. The company collaborates with publishers, advertisers, and agencies to extract valuable insights, which helps optimise ad placements and product recommendations. Initially, this focused on retargeting, where users who visited a website would later see ads prompting them to return and complete a purchase. Today, a significant part of Criteo’s business is in commerce or retail media, where ads are placed directly on retailer websites. Recognising the potential of AI-driven insights, Criteo launched the Criteo AI Lab in 2018. With a team of 80-85 experts at the time, the lab focused on advancing AI technology to enhance the accuracy of Criteo’s advertising engine. In an exclusive conversation with AIM, Liva Ralaivola, VP of research at Criteo, explained, “Today, with intense competition in ad tech, the challenge is to leverage AI advancements such as generative AI and deep learning to offer even more effective solutions for publishers, brands, and advertisers.” Every Ad has AI Ralaivola mentioned that every campaign Criteo runs incorporates AI. For instance, a user visits the National Basketball Association’s (NBA) website to check game scores. As they browse, an ad appears, perhaps for basketball shoes, travel deals, or other relevant products. Behind the scenes, AI powers three critical processes in milliseconds. To begin with, Criteo and other demand-side platforms compete in real time to purchase ad space. AI evaluates the potential return on investment based on page content and user behaviour, determining how much to bid. Once the space is secured, an AI engine analyses the user’s profile, page context, and browsing history to determine the most relevant product to display. Lastly, AI decides the most effective way to present the ad, whether a simple image, an interactive banner, or a visually engaging layout, to maximise user engagement. All of this happens in under 100 milliseconds, ensuring a seamless experience for the user. “At the core of Criteo’s AI capabilities is DeepKNN, a universal AI engine that represents users, products, and web pages in a unified space. This allows Criteo to seamlessly connect consumers with relevant content, making digital advertising more efficient and personalised,” Ralaivola further said. What’s Next? AI enables marketers to go beyond traditional segmentation and refine how they identify and target audiences. For example, a common approach might be to target individuals under 40 who are likely to have children. While direct data on such predictions may not always be available, agencies and retailers often possess insights that help in audience identification. Traditionally, this process relies on human judgment and available demographic information. However, AI extracts insights in a fundamentally different way. Instead of simply categorising people based on predefined traits, AI can identify patterns in behaviour and preferences to compute highly precise audience segments. While it may not always be easy to label these groups in traditional demographic terms, AI significantly enhances targeting accuracy. Addressing concerns about AI replacing human decision-making, Ralaivola noted, “A key term gaining traction is augmented intelligence, where AI complements human expertise rather than replacing it. Even as AI refines audience selection, the business knowledge and strategic understanding provided by humans remain crucial.” It’s similar to how medical advancements build on foundational knowledge. AI processes massive volumes of data, but human expertise continues to guide decision-making.
Platforms now use AI to deliver personalised ad experiences by analysing user behaviour, preferences, and demographics.
A crucial differentiator for Criteo, a France-based advertising company, has always been its strategic use of data.
["Ad", "Ad strategy", "AI (Artificial Intelligence)", "Criteo"]
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["AI", "ML", "deep learning", "generative AI", "Aim", "RAG", "R", "Go", "Git", "programming_languages:R"]
Vidyashree is enthusiastic about investigative journalism. Now trying to explore how AI solves for all.