Sponsored By Nexxen * 7 May 2025 *
Karim Raymond, Chief Product Office, Nexxen.
It’s no surprise that artificial intelligence is the industry’s most popular talking point. Nearly all companies are racing to launch AI products, ranging from generative tools to predictive models to automated campaign recommendations. Amidst the buzzwords, marketing decks and other marketing materials, an important question is often overlooked: Does the industry build AI as a transformative amplifier or is it simply adding another shiny feature to the product?
In recent times, it seems to be largely the latter. Many AI rollouts operate in isolation – an algorithm that suggests improvements, a chatbot that provides support, or a dashboard that generates summary. They may seem helpful, and they often are. But their impact is limited until they’re linked to the systems and workflows which allow AI to improve and learn over time.
End-to-end platforms are a distinct advantage in this regard, not only in terms of how they deploy AI but also in terms of how they create conditions for it to function effectively. These platforms are not just a collection of branded tools. They are integrated systems in which each component communicates with all the others. This interconnectedness is crucial. For AI to have a meaningful impact on adtech, it must connect — and enhance– each core aspect of the offering, enabling feedback and adaptation.
Systemwide AI unlocks insights and value for different stakeholders
In an end-toend environment, AI can ingest data in real-time across planning, activation and optimization. It can analyze how audiences respond, which creatives convert, and the supply dynamics — not isolated, but in context. These insights are not just observed, but they are fed back into system to improve next decision, next activation, next bid. This is where the magic happens. A closed-loop system where performance drives learning and learning drives improved performance.
For instance, marketers can use AI for dynamically adjusting audience targeting based upon in-flight campaign results, reallocating spending toward segments with the highest conversion or engagement rates. Creative optimization engines can test and rotate ad variants automatically, identifying the messages that resonate with different audience cohorts. Publishers can use AI on the supply side to predict inventory values, bundle premium audiences, and fine-tune their yield strategies. This will improve both fill rates and CPMs. AI can also improve ROI by reducing waste, and leveraging cross-channel data for future media strategies and creative buys.
System-wide intelligence not only creates efficiencies, but also drives competitive advantage. Marketers get more speed and precision. Publishers unlock new revenue opportunities. The entire ecosystem is moving closer to performance-driven advertising.
Building this type of AI infrastructure won’t be easy. It requires ownership – or at least, deep integration – across the media supply chains. It requires a unified strategy for data, interoperable platforms and a shift in mindset from feature deployment to capability creation.
Organizations who want to integrate AI successfully need to begin by breaking down the data silos. This will allow first-, third- and second-party data to flow smoothly across their systems and pipes. They must align teams across data, product and operations to ensure that AI initiatives are focused on solving core business issues, not just creating flashy moments. Most importantly, they must adopt an iterative mentality. AI integration is a continuous journey of learning, testing and refining. Those who integrate this continuous improvement loop in their infrastructure will not only be able to keep up with the changes, but also help define the direction the market is heading.
Ad tech is at a turning point. AI isn’t a new wave of innovation, it’s an important shift in the industry. It’s similar to the arrivals of mobile and identity graphs. Companies that treat AI more as a core infrastructure than an add-on will be the most successful. Platforms that are designed to work together have a huge head start. Not because they have AI but because they possess the architecture necessary to make AI relevant.
Advertising’s future is not just AI-enabled, but AI-connected. It’s already underway.
Sponsored by Nexxen
https://digiday.com/?p=577799
