AI in digital ads: Silent partner, not sole pilot

The Trade Desk’s (TTD) newly appointed managing director, Tejinder Gill, vividly recalls his early days at Yahoo nearly two decades ago. As a senior account manager in online media sales, his team relied on traditional methods—insertion orders signed by clients and agencies before booking campaigns.

Fast forward to today, and the programmatic advertising landscape has been completely transformed by data, artificial intelligence (AI), and machine learning.

Talking with Campaign India, Gill shares his thoughts on how the programmatic advertising landscape continues to evolve, driven by technology and shifting consumer behaviour. As CMOs seek measurable outcomes and audiences demand more personalised experiences, the open internet and AI-driven platforms like TTD are paving the way forward.

He also shares insights about why chief marketing officers (CMOs) are increasingly inclined toward the open internet, and how AI’s ethical use is reshaping the industry. This is being propelled by the pressure CMOs are encountering from their board in showing the last-mile return on investment for their ad campaigns with business-oriented outcomes. This is also why they are exploring options to walled gardens, which restrict data portability and prevent marketers from leveraging insights gained within their ecosystems for campaigns employed elsewhere.

Here are edited excerpts from his interview with Campaign:

What’s changed in the world of programmatic advertising over the years?

About three years ago, CMOs spent nearly 80% of their budgets on two major walled gardens. However, during my interactions with them since 2019, many have voiced their concerns about how these platforms wield too much control, prompting the search for alternatives.

This is also driven by parallelly by the consumer journey. They now consume content beyond these walled gardens, navigating between social media, OTT platforms, quick commerce apps, and store websites. For example, a potential female consumer’s journey may start on Instagram, move to an e-commerce app, and end on an OTT platform like Disney+ Hotstar. This diversification demands agility and multiple creatives.

Walled gardens also restrict data portability—marketers can’t use insights gained within their ecosystems for campaigns elsewhere. In contrast, programmatic platforms enable brands to integrate learnings across channels, making campaigns more agile.

Are these the only concerns that CMOs have?

During the pandemic, I observed CMOs seeking tangible returns on investment (ROI). Boards demanded measurable outcomes—putting a digital billboard up and claiming “someone saw it” no longer sufficed.

This status quo hasn’t changed. Marketers now need to demonstrate real-world impact, leading to a massive push for programmatic advertising as a more measurable and insight-driven medium.

In light of government efforts to curb online monopolies and growing discussions around indigenous, brand-agnostic platforms, what’s the road ahead for the open internet?

Think of the open internet as a collection of islands, like those in Asia, where travel is easy, and everything is within reach. Walled gardens, on the other hand, are akin to traveling to bigger countries that span a vast region; check-in can be tough and navigating from one end of the nation to another takes a lot of time.

Programmatic technology serves as a bridge connecting these hypothetical smaller Asian islands. Platforms like TTD simplify access to publishers like Disney+ Hotstar, Spotify, and Truecaller on a single dashboard, enabling marketers to target audiences efficiently.

Leading CPG and FMCG brands, such as PepsiCo, are already reaping the benefits. Globally, we’ve delivered a 14% efficiency boost for such brands by fostering collaboration across multiple publishers. The open internet’s potential lies in its ability to unify diverse ecosystems, creating seamless opportunities for brands and content creators.

What programmatic ROI have large brands like PepsiCo achieved? Can smaller companies replicate these successes?

PepsiCo’s rebranding campaign in the Philippines is an excellent example. By adopting an omnichannel strategy, they achieved a 39% reduction in cost per reach and engaged 4.6 million Gen Z consumers. Similarly, Kraft Heinz reduced cost per reach by 4.7 times while reaching an additional 4.2 million consumers.

Smaller companies can emulate these successes by embracing programmatic advertising. With precise targeting, they can achieve substantial ROI and maximise media impact, regardless of budget size.

The industry has traditionally relied on metrics like clicks and video completions. Are brands moving toward business-impacting KPIs, and if so, what challenges persist?

Metrics are evolving. Marketers now measure both input and output variables. Inputs include a brand’s targeting strategy and campaign execution, while outputs track consumer awareness and conversions.

This is where programmatic advertising real power steps in. It enables brands to apply sophisticated metrics to channels like online sports, making campaigns more impactful.

Despite Indians spending 52% of their time on the open internet, only 15% of ad budgets go there, as per a Dentsu report. Why the gap, and how can marketers capitalise on this opportunity?

There are two primary reasons. First, marketers historically lacked awareness of the open internet’s capabilities. Second, they found it daunting to engage with multiple publishers. Platforms like TTD eliminate these hurdles by consolidating audiences, KPIs, and goals into a single dashboard that automates the process.

OTT and connected TV (CTV) consumption in India is growing, with younger audiences associating these platforms with premium ads. How can brands use data analytics and creative formats to engage audiences?

We are tackling this in three ways. First, we’re educating the largest 50 brands, creating a strong foundation. This is a strong start.

Second, we partner closely with advertising agencies, as they play a pivotal role in the campaign rollout and mapping. Third, we’re empowering creators and hands-on practitioners who use the dashboard through our Edge Academy. It offers certificate-backed courses that equip them with advanced skills in programmatic advertising.

Interactive formats like shoppable ads or quizzes work well on OTT, and platforms like ours enable brands to leverage these tools effectively, delivering localised and immersive ad experiences.

As AI tools like ChatGPT and generative AI transform media buying, what ethical frameworks should the industry adopt to address AI’s rapid rise?

AI has long been integral to digital advertising, operating in the background to analyse complex data. But relying entirely on AI isn’t the answer.

The relationship between humans and AI is collaborative, much like that of a pilot and co-pilot. While AI excels at processing vast datasets and identifying trends, human expertise is critical for strategy and nuanced decision-making.

For example, advertisers using TTD access insights from one trillion ad opportunities daily, allowing real-time campaign optimisation. AI provides recommendations, but humans refine strategies and ensure campaigns resonate with audiences.

As generative AI grows, industry standards must evolve to address ethical considerations, ensuring transparency and responsible use.