IBM Watson adds creative optimization to OTT and video

The company’s advertising accelerator uses AI to select the best ads for the public at a time when spending on OTT and other video channels is increasing.

Since IBM Watson launched its Advertising Accelerator in early 2020, brands such as Toyota and Best Western have used the AI   platform to deliver ads with creative elements suitable for display advertising. Now Watson has expanded its creative optimization capability with AI activities for campaigns on OTT services and online videos.

The new video features use data signals to select the best combination of video advertising elements for an OTT hearing aid.

By including conversions and other signals in campaign modeling, advertisers can also discover new segments to target.

“We launched our accelerator to rediscover Dynamic Creative Optimization (DCO), now for video and OTT, which significantly reduces value-generating time,” said David Olesnevich, head of advertising product IBM Watson. Artificial intelligence supports and stimulates the campaign through continuous learning.

To launch an enhanced video campaign, the advertiser offers several options for each section of a video ad, including introductory elements, ad body, music clips, and endnotes. It is tailored to provide the right combinations for each of the hearing segments most receptive to it. As a result, the campaign learns more and leads to better results over time.

According to Olesnevich, Accelerator campaigns have reduced the cost per lead by 60% for image ads. We hope it will yield the same results [for OTT and video], if not better. There are other ways to help brands if you think about the features they have for videos and how we can use them. We can use what they were originally released for and change it into many new variations and improve performance.”

Brands that already produce video assets on many digital and social channels can show versions of these assets and see what works best as a campaign that uses AI to learn and develop more.

The expansion of the IBM Watson Accelerator to OTT and other digital video channels is due to the fact that advertisers spend more of their budgets on digital video channels. Spending on CTV ads on color TVs – devices like smart TVs that display OTT content – is 22% higher than the previous year in 2020, according to the IAB video ad Spend 2020 and Outlook for 2021 released this week is. Nearly three-quarters of CTV buyers also report a change in transmission and cable budgets for CTV.

Ad buyers are also increasingly interested in OTT, as many viewers interrupt or diminish their linear TV subscriptions.

How DSPs can use creative optimization

An AI campaign using creative optimization can determine the most effective line item combination, but what about the media, based on similar audience insights? If an advertiser realizes that a particular soundtrack or intro in a segment is gaining momentum, he wants to put the winning combination above more consumers in the segment.

For this reason, a DSP is an important part of an enhanced video campaign. That’s why IBM Watson is also working closely with DSP Xandr to increase the optimization of its optimization technology.

“Assessing a media impression can take decades or even hundreds of variables if advanced personalization features are used,” said, head of business and development strategy at Xandr. These variables can include things like the device on which the consumer sees the content, the geographical location and time of day, or a lifelong customer count that the marketer assigns to a unique audience, each indicating the price of the offer.

And all this before adding the complexity of rapidly changing creative combinations to the campaign.

These technologies will improve funnel performance through awareness, ad recall, engagement, and even immediate response and action, Hurd said.

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