The Role of Artificial Intelligence in Enhancing Ad Personalization: A Study on Programmatic Advertising

Abstract

This study examines the impact of artificial intelligence (AI) on ad personalization within the realm of programmatic advertising, exploring how AI-driven techniques optimize targeting and engagement. By leveraging AI algorithms, programmatic advertising systems can analyze vast datasets to deliver highly personalized ad experiences tailored to individual users. The research delves into the mechanisms by which AI enhances personalization, from predictive analytics to real-time data processing, and assesses the implications for both advertisers and consumers. Our findings indicate that AI-powered personalization not only increases ad relevance but also improves user satisfaction, engagement, and conversion rates. However, ethical considerations, such as data privacy and transparency, remain critical. This study provides a comprehensive overview of AI’s role in programmatic advertising, addressing both technological advancements and ethical challenges, with recommendations for future research and industry practices.