PALM SPRINGS, CALIF. — Ad success in using artificial intelligence depends on strong first-party data signals combined with consumer permission to operate reputably as the world shifts from recognition-based to permission-based systems.
“How do you feel about a nameless, faceless algorithm making decisions about what offer you get, what credit score you have, even what content you should view next if you haven’t given it permission?” Scott Howe, CEO of LiveRamp, told Beet.TV at the IAB Annual Leadership Meeting. “To have AI without really strong first party data signals to power the models, along with consumer permission, stating that it’s okay to use that information in the models — if you don’t have that, then you can’t possibly be doing reputable AI.”
Regulation will likely trend toward this permission requirement as the industry recognizes AI’s magic needs consumer consent at its foundation.
Authentication improves TV buys
More marketers have implemented loyalty programs that gain customer permission over the past five years, simplifying marketing execution, though these techniques remain underutilized particularly in connected TV.
“I think it’s still the case that marketers aren’t utilizing those techniques enough. I particularly see that in areas like CTV,” Howe said.
Platforms including Netflix, Disney+, and Paramount authenticate users and collect permissions, creating opportunities for better television buying when authentication exists on both buy and sell sides.
Privacy demands dual permission
Identity protection depends on collecting proper permissions from both advertisers and content destinations through transparent value exchanges that educate consumers about data usage purposes.
“Advertisers need to make the value exchange transparent. They need to ensure that they’re educating their consumers on why they want that information,” Howe said.
Destinations requiring authentication—including 50 of the top 50 websites—must clarify what users receive in exchange for identity information, typically unique content access or favorable subscription rates.
“As long as the permissions are collected on both sides, then great things can be done. If you try to play fast and loose, you’re not going to succeed,” Howe said.
Focus on ‘delight and despair’ moments
Marketers should methodically approach AI implementation by focusing on consumer experiences rather than attempting every available technology, emphasizing engaging moments of delight and despair.
“It’s overwhelming. That’s why we’re still in the early stages,” Howe said. “Rather than try everything, marketers should be very methodical about how they get started.”
Moments of delight include Netflix’s ability to recommend shows for downloaded plane viewing with strong certainty, enhancing the experience. Moments of despair—standing in lines, processing returns, customer service exchanges—can transform through AI that shortens processes and accelerates resolutions.
“Rather than listen to the noise and do everything, be very surgical about how you get started and prioritize the things that really matter for your business first,” Howe said.
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