EssilorLuxottica Leans Into AI To Avoid Ad Waste | AdExchanger

"Inefficiency is baked into the programmatic supply chain. Between invalid traffic (IVT), bots, flawed targeting approaches that need to be adjusted midflight and ad tech taxes collected by middlemen along the way, brands spend a lot of money without seeing a return. But AI can help cut out some of this programmatic waste, said Caroline Proto, director of global media at EssilorLuxottica."

"Filtering out IVT pre-bid is rare in programmatic and can drive meaningful efficiency gains from the outset, Proto affirmed, particularly in video-based and CTV campaigns, where ad prices have exploded. It's no wonder scammers have become more active in the CTV channel. Invalid impressions and bots can make up a double-digit share of a campaign's target audience, which brands find unacceptable. "Any risk of IVT is not something that we're willing to be OK with," Proto said."

Programmatic advertising carries built-in inefficiencies from invalid traffic, bots, flawed targeting needing midflight adjustments, and ad tech taxes collected by intermediaries. AI and blockchain tools can reduce waste by verifying impressions and blocking IVT pre-bid. EssilorLuxottica tested BlockVantage from Blockboard, a DSP using blockchain smart contracts on Ethereum to verify impressions. The tool reduced Sunglass Hut’s average cost per store visit by 14% during a CTV and video campaign versus internal benchmarks. Blockboard filters IVT using user agent, IP address, device type, operating system, geolocation, and smart contracts to assure programmatic partners exclude IVT.

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