{"id":35225,"date":"2021-03-17T15:41:11","date_gmt":"2021-03-17T12:41:11","guid":{"rendered":"https:\/\/orbitsoft.com\/blog\/?p=35225"},"modified":"2023-12-13T12:47:51","modified_gmt":"2023-12-13T09:47:51","slug":"artificial-intelligence","status":"publish","type":"post","link":"https:\/\/orbitsoft.com\/blog\/artificial-intelligence\/","title":{"rendered":"AI Algorithm Increased Ad Revenue by 10%"},"content":{"rendered":"<div class=\"wp-block-lazyblock-case lazyblock-case-Z1uMYER\"><div class=\"styled-block\">\n  <div class=\"styled-block__main\">\n        <ul class=\"case__list\">\n            \n                    <li class=\"case__item\">\n              \n          <span class=\"case__order\">01<\/span>\n          <div class=\"case__body\">\n            <div class=\"case__title\">\n              <span>Client<\/span>\n            <\/div>\n            <p>\u00a0is a network that manages advertising on services with adult content.<\/p>          <\/div>\n        <\/li>\n            \n                    <li class=\"case__item\">\n              \n          <span class=\"case__order\">02<\/span>\n          <div class=\"case__body\">\n            <div class=\"case__title\">\n              <span>The business objective<\/span>\n            <\/div>\n            <p>is\u00a0to\u00a0reduce the number of\u00a0refusals to\u00a0watch ad\u00a0videos.<\/p>          <\/div>\n        <\/li>\n            \n                    <li class=\"case__item\">\n              \n          <span class=\"case__order\">03<\/span>\n          <div class=\"case__body\">\n            <div class=\"case__title\">\n              <span>The solution<\/span>\n            <\/div>\n            <p>is to customize the display of videos, taking into account personal recommendations. For this, we used AI algorithm that allowed us to analyze and use user data.<\/p>          <\/div>\n        <\/li>\n            \n                    <li class=\"case__item case__item_marked\">\n              \n          <span class=\"case__order\">04<\/span>\n          <div class=\"case__body\">\n            <div class=\"case__title\">\n              <span>Results<\/span>\n            <\/div>\n            <p><strong>+5%<\/strong> Increase in number of videos watched<\/p>\n<p><strong>+19%<\/strong> Increase in viewing time of a single video<\/p>\n<p><strong>+10%<\/strong> Increase in advertising revenue from videos watched<\/p>\n<p><strong>-16%<\/strong> Decrease in refusals to watch ad videos<\/p>          <\/div>\n        <\/li>\n          <\/ul>\n  <\/div>\n  <\/div><\/div>\n\n<div class=\"wp-block-lazyblock-heading lazyblock-heading-2lfS9P\"><h2 class=\"article__h\">2 Billion Ad Impressions per Month <\/h2><\/div>\n\n\n<p>Agency is the largest advertising company in Canada. One of its projects is an adult content service. This is one of the most popular entertainment platforms: it has more than 40 million published videos and 350 thousand daily online users.<\/p>\n\n\n\n<p>With the help of Agency, the service earns on ad impressions for their main content: for example, they use videos, banners, pop-ups, and other formats. At the beginning of 2021, the service had more than 2 billion ad impressions per month.<\/p>\n\n\n<div class=\"wp-block-lazyblock-results lazyblock-results-2a1eYJ\">  <div class=\"styled-block styled-block_color\">\n\n  <div class=\"styled-block__main\">\n          <h3 class=\"styled-block__title\">\n        Agency manages ads for a popular service      <\/h3>\n        <ul class=\"results__list\">\n              <li class=\"results__item\">\n          <div class=\"results__title\">\n            >40 Million          <\/div>\n                      <div class=\"results__description\">\n              Published videos            <\/div>\n                  <\/li>\n              <li class=\"results__item\">\n          <div class=\"results__title\">\n            350k          <\/div>\n                      <div class=\"results__description\">\n              Users online every day            <\/div>\n                  <\/li>\n              <li class=\"results__item\">\n          <div class=\"results__title\">\n            >2 Billion          <\/div>\n                      <div class=\"results__description\">\n              Ads impressions per month            <\/div>\n                  <\/li>\n          <\/ul>\n  <\/div>\n  <\/div><\/div>\n\n<div class=\"wp-block-lazyblock-heading lazyblock-heading-ZotPHM\"><h2 class=\"article__h\">The Problem Is That Users Don\u2019t Watch Videos and Skip Ads <\/h2><\/div>\n\n\n<p>The adult content service makes money on advertising, their income is regular, and there are no problems with that. At the same time, there is high competition in the field of entertainment content: from game streams to videos with kittens.&nbsp;<\/p>\n\n\n\n<p>When they contacted us, the average number of refusals on the service was 17.7%. This suggests that users were not that interested in the content offered. Because of this, advertising also suffered: the less time visitors spend on the service, the less revenue the service receives.<\/p>\n\n\n\n<p>The problem isn\u2019t just advertising revenue. It&#8217;s about attention: as soon as users stop spending time with you, your competitor gets their time. Returning such users to the fold is a long, expensive, and difficult process.<\/p>\n\n\n<div class=\"wp-block-lazyblock-heading lazyblock-heading-2rQLta\"><h2 class=\"article__h\">Limitations: There Is No Data for Personal Recommendations <\/h2><\/div>\n\n\n<p>The customer came with the following request: \u201cThe service collects a lot of different data. I\u2019ve read that they can be used to increase content and advertising metrics. How should I do it?&#8221;<\/p>\n\n\n\n<p>Our hypothesis: if you learn how to show an ad based on personal recommendations, then visitors will be more likely to watch the videos, which means they will see the advertisement.<\/p>\n\n\n\n<p>The tool for setting up personal recommendations itself is well-known: for example, this is how YouTube, Spotify, and other services work. The problem is that we are talking about adult content, so there are differences from YouTube:<\/p>\n\n\n\n<ul>\n<li>website visitors don\u2019t share personal data &#8211; for example, their gender, age, country, and so on<\/li>\n\n\n\n<li>they don\u2019t leave likes or any indication that they liked one video or another<\/li>\n\n\n\n<li>they use a VPN, so it\u2019s impossible to know which country we are dealing with<\/li>\n\n\n\n<li> at least 80% of visitors use incognito mode, and every time they visit, they are considered new users <\/li>\n<\/ul>\n\n\n\n<p>The client faced the situation that he had lots of data, but he didn\u2019t understand how to use it, how to customize the display of videos based on personal recommendations.<\/p>\n\n\n<div class=\"wp-block-lazyblock-banner lazyblock-banner-1kekD4\"><div \n  class=\"banner\n   \n  \" \n  >\n    <div class=\"banner__body\">\n        <h2 class=\"banner__h\">Do you want to understand how Big Data, AI and Machine Learning will be able to help you?<\/h2>\n        <div class=\"banner__content\">\n            <p>Are you interested your visitor spending more time on your website? Do you want to find a team you can trust?<\/p>\n<p>We\u2019ll be happy to help you.<\/p>\n<p>Leave a request \u2014 and we will tell you about the implementation process and answer any questions.<\/p>        <\/div>\n                            <div \n              class=\"banner__button button js-form-modal\n               button_style_light-on-promo2\">\n              Click here                          <\/div>\n            <\/div>\n    <div class=\"banner__photo\">\n        <img decoding=\"async\" src=\"https:\/\/orbitsoft.com\/blog\/wp-content\/uploads\/tech2.png\" alt=\"\" class=\"banner__img\">\n    <\/div>\n<\/div><\/div>\n\n<div class=\"wp-block-lazyblock-heading lazyblock-heading-ZYFem2\"><h2 class=\"article__h\">The Solution: Working with a Big Data and Creating AI Algorithm <\/h2><\/div>\n\n\n<p>Since the data is there, it can be processed in some way. To do this, we have created AI algorithm that allow us to collect and analyze it, and build personal recommendations based on it.<\/p>\n\n\n\n<p>The project took almost a year and was put together in stages.<\/p>\n\n\n\n<h3 class=\"cards__main-h\">Project stages: creation of an algorithm for personal recommendations based on artificial intelligence<\/h3>\n\n\n<div class=\"wp-block-lazyblock-steps lazyblock-steps-2mtKjG\"><div class=\"styled-block\">\n  <div class=\"styled-block__main\">\n        <ul class=\"steps__list\">\n              <li class=\"steps__item\">\n          <div class=\"steps__title\">\n            Data collection and analysis          <\/div>\n                    <ul>\n<li>Data collection<\/li>\n<li>Analysis of\u00a0found metrics<\/li>\n<li>Pattern identification<\/li>\n<\/ul>        <\/li>\n              <li class=\"steps__item\">\n          <div class=\"steps__title\">\n            Data preparation          <\/div>\n                    <ul>\n<li>Selection of\u00a0meaningful metrics<\/li>\n<li>Conversion of\u00a0data to\u00a0desired format<\/li>\n<\/ul>        <\/li>\n              <li class=\"steps__item\">\n          <div class=\"steps__title\">\n            Modeling          <\/div>\n                    <ul>\n<li>Choosing a\u00a0forecasting model<\/li>\n<li>Experimentation with test datasets<\/li>\n<li>Development of\u00a0a\u00a0recommendation algorithm<\/li>\n<\/ul>        <\/li>\n              <li class=\"steps__item\">\n          <div class=\"steps__title\">\n            Review of recommendations          <\/div>\n                    <ul>\n<li>A \/ B\u00a0tests<\/li>\n<li>Comparison of\u00a0results<\/li>\n<li>Analysis of\u00a0gained experience<\/li>\n<li>Planning further steps to\u00a0improve working model<\/li>\n<\/ul>        <\/li>\n          <\/ul>\n  <\/div>\n  <\/div><\/div>\n\n<div class=\"wp-block-lazyblock-heading lazyblock-heading-1FOPmc\"><h2 class=\"article__h\">What Helped Solve the Client&#8217;s Problem <\/h2><\/div>\n\n\n<p><strong>Accumulated experience in the field of working with big data. <\/strong>This is not our first project in this area. For large clients, we process billions of lines of user behavior data. Thanks to this data, we know how to:<\/p>\n\n\n\n<ul>\n<li>calculate the ad rating and display it in accordance with the rating<\/li>\n\n\n\n<li>determine the likelihood of a click on an ad<\/li>\n\n\n\n<li>match the user with a specific segment of interests to display relevant ads<\/li>\n<\/ul>\n\n\n\n<p>Thanks to this accumulated knowledge, we already knew which models and algorithms would be suitable for the service. For the customer, this means that we can make their project faster and more accurate.&nbsp;<\/p>\n\n\n\n<p><strong>We didn&#8217;t waste time inventing a solution from scratch.<\/strong> Instead, we used working solutions from areas close to the client&#8217;s business.  For example, we studied documented examples from Google, Netflix, and Spotify. Our research helped us to quickly determine the best methods and approaches for our own development.<\/p>\n\n\n<div class=\"wp-block-lazyblock-figure lazyblock-figure-15x3AS\"><figure class=\"article__figure article__figure_wide\">\n        <div class=\"article__figure-img\" >\n        <img decoding=\"async\" src=\"https:\/\/orbitsoft.com\/blog\/wp-content\/uploads\/pages-docs.jpg\" alt=\"\">\n    <\/div>\n                <figcaption>A page about algorithms from a document from Google<\/figcaption>\n    <\/figure><\/div>\n\n\n<p>Left side &#8211; a page from a document from Google employees discussing recommendation system algorithms for YouTube.\u00a0 <a href=\"https:\/\/www.inf.unibz.it\/~ricci\/ISR\/papers\/p293-davidson.pdf#page=2\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">See the entire document in PDF<\/a><\/p>\n\n\n\n<p>Right side &#8211; Google\u2019s experience and mathematical models in building scalable recommendation systems. <a href=\"http:\/\/www.joonseok.net\/papers\/deeprecs.pdf#page=2\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">See the entire document in PDF<\/a><\/p>\n\n\n<div class=\"wp-block-lazyblock-figure lazyblock-figure-2vQnmt\"><figure class=\"article__figure \">\n        <div class=\"article__figure-img\" >\n        <img decoding=\"async\" src=\"https:\/\/orbitsoft.com\/blog\/wp-content\/uploads\/printed-pages.png\" alt=\"\">\n    <\/div>\n                <figcaption>The most interesting reports were printed and analyzed by the whole team<\/figcaption>\n    <\/figure><\/div>\n\n<div class=\"wp-block-lazyblock-heading lazyblock-heading-Z1B5QTI\"><h2 class=\"article__h\">The Result: Personalized Recommendations Increased Ad Revenue by 10% <\/h2><\/div>\n\n\n<p>Based on almost anonymous data, we created an AI algorithm that selects videos based on personal recommendations. Thanks to this, the service has increased the main indicators of advertising efficiency. Another project for Agency.<\/p>\n\n\n<div class=\"wp-block-lazyblock-steps lazyblock-steps-ZxDUrV\"><div class=\"styled-block\">\n  <div class=\"styled-block__main\">\n          <h3 class=\"styled-block__title\">\n        1.5 months results: how AI-powered recommendation system influenced content viewing rates. Results how AI-powered recommendation system influenced content viewing rates      <\/h3>\n        <ul class=\"steps__list\">\n              <li class=\"steps__item\">\n          <div class=\"steps__title\">\n            +5%          <\/div>\n                      <div class=\"steps__description\">\n              Increase in number of videos watched            <\/div>\n                            <\/li>\n              <li class=\"steps__item\">\n          <div class=\"steps__title\">\n            +19%          <\/div>\n                      <div class=\"steps__description\">\n              Increase in viewing time of a single video            <\/div>\n                            <\/li>\n              <li class=\"steps__item\">\n          <div class=\"steps__title\">\n            +10%          <\/div>\n                      <div class=\"steps__description\">\n              Increase in advertising revenue from videos watched            <\/div>\n                            <\/li>\n              <li class=\"steps__item\">\n          <div class=\"steps__title\">\n            -16%          <\/div>\n                      <div class=\"steps__description\">\n              Decrease in refusals to watch ad videos            <\/div>\n                            <\/li>\n          <\/ul>\n  <\/div>\n  <\/div><\/div>\n\n<div class=\"wp-block-lazyblock-email-hunter lazyblock-email-hunter-ZLWRKy\"> <div class=\"mail-hunter mail-hunter_inline\">\n  <div class=\"mail-hunter__inner\">\n    <div class=\"mail-hunter__img\">\n      <svg>\n        <use xlink:href=\"#mail-hunter\"><\/use>\n      <\/svg>\n    <\/div>\n    <div class=\"mail-hunter__content\">\n                    <h2 class=\"mail-hunter__h\">Earn more on advertising &#8211; Subscribe to our newsletter<\/h2>\n                <script>(function() {\n\twindow.mc4wp = window.mc4wp || {\n\t\tlisteners: [],\n\t\tforms: {\n\t\t\ton: function(evt, cb) {\n\t\t\t\twindow.mc4wp.listeners.push(\n\t\t\t\t\t{\n\t\t\t\t\t\tevent   : evt,\n\t\t\t\t\t\tcallback: cb\n\t\t\t\t\t}\n\t\t\t\t);\n\t\t\t}\n\t\t}\n\t}\n})();\n<\/script><!-- Mailchimp for WordPress v4.9.3 - https:\/\/wordpress.org\/plugins\/mailchimp-for-wp\/ --><form id=\"mc4wp-form-1\" class=\"mc4wp-form mc4wp-form-649 mc4wp-ajax\" method=\"post\" data-id=\"649\" data-name=\"\u041f\u043e\u0434\u043f\u0438\u0441\u043a\u0430 \u043d\u0430 \u0432\u0441\u0435 \u0441\u0442\u0430\u0442\u044c\u0438\" ><div class=\"mc4wp-form-fields\"><div class=\"mail-hunter__form-elements\">\r\n  <input type=\"email\" name=\"EMAIL\" placeholder=\"Your email\" required class=\"mail-hunter__input input\" \/>\r\n  <button type=\"submit\" class=\"mail-hunter__button button\">\r\n    <span>Submit<\/span>\r\n  <\/button>\r\n<\/div><\/div><label style=\"display: none !important;\">Leave this field empty if you're human: <input type=\"text\" name=\"_mc4wp_honeypot\" value=\"\" tabindex=\"-1\" autocomplete=\"off\" \/><\/label><input type=\"hidden\" name=\"_mc4wp_timestamp\" value=\"1782088846\" \/><input type=\"hidden\" name=\"_mc4wp_form_id\" value=\"649\" \/><input type=\"hidden\" name=\"_mc4wp_form_element_id\" value=\"mc4wp-form-1\" \/><div class=\"mc4wp-response\"><\/div><\/form><!-- \/ Mailchimp for WordPress Plugin -->\n    <\/div>\n  <\/div>\n<\/div><\/div>\n\n<div class=\"wp-block-lazyblock-heading lazyblock-heading-Z1nAsi8\"><h2 class=\"article__h\">Where else is the AI algorithm for developing personalized recommendations useful? <\/h2><\/div>\n\n\n<p>The AI algorithm is suitable for any online business with a large amount of content and number of visitors.<\/p>\n\n\n\n<p>Content is anything like:<\/p>\n\n\n\n<ul>\n<li> articles<\/li>\n\n\n\n<li> videos<\/li>\n\n\n\n<li> audio<\/li>\n\n\n\n<li> memes<\/li>\n\n\n\n<li> cards with goods or services<\/li>\n<\/ul>\n\n\n\n<p>If you have a similar business, write to us and let&#8217;s discuss how we can help you, too.<\/p>\n\n\n<div class=\"wp-block-lazyblock-banner lazyblock-banner-Z2wJxTO\"><div \n  class=\"banner\n   \n  \" \n  >\n    <div class=\"banner__body\">\n        <h2 class=\"banner__h\">We do projects for online and offline business<\/h2>\n        <div class=\"banner__content\">\n            <p><strong>We work with businesses of any scale<\/strong>. Among our clients there are international companies, large and medium-sized businesses, and startups.<\/p>\n<p><strong>Telecoms<\/strong>: mobile operators, internet service providers.<\/p>\n<p><strong>Finance<\/strong>: electronic payment systems, insurance companies and brokers.<\/p>\n<p><strong>Retail<\/strong>: stores, chain stores.<\/p>\n<p><strong>Digital advertising<\/strong>: ad agencies, ad networks.<\/p>\n<p><strong>Medicine<\/strong>: hospitals, medical services.<\/p>        <\/div>\n                            <div \n              class=\"banner__button button js-form-modal\n               button_style_light-on-promo2\">\n              Let&#8217;s Discuss Your Project                          <\/div>\n            <\/div>\n    <div class=\"banner__photo\">\n        <img decoding=\"async\" src=\"https:\/\/orbitsoft.com\/blog\/wp-content\/uploads\/friendship.png\" alt=\"\" class=\"banner__img\">\n    <\/div>\n<\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>Agency is the largest advertising company in Canada. One of its projects is an adult content service. This is one of the most popular entertainment platforms: it has more than 40 million published videos and 350 thousand daily online users. With the help of Agency, the service earns on ad impressions for their main content: [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":35590,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[17],"tags":[196],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>AI Algorithm Increased Ad Revenue by 10% - OrbitSoft Blog<\/title>\n<meta name=\"description\" content=\"AI algorithm analyzes data of an Adult Content Service users to\u00a0customize the display of\u00a0videos, taking into account personal recommendations\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/orbitsoft.com\/blog\/artificial-intelligence\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"AI Algorithm Increased Ad Revenue by 10% - 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