Bids set by AI, aimed at bookings
The operational problem
Programmatic advertising involves millions of bidding decisions, and bidding on reach rather than bookings wastes money.
What the evidence reports
Scibids said on 20 September 2023 that its AI builds custom bidding algorithms through Google's Display and Video 360, finding the combinations of media signals most likely to lead to bookings and updating its models as signals change. Brainlabs ran a test across 11 markets and, after it succeeded, applied Scibids to all of Icelandair's programmatic spend. The companies reported a 70% decrease in cost per flight booking over the past year. Jóhann Benediktsson, Icelandair's digital marketing manager, said: "This level of efficiency represents a 10x ROI for the brand."
Operational significance
Optimising directly for bookings ties the AI's work to revenue, and the cost per booking gives a clear measure of the result.
The figures come from a supplier and agency release. The 10x ROI is measured against the cost of Icelandair building the AI itself, not against a previous campaign.
Sources and verification (1)
Scibids via Businesswire - Icelandair custom bidding release · Evidence grade B
A source can verify an announcement without verifying its projected outcome.