Rocket Fuel: Using AI to Make Digital Ads Better

REPLAY VIDEO
Your next video will start in
Pause
  • Info

  • Comments

  • VIDEO TEXT

Oct. 23 (Bloomberg) -- Rocket Fuel Chairman and CEO George John discusses how the company is making digital advertising better with the power of artificial intelligence. He speaks with Pimm Fox on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

Miracle whip.

Tell us, you actually work for nasa once, didn't you?

Interestingly, both i and my cofounder and one of our board members were all let nasa at different times.

We work in the artificial intelligence lab and my cofounder work on flights controls for enhancements and like the space shuttle and other aircraft.

It is a little weird.

People talk about beating swords into this.

There is a lot involved in doing it right.

Explain how this works.

Potential advertiser comes to you, a potential client.

What are they looking for?

Advertisers come to us through their agencies.

We describe our sweet spot as a serious advertisers that have some real metric.

It is not just spending the money and i deliver the campaign, he spend the money and we deliver 10,000 new subscribers.

We had some brand awareness.

It turns out that advertising, we love it because of the creative side.

We also love it because it is so quantitative when it is done right, meaning you're delivering hundreds of millions of ads online.

That creates a lot of data.

We can really go through that.

This adapts the campaign to have it more where it is working.

Does it reach into the behavior aspects an individual's preference.

That is one more thing you can look at.

We consider things like the time of day or whether you were on the galaxy or the iphone 5 and whatnot.

We look at maybe what page or maybe what video it is running in front of.

To the extent that we can know, what has this person seen yet.

Do you use the services of big data operators?

How do you massage all of this information?

That is a chore.

You can get more of the big data variety.

We manage about 12 terabytes of data.

Multiple data centers around the world.

Tens of thousands of cpu cores crunching on this stuff all the time.

It is exciting.

It is the kind of thing that would not have been possible even five or 10 years ago.

The thing that we do over and over again in our systems, they are looking at a single opportunity to serve a single ad on a single page at one time.

That whole operation, our system might have a penny to place that ad through these mattern exchanges.

Obviously you have to do it with a level of computation that cost a lot less.

It is really amazing what has happened with some of the core technology and hardware and what is going on with software in the last decade or so.

Does the use of this digital media technology level the playing field between very large interest brands and those that want to become new and up- and-coming?

And really doesn't. in the old days, you might have balked because you were a giant advertiser or maybe you had a massive bulk and you get good deals out of publishers and a tv show and whatnot.

Now, it is really the exchange mechanism that creates a level playing field where all of us are bidding.

My business is as good as someone else's. all of a sudden, the advantage shifts from scale and incumbency to kind of cleverness.

When we were trying to buy ads for bmw, are they smarter than somebody else?

Are we able to find little pockets of the types of people and the types of places where they are working really well?

That is what you need to do to create advantage for the advertisers.

As the initial public offering of public fuel -- rocket fuel, has it been a rocket?

I had a couple of ipo possible for.

I really enjoyed it.

Kind of explaining the company to public investors, they kind of understood it well.

There are knowledge is between what we do in advertising and what the smartest hedge funds and quantitative funds do.

It is very quick.

A lot of them understood us.

Exchanges have popped up in media.

Was very happy with the -- we were very happy with the level that we had.

Have you ever been surprised by the advertising you have been served up?

I don't know.

I have been an early adopter.

You could browse all of the ads instead of seeing the content.

I would do that.

So, i think the surprise.

I don't know why.

I have two girls and they're getting on up in years but they were fascinated by american

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change