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transcosmos inc. (Headquarters: Tokyo, Japan; President and COO: Masataka Okuda) is delighted to announce that the company released its new ad operations service. This new service uses AI for retargeting optimization as one of its data-driven communication services that combine “DataRobot,” a cutting-edge AI which automates the machine learning process, “transcosmos decode” (DECode) and transcosmos proprietary data management platform (DMP), in March 2019. transcosmos aims to implement this service to more than 20 companies by the end of FY 2019.

Initiatives toward the “Democratization of AI”

Given the current trend towards the “democratization of AI,” a trend in businesses across industries to promote the utilization of AI for all kinds of operations, a growing number of businesses are trying to take advantage of AI and machine learning for their marketing communication. According to this trend, they require to retain experts such as data scientists and AI engineers, collect and process data, build prediction models, perform sophisticated probability and statistical analysis, develop a business system using the models and implement the system to actual operations. However, executing this whole process is hard for most companies.

Recognizing this challenge, transcosmos developed its proprietary DMP “DECode” and launched its operations in April 2017 with the aim to help clients across industries achieve their AI democratization. “DECode” integrates and manages data across multiple channels including websites, e-commerce and call centers, and
then links the data to AI tools such as “DataRobot.” Since then, transcosmos built a scheme that enables data-driven communication by linking DMPs and AI. To date, transcosmos has already executed over 20 pilot projects and continues to transform the outcomes of these projects into new services and tools that boost productivity at worksites.

About ad operations service that optimizes targeting with the power of AI
The new AI-powered retargeting optimization service as released in March 2019 is one of the new services derived from the above-mentioned initiatives.

As a first step, transcosmos will officially release a system which enables clients to integrate their website access logs and CRM data with “DECode,” build prediction models with “DataRobot,” and directly link to Google Display Network (GDN) and DoubleClick Bid Manager (DBM) when delivering retargeting ads to customers who have higher probability scores.

With a traditional ad operations approach, it is generally the ad operations team that is responsible for identifying and setting preconditions for target segments by trial and error using their intuition and experience. Yet, only using human power, it is practically impossible to accurately and comprehensively verify and decide which customer segments the team should prioritize when delivering ads. For example, whether they should prioritize a customer who browsed only the top page a day before or a customer who spent a long time viewing product details 7 days ago.

Now, with this AI-powered retargeting optimization service, clients can use “DataRobot” to learn behavioral patterns that indicate customers who are more likely to make conversions (make purchases, etc.; CV) from an enormous volume of customer behavioral patterns collected on clients’ websites and cookies, and automatically assign predicted CV probability scores to unknown customers. Ultimately, this approach lets clients deliver highly accurate segmented ads at speed compared to the traditional approach that solely relies on human power. What’s more, a client’s ad operations team only needs to add a DECode tag to their website, meaning clients no longer need to secure data scientists with machine learning expertise and skills and AI engineers who can build and implement a system from the prediction models.

Case study: Conversions up 1.6 times whilst improving ROI in a short span of time
In a pilot project using the AI-powered retargeting optimization service, transcosmos used “DECode” to integrate the client’s website view logs that were accumulated on the client’s database on a daily basis with customer attributes, and used “DataRobot” to create daily customer segments that are prioritized for retargeting. By changing the bid price per segment, transcosmos built a highly accurate prediction model that covers 80% of loyal customers. The result of segmented ads that used the model was a huge success, boosting ROI by 130% compared to the number achieved with the traditional ad operations approach, realizing the cutting-edge digital promotion with the power of AI and machine learning technology in a short time span.

Considering the fact that merely seeking ROI will result in down-scaled delivery, transcosmos reduced delivery to segments that are apparently meaningless, and then used various operational tactics in order to utilize the saved budgets that include concentration of resources to segments with higher CV provability scores and use of other media and channels in order to discover new customers and enhance activities to nurture prospective customers. As a result, transcosmos successfully expanded the delivery scale and grew conversions approximately 1.6 times higher than before whilst further improving ROI.

transcosmos continues to contribute to clients in improving profits and achieving the “Democratization of AI” by offering data-driven communication services through adding new features to “DECode” and expanding operations services built on “DECode.”


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