Adcore Talks Programmatic Advertising Innovations with Microsoft’s Luca Masiello

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In a recent deep dive into the world of programmatic advertising, Adcore’s Julian Bonte-Friedheim had the pleasure of hosting Luca Masiello, the Brand Partnerships Lead at Microsoft, on our podcast. With his extensive experience overseeing DSP (Demand-Side Platform) partnerships, Luca brought multiple insights into Microsoft’s unique position and future directions in AdTech. Here’s a recap of the key topics we covered:

Understanding Microsoft’s DSP and Its Edge in AdTech

Luca Masiello thoroughly broke down how Microsoft’s Demand-Side Platform (DSP) is shaking things up in digital advertising. What makes Microsoft’s DSP stand out is its all-in-one tech suite that smoothly connects the dots between the ad buying and selling sides. This setup is key because it allows for a fluid exchange of data and insights throughout the advertising process, boosting both transparency and efficiency. Luca pointed out that this approach doesn’t just handle transactions — it also provides deep insights into how campaigns are performing and how far they’re reaching.

Additionally, Microsoft’s DSP tackles one of the biggest headaches in digital marketing—the often murky nature of programmatic advertising. This lack of clarity arises from the intricate network of platforms and service providers involved, which can obscure transparency and make it difficult to track where ad dollars are actually going. Microsoft built a system that is highly transparent, giving marketers a clear view of where their money is going and the impact of their ads.

Transparency and Data Integration: The Core of Microsoft’s Strategy

Luca Masiello laid out how Microsoft’s large trove of data makes its DSP such a game changer.This powerful network pulls together info from across Microsoft’s massive ecosystem, everything from Bing search data to all the stats from Xbox’s gaming platforms. This mix lets Microsoft pick up on a wide range of user behaviors, preferences, and profiles.

This data is fully integrated across Microsoft’s platforms. For example, marketers can use Xbox data to figure out when gamers are most likely to be online, what kinds of games they’re into, and what their in-game purchase habits are. Search data from Bing can clue in advertisers about what potential customers are actively searching to buy or learn about, allowing for incredibly tailored ad content. This means advertisers get very clear and precise customer profiles. Microsoft also allows for ads’ performance to be monitored across different platforms and adjusted constantly, making sure every ad dollars are being spent efficiently.

Navigating a Cookieless Future

As the world of digital advertising moves away from relying on third-party cookies, Microsoft is already thinking about what’s next. Luca explained how they’re using their data capabilities to handle this big change, making sure advertisers can still hit their targets.

Microsoft is all about making the most of its own data — from Bing searches, Xbox play sessions, and all kinds of interactions across their apps and services. By weaving together all this info, they can craft really detailed user profiles and audience segments that are based on actual activities and choices. This has allowed Microsoft to amass a drove of broad data that marketers can leverage without relying on individuals’ cookies.

Luca pointed out that Microsoft can deliver ads that really matter to users, based on consent and genuine interaction. They’re also developing new tracking tech that fits with today’s privacy rules but still lets advertisers keep tabs on how their campaigns are doing and understand what’s working. And with cookies on the way out, contextual advertising is getting a fresh look. Microsoft is using it to place ads that mesh with what users are currently into, like the articles they’re reading or the videos they’re watching, boosting the chances that they’ll actually engage.

The Growing Role of AI in Advertising

Luca provided insights into how artificial intelligence (AI) is reshaping advertising at Microsoft. By integrating AI across their advertising operations, Microsoft is transforming the way campaigns are developed, executed, and refined. This advancement goes beyond enhancing efficiency; it’s fundamentally altering the digital marketing scene.

Enhanced Data Analysis and Decision Making

Luca emphasized AI’s critical role in data analysis. Microsoft utilizes AI to parse extensive data sets, identifying trends and insights that might elude human analysts. This capability allows advertisers to refine their strategies more effectively — for instance, AI algorithms analyze historical and current data to anticipate customer preferences, ensuring advertisements are more accurately targeted.

Streamlining Operations

Incorporating AI into Microsoft’s advertising platforms automates many routine tasks, such as bid adjustments and budget allocations, minimizing human error and optimizing resource use. AI’s capability extends to complex decision-making, rapidly analyzing multiple variables to facilitate real-time adjustments during campaigns.

Future Prospects for AI in Advertising

Looking ahead, Luca expressed enthusiasm for the future role of AI in advertising. As these systems evolve, their capacity to enhance and personalize advertising efforts grows. With substantial investments in AI research, Microsoft is well-positioned to advance AI’s impact on advertising, continuously adapting to and anticipating market trends.

Microsoft’s Strategic Approach to the Evolving Ad Landscape

In our conversation, Luca outlined how Microsoft is proactively maintaining its edge in the dynamic world of advertising. By leveraging a robust ad tech stack and forging strong strategic partnerships, Microsoft works to ensure that it keeps up with the latest AI developments and continues innovating in the space.

Enhancing the Ad Supply Chain Efficiency

A key focus for Microsoft is the optimization of the eCommerce supply chain, making it smoother and more cost-effective. By utilizing their integrated DSP and SSP (Supply-side platform), Microsoft ensures comprehensive oversight, streamlining the process from ad inventory acquisition to distribution. This integrated approach minimizes the delays and complications often encountered with third-party intermediaries, providing advertisers with transparency about where their investments are going and the returns they are generating.

Leveraging CTV and Gaming for Targeted Advertising

Luca also detailed how Microsoft works to leverage technologies like Connected TV (CTV) and gaming data to engage audiences more effectively. Connected TVs, which are becoming more and more common in households, allow for much better tracking of ad performance. This allows brands to measure and test how their campaigns impact viewers.

Similarly, through platforms like Xbox, Microsoft accesses real-time gaming data, enabling advertisers to develop targeted campaigns that resonate. This approach goes beyond demographic data to understand the motivations and preferences of gamers, enhancing the relevance and impact of the ads.

Strengthening Through Strategic Partnerships

Strategic partnerships are another cornerstone of Microsoft’s strategy. By collaborating with leading entities across various sectors, Microsoft extends its advertising capabilities and reach. These partnerships allow Microsoft to access additional data sources, expand into new advertising channels, and secure premium ad placements, continuously integrating the latest technologies to stay at the forefront of the advertising field.

Luca’s Advice for Marketers in 2025

Luca offered essential advice for marketers looking to stand out and succeed. He outlined several strategic pillars crucial for any marketing professional aiming to excel in the years ahead.

Define Your Objectives Clearly

Luca emphasized the importance of clearly understanding your marketing objectives. Whether the goal is to increase brand awareness, drive conversions, or boost customer engagement, having a well-defined target is crucial. This clarity will guide your decisions in selecting the appropriate technologies and platforms that best align with your marketing strategies.

Choose the Right Partners and Platforms

The selection of partners and platforms is increasingly critical. Luca advised forming partnerships with entities that offer unique data capabilities—particularly important as the industry moves away from traditional cookie-based tracking. It’s essential to collaborate with platforms that not only collect extensive data but also analyze and convert that data into actionable insights to refine your marketing campaigns.

Implement Outcome-Driven Strategies

Luca also pointed out the necessity for outcome-driven strategies. This approach involves setting specific, measurable goals for your campaigns and continuously adjusting your strategies based on data-driven insights. Opt for platforms that offer the flexibility and tools required for thorough measurement and attribution, which are vital for enhancing the efficacy of your campaigns.

Remain Adaptable and Informed

Finally, Luca urged marketers to stay adaptable and well-informed. The digital advertising environment is subject to rapid changes due to technological advancements and shifts in consumer behavior. Being proactive and ready to adapt your strategies promptly is essential to stay competitive.

For more insights like these, check out the full podcast episode. If you want to leverage Microsoft’s DSP and programmatic advertising abilities, let’s talk and plan the ideal campaign for your brand.

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