AI in AdTech: The Rise in Popularity of Multi-Armed Bandit (MAB) Algorithms

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Each year, the programmatic advertising industry sees new trends emerge—some fleeting, others shaping the future of digital advertising. One of the most impactful advancements gaining attention today is the use of multi-armed bandit (MAB) algorithms to optimize campaigns in real-time.

Unlike traditional A/B testing, which separates learning from execution, MAB algorithms continuously analyze performance and adjust strategies on the fly. This approach enables advertisers to maximize engagement, optimize ad spend, and adapt to shifting consumer behavior faster than ever. Companies across industries—including e-commerce, media, and streaming services—are already proving the value of this technology in their marketing efforts.

To explore how multi-armed bandit algorithms are transforming programmatic advertising and how they can be applied effectively, our CEO, Piotr Banaszczyk, contributed to ExchangeWire’s Industry Review 2025.

Click here or on the image below to read Piotr’s insights, or visit ExchangeWire to download the full report.

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