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Advertising Automation & Workflows Explained

Automation itself is the transformation of manual buying process into an automated process. The importance of Automation in todays advertising world cannot be understated. It is estimated that 70% of all ad spends will be automated by 20 7. IA! has constituted a tas" force to evolve standards in advertising automation #http$"ing&groups%e!usiness&Tas"&'orce ( Automation can be split generally in two parts$ Programmatic buying It is said that the future of digital mar"eting lies on )rogrammatic buying. 'orrester said that programmatic buying will capture a huge space of digital advertising spends. )rogrammatic buying is the automation of buying and selling ad inventories in both des"top and mobile web. It achieves the goal of media buy in an automated fashion through various platforms li"e e*changes+ ,-)s and AT,s. )rogrammatic buying allows you to set certain parameters li"e how+ when+ where and to whom the ads are targeted and is commonly associated with .eal Time !idding. Audience targeting is done on the basis of demographic+ behavioural or psychographic data that helps advertisers to target better and improve the effectiveness of the ad. this inturn helps in increased number of clic"s and conversions. )rogrammatic !uying has proved the effectiveness of ,igital Advertising and has got better ./I for advertisers and or brands. !ob Arnold+ ,irector of digital strategy+ 0elloggs on an interview with 'orbes said 1)rogrammatic buying is more efficient+ more effective and more transparent than the traditional media buying model.2 0elloggs ./I has said to be improved and increased 3 times in the last 2 years. Size of programmatic buying

According to e4ar"eter+ the programmatic buying mar"et will increase its worth to 57.6 billion by 20 3.

A recent survey with 260 e*ecutive level leaders across digital advertising industry shows that 76% of the advertisers and 72% of the publishers use )rogrammatic Auction strategy to support their media buy. )atric" ,olan+ 8*ecutive 9)+ IA! says 1The rise of programmatic buying and the inherent operational efficiencies it promises offers a positive sea change for the entire digital industry.2 The recent study by a :ielsens ;lobal Adview says that global internet display ad spending grew by 23.<% as against the first =uarter+ with >atin America up by ?7.2%+ Asia )acific by <<.2% and 8urope by 0.?%. /ther mass media advertisements li"e T9 ad spending has increased by <.6% and outdoor ad spending by ?.<%+ whereas maga@ine ad spending and newspaper as spending fell by 2.7% and ?.7% respectively. A study by )wA shows the trend of the advertising industry in B-.

,avid -ilverman of )wA e*plained the three main trends that are responsible for driving this growth. C Bse of multiple screens led to increase in availability of Ad Inventory 2C Availability of new ad formats with improved screen resolutions for mobile devices <C Industry e*plores better ways to sell mobile advertising Advertising workflow automation Dor"flow is the replacement of manual processes Eoften phone+ fa* and emailC with a more unified process often in an easyFtoFuse user interface. This can often involve the connection of currently disGointed or unconnected systems. Dor"flow is intended to drive the efficiency of advertising+ so human capital can be deployed to higher impact activities. Dor"flow automation can be used for the following use cases$ F ;eneration of .')s F 'inding Audiences F -tarting % -topping campaigns based on specific conditions -everal companies li"e App:e*us+ .ubicon etc have already built campaign purchase process wor"flows. App:e*us released a product called Tango that helped buyers and

sellers leverage their offline relationships and have conversations % conduct wor"flows for buying through a tool based platform. There are also tools Efor e*ample -ocial.comC that enable advertisers manage basic wor"flows during campaign run so that the campaign can be better managed without manual intervention. A Hybrid odel!

A new hybrid model is emerging with few companies allowing wor"flow rules to directly modify the programmatic portions using rules that are typical wor"flows e*ecuted by account managers. Bse cases of such a model include$ F A%! test of algorithms and increase budget % bid price of the better performing algorithm F Increase bid price for higher converting user automatically F Increase bid price above threshold when win rates are lower than a set percentage. W"at are we doing at #educe $ata! .educe ,ata is leading the charge with programmatic advertising and also automating all parts of the campaign wor"flow leading to higher efficiencies and improved ./I. Advertising account managers should not be focused on finding out which creative is performing to increase budgets on those creatives and stop those creatives. :or should they be worried about spending.