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Say Hello to the Future: The Birth of Automated Advertising

Tyler Horvath
Tyler Horvath
Apr 27, 2016

Automated advertising platforms are becoming so popular because data driven decisions are becoming more popular in the decision process.

Automated advertising is one of the newest ideas in online advertising. Many webmasters have heard of it but not actually heard the real awesomeness of the whole idea.

Automated advertising is the process of automating your online advertising efforts so you can focus on other important parts of your business.

With the uprising of social media we saw a huge shift to social media advertising.

Since there are a growing number of big social media advertising channels it became difficult for webmasters to manager their campaigns across all social media networks. This is where the birth of automated advertising began.

Automated advertising platforms are becoming so popular because data driven decisions are becoming more and more popular in the decision process of companies.

Why rely on a human to read and analyze tons of data to make advertising decisions? Instead, companies are using automated advertising platforms to increase social engagement, ROI and profits without the need for endless hours building and managing online campaigns.

So How Does Automated Advertising Work?

Well, it’s still finding itself in the market but there are currently a few different ways that advertisers are automating their online advertising efforts. At this point, there are monetary based algorithms and ad-performance based algorithms.

Monetary based algorithms are the newer of the two methods to automate advertising. Monetary algorithms use revenue and conversion data to automate your advertising based on your revenue and ROI data.

For example, if you have a campaign running that is for your E-commerce store, monetary based algorithms will use your sales and conversion data from your advertising campaigns to increase or decrease bids on campaigns depending on their monetary performance.

So if you have an ad campaign that is generating more sales for your E-commerce store, the algorithm will increase bids on that campaign to reach a target ROI you set. It may also create similar, high performing ads, with small variations to automate the creation process.

Ad-performance based algorithms are based on performance of your ad campaigns. These algorithms use performance data from your ads to optimize the best campaigns and turn off or pause low performing ads. Ad-performance based algorithms are usually controlled by rules setup by the user.

For example, you can set up rules that say, “If my ad gets a CTR lower than one percent, turn it off”. This type of automation can really save time if you have a good set of rules in place. The only downside to this method is not really fully automated. Sites like AdEspresso use this method and it’s a good way to make ads better, but it doesn’t fully automate the advertising process.

Currently, most automated advertising platforms use one of these algorithms as the backbone of their software but I believe that in the next few years we will see that these two algorithms will be combined into one and advertising will be able to use an automated advertising system that uses both ad performance and monetary based algorithms. So you get how it works, but what can it do for your business?

How it Works for Your Business

Automating your online advertising can have significant impact on your business. These automated algorithms can optimize your online ads to create the highest CTR for your ads. This will reduce your CPC (cost per click) and save you money on the top end. It will also free up your most important asset…time. When you use an automation platform, you are saving about 30 percent of your time.

You don’t have to worry about keeping a close eye on your ads to make sure you’re not losing money. You can simply use a monetary based algorithm to change your bids to achieve your desired ROI.

Another great reason automated advertising is growing in popularity is because it’s cheap. In the “olden” days you would hire the top advertiser if you wanted to run a great campaign. Now, you can just use some software or hire someone to write an algorithm and you just saved $130,000 a year in costs.

The future of automated advertising is very exciting and many webmasters have kept their ear to the ground when it comes to saving time on social media advertising. As the number of social networks grows, the number of automation tools to advertise on these networks will grow too.


Image Credit:

Prostock-Studio / Getty Images

Tyler Horvath
Tyler Horvath
Tyler Horvath is the CEO of @tytonmedia and avid serial webpreneur