How Digital Ad Optimization Will Look in 2021

If you have your own business, you probably run ads. And if you do, you presumably advertise in( at least) one of the most popular advertising systems: Facebook, Google, Snapchat, Twitter, Linkedin, etc.

The number of advertisers use these networks maintains growing and the competition in this field is getting stronger by the day. In 2019, marketers invested over $89 billion on social media ad, and are consistent with projections, this amount is likely to reach $102 billion in 2020.

If you wish to stay ahead of the rival in such a fast-progressing field, you must understand where it’s heading.

Numbers of advertisers on Facebook digital ad optimization

First, a bit of history

In order to predict the future, you must understand the past. During the last 10 years, huge ad networks, such as Facebook, Google, Twitter, and others, introduced partner programs that allow external 3rd party platforms to integrate with their native advertising platforms, hence letting marketers make, analyze and optimize ads immediately through 3rd party optimization platforms.

The tech giants recognized they can’t serve massive amounts of advertisers employing their own native ads controlling platforms since different advertisers have different needs, and each system is impossible to have a single platform of its own. Therefore, they decided to allow external ad-optimization companies to innovate on top of the core platform, adapting specific solutions to different advertisers and horizontals.

As a upshot, a brand-new branch in the online marketing industry was born: ad optimization platforms.

In the next couple of years, Facebook and other systems preserved moving forward very fast, developing their native platforms and even applying notions first introduced by the ad optimization companies. As a outcome, many companies were having a hard time keeping up with the networks’ development pace and started dying out.

The ad optimization platforms that are not only keeping up with the advertising networks but innovating beyond what these networks give are the ones who will lead the online marketing industry. One of them has a chance to become a unicorn company if you will be able to establish the fastest progress in two directions:

1. Omni- and cross-channel optimization

First and foremost, the future of ad optimization platforms lies in Omni- and cross-channel ad optimization.

Omni and cross channel optimization digital ad optimization

At the end of the day, advertising networks don’t communicate with each other via their native platforms, but in reality, potential customers use all the networks, and therefore, advertisers can not limit themselves to a single channel.

For now, Facebook remains the most commonly used social media channel by advertisers, but YouTube and Twitter are closing in behind. While other players like LinkedIn and Snapchat are not to be overlooked.

In the US market, Google is still preceding Facebook with about 36% of the advertisers employing the search engine compared to 22% on the social network. While Amazon is steadily growing as well with about 9% of this market.

Most popular social networks worldwide digital ad optimization

As the quantities of worthwhile publicize channels is constantly growing, omnichannel ad optimization is becoming an impossible task for human advertisers.

Hence, an ad optimization platform that will be able to provide advertisers with the option to manage all their ads in one place will have a great advantage over all other platforms.

In addition, 3rd party ad optimization platforms can objectively recommend budgetary allocations between channels while ad systems might have a conflict of interest concerning optimizing the advertiser’s budget. That is because the main interest of a 3rd party platform is increasing the advertiser’s ROIs across all channels.

No player in this industry has managed to create a complete cross-channel ad optimization platform yet, but the one who does has a$ 1B opportunity.

2. Autonomous media buying

As the founder of an ad optimization platform, I can tell that the holy grail of ad optimization is providing the advertiser with the possibility to press only one button, and the platform will do all the work for you. The mission is to create a machine capable of doing all the “dirty work” within a framework provided by the advertiser according to their KPIs.

The ones who oversee advertising budgets nowadays are human beings- be it social media directors, marketing squads, publicizing crews, or a CMO. Many of the tasks they perform today can be done by machines. Those teams should focus on executing parts of task that can really move the needle and machines can’t( yet) to be undertaken by: steering the business, improving their product strategy and creatives, and the establishment of new content. Instead, they’re currently squandering all their time optimizing their ad budget.

This chore will gradually alter from humans to machines and this change is already in motion. Facebook, Google, and other advertising systems are manager in this direction as well, trying to make advertising more simple and autonomous. Last summer, Google liberated features like Value Bidding, Similar Audiences, Ad Groups, Media Library, and Asset Reporting, while Facebook launched the “Power5” tactics: Auto Advanced Matching, Account Simplification, Campaign Budget Optimization, Automatic Placements, and Dynamic Ads. Moreover, Campaign Budget Optimization is expected to become mandatory for Facebook advertisers during this year.

Ad-optimization platforms aim to take autonomous ad-buying another step forward during 2020: The advertiser will only need to define a minimum fund, its most important metrics( such as ROAS, for example ), their goals concerning these metrics and the maximum budget, and the machine will do all the work within the framework provided. A comprehensive autonomous system with a modular approaching will then efficiently allocate and magnitude budgets across different funnel stages. In add-on, the machine will produce creative and audience-related revelations and recommend the advertiser exactly which ad they should launch to which audience.

Eventually, it will provide the advertiser with an option to choose “automatically apply changes for me”, ultimately delivering on the holy grail promise.

In this direction lies another unicorn corporation opportunity. The musician who figures out how to adapt content with the right tales to audiences and produce it at scale can take over this market.

Conclusion

In order to maximize advertiser value, ad optimization platforms must master autonomous ad buying and deliver on omnichannel ad optimization.

Omnichannel ad optimization will always be necessary since new advertising systems constantly preserve popping up, so advertisers must have a “brain” that supplies a holistic performance overview, and optimizes their ads autonomously across all channels.

As the rivalry in online advertising intensifies, advertisers who adopt these capabilities will gain a competitive edge.

Guest author: Yahav Hartman is the CEO and CO-Founder of Madgicx, which provides an all-in-one ad-optimization platform for Facebook& Google Ads. Yahav has been developing innovative solutions in the field of Facebook advertising for over 8 years. After running a boutique high-end Facebook advertising bureau, specializing in big-spenders, he founded Madgicx and developed an autonomous ad-buying platform that uses AI technology to take over the technological day-to-day ad-buying duties. Connect with Yahav on Linkedin or Twitter.

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