As machine learning technology advances, it’s time for brands to ditch the digital agency model and adopt artificial intelligence solutions to take over real-time marketing decisions.
In the not-so-distant past, when traditional media (print, television, out of home) dominated the advertising spend landscape, companies relied on agencies and media buyers to help shape their campaigns and determine how their media budget would be spent. Now, with digital advertising spend outpacing these traditional channels, the role agencies have to play is shrinking — and thanks to AI technology, brands may be able to cut this type of agency out altogether.
The Digital Transformation
The internet has changed the way in which companies approach the execution of advertising strategies, but how they plan and pay for those strategies has changed relatively little. No campaign can achieve a truly wide reach today without taking advantage of the countless channels made available by the rise of the internet. But agencies often can’t handle the work of media buying on digital platforms without the help of algorithm-driven tools that automatically purchase placements and measure the success of various strategies. Smart marketers will bring those tools in-house and cut out the agency fee.
The digital media landscape has also introduced unprecedented issues with transparency to the advertising industry. Agencies are often unable to verify click-through rates, traffic rates, and other KPIs — all measurables for which they charge their clients. Less than fruitful agency-client relationships have accelerated the search for a better approach to digital media buying.
“There is little need for media buyers in between delivering the creative and running the live digital campaign,” said Adgorithms CEO Or Shani in an article for CMO.com. “Too many publishers, too many formats, too many channels, and too many devices exist for humans to investigate, vet, and deploy properly.”
A Smarter Approach to Digital Marketing
Conventional thinking would lead some to believe that as a system becomes more complex, the need for more outsourcing and expert eyes on the system increases. But in reality, it’s just the opposite. As companies build more diverse campaigns across multiple channels, outsourcing only adds to the system’s complexity and reinforces channel-based silos that hinder communication. Instead, marketing departments can bring much of the work done by agencies in-house by deploying the kind of automated decision-making enabled by artificial intelligence to maximize the effectiveness of their campaigns.
With campaigns spread across so many channels and multiple campaigns running concurrently, the use of AI systems within a consolidated marketing stack brings simplicity back to the world of marketing. But not every AI system is created equal, and many only focus on one specific use case – such as data analysis. According to an eMarketer report, “Marketers across all industries are experimenting with ways to put AI to use” across an array of applications such as “business intelligence, customer acquisition, programmatic advertising, campaign optimization, and multichannel communication.”
A solid AI platform merges machine learning, natural language processing, predictive and analytics into one all-inclusive solution. Albert™ from Adgorithms is the world’s first AI-driven marketing platform that handles everything from media purchasing to cross-channel execution. Unlike agencies and media buyers, Albert provides real-time performance analytics so that marketers know which campaigns on which channels yield the best results. He then uses performance results across channels to inform future decisions, all in service of optimizing each campaign so as to meet the pre-determined KPIs established by marketers.
As it stands now, the complexity of digital advertising makes it impossible for marketing teams to shoehorn the old role of the media buyer and agency into their current strategies. Artificial intelligence offers marketers the capabilities necessary to implement highly effective campaigns and maintain total transparency, and in many cases, cut out the agency middleman altogether.