Can machines beat humans at advertising?

At Clickable, we’re passionate about the idea of empowering people with technology. Which is why we jumped all over an invitation to lead a discussion at O’Reilly’s Web 2.0 NYC conference, titled: “Man Versus Machine – The New Conundrum of Web 2.0 Advertising Automation.”  Here’s the thesis of our discussion:

When computers first arrived at the Los Alamos Scientific Laboratory in the 1950s, scientists immediately started programming them to play chess. Since then, one of the most prominent narratives in computing and artificial intelligence has been a machine capable of beating the world champion. Thanks to Web 2.0 technologies, a similar man-versus-machine debate is emerging in the advertising industry. It’s called advertising automation.

This idea is underscored with Google’s contextual ad-auction system, the largest of all automated advertising systems. And it’s led the path for a new breed of automated systems that auction, broker, target and optimize. Consider Tacoda, Revenue Science, Rubicon Project, Turn and even our company, Clickable. These systems deliver increasingly sophisticated analytics and action-oriented recommendations that yield smarter, more profitable outcomes. Some systems are designed to first benefit publishers, while others are designed to benefit advertisers. Regardless, with over 300 ad networks (or more depending on how you count them), any system to make advertising in the digital age more manageable, efficient and effective is welcomed. (It is no accident that Clickable’s core message is “Simple, Instant and Profitable.")

Our discussion at Web 2.0 included some brilliant thinkers around this topic, including: Jim Barnett, CEO and co-founder of Turn; Tim Hanlon, EVP at Denuo/Publicis; Mike Kelly, advisor and partner at Clearmeadow Partners; and my boss, David Kidder, CEO and co-founder at Clickable. Following is David’s opening presentation, and below that are key takeaways.

web20 nyc clickable man vs machine 09 18 08 presentation

Discussion takeaways:

• Automation is removing grunt work and introducing efficiencies that enable humans to deliver more premium value. In other words, machines are making humans bionic. This results in market expectations for higher standards and better outcomes.
• The media business is transforming from one where supply leads demand, to one where demand leads supply. As a result, more than ever, advertisers are spending with a keener eye toward ROI, with greater ability to dial up or down.
• Automation will change the meaning of creativity at advertising agencies. In an automated, digital world, the traditional agency creative executives, masters of 30-second television spots, will succumb to a new breed of strategic and creative thinkers, with strong foundation in digital platforms and performance-based goals.
• The promise of simplicity is paramount, because it reduces growing friction for all humans who inevitably are involved.
• The automation we’re seeing online is a catalyst for the transformation of all media.

While our discussion focused on the future, we firmly believe the topic of automation is concrete and impacting advertisers even now -- particularly in PPC advertising. Importantly, we’d love to hear your views on the subject. Is it a tangible concept in your business? Are advertising automation tools changing your business today? Comments welcomed.

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