Competing Above Their Weight Class With AI: A Case Study
IPA.. from RPA DEPOSITPHOTOS ENHANCED BY COGWORLD
Source: COGNITIVE WORLD on FORBES
Usually, the economy of scale, size, and reputation win the day, but this spunky and highly adaptive ad agency competes with AI plus better processes to put more pressure on the large ad agencies. I think this will be a trend in many industries with the upstarts starting to scare the incumbent "big dogs."
The Challenge:
The hourly agency model favors longer times and complex hierarchies to create more billable hours, and as a result, more clients are bringing this work in-house. This proves to be an excellent opportunity for a smaller agency to apply technology to outmaneuver the big dog players in the ad business.
This Solution:
By automating the ad creation process by applying AI and automated processes together, big gains are being experienced. This allows for speedier creation of more targeted ads at a lower cost. Since they work with many smaller clients, requiring a stronger fee-to-media ratio, they are able to take many smaller accounts. In other words, AI and process technologies allow a smaller and more nimble firm to compete with the big ad agencies. By offering flat rate packages and turnkey services, enabled by technology, clients know what they will pay. This creates a shared interest to move quickly and efficiently. Once clients experience that power, more targeted ads become a reality.
The Result:
While most agencies produce 3-5 social ads max for their clients, this firm runs an average of 30-50 social ads per month for each client (an order of magnitude). This is all accomplished in days, not weeks or months without a high cost. There is a significant time reduction with the minimum being 37% for a small scope and up to 94% for a broader scope. The average decrease in time spent from a client briefing email to an ad launch with 80 ads is 67%.
For the auto industry, this firm can link up to the inventory quickly and deliver inventory-specific ads that take prospects to a product page on a client's website. The system will automatically generate creative in seconds featuring inputs from the brief, all within a brand-compliant and creative-approved layout. This reduces the creatives needed from 3 to 1, implying significant cost savings.
Net; Net:
This is an example of how digital approaches can help the SMBs compete with the big dogs. This particular lethal combination of process and AI will be a popular approach going forward. There will be other combinations that will prove to deliver too.
This Case Study was implemented by Constellation Agency
https://constellationagency.com/
Jim Sinur is an independent thought leader in applying Digital Business Platforms (DBP), Customer Experience/Journeys (CJM), Business Process Management (BPM), Automation (RPA), Low-code and Decision Management at the edge to business outcomes. His research and areas of personal experience focus on intelligent business processes, business modeling, business process management technologies, process collaboration for knowledge workers, process intelligence/optimization, AI applied to business policy/rule management, IoT and leveraging business applications in processes. Jim is also one of the authors of BPM: The Next Wave. His latest book is Digital Transformation. Innovate or Die Slowly. Jim is also a well know digital and traditional artist