Companies waste tens or even hundreds of thousands of dollars as a result of doing their own development. This has to do with the particulars of the advertising business.<\/p>\n\n\n\n
Online advertising management is a resource-hungry process: you need to find a relevant audience and site, and deal with traffic and setting up content display. It\u2019s impossible to put together an audience profile right away, it\u2019s impossible to compose other elements \u2013 it\u2019s always an enumeration of hypotheses, models, and algorithms. This process takes time and costs money. And if there\u2019s no team that has already worked with these kinds of mathematical systems then there are delays, or you don\u2019t achieve the desired results.<\/p>\n\n\n\n
This article discusses how companies deal with the problem of developing and analyzing hypotheses and why they decide to outsource development to OrbitSoft.<\/p>\n\n\n
Budget protection.\u00a0<\/strong>Advertising agency refused to invest in an algorithm that didn\u2019t work<\/p>\n Process automation. <\/strong>Content provider automated data analysis for advertising purchases<\/p>\n Ready algorithm.\u00a0<\/strong>The company received an algorithm for finding a relevant audience<\/p> <\/div>\n <\/li>\n <\/ul>\n <\/div>\n <\/div><\/div>\n\n An agency from Spain makes money by selling ads. The company buys ads from platforms with the pay-per-impression model (CPM) and sells with the pay-per-action model (CPA) – when only targeted user actions are paid for, such as downloading, subscribing or registering.<\/p>\n\n\n\n The problem\u00a0is there are no resources for hypothesis testing<\/strong> \u2013 neither a team with the necessary experience nor a ready-made software solution.<\/strong>\u00a0One of the ways to increase income is to learn how to show ads to audience members that are more likely to perform the targeted action.\u00a0This is helped by algorithms that set the criteria for displaying content.<\/p>\n\n\n\n Agency mathematicians have hypothesized a new algorithm. As planned, it should optimize traffic for smartphones and tablets so that users take more targeted actions.<\/p>\n\n\n\n A single hypothesis is obviously not enough to say with certainty whether the algorithm will work or not. Everything needs to be tested. Otherwise there is a risk of investing in a solution that doesn\u2019t change anything.<\/p>\n\n\n\n Companies can test hypotheses using their own resources. This requires programmers, testers, and analysts. Another option is to hire an external team that specializes in checking algorithms.<\/p>\n\n\n\n The agency doesn\u2019t have a hypothesis testing team, so it would have to be hired. In this case, testing would take about two years: first, you find specialists, immerse them in the process and features of the algorithms, develop a program for testing – and only then do you conduct tests. This decision is also affected by the budget: according to the agency, it would have to spend $200,000 on salaries.<\/p>\n\n\nAdvertising Agency Refused to Invest in an Algorithm That Didn\u2019t Work <\/h2><\/div>\n\n\n