{"id":1212,"date":"2019-02-27T14:16:19","date_gmt":"2019-02-27T12:16:19","guid":{"rendered":"https:\/\/stefan.co\/en\/?p=1212"},"modified":"2020-06-06T20:20:19","modified_gmt":"2020-06-06T18:20:19","slug":"agency-future","status":"publish","type":"post","link":"https:\/\/stefanvetter.com\/en\/agency-future","title":{"rendered":"The Google Ads Agency Is Dead. If It Doesn’t Change Completely"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

Automation through Machine Learning and Artificial Intelligence (AI) is changing all aspects of Google Ads.<\/p>\n\n\n\n

As a Google Premium Partner and one of a few “Google Managed Agencies” in Switzerland, we get a first-hand glimpse of this development at Wortspiel.<\/p>\n\n\n\n

In this article, I will outline five critical consequences of automation for Google Ads agencies – as well as for all companies that use Google Ads.<\/p>\n\n\n\n

Google Ads Agencies that don’t adapt could be gone in a few years.<\/p>\n\n\n\n

Introduction: Why Advertising Gets Automated<\/h2>\n\n\n\n

Today there are already tasks that a machine can solve better than humans: clearly defined problems with sufficient available data.<\/p>\n\n\n\n

These can be complex games like chess or go, in which humans already have no chance<\/a> against algorithms.<\/p>\n\n\n\n

What will therefore become extinct in the future is the conventional “Google ads craft”, i.e. the manual, detailed optimization of campaigns.<\/p>\n\n\n\n

What the machine will not be able to do in the short and medium term, however, are among other things strategic and creative tasks.<\/p>\n\n\n\n

I see the following five consequences for Google ads agencies:<\/p>\n\n\n\n

Consequence 1: The Agency Becomes a Pilot Within the Autopilot<\/h2>\n\n\n\n

So far, much of the service provided by a Google Ads agency has been the manual optimization of a Google Ads account.<\/p>\n\n\n\n

This optimization will remain part of the service, but it will change to a different level and take less time.<\/p>\n\n\n\n

In the future, agencies and Google ads managers in companies will take on the role of “pilots within the autopilot”.<\/p>\n\n\n\n

Their task will be to match the company’s goals with the campaign results and take corrective action if necessary.<\/p>\n\n\n\n

In the future, details will be handled by an algorithm.<\/p>\n\n\n\n

Advertisers who use automation will have an advantage in the competition for the most valuable visitors.<\/p>\n\n\n\n

Consequence 2: Consulting and Strategy Will Become Core Competencies<\/h2>\n\n\n\n

The value creation of a Google ads agency in the future will largely lie in consulting.<\/p>\n\n\n\n

How can the goals of a company be achieved with Google’s automation technology?<\/p>\n\n\n\n

This requires a greater understanding of the overarching goals than before.<\/p>\n\n\n\n

A recent study by Marketing Land<\/a> confirms this. The most important future soft skills of an agency are “strategy” and “strong client communication”:<\/p>\n\n\n\n

\"Which
Source: Marketing Land<\/figcaption><\/figure>\n\n\n\n

Consequence 3: Data Quality in Analytics Is Critical<\/h2>\n\n\n\n

The handling of data is also becoming increasingly important. AI optimizes only as well as the quality of the data enables it to learn from.<\/p>\n\n\n\n

Agencies therefore have to help companies to collect the right data, put it into the right form and feed it to the (Google ads) machine.<\/p>\n\n\n\n

This means that an analytics setup has to measure, classify and make accessible all success-relevant interactions.<\/p>\n\n\n\n

Our senior consultant Christian Ebernickel formulates this task aptly with his motto: “The right data in the right place at the right time”.<\/p>\n\n\n\n

Consequence 4: Attribution Modeling Instead of Simple Reporting<\/h2>\n\n\n\n

The more marketing channels and forms of advertising are available, the longer and more complex the customer journey becomes.<\/p>\n\n\n\n

At the same time, the pressure on agencies and platforms to prove the success of a campaign in numbers is increasing.<\/p>\n\n\n\n

Therefore, the importance of attribution modelling is growing: how much does Google Ads contribute to the overall success of an omnichannel campaign?<\/p>\n\n\n\n

This requires a higher level of technical understanding on the part of the agency than before.<\/p>\n\n\n\n

Consequence 5: Larger Service Portfolio<\/h2>\n\n\n\n

Many of the tasks that Google ads agencies will perform in the future are channel-independent.<\/p>\n\n\n\n

These include alignment with corporate goals, reliable tracking and proper  attribution.<\/p>\n\n\n\n

On the other hand, the operational effort and technical knowledge required to optimize the Google Ads channel will decrease.<\/p>\n\n\n\n

This means that an agency with the same personnel resources could include additional services in its portfolio.<\/p>\n\n\n\n

In the field of advertising, Facebook \/ Instagram, Amazon, LinkendIn and Apple Ads would certainly be interesting:<\/p>\n\n\n\n

\"How
Source: Marketing Land<\/figcaption><\/figure>\n\n\n\n

And in the area of marketing, experts estimate<\/a> that, in addition to data science \/ analytics, there will be an increasing demand for conversion optimization. It is not without reason that we expanded our range of services last year to include this field<\/a>.<\/p>\n\n\n\n

\"Which
Source: Marketing Land<\/figcaption><\/figure>\n\n\n\n

Conclusion<\/h2>\n\n\n\n

Google has summed up the changes for Google ads agencies well in the following visualization:<\/p>\n\n\n\n

\"Google
Source: Google, publication with permission<\/figcaption><\/figure>\n\n\n\n

The time required for the manual optimization of campaigns will be massively reduced by automation.<\/p>\n\n\n\n

This creates room (and demand) for more strategic consulting, better data management and more reliable attribution.<\/p>\n\n\n\n

And according to Google, the massive changes will not come sometime, but “in the near future” according to the above diagram.<\/p>\n\n\n\n

This statement coincides with the opinions in the industry.<\/p>\n\n\n\n

According to the above-mentioned study by Marketing Land<\/a>, “automation” is the most common answer to the question in which technology marketing agencies will invest in the next 12 months:<\/p>\n\n\n\n

\"Is
Source: Marketing Land<\/figcaption><\/figure>\n\n\n\n

I therefore see 2019 as a fateful year for Google ads agencies.<\/p>\n\n\n\n

Those agencies that use the opportunities of automation for their clients have good prospects for the future.<\/p>\n\n\n\n

However, this requires far-reaching changes in the services and competencies offered.<\/p>\n\n\n\n

Google ads agencies that don’t change could not exist in a few years, as mentioned at the outset.<\/p>\n","protected":false},"excerpt":{"rendered":"

Automation through Machine Learning and Artificial Intelligence (AI) is changing all aspects of Google Ads. As a Google Premium Partner and one of a few “Google Managed Agencies” in Switzerland, we get a first-hand glimpse of this development at Wortspiel. In this article, I will outline five critical consequences of automation for Google Ads agencies […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_trash_the_other_posts":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-1212","post","type-post","status-publish","format-standard","hentry","category-googleads","missing-thumbnail"],"yoast_head":"\nThe Google Ads Agency Is Dead. 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