When it comes to creating campaigns for SMBs, there is one bottleneck we hear about again and again; ad creation. But why is that such a struggle for publishers? There are three main reasons.
First, ad creation is a very manual process. Creating ads requires text and creatives from clients. These are typically provided through a complex chain of communication between the client, sales, and adops. The result is a lot of time spend on administration, manual errors, and frustrated clients. Second, the rise of new channels and formats requires creating more ad formats, again increasing the time spent on creative creation. Third, SMB clients are especially tricky as they often constitute smaller budgets. Incurring high ad creation cost, therefore, decreases margins and makes the segment unprofitable. We call this the Sub-5k problem, referring to the unprofitability of advertisers spending less than $5k a month.
This poses the question what publishers are doing right now to work against this trend?
How publishers tackle ad creation cost for SMBs
Of course, publishers realize the challenge of serving SMB advertisers. We see different tactics used to combat high ad cost. First, publishers can outsource ad creation to external vendors to tap into cheaper labour. Second, some publishers start to use specific ad creation platforms, such as Zuuvi or Creatopy. Lastly, some also just hire more personnel and ignore the situation.
While all of these solutions do help decrease the cost associated with SMB ad creation, it does not solve the actual issue. Let's look at some of the options. Outsourcing makes ad creation cheaper but does not solve challenge of manual processes. Actually, it might increase such, as another instance is part of the process. The same goes for using ad creation platforms. These platforms reduce the time for producing ads, however, still require coordination and are often more advanced, than what is required for SMB advertisers. Overall, we think there should be a better solution available.
How AI can help publishers scale SMB ad creation
AI is talked about everywhere, with ChatGTP and OpenAI redefining what is possible. This change has an important impact on how publishers can work with ad creation. Imagine a solution, where sales agents use AI to build creatives themselves and instantly show them to the client. This would drastically decrease cost, replace all manual processes by getting instant client feedback, and create banners based on best practices.
In our new product Nexta Go, a campaign booking and ad creation app, we have done exactly that. Now, sales agents are able to create ads at scale right on their phone no matter the platform. We allow that by a simple UI, integrations to OpenAI, and scraping websites. In combination with other Nexta products, this allows for a significantly decrease in manual work, optimal advertiser effect, and insights for constant improvement.
The result? The cost of handling the long-tail SMB clients will drastically decrease, making the segment more profitable and creating revenue growth in economic uncertain times. At the same time, advertisers will see better ad results and effect on advertising spend. We cannot wait to see the positive effect Nexta Go will have.