The optimization of an organization’s varied processes enhances its lifespan and ability to survive - especially during harsh times such as the recession we are still recovering from. In fact, it's hard to think of any organizational process that would not benefit from optimization: from saving money on office supplies to maximizing the efficiency of internal systems. 

In the digital advertising world, optimization is being used to improve processes, to enhance the effectiveness of online-advertising campaigns and to increase the margin between the benefit of the campaign and its cost. In most cases the goal is finding a balance between this margin and the quantity (volume) achieved. More often than not the cost is calculated as the price of (effectively) obtaining a client, whereas the benefit is calculated as the income obtained from the same client (net, after selling costs).   

For the most part the goal is maximizing results. This means finding a balance between the desired margin and the volume achieved. It is usually the case, at least in online advertising, that we are willing to give up on some of the return in exchange for a greater volume. As an advertiser, we are willing to pay more to obtain a client if it results in us ultimately converting more customers. A volume discount does not usually work in our industry.

When managing a digital campaign, in order to get results, you must manage the process. Here, as mentioned before, in order to achieve a balance between a satisfactory margin and the desired volume, one has to manage the value chain of the campaign, with the understanding that each component in the chain not only influences the final outcome but also has an effect on every other link in the chain. For example, a creative concept with a high click-through rate will usually lead to a lower conversion rate.  The value chain is combined of and has effect as follows:

·         Promotional offer - directly affects the ability to convert customers while inversely impacting on their value.

·         Creative concept - directly affects the click-through rate while inversely impacting on the conversion rate. 

·         Media - directly affects the click-through rate while inversely impacting on the conversion rate. 

·         Landing - directly influences the conversion rate while inversely impacting on the value of the customers. 

Optimizing the whole value chain requires finding the correct combination of the different components so as to bring about the desired results.

The idea is to try different ingredients and different combinations (multivariate testing). This means trying different marketing proposals, supported by an alternative creative concept, diverse media, appropriate landing pages and varied conversion funnels. 

The optimization process never ends, there are countless possibilities and always a better path to take, and its goals can and should change relative to the goals of the  business and the desire to achieve the initial objectives of the campaign.

Such optimization cannot be done without appropriate technology but technology alone is not enough. Skilled teams are required by both the advertiser and the media company. Both must be willing to work hard together to achieve the campaign goals - work which includes amongst other factors both parties sharing information in a transparent manner.