Technology Innovation is Supporting the Digital Ad World

2021 so far is showing an acceleration of the strong growth trend in Digital Advertisement. As businesses re-open worldwide and previously canceled campaigns are resumed, advertisement budgets have been increasingly directed towards Digital Ad because the use of social media platforms and streaming services have risen almost everywhere.

Digital vs. Traditional Ad Spending (US)

Source: eMarketer

Not surprisingly, the main beneficiaries in the Digital Ad ecosystem are Alphabet, Facebook, and Amazon, which all reported strong growth in Ad revenue in 2020. Among these, Alphabet continues to dominate the Digital Ad market: In 2020, Google accounted for about 29% of the total Digital Ad revenue in the US, followed by Facebook and Amazon with 25.2% and 10.3% respectively.

US Digital Ad Revenue Share, By Company, 2019 & 2020

% of Total Digital Ad spending

Source: eMarketer

Google built its success in Digital Ad by leveraging AI software to collect and integrate data from users in a more sophisticated and faster way. While Google’s platforms connect businesses with billions of people every day through Search and YouTube, AI helps them to create highly tailored content based on consumers’ needs and preferences of the moment.

With an impressive 1.87 billion daily active users in 1Q21, Facebook can count on one of the largest and most diverse advertising audience ever and collect a huge amount of data for the benefit of advertisers. Facebook also introduced innovative features to its Ad service: The use of Machine Learning helps determine the likelihood that a given user will act as the advertiser wants, such as visiting the advertiser’s website, installing their app, or buy a product. And then, the algorithm will rank the quality of Ad content through an Ad quality score so that the advertiser can fix the campaign following the best way to achieve his goals.

In recent years, Amazon’s Ad business also experienced a tremendous growth, mainly fueled by the acceleration of online shopping: According to EMarketer, Amazon advertising revenue in the US will surpass $20B in 2021. To keep up with the competition, the e-commerce giant also implemented an AI driven algorithm which analyzes real-time data generated by shoppers’ behavior, allowing advertisers to provide specific content to a narrowly targeted audience.

Digitalization is changing consumers’ behavior and companies must be increasingly data-driven to be able to communicate with people who spend more time navigating through the Internet while scrolling social media, checking emails, or reading the news. Digital Ad is becoming mandatory for companies to attract new customers and build a relationship with their brand.

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The information in this article should not be regarded as a description of services provided by Delian Partners SA. The opinions expressed in this article are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended to provide education about the financial industry. The views reflected in this article are subject to change at any time without notice.

From Work Automation to RPA: A Revolution in the Digital Workers’ Era

In recent years the level of interest in the Robot-as-a-Service ecosystem has increased together with the acceleration of digitalization worldwide. Compared with Traditional Automation, where a machine’s software is programmed and updated by humans to execute specific repetitive tasks, Robotic Process Automation (RPA) is run by an Artificial Intelligence-powered software that allows a machine to autonomously learn and mimic user’s actions and subsequently execute a high volume of repetitive tasks and transactions, with limited human interaction.

RPA is bringing organizations into a new automation era. Digital robots can do a wide range of tasks in a faster and more efficient way than humans. At the same time, with a higher degree of accuracy, they help organizations to reduce workflow costs while improving productivity.

UiPath is among the fastest-growing RPA software Companies in the world. The company developed a high-scale automation software solution for enterprises which operate in different sectors – such as healthcare, finance, or manufacturing, to help them automate repetitive and boring office tasks: By combining different capabilities of AI, Machine Learning, and Deep Learning, the UiPath RPA system can save organizations million-hours of work office and allow employees to be focused on more important things to do.

Another example is Nintex, a global management and automation system developer which provides companies with an RPA bot to control and orchestrate workflows through a simple web interface. Nintex RPA software uses “digital workers” to perform actions similar to human workers, but non-stop, at a higher speed, and without errors, by replicating the same mouse clicks performed by humans. In summary, tasks delegated to the RPA bot interact with apps, systems, websites, and services, allowing people to focus on more relevant aspects of their job.

RPA represents a fast-growing segment as businesses need automated technology to interact more efficiently with their customers and process complex, data-hungry tasks in a faster and more efficient way. According to Gartner, the RPA industry is expected to grow at double-digit rates through 2024. The addressable market is huge, as RPA could disrupt data collection, data processing and predictable physical activities which collectively represent $1.3tn in wages in the US and 51% of time spent in US jobs. As an example, 70% to 80% of both front and back-office processes could be automated in the future.

Of course, human employee performance continues to be critical for the correct functioning of business operations. But RPA is going to be a key component to automate time-consuming processes, limit repetitive tasks, enable quick data entry, and ultimately provide a competitive advantage in the marketplace.

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The information in this article should not be regarded as a description of services provided by Delian Partners SA. The opinions expressed in this article are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended to provide education about the financial industry. The views reflected in this article are subject to change at any time without notice.

When the Virtual and Digital worlds merge, a Digital Twin is created

An increasing number of companies are adopting a new emerging technology that allows the fusion of physical and virtual systems. The product of the fusion between these two components is called Digital Twin, a virtual representation of physical products and systems, generated through data collected from the environment. Creating a Digital Twin helps businesses to analyze more efficiently integrated sources of data and to predict how a product or system would behave in real life, enabling rapid and advanced decision making, or anticipating future risks.

An example of a successful Digital Twin application comes from the 36th America’s Cup race. Luna Rossa Prada Pirelli, in partnership with Altair, used Digital Twin technology to design, develop and optimize most of the boat’s components. Through the Digital Twin software powered by AI, Luna Rossa created a virtual representation of the boat to analyze how the AC75’s foils would impact the water, obtaining vital information on the boat’s structure and simulating how it would perform under different conditions.

Defender Emirates Team New Zealand also developed a Digital Twin in partnership with McKinsey and its subsidiary Quantum Black. Using AI and Machine Learning the team performed a vastly larger number of sailing maneuvers than a real crew could have done, in less time and processing a huge amount of data ten times faster than the normal testing process in a simulator room.

Digital Twin technology is also becoming a key component in the development of smart cities. Governments are partnering with tech companies to build a Digital Twin of physical cities to help them make better decisions in the design and development of urban areas or anticipate potential dramatic consequences from climate changes and make cities increasingly sustainable. Microsoft’s subsidiary Azure Digital Twins launched a comprehensive software solution to build digital smart cities, providing engineering companies and constructors with virtual representations of the physical spaces to help them analyzing the environment and optimizing space usage.

Accelerating technological advancements are paving the way for the adoption of Digital Twins, which are part of the most disruptive innovation cycle in the technology sector. The rise in popularity of Digital Twin technology is also supported by advancements in AI and the Internet of Things (IoT) which make it easier to collect and integrate a vast amount of data and information. According to Deloitte’s Tech Trends 2020 report, the global Digital Twin market was worth $3.8B in 2019, and it is projected to reach $35.8B by 2025, at a CAGR of more than 45%, creating an increasing number of long term investment opportunities.

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The information in this article should not be regarded as a description of services provided by Delian Partners SA. The opinions expressed in this article are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended to provide education about the financial industry. The views reflected in this article are subject to change at any time without notice.