The advertising industry is grappling with the increasing popularity of services that automate the ad-creation process and also allow for greater local targeting, reports the New York Times.

Omnicom Group's Zimmerman agency has an automated product, dubbed Pick-n-Click, that allows advertisers to pick from 150,000 assets to create their own spots. Such automated systems not only allow for greater targeting capability but also give advertisers freedom to modify ads based on last-minute changes or even competitors' ad efforts.

Moreover, services like Spot Runner give advertisers the flexibility to create their own ads from existing footage, and they are becoming more popular as companies seek to launch local campaigns. Warner Independent Pictures is among those that have used Spot Runner. The system allows clients to create a single ad and then swap in and out the names of local businesses - dealerships, stores or theaters.

Some ad agencies say this turns advertising into a commodity. But advertisers who have used the system say it allows their ads to achieve greater relevance because of the local focus. Most of the customization is done by mining postal codes for third-party data such as demographic breakdowns.