The best solutions use each of those things when it is appropriate. 

There is no one size fits all algorithm or process for development. You 
have to figure out what is the best approach for your client's needs on a 
case by case basis. If you are only using Google optimization or third 
party tools, then you are really offering very little value to your 
customers. These are things they could do for themselves, so unless you are 
doing something else on top of that, the value is that you take care of it 
for them. That is better than nothing, but you need to figure out how to 
give each one of your customers an edge in their specific market. In 
reality, automation will only take you so far. Someone needs to do keyword 
analysis to see what keywords are actually delivering valued conversions, 
and which are just triggering clicks or empty conversions. Someone also 
needs to decide what placements to make. 

Online marketing is best when a holistic approach is used. I suggest you 
visit the AdWords community forum:
https://www.en.adwords-community.com/t5/AdWords-Community/ct-p/AdWords
Maybe something even more general and ask some questions there about what 
approach you should be taking before you try to implement anything using 
the API. This group is for people who have specific issues with the API 
itself and it sounds like you need more general guidance. 

Something you should keep in mind as you develop your plan is making sure 
you build something that can be changed easily in response to the very 
rapidly changing world of online marketing and that was not engineered 
specifically for any version of the AdWords API itself or any specific set 
of features. The API versions change about every 4 months and require many 
people to rewrite significant parts of their system because it was build 
for the API, not for the problem at hand. The competitive landscape of 
online marketing changes much more frequently than that. Your goal is to 
produce conversions for your clients for as little spend as possible and 
the way the API is structured has little effect on that goal.

I hope this is taken as helpful.

Jason

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