Are Algorithms Becoming Vital for Digital Marketing Campaigns?

Traditional marketing campaigns have always functioned by identifying and targeting the individuals most likely to want a particular product or service. Before the internet, this targeting was broad with advertising based on aspects such as what TV show, newspaper section, or magazine-type that specific demographics enjoy. But the internet and the advent of portable devices has transformed the industry and how digital marketing campaigns are designed.

Thanks to the internet, marketers area able to learn about – as well as target – consumers much more accurately. However, as the quantity of data rises so does the complexity of analysing it. In 2018, around 3.9 billion individuals were internet users. This number will increase to 5.3 billion by 2023. That’s far too much information for humans to process. This is why algorithms are increasingly essential.

Algorithms Are Able To Process A Lot Of Data And Provide More Accurate Targeting

Google describes an algorithm as “a process or set of rules that needs to be followed in calculations or other problem-solving operations, particularly by a computer”.

This sounds simple enough, however modern algorithms have proved so useful that they have grown dramatically in complexity and everyday usage. Their adoption isn’t particularly new either.

Driven by sectors such as social media and digital marketing, algorithms are now able to analyse more amounts data than ever before as well as better assess user preferences. The industries are often connected. For example, a recent report found 90% of businesses surveyed had increased visibility through social media, with 75% seeing a rise in traffic.

Algorithms are powerful tools which can sift through vast amounts of data and target and predict consumer interests more accurately than any traditional method. As a result, they provide new marketing insights and create new and improved ways of doing things.

How Algorithms Improve Digital Marketing Campaigns

One feature of digital marketing algorithms is their ability to personalise messages as well as information dependent on what is demographic that you’re looking into marketing towards. Algorithms are able to look at people’s attributes through their browsing history, compare these attributes to identity graphs, and successfully connect individuals into the right attributes for a certain digital marketing campaign.

It doesn’t need a login from the users, but still provides customised and individual information to consumers, speaking more particularly to that demographic or attribute. Algorithms can also utilise behavioural data to better capture a creative display to make use of along with your promotional materials in order to further drive sales and traffic.

Algorithms Are Beginning To Tap Fully Into The Nature And Logic Behind Pay-Per-Click Ads

Algorithms are also able to tap into people who are visiting a company’s website which end up in sales. How and why individuals end up connecting to certain ads or websites – and then end up making a purchase – can vary greatly. Algorithms are helping to clear the fog through the engagement data.

The engagement data can show the paths that people take through the first means of marketing to the very end, showing where individuals clicked on certain ads and promos, as well as how they were driven to a sale.

Algorithms are able to process this information as well as see where the connections are working as well as which ones are lacklustre, driving your digital means of sales up.

The attribution models utilised in marketing can show exactly what’s working and not so helping you to make a decision about what’s best in terms of maintaining sales and maximising profits. You may think that one format or method of marketing aren’t working, when in fact it’s the best one you have. Algorithms are able to reveal this data to you as well as take the guesswork out of digital marketing campaigns, potentially saving you hundreds and more in how you market your business or product.

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