oculus360 - Feb 2, 2020

How algorithms are changing advertising

At some point, you've likely read up on how advertising algorithms dictate the type of ads social media users see. Interestingly, many business owners underestimate the incredible power of advertising algorithms, while others even go so far as to pay to manipulate advertising algorithms in their favor.

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An algorithm is simply a set of rules for solving a problem through defined steps. An algorithm can solve other algorithms that thwart marketing efforts through social platforms such as Google and Facebook. Algorithms can diminish your potential reach and engagement by limiting visibility, boxing you within a set of rules that control the productivity of carefully planned advertising.

An algorithm is code built from billions of pieces of data mined to identify preferences, likes and ultimately wants or potential needs. Grooming and manipulating an algorithm that provides a connection to users is vital. Data analysis of online histories and evaluation of real-time online activity can both contribute to refining the best advertising algorithms. Most of the advertising consumers see on desktop and mobile comes from algorithmic processes, not traditional ad buying.

Algorithms for digital marketing and social media define steps to solve marketing problems in those fields. Properly designed algorithms display content tailored to individual viewers. Social media is complex in that different social media channels implement their own algorithms to control and monitor content sharing. You can work with these channel algorithms by identifying your audience, then creating quality content that they would prefer to see. You have to walk a fine line to create content that simply boosts postings without heavily promoting your brand.

Internet user profiling is built from digital footprints of user web activity, predicting interest in particular advertising possible at any given time. Advertising algorithms can calculate the value of advertising space in real time, on a page the internet user is viewing.

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Algorithms in digital marketing extend beyond search engines. Searches drive brand visibility, but social media is a powerful online marketing channel that cannot be ignored.

Advertising algorithms accomplish a number of goals from the collection and use of trivial data. They can predict churn rates and customize marketing to keep at-risk or buy-back customers. They can suggest products from the customers' purchase histories or even products viewed in real time. These recommendations can suggest other items typically grouped with the products they've viewed. Algorithms can also group customers who have similar purchasing patterns, often with targeted offers. Machine learning about individuals leads to knowledge concerning multitudes of probabilities and speculations.

Advertising algorithms gather and analyze internet user data from a variety of sources, from real-time monitoring of online conversations to browser cookies that track purchases, interests, websites visited and content. From the digital profile of the user, grouped into larger sample sizes, algorithms construct a statistical profile based on variables from gender and age to geographic location and income. Marketers can create advertising algorithms that automatically purchase ads across the Web, tailored to meet the criteria derived from the digital profiles. Algorithms can evaluate advertising's effectiveness for a particular segment in the moment, ensuring that marketing is customized, targeted and powerful.

By targeting algorithms, you can discover the most relevant potential users of a product or service through data about the products and services most interesting to a particular user. More sophisticated algorithms can further manage the process by crediting specific elements of advertising to fit the targeted audience.

Building trust and consumer confidence is paramount. These valuable assets are easily damaged when internet users feel digital advertising is too intrusive. You must understand the algorithms across digital landscapes to gain trust and endorsements of other algorithms in place. A negative impression or mark against you by another algorithm can prove devastating and costly.

Negative feedback, such as a person hiding a post, disliking a page or giving a poor recommendation rating or comment, is especially detrimental to your advertising. The old adage is true both in digital and traditional advertising: one negative comment, dislike, or feedback is a hundred times worse than multitudes of likes and shares.

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Considering the incredible complexity of search and social media algorithms, machine learning and AI are absolutely necessary to secure the insights needed to build successful algorithms. O360 can provide the tools and AI you need for real-time analysis to construct advertising algorithms. Armed with real-time data and AI, you can focus more on what potential clients want and less on other platform algorithms, like Google and Facebook. Focus on what users want and watch the stress and difficulty of manipulating your way to the top of search results fade away. Eventually, you'll see what you discover and build into your successful advertising algorithms align with others.

Brands must know where to invest in social media and content to reach audiences where they are gathering online. Once that's discovered, algorithms should focus on funneling users back to the experiences you control. O360 can help you prevent distraction by activity that doesn't attract customers to your brand. The fickle and short attention spans of social media feeds fade quickly, but you want a trusted and engaged relationship. Advertising algorithms built from information gathered and presented through O360 digital landscapes will bring engagement across search and social networks. A data strategy grounded in digital landscapes creates relationships that might otherwise be wiped out during the next algorithm change. Contact us today to learn more or schedule a demo.

Written by oculus360