Taking advantage of algorithmic marketing leads to better results!

The algorithms are taking over. For algorithmic marketing, this is a feature, not a bug, and using it will lead to increased conversions and higher quality traffic.

In the past, marketers served ads based on demographics such as age, location, and keywords. Algorithmic marketing is the ability of major platforms to serve ads based on conversion types, such as sign-ups or sales.

This article will review why algorithmic marketing offers limitless potential for business owners and digital marketers and how you can utilize the technology.

Algorithms are everywhere

Algorithms are used daily by search engines, have led to the rise in Tik Tok, and know what else you might like when you buy something from Amazon.

Professor of Marketing at NYU Stern School of Business Scott Galloway thinks algorithms will take over our purchases in a process he calls algorithmic commerce: “basically zero-click ordering that’s fulfilling and sending you products before you order them.”

It comes down to this: the ability of the major platforms to store and analyze user behavior and past purchases to determine the likelihood of them taking action.

Algorithmic marketing: remember this!

Wrapping your head around this concept isn’t straightforward because advertisers can’t access the measurements used for the data:

It’s all about the user’s behavior!

In a nutshell, there are four tiers of targeting:

1. Geographic
2. Demographic
3. Interest
4. Behavior

On the major platforms, advertisers can input information about the first three tiers. The fourth is an unknown, left up to the algorithm’s discretion.

Phone calls and sign-ups are the most common types of behavior we optimize our campaigns for during their creation. This organization puts trust in the chosen platform’s algorithm to serve the ad to the correct audience without further guidance.

Google’s algorithm then uses the data they’ve collected about past searches, purchases, and website history to determine the likelihood of the action we’ve selected.

What is the algorithm in digital marketing?

The algorithm in digital marketing is the back-end of major platforms, such as Google and Facebook. These websites use the thousands, if not millions, of data points they have on users for the benefit of advertising.

Marketers set up different types of conversions, such as sign-ups or purchases, and the algorithm determines which users see which ads.

A simple way of thinking about this is by using Facebook ads. You can use the same ad copy, same ad visuals, and optimize for either clicks or interactions. Facebook’s algorithm knows which users are most likely to leave a like instead of clicking on the content–they will serve the campaign for interactions to that audience. 

On the flip side, the algorithm knows which users are likely to click and find out more based on their prior behavior. The campaign optimized for clicks will show to this audience.

There is no other way for advertisers to take advantage of these behaviors other than specifying the campaign goals. Trusting unseen calculations based on numerous data points is algorithmic marketing. Put another way, it’s using unseen factors such as prior behavior to drive who sees which type of ads.

Algorithmic marketing with Algorithmic Global

Algorithmic marketing is here to stay because of the strength of the results. As more people use this technology, more data is delivered to the platforms, increasing their effectiveness.

Algorithms are everywhere, frequently knowing what you like based on prior behavior. Who knows, maybe zero-click ordering is next, as predicted? 

Algorithmic Global specializes in taking advantage of the algorithms, helping shape effective digital marketing campaigns using the latest technology and strategies. If you are looking for help with your paid advertising strategy, reach out via our contact page, and find out how we can help in your success!