The importance of data and algorithms in digital marketing
The present of marketing is digital and data-driven: the specialists who embrace these trends will be the ones who transcend.
Marketing has undergone an unprecedented transformation due to the growing importance of data and algorithms, which make it possible to segment consumers, measure the effectiveness of campaigns and predict their behavior.
Specialists must adapt to this algorithm-driven dynamic to be successful, as the future of marketing is digital and data-driven.
Those who fail to adapt risk being left behind in the competitive world of digital marketing.
Digital marketing has undergone a radical transformation in recent years, and much of this change is due to the increasingly important presence of data and algorithms.
Algorithms play a key role in this new marketing landscape, enabling specialists to accurately segment consumers and “target” them with personalized ads, measure the effectiveness of campaigns, and even predict consumer behavior long before they act.
In addition, algorithms can directly influence purchases and brand adoption by identifying consumers most likely to be influenced by their friends and family and targeting them with more effective personalized ads. Do algorithms do all that? Yes, all that and more.
The speed at which today’s culture moves is driven by algorithms, and brands must adapt to this dynamic to react in real time. The one that doesn’t, loses out to the competition.
It is crucial for digital marketers to understand and adapt to this new landscape, as those who do will be the most successful.
Data is critical in this new scenario. There are several studies that show that consumers are more likely to buy brands they have interacted with on social networks.
According to The Drum, it is predicted that by the end of 2023, 80 percent of marketing budgets will have been allocated to digital channels.
Also, artificial intelligence is expected to create 133 million new jobs and displace another 75 million by 2025.
Let’s look at an example of digital marketing strategy at its finest: a Nielsen study cited by The Drum says it found that consumers are more likely to trust recommendations from friends and family than traditional advertising.
Then, based on social media data, algorithms are used to identify which consumers are most likely to be influenced by their friends and family, and then target them (and not the consumer directly) with personalized ads.
The future of marketing is digital and data-driven, there’s no doubt about it. And marketers who embrace these trends will be in an advantageous position. Those who don’t risk being left behind in the competitive world of digital marketing.
The importance of algorithms in digital marketing automation begins in technology which is undoubtedly the best tool to automate activities or processes. Social networks and their impact have generated millions of people connected to each other and profits for companies. We spend much of the time of our lives, as more than an hour a day connected in the cloud immersed in it.
From a social network with a simple “like” to a photo, video or write comments to meet and learn new activities, immersed in advertising products that performs the algorithm in digital marketing providing a comprehensive service to brands to attract potential customers.
According to INEI in Metropolitan Lima, 57.6% of households have Internet connection, 25.1% of households in the rest of urban areas (not including Metropolitan Lima) and 1.7% of households in rural areas have this service. Digital disruption grows in the abundance of the cloud and the interconnection of millions of users around the world. Hence our powerful choice with just one click for the existence or not of a product in a market where digital marketing adapts us.
The logical sequence of steps to solve a specific need through technology in a digital world is to be able to decipher a suitable algorithm that allows the growth of a product or service through Digital Marketing with its goal of determining the possible tastes in the public in a changing world, counting on its main skills such as creativity, which is seen in its evolution of images according to its graphic design, then it is analytical and strategic is what stands out in social networks, more than we think. Algorithms in digital marketing automation generate more content with an ally as Big Data. Algorithms are of great help in generating predictive calculations, under all kinds of variables resulting in unique content.
The importance of algorithms in digital marketing automation, in the use of algorithms reflects greater influence for interaction with consumers, aims to be able to measure consumer emotions and relevance. The effectiveness and efficiency with which they are developed results from homogenizing sources and dominating content consumption. It is seen how Big Data combined with algorithms obtains an optimal result in having appropriate choices and the destination directed towards consumers with greater productivity for the company.
Algorithms diversify to generate diverse experiences to group consumers, taking data and important information in order to design strategies and advertising campaigns according to their needs where the consumer takes less effort in choice in some cases with a passive attitude where the company performs the decision making for them, increasing their sales.
According to Rebecca Lieb, in Content Marketing: Think Like a Publisher – How to Use Content to Market Online and in Social Media (2011), explains that this strategy went from “it would be nice to have it” to “it is necessary to implement it”. He posits that the challenge is to think like a publisher to implement a digital strategy. He wrote the book The Truth About Search Engine Optimization, an Amazon best seller.
Finally, the importance of algorithms in internet digital marketing automation will analyze the processes of various tasks in marketing, email, social media, events and financial management. They solve some drawbacks in generating records forming large databases, which go through a qualification process obtaining frequent recurring interaction effective and efficient. Automation in marketing we see complements such as Lead nurturing and lead scoring. Lead nurturing are automated email chains, in order to have new communications to improve the information, vary the sending at an indicated time, with that we see that there is nurturing of recruitment and loyalty. Lead scoring get in the database the automatic order in real time if they are qualified or not, there are models that analyze the database on all customer acquisition process if they are ready to buy, hence their loyalty.