How Algorithms Positively Affect Marketers & Advertisers

Let’s better understand how Algorithms are bringing positive changes to the marketing industry.

As a consumer, I go online and want to purchase a coffee maker. Bed bath and beyond and Amazon essentially fight over advertising space in real-time to place their advertisements where I am going. This happens quickly and is never noticed by the consumer. Thanks to programmatic buying the 2 companies can put entities in place so that they advertise to me long before I decide to buy a coffee maker.

google algorithm

Programmatic Buying = Real Time Advertisements

Programmatic buying is a dynamic advertising space purchasing process that accounts for actions in real time. Unlike static information used for traditional advertising programmatic uses evolving data to make space buying decisions. This process eliminates the anonymity of consumers and allows the advertisers to spend money on a focused audience with a realistically high rate of becoming a customer. The data is collected and bundled to create a profile of an individual internet user. When the profile matches the specifications preset by the marketers the real time purchasing takes place.

Focused Targeting is More Cost Effective

Due to be able to focus in on a highly targeted audience companies do not have to waste ad dollars reaching individuals who are most likely not potentials customers. The rates for this space rise and fall constantly based on availability, number of consumers and more which is why it is left up to automated software. The software faster than humans can purchase the premium space when it is at the right price for your company’s budget. Preset instructions on bid limits, daily limits, number of traits a profile must hit all factor into this real time purchase. Since the advertiser is setting the budget, they are no longer being told by a publisher an inflexible price rather they control the cost to a degree.

More Advertising Space Results in More Opportunities

One huge aspect that dictates pricing of advertising is space limitation. With the ever increasing amounts of space on line it results in more opportunities and less cost increases due to the number of space seekers.

Dynamic Messaging gets Personal

The algorithm software also supports the use of dynamic messages; this will ensure that the most relevant message that would relate to that consumer would be used. An example would be using an advertisement featuring a young female drinking coffee on the go as opposed to an older adult drinking coffee and reading the paper. The benefit to programmatic algorithm messages is that it increases loyalty, customer confidence, and retention through focused and relevant messages to your consumers.

Written by: Holly Dunbar, Social Media Manager


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