Traditional marketing campaigns have always worked by identifying and targeting the people most likely to want a specific product or service.
Pre-internet, this targeting was broad with advertising based on aspects like TV shows, newspaper section, or magazine-type specific demographics enjoy. However, the internet and the advent of portable devices has changed the industry.
Thanks to the internet, marketers nowadays can learn about and target consumers much more accurately. However, as the amount of data rises, so does the complexity of analyzing it. In 2018, around 3.9 billion people were internet users. According to Statista, that will grow to 5.3 billion by 2023.
That’s too much information for humans to process – and that's why algorithms are increasingly essential.
Algorithms can process vast amounts of data and provide more accurate targeting
Google defines an algorithm as “a process or set of rules to be followed in calculations or other problem-solving operations, especially by a computer”.
This sounds simple enough, but modern algorithms have proved so useful they have grown dramatically in complexity and everyday use. Their adoption isn’t particularly new either – in 2013, the Guardian ran an article titled ‘How algorithms rule the world'.
Driven by sectors like social media and digital marketing, algorithms can now analyze more data than ever before and better assess user preferences.
The industries are often connected. For instance, 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 that can sift through vast amounts of data. 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.