- 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 don’t 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 critical role in this new marketing landscape, enabling specialists to accurately segment and “target” consumers with personalized ads, measure campaign effectiveness, and even predict consumer behavior long before they act.
Besides, 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. Does all this do the algorithms? 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 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.
Digital marketing and algorithms
Data is essential in this new scenario. There are several studies that show that consumers are more likely to buy brands with which they have interacted on social networks.
According to The Drumit is expected that by the end of 2023, 80 percent of marketing budgets have been allocated to digital channels.
Also, it is expected that artificial intelligence will create 133 million new jobs and displace another 75 million by 2025.
Here’s 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 is no doubt about that. 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.
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