First, when you think of machine learning, what comes to mind? Is it an image of machines taking over the world, defeating humanity in a futuristic battle? If so, please think of something quite the opposite. Instead, consider machine learning as a tool that can optimize human lives in various ways.
Machine learning is a form of artificial intelligence (AI). It uses machines and applications to take in information, analyze it, and provide conclusions. Conclusions can improve a process or a task. From a marketing perspective, a machine is like a super-smart human. Additionally, a super-human who learns about you by analyzing your data and providing purchasing options accordingly.
With growing competition and cookie deprecation, it has become integral for businesses to optimize their strategy by focusing on first-party consumer data. The best marketing campaigns have clean first party customer data. Machine learning has become the key for businesses to learn their customers’ habits and interests based on that data. So, whether a person is watching Connected TV (CTV) or scrolling on social media, they are likely to see advertisements for products and services of interest to them.
How Machine Learning is used in Advertising
Machine learning can explained in a relatively uncomplicated manner. Without human interaction, machines make predictions based on consumers’ past purchases. Unlike humans, machines can run data against thousands of datapoint. The machine identifies patterns through historical data and suggests the products they might need or like next. If consumers have already purchased a product online, the machine learns that and predicts their next purchase related to it, making businesses successful and offering the most relevant data.
Benefits of Machine Learning in Advertising
The question remains: why has machine learning become essential for businesses in this day and age? There are tremendous benefits of machine learning for companies and businesses in advertising and marketing. Below are five major reasons why your business should implement AI to attract more customers.
1. Improved advertising options
In marketing, using machine learning or AI helps businesses thrive. It does this as it collects the most accurate algorithms and data. Moreover, this it’s able to provide the best possible options for decision makers. However, when counting on decisions made solely by humans, different biases can arise. Biases come between analyzing data and providing the best customer service. This can negatively impact your company’s desired results. You get decision without complications using machine learning. The machine optimizes data according to the targeted audience while improving your ROAS (return on ad spend).
It has become crucial for businesses to keep up with shifting advertising trends to put consumers’ needs at the forefront. While the machine makes the right choices for consumers based on the algorithm, your employees will have more time to solve complex problems, leading towards a more profitable business.
At the end of the day, the marketer still needs to understand the person behind the data-learning machine because machine learning by itself will not collect valuable data from only speaking to your customers directly. Therefore, a balance between the machine and the marketer is essential for successful advertising.
2. Personal conversations with one-on-one chats
Almost all new business and company websites have introduced chatbots for personal one-on-one conversations with their customers. Chatbots in machine learning take the sales process one step further by answering different queries regarding a purchase, store location, or other topics. Customers can get the exact product they are looking for by sending a message to this bot, they will also be linked directly to the desired product, increasing the chances of them making an immediate purchase.
3. Personalized Experience
Personalization is key when it comes to shopping. When businesses give a more personalized shopping experience based on customers’ choices, they will likely return as they won’t have to worry about wasting time searching for the right product. Machine learning gives more personalized advertisements to people by reviewing massive amounts of data in a short amount of time. This offers customers targeted advertisements based on personal choices, seasonal products, and region-based options.
4. Better Privacy
There are many speculations about businesses leaking customers’ data, but your company can protect consumers’ privacy with limited human interaction. Machine learning, with the right ML vendors, is privacy compliant as data is only provided with customers’ permission. Additionally, as data is analyzed entirely anonymously, it keeps the customer’s personal information safe while giving advertisements based on their interests.
5. Reaching the right audience
With machine learning, your business can target relevant advertisements to the right audiences. In the past, too much time and money were wasted on trial and error methods. Now, machines can easily match the appropriate products to a suitable audience. For this reason, your company can make a more personal connection with your targeted customers and increase engagement with machine learning.
In conclusion, machine learning in advertising will get better throughout the years. As Strike Social said, as technology advances, computers will be able to make increasingly better correlations.
With tools like BDEX’s Omnisource IQ machine learning, your business can understand your customers and collect existing data to make sound advertising decisions, leading to an improved return on investment (ROI).