Everything you need to know on marketing algorithms
Algorithms have existed for quite some time now, initially emerging from the scientific domain where researchers employed them for data analysis and modelling. In essence, algorithms have evolved from scientific tools, and while still play a vital role in scientific analysis, are now also an integral part of our digital interactions as well. Nowadays, thanks to the sophisticated technology underpinning the internet, we encounter algorithms daily.
Algorithms are at the core of search engines, helping users to find the relevant information they need quickly. Whether you’re browsing a website or conducting an online search, algorithms work hard in the background to deliver answers to us the moment we step into the digital realm.
What is an algorithm and how does it work?
An algorithm can be defined as a set of rules followed by a computer in the form of calculations to solve problems. In the digital space, algorithms analyse data behind the scenes to generate relevant content to website users.
They can be utilised to analyse historical data to determine the buying habits of individuals, as well as the behaviours of others – for instance, what other items people have bought who bought the same thing as you. From these learnings, websites can be personalised based on demands of the visitor.
Benefits of algorithms
Algorithms allow for:
Using algorithms in marketing
One might say that marketeers use algorithms to try and read your mind so they can target you with products that you will likely buy. By gathering data, they help to build a picture or profile, if you like, on your personality, your likes, and your dislikes to predict and influence your behaviour. Have you ever searched for a specific item of clothing and then an hour later an advert starts following you around with the perfect item you’ve been searching for? Or have you ever seen a product you love, only to later receive an email that it’s gone on sale? These are prime examples of algorithms hard at work.
Algorithm marketing in action
Many companies use algorithms in their marketing, for example, Netflix leverages algorithms to suggest film recommendations based on what you’ve watched before. By analysing a user’s watching habits, they can generate a personalised feed of films and TV shows aligned with their tastes. From a marketing point of view, it makes perfect sense – the more they show you film and TV content that you subsequently end up watching and enjoying, the more likely you are to retain the service with them.
Algorithms are also widely used across ecommerce websites. For instance, Amazon has been a longstanding user of marketing algorithms. Utilising algorithms allows the platform to offer customised product suggestions, enhancing the customer journey – a feature which proves particularly useful on a vast website with a diverse product range. Customers can easily discover products similar to their past purchases, or those favoured by users with comparable buying patterns.
From powering search engines to shaping personalised online experiences, algorithms play a pivotal role in navigating the digital landscape. For more marketing insights, take a look at our blog on why plain English matters in marketing comms.
