What is Algorithmic Search in Marketing?
,Algorithms have taken the world by storm. No seriously; it seems as if they are literally taking over everything, and unsurprisingly, this includes marketing. Algorithms are taking on many of the pressing tasks throughout the marketing industry, and they’re doing so at scale. Such algorithms are helping to direct key strategic decisions for the future. With that said, however, a lot of people aren’t really sure what algorithms are, what it is that they do, and how they are applied to practices that are associated with modern-day marketing. Let’s take a look at some of the basics of algorithmic search in marketing so that you can gain a better understanding of what it is and how it works.
What is Algorithmic Search in Marketing?
Algorithms Defined
In the broad sense of the word, an algorithm refers to a series of rules or steps that are designed to elicit a predetermined outcome from a collection of inputs. A recipe is an excellent example of an algorithm, as it explains how to use raw ingredients and turn them into a loaf of bread, an apple pie, a roast, or any other dish.
Your credit score is an example of something that is generated using an algorithm. In this case, the algorithm turns your financial history into a three-digit number.
Search Engine Algorithms
In the 21st century world of business and technology, algorithms are literally everywhere. Search engine algorithms, for instance, take countless billions of potential website matches for a search engine user’s query and determine which websites to rank first. All of this happens in a matter of milliseconds.
Social Media Algorithms
Algorithms can be seen on social media platforms and video streaming services as well. On social media platforms, algorithms work to determine which posts show up on a user’s newsfeed. On video streaming platforms, algorithms assess which shows you have watched in the past, and then use that information to suggest which shows you would find most appealing.
In a way, algorithms are kind of like social engineering, as they’re literally using a collection of inputs to generate a particular outcome. This can have a direct impact on the information that you receive.
Algorithms in Marketing
In regard to marketing, algorithms have all but taken the industry over. Algorithms impact minor tasks that are constantly ongoing, such as ad purchases, as well as key strategic decisions. When the right data is available, algorithms can automate these key strategic decisions at scale. As a result, this reduces the amount of money and time you spend and helps to maximize returns.
To further illustrate, let’s take a look at a few of the different ways in which algorithms are applied to modern-day marketing strategies.
Campaign Strategies and Optimization
Well-designed algorithms can take otherwise complicated decisions and boil them down to a collection of actions that are suggested for you to take. This is similar to using AI to suggest your next move when playing a game of chess.
A lot of algorithms that are used in marketing do exactly that. The algorithm will take a complex collection of data and use it to locate patterns or to assess evidence on an objective scale, ultimately generating a suggested action.
An algorithm can take the behavioral data from thousands upon thousands of email interactions to determine what time is the best to send out emails so recipients are more likely to open them and interact with the content included in the email.
Furthermore, algorithms can determine a strategy for programmatic media purchases. For example, algorithms can recognize the audiences that offer the highest value and determine the best time to play ads.
Attribution Modeling and Critical Data
The link between consumer purchases and actions they have made previously – clicking on an ad or visiting a website, for example – can be complicated and vague. Algorithms help to shine a light on the journey consumers take toward making a purchase. This is done by using engagement data from a variety of campaigns and then figuring out which points along the conversion path can be credited for helping the consumer make their final decision to purchase a product.
Learn more about algorithmic search in marketing: Google Algorithm Updates & Changes
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