Tuesday, November 20, 2012

Rise of the Algorithms



In a recent column "The New Algorithm of Web Marketing" in New York Times, Tanzina Vega reported how big brands such as Nike, P&G are increasingly relying on "programmatic buying" to deliver ads to individual consumers in a highly targeted manner, such that they are leaving the traditional cousins Print, TV, etc. way behind in the dust for the same promise. Till recently, it seemed algorithmic applied only to equity trading, but now ad buying has reached this. Publishers of online networks such as AOL and Weather.com apparently view themselves as "Marketing Engines" instead of Publishers, and are relying on automated ad purchasing technologies. Where traditional media only provided context, the new digital properties now add fine tuned placement to it. Just as brokerages earn in fractional value, but when volume is added to the equation, the results to top line of publishers promise to be handsome, naturally.

The question I have is - granted context of a buyer and great placement are done in a timely manner to increase multi-fold the chances of viewer clicking the ad. But what next? Its an area Bizosys is interested in as to how dynamic or optimized is the post click experience. Seems ripe for innovation. Tell us!

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