Many advertisers suffer from inefficient targeting that results in a low number of targeted actions and lost marketing dollars. M&C Saatchi Managing Director David Whittle emphasized an old problem of traditional digital advertising and said,
“It is often directed towards people who do not find it relevant.”
According to the research conducted by Nielsen digital, ad campaigns reached their intended audiences on average 60% of the time which means 40% marketing dollars is thrown away.
In 2017, Procter and Gamble made a decision to cut more than $100 Million in ‘Largely Ineffective’ Digital Ads.
P&G CMO Marc Pritchard said that more efficient ways to invest marketing dollars exist: “This new level of transparency is shining the light on what’s next—marketers taking back control of our own destiny to accelerate mass disruption—transforming our industry from the wasteful mass marketing we’ve been mired in for nearly a century to mass one-to-one brand building fueled by data and digital technology.”
David Whittle of M&C Saatchi said that if advertisers can provide people with relevant, targeted advertising, then relevance becomes a service. Such approach will be the future of marketing.
According to a new report by Forbes Insights, in association with Quantcast, the primary challenge marketers is identifying the right target audience. 54% of North American companies confirm that this is the biggest challenge.
Current algorithms demonstrate advertising to users who do not constitute part of the target audience of the advertiser’s product. This reduces conversions to purchases, both with the pay-per-click model, and when paying for targeted actions. Available alternatives assume a fairly narrow range of settings for filtering and, accordingly, a low level of targeting. Such algorithms do not make use of neural networks, thereby significantly hampering their effectiveness.
The essence of targeted advertising is the ability to display ads to a specific target segment of users, according to their location, gender and age, interests and other individual parameters.
Artificial intelligence developed by Ubex platform allows tracking someone’s online activity and gather insights to learn the person’s preferred method of engagement. Ubex can analyze the collected data to correctly prioritize your ad spend by not targeting the wrong audience.
The Ubex platform was created to maximize the targeting of advertising and the economic efficiency for advertisers. The programmatic approach used by Ubex utilizes user data to improve targeting. Behavioral and socio-demographic data of users is analyzed to conduct a transaction. Programmatic allows for improvement of targeting and, in fact, provides a move from purchasing placement and displays to buying a target audience. The main reason for the popularity of programmatic is its automation, simplification of obtaining leads, the possibility of precise targeting and optimization of advertising budgets and advertising strategies.
The potential of programmatic algorithms is immense. At the same time, this potential cannot be realized fully without the introduction of blockchain technologies and neural networks. Therefore, the emergence of Ubex will be a catalyst for the growth of the software market and digital-advertising in general.
The Ubex algorithm optimizing the search of the right customer. Thus, the revenue for publishers’ most effective advertising slots is maximized. By using Ubex’s system, the advertiser can purchase advertising based on desired criteria such as target audience, geography, time of displays and many other parameters.
Targeting allows for optimizing marketing budgets and is increasingly being used in digital advertising. In cases where the purchase of advertising takes place without programmatic algorithms, advertisers or digital agencies have to resort to manual searches for specific sites that could be of interest to their target audience, as well select socio-demographic, geolocation and time criteria that could predict purchases. Such a search takes a lot of time and effort.
Programmatic algorithms developed by Ubex allow for significant increases in the effectiveness of targeted advertising. Programmatic assumes in-depth evaluation of target groups of users based on the history of their search requests, file downloads, application installs and online purchases. Ubex algorithms can also correlate online and offline information about users. Also an important programmatic feature, is an option to display advertisements on various devices to the same user.
Advertisers face another problem for optimizing marketing costs. They need to spend a substantial amount on digital advertising during campaigns to obtain preliminary statistics about the effectiveness of certain channels used for advertising. To match every digital marketing channel with available advertising materials is a lengthy and costly process. Such testing creates significant difficulties for advertisers with small advertising budgets, since it forces them to spend the entire budget on experiments. The data obtained from such experiments is not valid for a long period and soon becomes obsolete.
Using neural networks and accumulated data, the Ubex algorithm selects the most current advertising offers relevant to targeted visitors, maximizing the probability of obtaining desired results. Moreover, the Ubex neural network evaluates the probability of targeted user actions. By applying such an approach, the Ubex algorithm estimates the economic efficiency of displaying various advertising options to each particular user. Thanks to the use of neural networks, the relevance of advertising displays is increased along with predictability of advertising efficiency and the need to burn budgets on trial and error approaches is reduced.
Ubex platform effectively uses AI mechanism to improve retargeting. Retargeting is a great way to engage with people who have visited your website but did not make a purchase or another desired action. Retargeting companies are often present at several Ad Exchanges and buy inventory using proprietary media. By applying AI to collected user activity data Ubex can track users, thus increasing the efficiency of monitoring page visits and user retargeting.
Targeting may become even more efficient with blockchain and AI, because with the blockchain technology developed by Ubex, marketers can now get customer information directly from the customer by using different motivation tools, and it is not required to search different information resources. After they have different data available, targeting is becoming much more efficient with Ubex technology. To learn more, visit Ubex.com