Advertising is a marketing strategy that businesses use to promote their products and services. Advertising is not a new concept, it has been used by businesses of all sizes to get more customers over the years. So, if you want to know how Data Science is used for advertising, this article is for you. In this article, I will introduce how Data Science is used for advertising by businesses worldwide.
The Traditional Advertising
Before understanding how Data Science is used for advertising, let’s first understand how businesses used to advertise their products and services before using Data Science techniques for advertising.
When Data Science was not mainstream in the industry, companies used to create advertising campaigns to target as many potential customers as possible. For this strategy, they used some data of their customers like age, gender and location.
For example, if I had to promote my Instagram account at that time, I would have created marketing campaigns in India and other potential countries, choosing both genders and the age range of 17 -25 years to target college students and freshers.
This strategy used to be very expensive as we are targeting a broad audience without any idea about their interests.
If I am promoting my product to an audience who is not interested in buying my product, it’s expensive! And will always result in a low return on investment as everyone interested in my product will not purchase my product, and anyone not interested in my product will never buy my product. So if there are more chances of high ROI within the audience interested in my product then my product needs to be advertised among that specific audience only.
That is where Data Science came in to solve all the business problems of advertising. Let’s understand how!
Here’s How Data Science is Used for Advertising
Today I have data or can easily purchase the data of my potential customers, which helps in knowing their behaviour, interests, and preferences. I can create marketing campaigns based on how my potential customers:
- engage on social media
- search on google and other search engines
- buy and reorder products in particular time intervals
- and many more attributes that will help me create marketing campaigns by selecting my target audience.
In traditional advertising, we used to promote products and services to everyone in a particular place and age group. But by using Data Science, we can find our target audience and analyze and predict whether or not they will buy our product based on their past behaviour. It increases ROI for many companies using data science techniques to properly advertise their products and services.
Today Google and Facebook ads are essential tools for every business because of their advertising services. Both Google and Facebook have your data that helps companies create advertising campaigns according to your interests.
So this is how Data Science is used for advertising by businesses worldwide.
Summary
In traditional advertising, we used to promote products and services to everyone in a particular place and age group. But by using Data Science, we can find our target audience and analyze and predict whether or not they will buy our product based on their past behaviour. It increases ROI for many companies using data science techniques to properly advertise their products and services. I hope you liked this article on how Data Science is used for advertising. Feel free to ask valuable questions in the comments section below.
