Publishers have a new and powerful tool to deliver the most relevant advertising and increase profitability. Progressive ad networks can now offer a “recommended for you” feature similar to the collaborative filters used by Amazon, Netflix and Pandora. The feature uses anonymous response data from past successful campaigns to make recommendations. The theory is that a publisher with success in a given category will also have success in categories that are directly connected, as well as categories that are two steps away.
In some cases, the recommendations are straightforward. Jewelry is a promising category for publishers who’ve had success with apparel. But who would think, for example, that success with travel can signify good results for an Ugg boots campaign, or social services is linked to the arts, entertainment and hobbies category?
More targeted recommendations, developed through sophisticated data analysis that draws on an immense database, means better results for publishers.
“We offer our publishers a custom experience,” said Greg Bayer, Vice President of Products and Strategy for Adknowledge’s Affiliate division, which provides its affiliates with recommendations through its proprietary Affiliate Recommendation Tool (A.R.T. ). “By tailoring the information we offer our affiliates, we are able to help them be more efficient and strategic, increasing their sales and profitability.”
The development of an effective algorithmic targeting platform marks an evolution in the network-publisher relationship. Some ad networks have become much more adept at using data, and alongside their publishers have learned how to work together to optimize marketing efforts and create true partnerships.
Those partnerships have led to better outcomes and more subtle ways to measure success. While clicks are still important, A.R.T. goes beyond clicks to determine the effectiveness of a campaign. The goal is to deliver relevant advertising that leads to clicks, and optimizing what’s presented to the end user so that every single impression has a better chance of a positive response.
“It’s not about driving ads; it’s about driving people to the content they want,” said John Young, PhD, Director of Data Analytics at Adknowledge, Inc.
At a time when advertisers, ad networks and publishers are looking for better results and fewer misfires, such an affiliate recommendation tool is a winner across the board. It ensures that the most compelling ad is served at the optimum time to the right end user. Data-driven marketing makes it easier to get into inboxes and reduces unsubscribe requests and complaints.
Advertisers receive high quality traffic that is more likely to convert and their brand integrity is maintained. They also greatly reduce the number of publishers they must work with, adding efficiency and cost savings. Publishers maximize their eCPM and, thus their top line revenue. For the end user, A.R.T. delivers a better, more relevant experience.
The combination of huge amounts of data, data mining and advanced analytics has made A.R.T. possible. Working with hundreds of terabytes of data, a network can collect and analyze behavioral information, including anonymous clicks and conversions at the category level, as well as attribute data (browser, IP and geographic information).
High-level data analytics experts then analyze the data.
At Adknowledge, the DA team has a simple objective: to grow yield through targeting and optimization. The team is led by Director John Young, who holds a PhD in Applied Statistics and Research Methods.
Usama Fayyad, who is recognized worldwide as a pre-eminent thought leader in analytics and data mining technology, serves as chief scientist and a strategic advisor. Dr. Fayyad was formerly the Chief Data Officer and Executive VP at Yahoo! and CEO of Open Insights.
The team also includes PhDs, statisticians, mathematicians, software engineers and machine learning scientists.
Advances in data analytics and technology will continue to drive affiliate marketing. Expansion into social and display will allow reach and revenue to continuously grow within the industry. For publishers, data analytics already offers a huge advantage and by working with the right ad network partner, they can maintain their advantage in the marketplace and fully harness the enormous potential data analytics has to offer.