Tech offers opportunities but there are also risks involved, noted Jiwon Kim, Team Leader, LG CNS, speaking at Ad Asia 2023, adding that marketers need to handle data and decide whether or not to outsource related functions.
She talked the audience through the objectives of digital marketing and the role of Marketing Optimisation Platforms:
Bottom line, what is the purpose of digital marketing?
The answer is ROI.
You can either have return maximisation or cost efficiency.
To maximise ROI you need to implement digital advertising efficiently.
There are so many digital options. How do you maximise the ROI?
It’s not easy to answer these.
So ad tech can develop collaborative tools for marketers.
Automation tools are not enough.
We need to make predictions. So you need collaborative tools that not only analyse data but help you in smart decision making with mathematical optimisation models.
This model explained (in the presentation) aims to maximise conversion.
Many industries have problems to solve. So we first collect and analyse big data through deep learning and then analyse the data using mathematical models to aid in decision making.
Humans will take a long time to take decisions. So instead of insights one can use mathematical models.
These models have been used for advertising by LG CNS.
So if you have 100 key words you can allocate the budget easily, but in more complex scenarios, the optimisation model will give you results that increase efficiency.
So bidding processes and marketing can gain by this because the mathematical model is working 24×7.
You can fine-tune budgets and maximise ROS.
Data goes in, then the algorithm works on planning budgets and marketing activities by time frames will be calculated and then the control algorithm will detect any anomalies and make adjustments in real time.
MOP can help in reducing efforts, see everything on the dashboard and internalise capabilities to execute marketing plans instead of outsourcing them.
So, MOP has been proven to reduce ad spend and increase the ROI.
500 brands have tried this and their results validate this learning.
(The author is a delegate at AdAsia 2023. He holds a Global Double Masters from the London School of Economics and University of Southern California and has 2.5 years of digital marketing experience. He is passionate about brand and product marketing, and hungry to tell meaningful brand stories.)
