Friday, November 18, 2011

#ALGORITHMS: "Analytics Optimizes Marketing Campaigns"

Managers can now track media campaigns with cloud-based analytics that optimize return on investment in real-time rather than using after-the-fact reports of success or failure.
As more and more applications migrate to the clouds, analytics providing real-time situational awareness are spreading to functions that have traditionally been managed after-the-fact. Management of media campaigns, for instance, is usually done by making careful placements, tracking resultant sales, then reinvesting in the placements that provided the most return on investment. New cloud-based tools, however, are enabling digital marketing management algorithms that can track sales as they happen in order to optimize multi-faceted campaigns in real-time, maximizing successes and nipping failures in-the-bud.
Such smart, marketing-campaign managers could be applied to nearly every industry today--from financial services to processed foods. Every enterprise wants to maximize profits and quickly kill off failing projects. This makes digital marketing management an emerging new aspect of every industry. A recent Forrester Research report singled out digital marketing management (DMM) as an inevitable merger of analytics platforms with centralized media buying platforms.

DataXu's active analytics performs real-time campaign management, audience management, attribution management, cross channel media buying, targeting, and reporting of actionable intelligence.
"We see ourselves as the next Google, but in the role of referee," said Mike Baker, co-founder and CEO of DataXu. "Since we don't own any media, our customers can rest assured that we are not steering them toward media that we make more money on versus media that is best for them."
Cloud analytics is crucial to digital marketing management. A typical scenario would have sales results relayed to the cloud where analytics correlates the rollout schedule of a campaign, deduces which media placements are achieving the most return on investment, and optimizes the mixture of media to maximize profits--all in real time.
The world's first fully integrated digital marketing management platform was recently announced by DataXu, which claims its DX3 can optimize media campaigns across the most profitable audience segments, media channels, and creative messages. DataXu claims marketing campaigns using its real-time automated DX3 as a manager reap as much as twice the profits of traditional campaigns.
Media buyers use a DX3 dashboard to route their "big data" through machine-learning analytics that make smarter, faster decisions regarding the optimal mix to enables the most profitable digital media campaigns. Several modules make up DX3--including a programmatic media buyer, the analytics to automate decision-making, and a unified audience management tool that increases customer retention. DataXu also provides consulting services to help marketers get started as well as to custom-craft a software solution for enterprises that are in need of data-driven innovations that provide a competitive advantage.

Further Reading