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Machine Learning Nails Paid Search Marketing

Last month, Acquisio released a report that argued for the use of machine learning algorithms to improve paid search marketing. After reviewing over 30,000 accounts over two years, they found that accounts supported by machine learning technology achieved exponentially better results than those that went it alone.

The analysis and comparison of these results led them to conclude that, “Across all business types and budget sizes globally, the accounts using Acquisio’s machine learning technology are outcompeting those that aren’t, giving advertisers an advantage.”

Which accounts benefit the most from machine learning?

The report revealed that accounts with a low budget of less than $500 a month benefited the most from the help of artificial intelligence. They said, “Businesses with the lowest spend actually had the highest success in terms of lifetime value.” A third of Acquisio’s customers manage small or local accounts, so this discovery is positive news.

Accounts supported by machine learning technology saw improved metrics, including a higher conversion rate, lower CPCs and a higher click-through rate. On average, machine-learning accounts saw a 71% increase in conversions, a 7% decrease in CPCs and a 15% increase in click-through rates. The report also found 64% of accounts using machine learning algorithms saw a lower CPA.

In addition, Acquisio’s report noted that accounts supported by machine learning were better at reaching their target spend levels.

The Future of Paid Search Marketing

With machine learning and AI improving at such a quick rate, it raises the question of what the future of paid search marketing will look like. Will machines and algorithms soon make paid search marketing agencies (and paid search marketing managers) obsolete?

The short answer is no. Humans will still play an important role in paid search marketing, but that role will be more about creativity and strategic planning. The more rote tasks of SEM, such as manual bid optimisation, will likely be entirely replaced by artificial intelligence the near future. This could open up other avenues for workers in the digital marketing industry, and for businesses, it could increase productivity and lower costs.

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9 October 2017


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