Target smarter, not harder: Using machine learning to reach the right audience

Why is advertising still blind? Imagine: You spend thousands of dollars on advertising, but you don't even know if your target audience sees it. Does that sound absurd? In fact, that's how most marketing campaigns work.

According to a study by eMarketer, approximately 50% of advertising budgets are spent ineffectively. Why is that? Because companies are relying on outdated targeting methods. But today, there’s a smarter way.

Machine learning (ML) is a game changer that turns “advertising roulette” into an exact science. No more guesswork — just data, algorithms, and personalization that works. Get to know Machine Learning Advertising, read the details below.

From guesswork to data: How ML is changing the rules of targeting

A world of data without boundaries: Marketers used to rely on demographics — age, gender, location. Today, it doesn’t work. Why? Because people’s interests and behaviors don’t fit into such simple criteria. Unlike people, ML analyzes massive amounts of data: from purchase history to social media activity, creating a “portrait” of a customer that is so personal it would be impossible to draw by hand.

To understand the difference, here’s a solvable problem — it’s about manual data analysis, which is severely limited by human error. It’s about the fact that no matter how superior your intelligence is, you can’t go through millions of rows of data and find patterns. The human brain just can’t do that. It’s also slow and expensive.

The solution is in the domain of machine learning, which does the work instead of humans:

  • Algorithms study user behavior and determine who is ready to take a targeted action — buy, subscribe or share — right now. 
  • They find patterns that humans simply won’t notice. For example, an algorithm can determine that users who visit a site twice a day and read reviews are 70% likely to make a purchase within a week.
  • In this way, ML turns the chaos of big data into understandable insights that help businesses grow.

Experts from TeqBlaze shared their observations with us. Their technicians implemented a machine learning algorithm to analyze customer behavior for a company providing digital billboard advertising services. The result? A 30% increase in conversions and a 25% reduction in the cost of customer engagement.

The doubt: “It’s too complex for us.” In fact, modern platforms make ML affordable even for small businesses. You don’t need huge budgets and an army of analysts.

Personalization on a new level: How ML creates ads that work

Not just an ad, but a personal message: Personalization is more than putting a name in the header of an email. Machine learning goes much deeper: it analyzes customers’ interests, habits, and behaviors to create ads that seem written specifically for them.

And it’s all about the fact that one-size-fits-all ad campaigns are performing worse and worse. Users ignore one-size-fits-all ads (even non-professionals know what ad blindness is). It turns out that what’s important to the target audience is that the ads are relevant to their interests and useful in terms of application.

This brings us to the main point. ML allows you to show different ads to different people based on their 

interests. Imagine you have an online store. One user will see ads with new gadgets and another will see ads with promotions on children’s toys. It all depends on what they need. If you implement an ML algorithm for the personalization of advertising in your store, then as a result of machine learning advertising you should expect this result — an increase in sales by 40% and an increase in the average check.

Concern: A common objection from TeqBlaze customers is, “It might seem too intrusive. In fact, it’s just the opposite: people prefer to see ads that are relevant to their interests. The key is balance and ethical use of data. Personalized advertising is not the future, it’s the norm. And ML advertising is your primary tool for creating it.

Budget optimization: How ML can help you spend less and earn more

No more guessing where to spend your money: Traditional methods of planning advertising budgets are based on guesswork and past results. But the market changes daily, and what worked yesterday may not work today.

  • Problem: It’s hard to know which channels deliver the most value. As a result, some budget is wasted.
  • Solution: ML algorithms analyze real-time data and automatically reallocate budget to where ads are performing best. This means you’re no longer wasting money on ineffective businesses.
  • Case in point: TeqBlaze used machine learning to optimize bids in programmatic auctions for Boldwin. As a result, clients significantly improved their return on ad spend by securing high-quality placements at the best prices. In this way, the interviewee was able to use machine learning to improve monetization and platform capabilities. 

Doubt: “Does an algorithm really know where to spend money better than a marketer?” Yes, because an algorithm analyzes data without emotion or bias. But the decisions are always up to you. Machine learning is not a replacement for marketers, but a powerful tool to make more accurate decisions.

Comparison of traditional budgeting vs. ML-optimized budgeting

Aspect Traditional Budgeting ML-Optimized Budgeting
Decision Basis Historical data and assumptions Real-time data and predictive analytics
Budget Allocation Fixed, reviewed periodically Dynamic, adjusted automatically in real-time
Resource Efficiency Risk of overspending on ineffective channels Maximizes ROI by focusing on high-performing channels
Adaptability Low, slow to respond to market changes High, quickly adapts to new trends and shifts
Cost-effectiveness Inconsistent, depends on market stability Consistently optimized for cost-efficiency

The bottom line: Personalized advertising without overspending

ML is changing marketing. It’s a tool that helps businesses identify target audiences, create personalized ads, and manage budgets effectively. It is not a sophisticated technology of the future, but an affordable tool that is helping businesses today to increase conversions, reduce costs, and make marketing more effective.

Ready to reduce costs and increase revenue? Contact the experts to learn more about how machine learning can help your business. Choose the most experienced in machine learning advertising campaigns and sign up for a free consultation today! Remember, in the age of big data, those who use it wisely win. So why spend more when you can spend smarter?