What is Computational Marketing? Complete Guide

Do you ever wonder how Flipkart and Amazon knows what you want to buy and for which products are searching for? How Youtube and Netflix knows that which type of videos you would like to watch?

Actually, It is Computational Marketing in which marketers can find their customer’s actual needs.

So, Watching half an hour of TV and you have found that there are many irrelevant ads which are delivered to you that you don’t want to buy not even want to see those ads.

This is always a big challenge for the marketer to deliver a specific ad for targeted consumers. Therefore, computational marketing is the solution to this problem for all marketers. Here you can deliver ads after analyzing your consumers.

So let’s learn what is Computational Marketing and how you can use it

Definition of Computational Marketing

So, Computational marketing is a field of marketing in which marketers use the power of computing to make the best strategy for marketing and deliver the best ad to a particular consumer.

You have observed this earlier that if you watched some videos on Youtube. After sometimes you will see that youtube’s recommended videos are the same as you have watched earlier. 

Similarly, you will have searched some bottles at Amazon and after a few hours when you go on Amazon App, you will see they will show you the similar bottles in their App. This happens through Computational Marketing.

This targeted advertising based upon users information such as the general interest of those products, search terms they are using, web browsing activity, their local place etc.

The Technology of Computational Marketing

Meanwhile, Computational Marketing is mainly based on the technical field that draws on several streams of computer science. And it also depends on one large area of Economic Theory. Some Technologies used in this marketing are as follows:-

Information Retrieval

• The Internet contains a lot of information. But searching and accessing the specific information you want is always a major challenge for marketers. Therefore, information retrieval creates faster, stronger, and efficient connections between users and the information they want.
• Show the ad what customers want to buy. When the customer find what they want in an easier way, it is a great possibility that they buy it.

Machine Learning

So, Machine Learning is a branch of artificial intelligence that tries to create ways for machines to recognize and react to machine language. Thus, It is very simple to teaching machines to learn things from their environment. 

So, Machine learning is used to pick up on patterns of customer behavior and offer accordion to their online activities and experiences. 

For Example, Brands of E-commerce like Snapdeal, Amazon Flipkart learn from consumer’s past purchases to get a better sense of what products they will want to buy in the future.

Optimization

On the Internet, not all websites work the way they were created for their users. Websites should need to optimize according to their users. 

Hence, Optimization is a process for maximizing the accessibility of a website on the Internet. So, there are many ways to do it. Mobile optimization involves making up your website to be accessible on smartphones. 

Search engine optimization used to rank your website in search results. So, The main aim of optimization is for your website to easy to find for the largest number of people and to be easy to use.

Microeconomics

So, Microeconomics is the study of the economy on a small scale. Computational advertising can find better ways to engage with consumers on a direct level by the use of Microeconomics. 

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Goals of Computational Marketing

Computational marketing is not so old in the Marketing Field. It is only 15 years old in the world of Marketing and very less field has been researched for this. Therefore, there is huge potential for the field to grow and expand. 

Here are some of the main goals of computational marketing researchers to make it better for the marketing world:-

Better Ad Relevance

For Example, you have searched something on Google. So, the ads that appear on Google page with the search results are based on the search terms that were entered. 

However, the main aim of Computational Marketers is to Creating the strongest link possible between the terms and the ads are the best way to get users to click on those ads.

Social Media and Behavioral Marketing

Computational Marketing researchers want to use the biographical content logged in social media sites, user profiles and search histories to offer ads to consumers. Thus, one of the largest areas for growth is to maximize the potential of all this intimate information.

Reducing Costs

For marketers, an ad is only worthwhile if it generates more revenue than it costs. So, Computational Marketing researchers want to use computational techniques to increase returns from each ad and lower advertising costs.

Automated Marketing Models

This involves using intelligent models to predict the outcomes of marketing decisions. Therefore, these models help forecast the behavior of real consumers in actual markets.

Harvesting User Information

Marketers want to find new sources of detailed information. So, it is the best way for advertisers to understand their customer’s needs.

Multi-Platform Analysis

Computational Marketing researchers don’t want to restrict their advertising areas only on the Internet. Thus, they want to mix computational analysis into their TV, radio, print ad campaigns, holding etc.

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Who uses Computational Marketing?

Large companies and popular online websites are the companies that are most interested in computational marketing.

Companies want to use this strategy to increase sales and customer satisfaction. So, companies like Walmart and Amazon use computational advertising to match their products with their customer’s needs.

For Example, Do a search for different keywords for different types of topics and see what type of ads come while browsing other websites. You will see that different types of companies show in your search result

Small websites don’t have major tools to see and analyse their user data. But they have some tools to optimize their websites. So that user can find their websites easily.

Social Media Platforms like Facebook, Instagram, and Twitter use this marketing to create their brand value.

Target Customers for Computational Marketing

In this marketing, the best thing is that we don’t need to go physically in the local place and market there to find specific target customers. The technical team deal with it very nicely by using technical tools

All those users who are interested in particular products or services get ads for those products and services. And this happened because of a Computational marketing. They show relevant ads to the users according to their area of interest, searched keywords and online activity.

Career in Computational Marketing

There are various posts in Computational Advertising and Marketing. Major Job Profiles in Computational Marketing field are as follows:-

1. Computational Advertising Researcher
2. Data Analyst
3. SEO Experts

Computational Advertising Researcher

Salary (Annually in INR) 2.4 lakh- 6.5 Lakhs

Minimum qualification is a Bachelor’s Degree in Computer Science, Engineering, and Statistics, or related field.

Job role

• Develop the technology to push the potential of computational marketing forward
• Develop more effective systems.

Data Analyst

Salary (Annually in INR) 2.2 lakh- 6 Lakhs

Minimum qualification is a Bachelor’s Degree in Computer Science, Information Science, or Management Information.

Job role

• Monitor the various metrics produced by online ads and make changes as necessary.
• Also work on writing ads, tag pictures, etc.

SEO Experts

Salary (Annually in INR) 2.8 lakh- 6.4 Lakhs

For Minimum qualification, you may have a degree in Marketing but not necessary. 

Job role

• Optimize a site’s ranking in a list of search results
• They may write articles sprinkled with keywords.
• Creating a complex web of links (backlinks) between a client’s site and the broader web

Conclusion

Computational Marketing has been developing since the last decade and continues researching to become more specific and accurate on delivering the best ads to relevant users.

Nowadays, the Internet has become so useful and accessible. This marketing is developed for mobile devices also.

Thus, through Mobile devices, marketers use user’s locations, search activities, and use it to provide the best-recommended products or services on their websites and app.

Therefore, researchers are working more and more on Computational Marketing. Hence, there will be more research and development left on it which reduce the advertising cost and of companies. 

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