Deep Learning Predictions: Your Ticket to Skyrocketing Digital Marketing Success
- xcellodigital
- May 3, 2024
- Marketing Strategies
- DigitalMarketing, MarketingStrategy
- 0 Comments
“We are witnessing the dawn of a new era in artificial intelligence, where we are tackling challenges that were once only imagined in the world of science fiction,” – Jeff Bezos.
While AI adoption is skyrocketing – with 83% of global organizations prioritizing it and the market size expected to multiply by twentyfold within the next six years – many marketers remain frustrated. Despite strides made in digital marketing, ad campaigns often underperform. Budgets aren’t delivering the results they should, campaigns miss key targets, and measuring return on investment remains a struggle.
Deep Learning Predictions
AI-Driven Advertising: A Paradigm Shift in Marketing
Companies have stockpiled a wealth of customer data – a treasure trove of marketing insights often left untapped. Campaign investments have yielded valuable intel on target audiences, yet many businesses struggle to unlock the revenue potential hidden within this data.
Profitability is driving a shift towards high-impact metrics. Redundant roles are streamlined, and automation is taking center stage. Global leaders like Tesla are pouring resources into robotics to minimize production errors and curb rising labor costs fueled by inflation.
The traditional media landscape, oversaturated with information and plagued by “banner blindness,” is losing its effectiveness. Businesses are pivoting towards personalization and targeted advertising to drive conversions and maximize campaign ROI. User acquisition spend is on the rise, but companies need to ensure a solid return on investment.
For niche businesses with well-defined customer segments, historical activity data and analytics can be leveraged to identify high-value customers and optimize acquisition strategies. This empowers them to fine-tune campaigns and elevate performance marketing metrics.
As costs escalate on auction platforms like Google and Meta, competition intensifies, and click costs soar. Understanding customer lifetime value and payback periods becomes paramount. Analytics solutions like Lemon AI empower companies to calculate this payback period, enabling data-driven decisions on scaling or adjusting ad budgets.
Behind the Scenes: How It Functions
Let’s explore two common market scenarios that can be tackled strategically:
Scenario 1: Optimizing Campaigns for Profitable Customers
Imagine you have a broad audience with a high volume of purchases. While this is great, some users contribute significantly more revenue and remain loyal customers for longer stretches. The catch? Your current strategy likely charges a similar average price for everyone, regardless of their future value and engagement. This approach leaves significant room for improvement.
The key to unlocking higher efficiency lies in audience segmentation based on predicted future profitability. Here’s how:
Segment Your Audience: By analyzing data, you can group users into categories reflecting their potential future value. This allows you to tailor your spending accordingly.
Targeted Pricing: Allocate resources strategically. For instance –
- You might invest $5 to acquire users in segment A (projected value: $15-$20),
- $7.5 for segment B (projected value: $25-$30).
- $10 for segment C (projected value: over $30).
Scenario 2: Reaching New High-Potential Users
Now, consider a scenario with a limited target audience. Your goal is to find similar users who haven’t converted yet. Expanding your reach becomes crucial. However, with limited data on potential customers, traditional methods struggle to identify these ideal users quickly.
The solution lies in leveraging predictive models built for an audience with the closest possible characteristics to your paying customers. This injects valuable knowledge into your user acquisition engine, allowing it to target high-potential users more effectively.
For example, if historically only 1% of your audience converts, boosting that rate to 5% represents a significant improvement with a substantial impact on revenue.
The Power of Data-Driven Strategies
It’s important to remember that the effectiveness of these approaches hinges on robust data collection and processing methods. While various data collection options exist, not all companies effectively analyze and leverage them for maximum benefit.
Understanding the best methods and approaches tailored to your specific industry unlocks a competitive advantage, propelling you towards superior results.
Lights, Camera, Conversions! Making Your Ads Stand Out
Let’s break down your campaign goals first. Are you launching a groundbreaking new game or a revolutionary fitness app? Building brand awareness is key – get people buzzing and spreading the word! To achieve this, a multi-channel media approach is your friend. Platforms like Google’s Display & Video 360 (DV360) or Display Network (GDN) are perfect for targeted outreach, maximizing your budget for the most receptive audience.
Now, let’s delve into user acquisition (UA) and performance optimization. Two burning questions emerge:
1. The Channel Mix Conundrum: Juggling multiple marketing channels – Google, TikTok, you name it – can be a budgeting headache. Finding the perfect blend to achieve your goals is crucial. Think of your marketing mix as a budget pie – how do you slice it? Maybe 50% goes to Google, 30% to Meta, and 10% to TikTok? It all depends.
Each channel boasts its own optimization tools. Identifying the one that best suits your company is vital. Some tools excel on specific channels due to unique audience demographics and integrations. For instance, gaming companies might crave integrations with specific games and formats unavailable on standard networks.
Within each channel, A/B testing becomes your secret weapon. Craft compelling banners, videos, and targeting settings – test them all! The winning assets will propel you towards your objectives with laser focus.
2. The Power of Cross-Channel Strategies: Understanding user behavior is paramount for guiding them on their journey. Imagine a user starting their checkout process on the mobile app during their commute, then finishing it on the website later. Cross-channel strategies tailor your advertising to optimize their experience.
This also encompasses personalized advertising throughout the day, leveraging AI to predict the effectiveness of different banners and ad settings.
The ultimate goal? Unearthing the optimal channel combination, meticulously optimizing each one, and crafting a cross-channel strategy built on a deep understanding of your audience’s behavior.
AI-Driven UA & Established Bidding Techniques
Before diving in, ensure you have a robust dataset – ideally exceeding 5,000 unique users. This raw data becomes the key to unlocking valuable insights, but traditional models require conversion into a numerical format. Here’s how it transforms:
1. Data Preparation: Raw data undergoes a metamorphosis, morphing into a numerical format that fuels our predictive models.
2. Model Training: We leverage your historical user activity data to train a powerful model. This model becomes an expert at predicting the potential value new users hold, based on the patterns it unveils in their activity.
3. Model Validation: Once trained, the model undergoes rigorous testing to ensure its prediction accuracy.
4. Real-Time Deployment: The trained model seamlessly integrates into your system, allowing for real-time value predictions on new users interacting with your app.
5. Continuous Learning: As new user data streams in, the model constantly refines its understanding, ensuring ongoing optimization.
Effortless Automation with Lemon AI:
Lemon AI streamlines this entire process with our cutting-edge, patented deep learning technology, boasting an impressive prediction accuracy exceeding 90%.
Focus on What Matters: You tell us what success looks like. Whether it’s conventional performance marketing metrics (ROAS, LTV, retention, ARPU, CAC) or a unique indicator critical to your business, we’ve got you covered. Imagine identifying users in your game who, after conquering 20 levels, are likely to invest 100 gems! Or, on your e-commerce platform, pinpoint those highly valuable customers who consistently place multiple orders exceeding $500 within a 30-day window. Lemon AI empowers you to uncover these hidden gems within your raw data and create custom events to propel your app or website’s performance.
Leave the Tech to Us:
The intricate details of model training, feature engineering, data parsing, and actionable insight generation are all handled automatically. No coding expertise required! Effortless data transfer, either Pull or Push via API, takes a mere 30 minutes, with deep learning models trained within 48 hours. Our innovative Fast Track feature delivers initial predictions within a staggering 15 seconds of a new user launching your app, even with SKAN limitations. Seamless integration with leading mobile management partners and analytics services further simplifies the process.
Real-Time Campaign Optimization:
Your ad manager becomes a command center, offering real-time insights into campaign performance. Armed with these insights and model predictions, you can fine-tune campaigns for maximum impact. Lemon AI’s user-friendly interface empowers you to optimize campaigns with just a few clicks – no coding or dedicated managers needed. We handle the tech complexities, so you can focus on what matters most – growing your business.
Holistic Data Analysis:
Our comprehensive analytics solution tackles the challenge of siloed data, seamlessly integrating data from diverse sources like Mobile Measurement Platforms (MMPs), CRMs, and backend storages. This unified view empowers businesses to extract actionable insights from the entirety of their raw data, unlocking its full potential.
Automate for Efficiency, Amplify Results:
By automating these critical steps, Lemon AI revolutionizes ad buying efficiency. Leveraging automated campaigns and detailed analytics, you can meticulously target your advertising efforts, driving a remarkable 30-40% improvement in KPIs compared to traditional methods. The future of advertising is here, and it’s automated.
Well, look at that! IT WORKS!
Lemon AI empowers businesses to leverage the cutting edge of deep learning technology. Whether your priority is maximizing key performance indicators (KPIs) within budget constraints, or optimizing costs without sacrificing results, we have you covered. In just six short months, Lemon AI has optimized a staggering $8.2 million in ad spend for over 60 clients across diverse industries, including e-commerce, banking, gaming, delivery, hospitality, and travel.
Real-world results, real fast.
Let’s delve into a few success stories:
Case 1: E-commerce Platform Skyrockets LTV by 49%
Challenge: A dominant e-commerce platform in the MENA region, boasting 25 million app installs and over 650,000 monthly users, faced a troubling reality: low lifetime value (LTV), average order value (AOV), and retention rates, despite a vast product selection. Their existing user acquisition and analytics tools, while predictive, weren’t delivering the desired impact.
The Objective: Implement a comprehensive digital marketing strategy and optimize Google Ads & Meta Ads to attract high-value users, drive repeat purchases, and develop dynamic personalized offers for a sustained growth surge.
3 Steps to Success:
- Data-Driven Insights: We meticulously analyzed data to forecast customer buying habits and potential churn, enabling us to optimize user acquisition and retention strategies.
- High-Value Targeting: We honed in on users projected to have the top 35% LTV within 60 days, as well as those making 3+ purchases within 30 days of app installation. This laser focus yielded a 17.9% reduction in customer acquisition cost (CAC) within 3 months, alongside optimized banners, ad copy, and unique selling propositions (USPs).
- Personalized Power: To enhance the customer experience, we implemented personalized product recommendations based on purchase history. This strategy resulted in a remarkable 59% increase in AOV over a five-month period.
The Outcome:
Android users enjoyed a staggering +35% retention rate, +42% AOV, and a phenomenal +49% LTV on Day 60. For iOS users, the results were equally impressive: +17% retention, +33% AOV, and a +32% LTV on Day 60.
Case 2: Casual Game Sees ROAS Soar by 42%
Challenge: A captivating casual game with over 5 million installs and 700,000 monthly users sought to refine their advertising strategy to maximize revenue across a wide range of regions (MENA, Europe, and APAC) while maintaining a seamless user experience and fostering player engagement.
The Goal: Utilize data from AppsFlyer to amplify ROAS (return on ad spend) and in-app purchase retention.
The Path to Victory:
Within a mere eight days, the Lemon AI model was fully integrated and operational, requiring zero coding on the client’s end. Our system harnessed the power of machine learning to generate predictions for the top 10%, 20%, and 30% of players in terms of revenue. To further enhance efficiency, we created a tailored in-app event specifically for users who reached level 10 and spent a total of 200 diamonds, serving as a valuable proxy metric.
The Triumph:
The client witnessed a remarkable 17% overall improvement in efficiency compared to their internal benchmarks. Android users celebrated a +42% boost in ROAS and a +28% increase in ad revenue. For iOS players, the results were no less impressive: +27% ROAS and a +16% uptick in ad revenue.
Bonus Tips:
Ready to take your digital marketing to new heights? Here are some bonus tips to help you get started:
1. Embrace experimentation: Don’t be afraid to test new ideas and iterate based on feedback. Innovation is the key to staying ahead of the curve.
2. Invest in data quality: Garbage in, garbage out. Make sure you’re working with clean, reliable data to fuel your AI-powered insights.
3. Collaborate with experts: Partner with a marketing agency that specializes in AI and deep learning to unlock the full potential of this technology.
Ready to Unlock the Future of Marketing and Outperform Your Competition?
At Xcello Digital, we’re obsessed with helping businesses leverage the power of cutting-edge technology to achieve skyrocketing digital marketing success. Deep learning is revolutionizing the marketing landscape, offering unprecedented insights, capabilities & innovative approach to dominate the market in 2024.
Don’t get left behind. Embrace the power of deep learning predictions and propel your brand to the forefront of the industry.
Contact us now to schedule a consultation and discover how Xcello Digital can help you:
Utilize deep learning for powerful customer insights and hyper-personalized campaigns.
Craft winning strategies based on predictive analytics.
Secure your brand’s position as a thought leader in the digital marketing revolution.
The future of marketing is here. Let’s conquer it together.
