One of 2019’s hottest digital marketing buzzwords is machine learning. While there are many complex applications, the basic concept is simple: allowing technology to learn from experience.
What is Machine Learning?
Machine learning is already much more a part of your everyday life than you likely realize. For example, Apple’s Siri and other personal assistants use machine learning algorithms to try to better predict what you might ask it, in order to serve you a more relevant answer.
Other examples include self-driving cars which become safer the more driving data they collect, personalized recommendations such as Amazon’s suggested products, and Google Maps which predicts the fastest route based on historical data.
This technology finds natural patterns within data, gain insights, and then tries to predict the unknown for better decisions based on the available data.
How Does This Apply to Builders?
Machine learning is quickly becoming a fundamental technology upon which most digital marketing platforms are based. Machine learning can help builders target the right buyers online by analyzing past engagement and conversion data, and applying it to bidding and targeting strategies in their online advertising.
Google Ads’ Machine Learning, for example, leverages this technology through Smart Bidding. Smart Bidding uses this technology to optimize for conversions, or other goals, in each and every ad auction by analyzing several identifying characteristics, or “signals” of each searcher including:
- Income level
- Time of day
- Day of week
- Affinity (tastes and preferences)
- Weather (coming soon)
The above signals and others are then cross-referenced with performance data, such as historical click and conversion rates, and bids are increased or decreased to meet the advertiser’s goals.
In order to properly leverage this technology, it is imperative that conversion points are set up on your website – such as contact form submissions, live chat, and phone calls, properly defined and tracked. Without reliable data, machine learning will not deliver results.
While the immediate impact and applications of digital advertising are clearly evident, the implications and impact that Machine Learning will have on the building industry should not be underestimated. Generation Z homebuyers are poised to enter the real estate market and they expect personalized experiences. Machine Learning will allow tech-savvy builders to offer a more unique and personalized buying experience at different touch points during the buying process, including personalized recommendations, customized CRM emails, chatbots, and other online sales tools
If you are not applying machine learning to your online ad campaigns, you are likely missing out on leads. Contact group two’s digital team to learn more about how you can apply machine learning to increase your online leads and new home sales!