AdWords Steps Up Machine Learning AI For Predictive Audiences
The robots are coming for us all...at least that's how it feels sometimes. As someone who was both fascinated and terrified by Tim Urban's treatise on the future of artificial intelligence (AI), I pay extra attention when I see advancements in that arena.
Especially AI advancements in the online ad space.
At some point, if things continue apace, ads in the future could be managed entirely by machines. I'm not sure that means there won't be a role for humans like me or you but that role will invariably be different.
AdWords Takes A Step Toward AI Modeling
Yesterday AdWords announced a conversion probability tool within Google Analytics.
The goal of this tool is to make it easier for you to predict who will convert so you can target those people more aggressively than those less likely to convert. The reporting function is used to generate audiences based on these probabilities:
Not all accounts have this feature yet but it's rolling out to all eligible accounts. In order for Analytics to generate this report there must be at least 1,000 transactions per month and e-commerce tracking must be enabled. If your account below that threshold, Analytics won't have enough data to assign conversion probability.
Will Conversion Probability Work?
I think it will be worth testing for sure, but at first glance I don't believe it will be as profitable as the tiered retargeting methods I use and teach. For one thing, you don't need 1,000 transactions per month to do tiered retargeting.
For another, it's still worth advertising to people who are less likely to convert as long as you target them less aggressively. Tiered retargeting is hands down the best method I've found to harvest those most likely to convert.
It's insanely profitable and not all that expensive. So, for now I think humans are still ahead of the machines, even if someday that may change. Should we start digging toward the earth's core now or wait for the sky to be scorched? 😉
How To Learn Tiered Retargeting
If you want to learn more about tiered retargeting, I teach it in detail in my advanced e-commerce marketing course.
Or for a managed solution, book a Strategy Session to discuss your e-commerce advertising.