From Tinder to Facebook, algorithms are the driving force behind the technology that rules our lives and as the dependence on this technology rises, so too does the influence of algorithms.
This becomes an issue for marketers as algorithms are given control of choosing products and services for consumers, rather than consumers relying on advertising to shape their choices.
“An increased reliance on algorithms has massive implicated for marketers,” We Are Social MD Suzie Shaw said.
“Connected technology is already really central to our everyday lives and they are all connected by algorithms.”
Speaking at the Vivid Ideas events held in Sydney this morning, Shaw said algorithm inputs will be the decision makers, rather than the consumer.
Giving the example of Amazon’s Alexa and the rise of voice controlled devices, We are Social’s global consultant Simon Kemp said the challenge for this medium is how it will choose brands.
For example, if a consumer asks Alexa to order laundry detergent, it will have the power to choose the brand.
"Marketing won’t change from the need to influence decisions, but instead you’ll be influencing the individual and their algorithm," Kemp said.
Voice control devices will make this choice based on four factors: the device will ask us, recurring choices, social engines and ultimately, it will be able to make its own decision.
“I don’t know on what scale we will let algorithms defer our choices,” Kemp said, adding consumers will still want control over some choices, such as their choice of beer.
He also said when it comes to making the decision for itself, the machine will likely be incredibly accurate because of the data it has mined.
Machine learning has created the biggest opportunity in history, Kemp said, and the technology isn’t as terrifying as society thinks.
“Brands should be approaching the four horsemen [Facebook, Google, Amazon and Apple] as partners and have conversations with them,” he said.
Shaw believes that algorithms are actually more predictable than consumers and while it’s a new challenge for marketers, it’s one that the industry can conquer.
“Most marketers we have spoken to are terrified because they don’t own the data…. But algorithms are more predictable than consumers,” Kemp said.
“Consumers are inherently irrational with their behaviour and we have been successfully marketing to them for many years.”
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