'Butterfly effect' customer journeys: how algorithms change everything

"The convergence of brand and performance media creates butterfly effects across the consumer journey. This means that even small changes in a marketing campaign can have significant, unpredictable consequences. For example, a study by Google found that a personalized ad can increase click-through rates by up to 20%. However, if the same ad is shown to a consumer who has already purchased the product, it could backfire and damage the brand's reputation."

"The divergence of individual media consumption habits is further exacerbating this butterfly effect. In the past, consumers were more likely to consume media in a linear fashion, meaning they would see the same ads multiple times. This made it easier for marketers to build brand awareness and positive sentiment. However, today's consumers are much more likely to consume media in a nonlinear fashion, meaning that they may only see an ad once or twice. This makes it more difficult for marketers to reach their target audiences and to have a lasting impact."

"Algorithms are playing an increasingly important role in this new marketing landscape. They're used to target consumers with personalized ads, to measure the effectiveness of marketing campaigns, and to make predictions about consumer behavior. In some cases, algorithms can even have a direct impact on product sales and brand adoption."

"For example, a study by Nielsen found that consumers are more likely to trust recommendations from friends and family than traditional advertising. However, an algorithm can use social media data to identify which consumers are most likely to be influenced by their friends and family, and then target them with personalized ads that are more likely to be effective."

Convergence of brand and performance media creates butterfly effects across the consumer journey, so small marketing changes can yield significant and unpredictable consequences. Personalized ads can boost click-through rates by up to 20%, yet inappropriate targeting—such as showing an ad to someone who already purchased—can damage brand reputation. Diverging media consumption habits lead to nonlinear exposure, with many consumers seeing ads only once or twice, reducing repeat messaging benefits. Algorithms now target individuals, measure campaign effectiveness, and predict behavior, and can directly influence sales and adoption by leveraging social data to reach those most likely to act on peer recommendations.

Read at The Drum