It goes without saying
Posted: Tue Feb 18, 2025 4:19 am
that this contributes greatly to increasing sales and customer lifetime; a personalized experience is undoubtedly one of the main components of loyalty. How does an AI algorithm work in marketing? The case of Netflix Thanks to the publication of this article (ACM Transactions on Management Information Systems, Vol. 6, No. 4, Article 13, Publication date: December 2015), we are able to explain how Neflix used artificial intelligence to improve the user experience. We will describe the reasoning behind some of their algorithms to understand how artificial intelligence works in marketing automation. Netflix's initial question was: what information should we take into account to be able to recommend something to our customer that they might like? The very first analyses, which date back a few years, had stopped at the rating: they calculated the number of stars that users gave to the films seen and on this basis the algorithm selected similar products, by genre or by characteristics.
The paradigm shift comes as Netflix begins to take into account other factors: For example, when northeast cell phone number list and how movies were watched (device type, day of the week, time), how they were found, etc. It even begins to take into account recommended content, but not clicked, using the failure of the algorithm as a source of information for the algorithm itself. People leave a lot of information just by enjoying the product… Why not use it? With this idea, over time, different algorithms are developed that “collaborate” with each other. The first is called PVR (Personalized Video Ranker) and is mainly based on personalizing the preferences of the individual user across the entire catalog. The second is the Top N video ranker and aims to find the best recommendations from the entire catalog by focusing only on the top of the general ranking of all users. All algorithms, as well as the amount of products displayed, contribute to what is now called the Netflix experience.
Artificial Intelligence and Marketing Automation
How does artificial intelligence work in marketing automation?
Machine learning is a continuous learning process. In marketing, in particular, it takes into account all the data that the user leaves behind at each opportunity of interaction with the brand.
The paradigm shift comes as Netflix begins to take into account other factors: For example, when northeast cell phone number list and how movies were watched (device type, day of the week, time), how they were found, etc. It even begins to take into account recommended content, but not clicked, using the failure of the algorithm as a source of information for the algorithm itself. People leave a lot of information just by enjoying the product… Why not use it? With this idea, over time, different algorithms are developed that “collaborate” with each other. The first is called PVR (Personalized Video Ranker) and is mainly based on personalizing the preferences of the individual user across the entire catalog. The second is the Top N video ranker and aims to find the best recommendations from the entire catalog by focusing only on the top of the general ranking of all users. All algorithms, as well as the amount of products displayed, contribute to what is now called the Netflix experience.
Artificial Intelligence and Marketing Automation
How does artificial intelligence work in marketing automation?
Machine learning is a continuous learning process. In marketing, in particular, it takes into account all the data that the user leaves behind at each opportunity of interaction with the brand.