October 21, 2017
About the author : Joni holds a PhD in marketing. He is currently working as a postdoctoral researcher at Qatar Computing Research Institute and Turku School of Economics. Contact: joolsa (at) utu.fi
It’s almost impossible to beat Facebook’s or Google’s algorithms in ad optimization, because they have access to individual-level data whereas the advertiser only gets aggregates, and even their supply is limited. But, there are two opportunities I see which Google and Facebook don’t handle:
Especially purchase history (=lifetime value), product margins (=profitability), and other customer information that can be used for user modelling or machine learning as features. But, don’t use Google Analytics for linking this data to website analytics — Google Analytics sucks, because Google keeps individual-level information (=click-stream data) for itself and only shares, again, aggregates. Use Piwik instead.
Google doesn’t have access to Facebook’s data or vice versa, but the advertiser has. Thus, you can create more comprehensive optimization models for bidding and budgeting.