This article was based on the interview with Regina Ye of TopSort by Greg Kihlström, MarTech keynote speaker for The Agile Brand with Greg Kihlström podcast. Listen to the original episode here:
One key takeaway from the podcast is the increasing trust in artificial intelligence (AI) and automatic bidding algorithms for optimizing return on ad spend (ROAS) in online marketplaces like Amazon. Regina Ye emphasized that many marketers are now relying heavily on auto-bidding algorithms, with some even allocating 90% of their campaigns to this approach. This shift towards automation not only simplifies the ad operations process but also allows marketers to focus on growth hacking experiments and creative ideas.
The use of AI in optimizing ROAS is seen as a major trend in the digital marketing industry, especially for smaller players and those looking to streamline their advertising efforts. By trusting the automatic bidder and leveraging AI capabilities, marketers can achieve more efficient and effective results in their campaigns. This shift towards automation also frees up mental load for marketers, enabling them to explore new strategies and creative initiatives to drive growth.
In terms of measuring and understanding ROAS, it is important for marketers to consider the scale of their campaigns. Simply looking at the ROAS without taking into account the overall spend and results can lead to misleading conclusions. It is crucial to assess the longevity and sustainability of the results, as well as the impact of different scales on the overall performance. Additionally, the podcast touched on the balance between trade marketing and brand marketing in the retail media world, emphasizing the importance of connecting these two aspects to drive success.
Looking towards future trends in online marketplaces and advertising, the podcast highlighted the need for transparency and measurement in the retail media space. As brands continue to invest in digital marketing campaigns, there is a growing focus on providing equivalence to traditional advertising methods like Super Bowl ads in the retail media space. This shift towards more transparent and measurable campaigns will shape the future of advertising in marketplaces, offering brands new opportunities to connect with consumers and drive results.
Overall, the podcast underscores the importance of trusting AI for better ROAS in digital marketing campaigns. By leveraging automation and data-driven strategies, marketers can optimize their advertising efforts, drive growth, and achieve measurable results in online marketplaces. As the industry continues to evolve, embracing AI and automation will be key to staying competitive and driving success in the digital marketing landscape.
