Q&A: Unlocking Smarter Ad Targeting with Click Prediction Models

The rise of AI and machine learning is revolutionizing marketers' ability to deliver personalized customer experiences at an unprecedented scale.

At Fluent, a key driver of this transformation is our click prediction model-a sophisticated machine learning algorithm that analyzes historical data to predict the likelihood of users engaging with specific ads.

But what makes this model so effective? And how does it enhance outcomes for partners, advertisers, and consumers alike?

Q&A with Dexter Sue

We spoke with Dexter Sue, Sr. Product Manager at Fluent, to learn more about how Fluent's click prediction model leverages first-party data to match consumers with highly relevant offers in the post-purchase moment.

Can you provide a high-level overview of what a click prediction model is and how it works?

A click prediction model is a piece of machine learning technology that uses demographic data (e.g. age, gender, geo, etc.) and contextual data (e.g. time of day, website they're browsing, etc.) to predict what brands and offers a consumer is likely to be interested in. At Fluent, we use our click-prediction model to enhance the online checkout experience with post-transaction advertising.

What makes Fluent's click prediction model more effective than traditional targeting methods?

Fluent's click model is heavily inspired by Google Adwords, the gold standard for digital advertising. Powered by demographic and contextual data, the click model uses predictive analytics to deliver highly relevant ads to the right consumer at the right time.

"The model's real power versus other targeting methods is its ability to automate and scale as we onboard more partners and campaigns, reducing the need for manual optimization."

In what ways does the click prediction model improve user engagement and conversion rates?

The click prediction model improves engagement by showing users relevant ads tailored to their interests. For example, if a user isn't interested in sports, the model might show them a cashback or subscription meal kit offer instead of a free trial for ESPN+. This personalization increases the likelihood of users clicking on ads, which can ultimately lead to higher conversion rates.

How does the click prediction model account for changes in user behavior or emerging trends?

Fluent's click prediction model responds to shifts in consumer behavior in real time. If brand sentiment changes due to negative press or a decline in popularity, the model detects the drop in engagement and automatically adjusts targeting. This enables us to stay relevant as consumer habits and preferences evolve, without relying on humans to spot these shifts.

Can you provide an example of how a client or campaign benefited from the click model's predictive capabilities?

Leveraging Fluent's Event API and advanced machine learning technology, a leading subscription commerce client drove 25% more subscription sign-ups compared to other channels. Improved attribution and conversion volume led them to scale their investment, nearly matching their annual spend with Fluent in just one quarter.

Learn more about how Fluent's AI helps fuel smarter targeting and optimization strategies below!

What development or initiative related to the click prediction model are you most excited about?

We're really excited to launch a new feature for the click model called "Automated Exploration." This will enable the model to automatically run experiments whenever we introduce new data points, like creatives or partners. By doing so, it can quickly explore new user segments and adapt in real time, eliminating the need for manual A/B testing. It also helps identify high-performing audience segments, boosting campaign performance for our partners while delivering more tailored, engaging experiences for consumers.

Want to maximize your reach and revenue with Fluent's AI-powered commerce media solutions? Contact us here to start today!

Check out more resources to get fluent in:

Post-Transaction Advertising | Machine Learning | Predictive Analytics

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