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What is media buying?

08/28/2023 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

Media buying is a term from the field of marketing and refers to the process of buying advertising placements in various media channels. It can include traditional media such as television, radio, newspapers and magazines, as well as digital channels such as websites, social media and mobile apps.

The media buying process usually involves several steps. First, careful planning is done to define the target audience and identify the appropriate media channels. Then, budget allocation is done to efficiently use the available financial resources.

After that, the media buying process is completed.

After planning and budgeting, the actual implementation of the media buying process follows. This involves contacting media representatives or agencies, buying advertising placements and negotiating prices. The media buyer tries to obtain the best possible conditions for the desired advertising placements.

Once the ad placements are purchased, the media buyer monitors their performance and analyzes the results. This analysis makes it possible to evaluate the effectiveness of the advertising and make adjustments as needed. For example, the media buyer can optimize the placement or frequency of the ads to achieve the desired marketing goals.

Media buying is an important component of many marketing campaigns, as it allows companies to communicate their messages to a wide audience and effectively reach their target audience.By using different media channels, companies can maximize their reach and engage potential customers on a variety of platforms.

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How can startups & founders use ChatGPT in everyday life?

08/25/2023 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

Startups and founders can use ChatGPT in a variety of everyday ways to optimize their business processes, support customers and develop innovative ideas. Here are some examples:

Customer communication and support: Startups can integrate ChatGPT into their websites or applications to provide 24/7 customer support. ChatGPT can answer frequently asked questions, solve problems, and provide guidance without requiring human interaction:

Product Advice: ChatGPT can help potential customers choose the right product or service. It can answer questions about features, benefits, and pricing to support the sales process:

Idea development: founders can use ChatGPT to generate creative ideas for new products, features or business models. By giving the model information about their industry and goals, they can receive inspiring suggestions:

Content creation:

Startups can use ChatGPT to create content for their blogs, social media or marketing campaigns. The model can generate articles, posts, promotional copy and more:

Market Research:ChatGPT can be used to answer research questions or provide insights into market trends. It can analyze data, interpret statistics and provide industry information:

Prototyping and development:

When developing new products or features, startups can use ChatGPT to prototype or sketch user interfaces. It can also help with troubleshooting and debugging:

Internal Communication:

ChatGPT can be used in internal communication tools to help team members with questions or problems. It can also serve as a knowledge base by providing information on internal processes and policies:

Translation and Localization: when startups operate internationally, ChatGPT can assist with translating content or adapting to different cultures and languages:

Business Intelligence: by analyzing data and generating reports, ChatGPT can provide insights into business performance metrics that are important for decision-making:

Task Automation: ChatGPT can automate repetitive tasks, such as scheduling meetings, composing emails, or managing appointments:

It is important to note that while ChatGPT has many useful applications, it is not perfect and in some cases may require human supervision or editing to ensure accurate and appropriate results.:

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Why it is becoming increasingly difficult for B2B companies and service providers to cover their costs with Google advertising

08/25/2023 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

The digital advertising landscape has changed dramatically in recent years. Especially for B2B companies and service providers, it is becoming increasingly difficult to break even with Google advertising. In this article, we will look at the main reasons why these changes have taken place and what challenges this poses for B2B companies.

Growing competition:

The number of companies using Google advertising has increased significantly in recent years. As a result, competition for limited advertising space on search results pages and in Google Ads has increased significantly. As competition increases, so does the cost per click and per conversion, resulting in higher ad spend for B2B companies and service providers.

Rising click prices:

Click prices in Google Ads have risen sharply in many industries. Especially in B2B areas with expensive products or services, the cost per click can quickly skyrocket. It is becoming increasingly difficult for companies to find cost-effective keywords to reach their target audience.

Long sales cycles:

B2B companies and service providers often have longer sales cycles than B2C companies. Business customers tend to take longer to make decisions, which can lead to higher costs per conversion. Tracking conversions and accurately measuring advertising success becomes more complicated as a result.

Ad blockers and ad blindness:

More and more Internet users are using ad blockers to protect themselves from advertising. As a result, ads are less visible and thus less noticed. Even when companies invest in Google Ads, a significant portion of their target audience may not even see the ads.

Complexity of Google Ads:

Google Ads is an extremely complex advertising tool with many setting options and features. For small and medium B2B companies, it can be difficult to set up and optimize an effective advertising campaign, especially if there is no designated Google Ads expert in the company.

Shift to other platforms:

With the rise of social media and other advertising platforms, some companies are shifting their advertising budgets away from Google Ads. Depending on the target audience and industry, advertising on platforms such as LinkedIn, Facebook or specialized industry portals may be more cost-effective and targeted.

Conclusion:

B2B companies and service providers are finding it increasingly difficult to cover their advertising costs with Google Ads. Increasing competition, rising click prices, long sales cycles, ad blockers and the complexity of Google Ads are just some of the challenges they face. It is important that companies carefully rethink their advertising strategies and possibly consider alternative advertising platforms to effectively reach their target audience and achieve their marketing goals.

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Click fraud with Google Ads, YouTube & Co: How clickbots eat up your advertising budget

08/25/2023 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

In today's digital era, online advertising is an essential tool for businesses to reach their target audiences and promote their products or services. Platforms such as Google Ads and YouTube are particularly popular because they offer a wide reach and allow ads to be targeted to specific audiences. Unfortunately, the growing popularity of these platforms is also attracting unwanted attention from scammers who use click fraud to eat up advertising budgets and harm advertisers.

The Rise of Click Fraud: A Threat to Advertisers

Click fraud refers to the intentional generation of clicks on online ads with the aim of financially harming the advertiser or eliminating competitors. So-called "clickbots" are often used, automated scripts or programs that behave like real users and click on ads. As a result, the advertiser's advertising budget is quickly used up without actually reaching potential customers.

Platforms such as Google Ads and YouTube are particularly susceptible to click fraud, since the cost per click (CPC) plays a central role here. If an advertiser pays for every click on their ad, this creates an incentive for scammers to use clickbots and thus quickly pull money out of the budget.

The Impact on Advertisers: Lost Resources and Credibility

The impact of click fraud on advertisers is diverse and can be severe. Not only does the scam waste the budget earmarked for legitimate marketing efforts, but it can also result in false data that affects analysis of campaign performance. Advertisers may mistakenly believe their ads are getting high click-through rates, even though they are caused by clickbots. This could lead to wrong decisions when adjusting and optimizing campaigns.

In addition, click fraud can undermine advertisers' confidence in the overall effectiveness of online advertising. If advertisers get the impression that their ads are being clicked by bots and not by real potential customers, they may hesitate to continue investing in digital advertising.

Fighting Click Fraud: Prevention and Technology

To protect against click fraud, advertisers need to be proactive. Here are some proven strategies:

Monitoring and Analysis: Continuous monitoring of click patterns and activities in the advertising campaigns. Noticeable anomalies could indicate click fraud.

Use of security measures: Platforms like Google Ads offer protections against click fraud, including IP address bans and detection of suspicious activity.

Filtering Technologies: The implementation of filtering technologies to weed out suspicious traffic and only allow genuine interactions.

Partnership with trusted providers: Working with trusted advertising networks and platforms that take active measures against click fraud.

Conclusion: vigilance is key

Click fraud is a serious threat to advertisers investing in Google Ads and YouTube. It is crucial to be aware that this type of scam exists and to take proactive steps to protect yourself from it. By combining monitoring, analytics and technology, advertisers can leverage the full potential of their advertising budgets while ensuring their ads are reaching real prospects.

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AI B2B SaaS Company: The Artificial Intelligence that is revolutionizing business

08/24/2023 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

In recent years, the rapid development of technologies has revolutionized the way businesses operate. One such technological innovation that has had a tremendous impact on business is Artificial Intelligence (AI). In this context, AI-based Software-as-a-Service (SaaS) companies have emerged as the driving force behind the implementation of AI solutions for business. But what exactly is an AI B2B SaaS company?

Defining an AI B2B SaaS company:

An AI B2B SaaS company is a software company that specializes in artificial intelligence and machine learning and sells its solutions to other companies through the software-as-a-service model. B2B here stands for "business-to-business," which means that these companies offer their products and services exclusively to other businesses and not to end users.

The role of AI in business:

AI is a branch of computer science that enables computers to simulate human-like intelligence. Through the use of algorithms and machine learning, AI can solve complex problems, recognize patterns, make predictions, and even learn on its own without needing to be explicitly programmed. In business, AI has the potential to transform several areas, including:

Automation: AI-based automation enables companies to automate time-consuming and repetitive tasks, resulting in increased efficiency and cost savings.

Personalization: By analyzing big data, AI can create personalized offers and recommendations for customers that improve the customer experience and increase customer satisfaction.

Prediction and analytics: With the help of AI, companies can predict future trends and behaviors, which helps them make informed business decisions and optimize their strategies.

Customer support: AI-powered chatbots and virtual assistants can improve customer support by answering customer queries and resolving issues in real time.

Security: AI can be used to detect and combat security threats by monitoring and analyzing suspicious activity in real time.

The meaning of SaaS:

Software-as-a-Service (SaaS) is a model in which software applications are delivered over the Internet. Instead of physically purchasing software and installing it on their own computers, companies can easily use SaaS applications through their web browsers. SaaS offers the advantage of scalability, flexibility and cost efficiency, as customers only have to pay for the services they actually use and are not responsible for the entire software development process.

How an AI B2B SaaS company works:

An AI B2B SaaS company develops and implements AI-powered solutions that are specifically tailored to meet the business needs of other companies. These solutions are then sold to customers through the SaaS model. Customers subscribe to the company's services, pay a regular fee, and can use the AI-powered features over the Internet.

Examples of applications of AI B2B SaaS companies:

Customer segmentation: an AI B2B SaaS company could develop an AI-powered platform that helps companies divide their customers into different segments to create targeted marketing strategies.

Demand forecasting: another example would be a platform that uses AI to predict demand for products, allowing companies to better plan their production and inventory levels.

Speech processing: an AI B2B SaaS company could offer a speech processing platform that helps companies analyze large volumes of text data and extract insights from customer feedback and social media.

Conclusion:

AI B2B SaaS companies play a critical role in how AI technologies are adopted and used in enterprises. They enable companies to reap the benefits of AI without investing heavily in in-house development resources. With a wide range of application areas and the potential to revolutionize business, AI B2B SaaS companies are expected to continue to play an important role in the digital transformation of enterprises worldwide.

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