‘Butterfly effect’ customer journeys: how algorithms change everything

The divergence of individual media consumption habits is further exacerbating this butterfly effect. In the past, consumers were more likely to consume media in a linear fashion, meaning they would see the same ads multiple times. This made it easier for marketers to build brand awareness and positive sentiment. However, today's consumers are much more likely to consume media in a nonlinear fashion, meaning that they may only see an ad once or twice. This makes it more difficult for marketers to reach their target audiences and to have a lasting impact.

Culture at the speed of algorithms

Algorithms are playing an increasingly important role in this new marketing landscape. They’re used to target consumers with personalized ads, to measure the effectiveness of marketing campaigns, and to make predictions about consumer behavior. In some cases, algorithms can even have a direct impact on product sales and brand adoption.

For example, a study by Nielsen found that consumers are more likely to trust recommendations from friends and family than traditional advertising. However, an algorithm can use social media data to identify which consumers are most likely to be influenced by their friends and family, and then target them with personalized ads that are more likely to be effective. Culture now moves at the speed of algorithms, and Brands need to be prepared to move at the same speed reacting to the butterfly effect in real time.

The great convergence

The convergence of brand and performance media, the divergence of individual media consumption habits, and the growing importance of algorithms are all creating a new marketing landscape that is more complex and unpredictable than ever before. Marketers who understand and adapt to this new landscape will be the ones who are most successful in the years to come. However, those unprepared for this new reality may find themselves at a significant disadvantage.

Need convincing? Here’s some cold, hard data for you:

• A study by Salesforce found that 70% of consumers are more likely to make a purchase from a brand that they have interacted with on social media.

• A study by Gartner found that by 2023, 80% of marketing budgets will be spent on digital channels.

• A study by the World Economic Forum found that by 2025, artificial intelligence will create 133m new jobs – and displace 75m others.

These data points suggest that the future of marketing is increasingly digital and data-driven. Marketers who embrace these trends will be well-positioned to succeed in the years to come. Those unprepared for this new reality may find themselves at a significant disadvantage.