TITLE:
The Impact of Recommendation Algorithms: Analyzing the Influence of Data on Marketing Strategies in the Media Sector
AUTHORS:
Amiruthaa Amudharasan
KEYWORDS:
Recommendation, Data, Personalization, Retention, Algorithm
JOURNAL NAME:
Open Journal of Business and Management,
Vol.11 No.6,
November
28,
2023
ABSTRACT: The recommendation algorithms used by businesses in
the media sector have contributed to their marketing strategies by analyzing
consumer engagement and observing where interest is most prominent. Through
implementing such algorithms, companies have
gained a better understanding of the demographic they are reaching, and
are able to better cater to their customers’ needs. Algorithms often collect
data on the area of a business known to have the most impact on a business’s
projected growth, as this is the most efficient way to expand a business. The
data collected by these algorithms keeps track of metrics that can later be
used to grow the business, such as the social, financial, and emotional aspects
surrounding each customer. Even details that may be more inconspicuous, such as
how long the page is kept open, or how the mouse is moved along the page,
greatly influence the value of data from the recommender systems. Therefore,
since this data is often contextualized, this study
expects to discover a direct correlation between available data and marketing
strategy optimization, which further increases consumer retention. This cycle
continues due to evolving algorithms that increasingly get more accurate,
leading to a customer’s experience becoming more individualized. This paper
aims to review the different types of recommendation algorithms used by
businesses and analyze the data sets that they gather, as well as the ways in
which this data is gathered. Then, it will provide an explanation of what type
of contribution each data set has on a business, and how marketing strategies
are tailored every time a significant conclusion has been made. By doing so,
the paper provides a much-needed review of how companies are able to decide on
the tangible steps for their business platform, and what areas to concentrate
on to optimize consumer experience.