State of the classifieds market in 2022
There are so many sellers out there in the various industries and it is challenging to boost classifieds ads’ visibility. Classifieds are quite a big market – it is predicted to reach the value of USD 380.92 billion by 2030. According to the Statista report, ad spending in this segment is expected to show an annual growth rate of 3.39% (CAGR 2022-2026). The mobile versions of classifieds portals and applications are also becoming more and more popular among users. Still, if classified ads’ applications’ owners want to keep up the good score, they have to provide users with more modern and effective methods of reaching their audience – in other words, they have to focus on efficient retargeting.
Not paying attention to the classifieds may be a mistake, because in fact, classifieds are not dead yet, they are just transforming. Online classified ads publishers enhance their services (eg. by focusing on implementing AI-based solutions) in order to help companies to promote their products better. Dynamic growth of the classifieds segment clearly shows that companies should learn more about it and consider leveraging classified ads in their sales strategy in the future.
Read also: Classified Ads and Their Journey Through Time
Why should AI be used by classifieds platforms?
Those who shop online on classifieds websites for pre-owned goods (for example vehicles), usually take the time to conduct extensive research before they decide on a purchase. After a transaction, a person that bought something through the classifieds platform often disappears from the market for quite some time. Leveraging Deep Learning helps to better understand needs, preferences, and shopping habits in real-time, so the right ads can be displayed at the right moment, in order to increase the possibility of purchasing by the customer.
Applying Deep Learning in online classified ads platforms helps both website owners and customers. With better, AI-based targeting, companies that publish their offers on classified ads websites can reach the right group of clients at the right moment and with the right ads. As a result, they can sell their products faster, without bothering clients with ads, after they have already bought a given product. AI also prevents losing a customer to another platform. Consumers can find what they are looking for in no time, without constantly being attacked by aggressive ads. This improves UX significantly, by eliminating the risk of ad fatigue. This is a win-win situation, as both buyers and sellers end up satisfied.
What are typical challenges of the classified ads market?
There are certain challenges in the classified ads market that can be solved with advanced AI-based solutions:
Right timing – In classifieds websites, each category requires optimal timing and personalization to achieve good results. Many users look for a product for a while and then completely disappear from a given market for a long time (as in the case of buying real estate through classifieds). Reaching them faster than their competitors is crucial. This is where Deep Learning technology comes in – it enables companies to target the right user with the right offer, at the right time.
Growing the campaign in a sustainable way – As solutions based on Deep Learning are capable of becoming more efficient over time, you can count on increasing your profits after a while without unreasonable expenses.
Complex customer requirements – consumers have multiple requirements regarding the products they are searching for (color, date of production, features, price, location etc.). AI solutions simply go through clients’ data to learn their preferences. Then they can be provided with the proper offers faster with Deep Learning solutions.
How is Deep Learning used to increase the effectiveness of online classified ads?
Deep Learning technology is inspired by neurons in human brains. The DL-based systems are capable of learning from experience and improving over time. The real potential lies in the ability to learn from data. If you decide to leverage the power of Deep Learning, your efficiency will become better and better. Great results can be achieved with reasonable costs. AI-based solutions also allow you to reach potential customers with content that can motivate them to make a purchase. Additionally, the process of adjusting and personalizing ads is automated and performed based on data collected in real time. Deep Learning makes advertising with classifieds easier and more effective.
Deep Learning leverages unstructured data – the information stored not only in text, but also images and sounds – further than machine learning. This way, with solutions based on this technology, ads publishers are able to assess the current preferences of each customer in real-time and adjust the advertising approach to achieve the best results. Solutions that leverage Deep Learning can identify the target group for each seller and optimize their efforts automatically.
The power of retargeting
Let’s assume that you are a classified ads website owner, and would like to improve your platform retargeting capabilities, or you run a company that sells cars, and you use classified ads to reach your potential buyers.
An online customer visits a website and previews some vehicle offers on the website. Special algorithms go through every detail of a user’s visit and stage of the purchase (web activity, vehicle specifications, history, behavior, etc.). These algorithms analyze the customer’s needs and preferences carefully in order to come up with car recommendations that go far beyond typical suggestions, as they are tailored to the needs of the individual.
The benefits of using Deep Learning in the classified ads segment
Find out why using Deep Learning on the online classified ads market will help you achieve success.
Better targeting
Classifieds are an extremely competitive market, because certain groups of customers are active for only a limited amount of time. Thanks to the advanced analysis of a user’s needs and behavior, ads publishers can reach each person with the right, personalized ads. By leveraging Deep Learning, companies can simply reach potential customers faster than others.
Highly personalized campaigns
Neural networks in Deep Learning allow DL-based systems to analyze customer’s data in a manner that an actual person would do, but with a much higher efficiency. The capability to analyze enormous amounts of data simply helps to optimize campaigns, so the user is provided with a highly personalized message. This improves user experience and builds their loyalty towards the classifieds ads platform.
Advertising process automation
With Deep Learning, the publisher doesn’t have to worry about adjusting their campaigns – it is all done automatically after a detailed analysis. Marketing automation is important for many brands, as it increases the efficiency of advertising and allows marketers to spend their saved time on more important tasks. Automation also eliminates manual mistakes, so it is the way of optimizing campaigns.
Increased efficiency over time
Deep Learning models work better over time. The larger the datasets are, the more accuracy a publisher can hope for. Such an advanced solution is a great investment, mainly because it does not force you to put more and more money in the campaign. It simply improves its performance.
Do you want to learn more about Deep Learning solutions in classifieds advertising? Contact us.
