An algorithm is a defined set of instructions or rules that are used to perform a specific task or solve a problem. In the context of marketing, algorithms are often used to analyse data, identify customer segments, optimise advertising campaigns and much more. In digital marketing, algorithms are particularly important for the functioning of search engines and social media.

Search engines such as Google use complex algorithms to evaluate the relevance of websites for certain search terms and rank the search results accordingly. This has a direct impact on search engine optimisation (SEO), a key discipline in digital marketing. A good understanding of the underlying algorithm enables marketers to design their content in such a way that it is more visible and easier to find.

In social networks such as Facebook or Instagram, algorithms determine which content is displayed to users in the newsfeed. This in turn influences the reach of advertising content and organic posts. By analysing the algorithm, companies can adapt their social media strategy to achieve a higher user engagement rate and better conversion rates.

In the programmatic advertising sphere, algorithms use real-time data to decide which adverts should be shown to a particular user and in which context.

As algorithms are constantly being adapted and updated, it is crucial for marketers to constantly educate themselves to ensure the best possible performance of their campaigns.