As the marketing landscape transitions towards a cookieless reality, the world of performance marketing must adapt. With over 20 years of experience in the industry, NetElixir has developed an innovative approach to address these changes: AI-powered experimentation. Udayan Bose, NetElixir’s CEO, shared insights into the evolving performance marketing industry during his appearance on the Ecommerce Fastlane podcast. Key topics discussed included the challenges posed by platforms like Google Performance Max and Meta Advantage+, and our pioneering approach to breaking the “black box” model.
Breaking the Black Box
In today’s marketing landscape, platforms like Google Performance Max and Meta Advantage+ leave marketers in the dark about their inner workings, operating as “black boxes.” This lack of transparency can limit marketers’ control and understanding of their campaigns. Reflecting on his career journey, Udayan reminisced about the transparent nature of the industry 20 years ago during his conversation with host Steve Hutt:
“I can’t help but think back to 2004 when everything was transparent, and transparency attracted all of these customers. Had it been a black box then, I don’t think as many advertisers or marketers would have joined the paid media advertising ecosystem as we know of it today.”
On average, up to 50% of traffic on a typical Shopify site comes from paid search efforts on platforms like Google and Meta, where the black boxes are prominent. At NetElixir, crafting LXRInsights was driven by the desire to break this ‘black box’ concept and empower our customers with control of their campaigns.
Bose emphasized: “You can’t really let 50% of your entire business be driven by a black box situation where you have very limited control. So we said: how can we go about creating the control?”
The Power of AI-Powered Experimentation
AI-powered experimentation marks a pivotal shift in performance marketing. Leveraging machine learning and first-party data, advertisers can achieve unprecedented precision and effectiveness in their campaigns. Bose elaborated on the significance of experimentation in the current landscape:
“We believe in this new world of black boxes, experimentation is the only way we can find out what works and what doesn’t.”
NetElixir’s solution, LXRInsights, represents a breakthrough in performance marketing. Our proprietary AI marketing platform operates within your owned first-party data, ensuring control and autonomy over valuable customer information. With our new experimentation module incorporating “micro experiments,” the platform optimizes audience signals within advertising campaigns. By splitting campaigns into control and test groups, we’ve seen up to a 300% improvement in performance.
The Future of Performance Marketing
At NetElixir, we are leading the charge in this new era of performance marketing. From breaking the ‘black box’ of advertising to leveraging AI for customer segmentation, the future is sky high. Our Experimentation module in LXRInsights is just the beginning of the future of the performance marketing industry over the next two decades.
Listen to the full podcast episode to explore the full discussion and visit netelixir.com/ecommercefastlane to schedule a demo of LXRInsights.
