What is Anomaly Detection and how it Benefits Businesses

What is Anomaly Detection and how it Benefits Businesses

Constantly finding optimizations, conducting tests, and making tweaks are very time-consuming. However, it’s necessary to improve conversion rates and different aspects of marketing performance.

While many of us these tasks by hand or through the use of tools, there’s a better way to do it in 2020. It’s called anomaly detection. This branch of AI is saving marketers mountains of time while significantly improving campaigns.

Want to learn how? Keep reading.

What is anomaly detection?

Anomaly detection is a branch of artificial intelligence that uses mathematical models and standard deviation to find data sets that stand out from the rest. Typically anomalies are rated on a scale of 1–3. One is a minor anomaly and three is the most serious. Businesses normally address stronger anomalies first before minor ones.

Depending on how anomaly detection is integrated into a business, anomalies can be underperforming PPC campaigns, high ROI target audiences, or other items that deviate from regular performance.

Anomaly detection and AI can be a tough thing to grasp, though. That’s okay. AI solutions are becoming much more user-friendly and automated. Clean interfaces and simple-to-understand dashboards make leveraging these tools easier than ever.

Let’s talk more about how anomalies can be used to benefit businesses next.

Anomaly detection business uses

These are some of the few ways that anomaly detection is transforming how we conduct business.

1. It saves time and energy to invest elsewhere

One of the greatest indirect benefits of anomaly detection is that it operates in the background to find bugs, tweaks, and optimizations. This means the company utilizing it will save lots of time versus manually finding these same things. Instead, AI will alert when there is suspicious data that should be addressed.

That saved time and energy can be invested in higher ROI tasks, as well. After all, testing, optimizing, and similar processes take up lots of marketers time. Wouldn’t it be nice to have it done for you?

2. Find the highest ROI customer profiles

Whether it’s for Google Ads or an influencer marketing campaign, narrowing down a hyper-segment that has the greatest engagement is crucial for successful campaigns. That’s where anomaly detection comes into the picture.

It is capable of analyzing different customer profiles used in campaigns to determine underperforming and overperforming traits. This might include location, age, or device, for example.

Companies can revamp their targeting to generate better engagement and returns versus continually wasting ad spend.

3. Underrated marketing and advertising elements

Sales copy, creatives, and display times are some of the many elements that make up a good marketing campaign. While a professional can spend time finding these needles in a haystack, anomaly detection does it automatically.

After running campaigns, AI marketing software finds the elements which perform better or worse than expected. For instance, there may be SEO keywords, topics, or other things that a company isn’t targeting, yet they are delivering a good result. In that case, it serves as a new opportunity to grow their business.

4. It keeps your company secure

Cybersecurity is more important than ever. Technology is advancing quickly which also means exploits do, as well. Anomaly detection acts as a silent protector, detecting rogue users, viruses, malware, and other security issues without the need to constantly monitor for them.

Organizations can operate as they normally would and address security breaches when they happen. Furthermore, you are capable of catching problems early and solving them before they get out of hand.

Outside of things like malware and viruses, human error is a recurring security problem in companies, as well. Whether it’s leaving a device logged in, pressing the wrong button, or forgetting to turn off a campaign, many accidents regularly happen. Anomaly detection is capable of finding these errors in real-time to alert you.

5. Balance budgets and spending

There’s no shortage of expenses that a business has: ad budgets, employees, software, tools, etc. Finding ways to save money and sustain a company financially takes sustained energy. This is why some are beginning to adopt anomaly detection to optimize their finances.

Financial anomalies that can be found include:

  1. Overspending in certain departments or campaigns.
  2. Not maximizing budgets in the best way possible.
  3. CPM based tools costing too much. (AWS, for example)
  4. What departments deliver the highest ROI.

This knowledge can be used to cut out processes that are costing too much while focusing on what generates the best financial results for an organization.

Conclusion

Anomaly detection is a highly sophisticated technology that companies can use to grow their business faster. It learns how a business normally operates and uses that data to find items that deviate from the norm. Alerts are then sent out to address these opportunities or issues.

The amount of time this saves is significant. Instead of searching for bugs and optimizations, marketers can focus on important projects and automate the mundane.

One way it does so is by narrowing down the most profitable customer segments. Breaking down audiences is crucial for the best targeting in marketing and advertising campaigns. Anomaly detection will do this on your behalf, removing lengthy testing and analysis.

It applies the same process to discovering lucrative SEO keywords, content topics, and other elements of profitable marketing campaigns.

Lastly, anomaly detection keeps a business safe as it scales. This gives professionals peace of mind knowing AI will detect threats in real-time and they can be addressed sooner.