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Markov Chains - AI Terms

Markov Chains

Definition

Markov Chains are mathematical models that predict future outcomes based on a sequence of prior events. In content marketing, they help identify how customers move between different touchpoints—from ad clicks to final purchases.

This entails knowing which steps have the biggest impact on conversions for a digital marketing agency in New Zealand. Instead of crediting the last click alone, Markov Chains give a clearer view of each interaction’s value, helping marketers optimise budget allocation. SEO experts use similar models to trace how users navigate between pages and determine which paths lead to the highest engagement or conversion. This data-driven approach supports performance marketing by revealing the true impact of each marketing channel on ROI.

An SEO agency can apply Markov Chains to analyse how visitors progress from blog articles to service pages, then to inquiry forms.
Result: Clear insights into which content types or keywords most influence conversions, helping marketers refine their content strategy.

Formula

Formula:
Transition Probability = (Number of Transitions from A to B) ÷ (Total Transitions from A)

Example:
If 300 users move from a blog page (A) to a product page (B) out of 1,000 total transitions from A,
Transition Probability = (300 ÷ 1000) × 100 = 30%.
This means 30% of readers are likely to move to the next conversion step—useful data for performance marketing optimisation.

Key Takeaways

  1. Predicts how users move across different marketing touchpoints.
  2. Helps digital marketing agencies in NZ optimise attribution models.
  3. Assists SEO experts in improving content flow and engagement tracking.
  4. Strengthens performance marketing by identifying high-value paths.
  5. Encourages data-backed decisions to increase conversions and ROI.

FAQs

What are Markov Chains in marketing?

They’re models that predict customer behaviour by analysing past interaction sequences.

How do they benefit a digital marketing agency in NZ?

They help map user journeys and show which touchpoints lead to conversions.

Why are they valuable for SEO experts?

They reveal navigation patterns that improve website structure and user flow.

Can Markov Chains enhance performance marketing?

Yes — they help assign accurate credit to every marketing channel.

How do they improve content strategy?

They show which content pieces move users closer to key business goals.

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