
Today, the collection, normalisation, and activation of user data are increasingly at the centre of many brands’ strategies. Creativity and personalisation of messages, content, and, more generally, the entire customer journey, can only start from an in-depth analysis and understanding of one’s users.
One of the biggest challenges brands face in a context where third-party cookies have lost their value and privacy regulations are stricter, is adopting new approaches to maintain effective personalisation. This translates into putting zero- and first-party data at the centre of the strategy.
Furthermore, we cannot ignore the enormous advances in AI, which today offer unparalleled assistance in enhancing strategy and personalisation activities, helping brands grow and reach their target audience.
Focusing as much as possible on the target customer is the best way to predict habits and adapt advertising in a more personalised way.
Here’s a look at the role of AI in personalised advertising.
Why Use Artificial Intelligence in Your Business?
There are numerous benefits for companies that decide to adopt AI in marketing. One of the most significant and useful functions of AI is its ability to process and analyse large amounts of complex data quickly.
Customer Analysis, Behavioural Targeting, Personalised Advertising, and Optimisation
AI enables the analysis of customer behaviours and the identification of patterns that help create personalised experiences. By analysing data, algorithms can make predictions by identifying customer interests, needs, and behavioural patterns. Advertising can then be more targeted, offering personalised experiences for each customer. For instance, social media platforms may show product recommendations based on specific interests.
Optimisation
AI also helps optimise advertising in real-time. Thanks to data analysis, marketing teams can make immediate changes to improve campaign effectiveness. If a campaign is not yielding the desired results, AI can detect and correct the issue swiftly.
Automation
Another great advantage AI brings to marketing is automation. Tools and resources based on advanced technologies allow marketing teams to create personalised experiences for their customers, both individually and simultaneously. The best part is that teams don’t have to do anything; they simply set parameters, and AI takes care of the rest, even in areas such as push notifications, where timely and relevant communication can be automated to enhance interaction and customer loyalty.
Customer Retention
Another critical aspect of a company’s success is building trust with customers, so they return and increase their loyalty. With AI, the possibilities are endless to improve efficiency and increase customer satisfaction, strengthening connections and ensuring repeat business. AI continuously improves, offering even more ways to build individual relationships with customers.
How Artificial Intelligence Works
One of AI’s main functions is analysing customer behaviour and gathering this information to create personalised experiences tailored to each individual user. AI examines various aspects of the customer experience, such as:
- purchase history;
- demographics;
- websites visited;
- search behaviour;
- social media activity.
AI analyses data from various sources, including both first-party and external properties, to create a detailed profile of potential buyers. Demographic information helps identify characteristics such as age, gender, location, and interests to offer more targeted experiences.
AI’s predictive ability is equally remarkable: it can analyse past activities to make accurate predictions about which products or services may spark interest and whether a customer is more likely to make a purchase. It also predicts which social media channels are most likely to be used.
Advertising campaigns can be personalised according to the patterns and behaviours identified by AI. Using external services or marketing agencies experienced in AI can be useful to take full advantage of these opportunities, tailoring your promotions and campaigns to customer preferences, with practical tools, such as cookie-free advertising, to increase sales and profitability in record time.
Examples of Artificial Intelligence in Advertising
Numerous examples of companies using AI for more personalised advertising are evident today. Some successful marketing campaigns have enhanced the customer experience and increased engagement.
Amazon
Amazon’s product recommendation system uses an AI algorithm that analyses customer behaviour, purchase history, and product searches to suggest more relevant items based on customer interests and desires. This has led to a significant increase in sales and helped the company establish itself as one of the largest e-commerce platforms globally.
Sephora
Sephora has integrated AI in the form of a ‘virtual try-on’ function, where customers can find the most suitable make-up product for their needs, taking into account factors such as skin tone, skin problems or special requirements. This enabled customers to find more satisfying products and enhanced Sephora’s reputation as a leader in the beauty industry.
Netflix
Streaming platforms like Netflix also use AI to help users decide “What to watch?”. Algorithms analyse viewing habits and suggest content based on users’ interests. This has contributed to increased engagement and solidified Netflix’s position as one of the most popular streaming platforms.
The Future of AI in Personalised Advertising
One of the main concerns about using AI in marketing is privacy, as AI requires vast amounts of customer data to function. Customers may feel uncomfortable sharing too much personal information.
However, the use of AI in marketing continues to grow and evolve, so it’s crucial for companies to use it responsibly. It’s important to be transparent with customers and give them the option to opt out of tracking if needed. Educating customers on how AI is used ethically and responsibly can also be helpful.
With AI’s evolution, we can expect to see even more sophisticated and personalised advertising campaigns, with new integrations that will make ad targeting more effective. AI will be integrated into other technologies to create more immersive experiences. At the same time, businesses will better understand their ideal customer, improving their advertising campaigns and marketing strategies.
By combining data and creativity, companies can create a balance that allows them to meet individual customer needs while collecting and protecting their data. The connections generated by personalised advertising experiences can be applied across various industries, allowing businesses to develop and implement more effective advertising campaigns that make a significant impact and contribute to building customer loyalty.
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