Why personalized advertising is the future: insights from our agency

Personalisation is how customer insights are used to increase the relevance of an ad to that particular individual. The insights include anything from demographic information to specific interests, purchase intent, and buying behaviour. The one thing that users despise when it comes to online advertising is irrelevant ads.

Whether one is scrolling through social media, reading an article, or watching videos on YouTube, seeing advertisements that have no relevance to one’s needs or way of life is annoying. If you’re a brand that invests in advertising, you want to be sure ad spending results in sales.

How do you reach audiences that are most likely to buy?

Personalisation of ads has to do with using customer insights to make an ad more relevant to a particular person, as described above. The insights available could include basic demographic information but could also encompass specific interests targeted, purchasing intent, and buying behaviour. An example would be how an ad from Google is assumed to be personalised if it depends on previous or historical data to determine or influence which ad it is showing to users, including such things as their previous search queries, site visits, demographics, location, etc.

Personalised marketing campaigns, using data, show that one truly cares to understand their customers and reach them with appropriate messaging, wherever in the process they might be.

Although ad personalisation can be a very controversial subject because of privacy concerns among consumers, it still is one of the most powerful tools, provided it is used correctly. Indeed, personalised ads have not stopped being an important part of the marketing toolkit, even as rules related to the collection and use of consumer data evolve, like the European Union’s General Data Protection Regulation (GDPR).

72% of consumers said they would only engage with personalized marketing messages. In many instances, shoppers feel like ad personalisation helps them discover new products and reminds them to re-order products they have already purchased.

A study from Accenture puts things even further into context: 83% of consumers are willing to share personal information to allow brands to create personalised experiences. At Blueantz Advertising, we offer a wide range of digital marketing services in India designed to meet the unique needs of our clients. We build and nurture relationships with your audience through personalised email campaigns and ads.

EMERGING TRENDS IN PERSONALISATION AND HOW THEY WILL SHAPE THE FUTURE OF ADVERTISING

A trend in digital marketing is to personalize which has been taken over by AI-driven personalization that changes the way brands have access to their audiences.

This is what personalization looks like today:

Personalization is predictive and proactive, able to predict what a customer wants or needs before they even ask for it.
Image Recognition-the machine vision part enables companies to identify visual patterns and colours in images of products.
Hyper-personalization: An experience that is tailored to the unique needs of every user in a way.
Post on social media: Social Media platforms enable personalized and targeted marketing.

TYPES OF AD PERSONALISATION

How do personalised ads work? Advertisers have numerous tools to make their marketing messages unique. Whether you are looking to create a personalised display or video ads, the following are the types of personalisation that can see to it that your marketing message gets to the right address audience.

DEMOGRAPHIC PERSONALISATION

Demographic personalisation is a marketing copy that is personalised according to demographic information about the target audience. Common factors for demographic personalisation include, but aren’t limited to:

Age
Gender
Income
Education level
Occupation
Marital status

Curious about what that looks like in practice? Think of a luxury car brand that targets older, more affluent demographics. Consider a brand that sells trendy fashion and targets younger age groups. Some ads have targeting and personalisation restrictions based on certain categories, especially ads about employment, housing, credit, and associated financial products. For such ad types, age, parental status, or gender-based audiences cannot be excluded.

BEHAVIORAL PERSONALISATION

Personalisation Behavioural ads are not as scary — when you personalise the ad toward behaviours, then that is what content gets targeted at a user’s online actions. Everything from web browsing, social media use and even things they buy on other sites. These behavioural insights could be used for personalised display ads and other content like:

Web Visiting: Times Online and Pages Checked are used to infer interest and intent.
Purchase History: Since it is a pattern of past behaviour which embodied personal preference, his/her purchase history provides hints regarding the types/products to recommend based on those that were either bought in the past or purchased alongside products (products whose likely use case are complimentary).
Click Patterns: Click patterns give a significant insight into the type of content, or product people like and thus can dictate ad quality.
Social media involvement: Facebook, TikTok or any other channel where users like; share and also comment on stuff gives a broader sense of what the bots are interested in.

Behavioural personalised advertising example- Now let’s think of someone who views a set of knives on Amazon but never ends up purchasing them. Maybe they will be retargeted with additional ads for knives on other websites such as social media via the Amazon advertising network.

PERSONALISATION BASED ON CONTEXT

This is slowly becoming one of the key areas for digital marketing — reaching a customer at just that time. My audience can be wiped out in one fell swoop. This lets you engage with your clients at the appropriate moment, ‘in situ’, as context-based personalisation. Here are even more granular context-level personalisation examples that let you specify when your ads show:

1. Geo-Location: For location-based, you can set your ads on those geolocations for visitors. Now imagine you’re a busy neighbourhood bistro. So you only want to display special offers at your bistro as people pass or when the lunch break starts.

2. Time–Of-Day: What matters to you and what matters to your audience is probably quite different depending on the time of day, week, month or year. A coffee shop that hypes its pre-noon brew before lunch, or a movie on-demand platform with loads of ads for new praises during the evening prime-time and weekends.

3. Weather-based: The ads that are shown can also be determined by what the current weather is. If the weather forecast for rain, clothing trade retailers can advertise parkas or umbrellas.

WHEREAS: if a person is experiencing sunshine, they are more likely to be served an image of shorts and tank tops.

4. Even a user’s device can personalise their ads. I can give you an example here: some websites look differently on mobiles and different on desktops. On the advertiser’s end, you may want to optimise for screen size or functionality.

Despite lacking personal identifiers from cookies, AI or ML can still use the enormous data available through multiple sources to identify patterns and preferences in human behaviour. This makes it very easy for advertisers to anticipate what their consumers will want and need.

COMMON OBSTACLES IN PERSONALIZED ADVERTISING AND HOW TO OVERCOME THEM

Personalised ads have to go through many challenges such as data quality pitfalls, privacy concerns and changing consumer behaviors. How some of these obstacles can be overcome:-

1) Data quality

The trouble is that poor data quality represents only one of many obstacles to personalization. Source: Marketing Sherpa: 2.1% of contact data expires every month. Better data means better decisions and contextual experiences.

2) Privacy concerns

Customer data when gathered increases the threat of making it vulnerable to unauthorized access. Personalization can also be invasive, and evoke a sense of privacy infringement from customers who may not see the benefit of personalized tools.

3) Ad blockers and tracking prevention

This can lessen the need for traditional types of advertising, together with the growing use of ad blockers and tracking avoidance programs. Market to tech-savvy customers without infringing on their privacy, shifting the way that consumers behave.

4) Changing Consumer Behavior

By adopting a data-driven strategy, search advertisers will be in a better position to adjust to and match the changing customer behaviour that these shifts are creating. Analytics tools should be used to track campaigns to observe how they affect customer behaviour.

HOW AI AND MACHINE LEARNING ENHANCE AD TARGETING

In a post cookies world, AI and ML take programmatic advertising to new heights and will shape the future by

— Targeted but no cookies

Optimize bidding violence

Higher Ad appeal and CTR Future-proofing of Programmatic Advertising.

CONCLUSION

Personalisation in digital marketing is no longer a charm; it is the need of an hour given that human beings are spoilt to have things their way, and also they do not wish to be one among the 2.5 Billion social media users world over who would get hit with random brute sales messages every day. Data mining course syllabus Internal Enumerator Such a demographic force is becoming increasingly sophisticated—increasingly able to gravitate toward and stick with brands that they believe have heard their considerable, deeply-held needs. Hyper personalisation enables marketers to do so, utilising various new technologies such as AI, big data and machine learning. The future of digital marketing is coming and marketers need to be ready! Agility is the key driver for organizations on their digital transformation path, which means they need to quickly respond and adapt to swiftly changing technology and business environments. Organisations need to deliver and overachieve what is expected of them more so in this day-age with a strong digital-first innovation-driven mindset. Agility — To truly future-proof your business, the game plan must be to enable businesses to sense, learn quickly and respond as a living organism otherwise firms risk falling behind. That is exactly what a holistic, but modular suite of solutions offers. Live Enterprise is arming organizations with:- Intuitive Decisioning at Scale- Real-time solutions led to Actionable insights – Anytime / anywhere experience leading to In-depth data visibility across domains resulting in hyper-productivity To shape connected enterprises that are transforming, collaboratively into the future.