Friday, March 13, 2015

Predictive Advertising

Digital advertising is experiencing a converging trend towards true personalization (or personalization at the 'person' level rather than a customer demographic or segment level). It started by grouping search intents together so a 65 year-old man in Wisconsin shopping for a digital SLR camera was treated the same as a 15 year-old in Miami looking for the same search term. From there we saw demographic and action based targeting through Facebook and other platforms. And then retargeting enabled targeting a specific customer with their specific action. Ultimately, companies may 'pre-target' customers based on their profiles that are carefully created, nurtured, and monitored by brands says this article:

If a customer places a fresh direct order every other week, can agencies target them with a coupon from a competing grocery delivery service just before their next order? Or even better, can companies guess which product you want without you even knowing that you want it? A new shoe that you don't know is in the market is marketed to you because your digital profile computes that you are the ideal candidate to spend $250 on a pair. As machine learning advances, privacy concerns are mitigated, brands earn customer trust, and computational power and cloud services become omnipresent, one can see this future of predictive advertising.

No comments: