Consumers are increasingly looking for personalized ad experiences with 56% expecting all their experiences with a brand to be personalized. Additionally, 59% of customers say tailored engagement based on past interactions with a brand is very important to winning their loyalty.
Cognitive ads take personalization to the next level by using real-life consumer behavior and intricate data to understand audience behavior.
The result is audiences who can reap the benefits of personalized messaging, at the right time, and when they want to see it.
Increased ROI:
Greater ad personalization means users are less likely to be annoyed by unwanted ads and may appreciate the messaging put in front of them. Engagement opportunities can increase and move more swiftly down the sales funnel, which can mean greater ROI for your company in the long term. In fact, 60% of consumers say they will become repeat buyers after a personalized shopping experience with a retailer.
Higher engagement:
Cognitive ads are not just limited to desktops. They can be utilized on various touchpoints including kiosks and mobile apps.
According to the recent (2023) State of Engagement report by Marketo, the most popular touchpoints to drive purchases are website (53%), email (49%), and chat (41%). The more touchpoints available, the higher engagement a business can expect, especially when it’s messaging resonates with their audience’s beliefs and attitudes.
Additionally, tools like conversational AI can tailor the customer experience in real-time based on a consumer’s interest and feedback.
By leveraging interactive marketing tools, like machine learning chatbots, your team can create drive engagement and loyalty.
Greater brand loyalty:
When users are consistently presented with positive messaging that resonates, brand loyalty can increase.
Cognitive ads are all about building a deeper relationship with their target audience through data science. When a consumer can feel that connection, they’re more inclined to come back.
Cookieless targeting:
Privacy matters to modern consumers.
Sixty-nine percent of those surveyed in Twilio Segment’s State of Personalization Report 2021, say they appreciate personalized experiences based on the caveat that they’ve freely shared this information with the organization before.
Privacy has also been at the forefront of advertisers’ minds. With the emergence of stricter regulations and loss of cookies, brands need to find new solutions to target audiences without seeming invasive. Cookieless targeting enables advertisers to create personalized experiences without the reliance on third-party cookies. This kind of targeting has and will continue to become increasingly important to consumers and regulators alike who are concerned about privacy and meeting compliance standards in their industry.
There is still a great discrepancy between what businesses think they are delivering in terms of personalized experiences and what consumers are perceiving.
While 85% of businesses say they are providing personalized experiences to consumers, only 60% of consumers think so.
Contextual advertising can be a beneficial way to deliver a personalized experience, without relying on cookies.
AI can deliver relevant messaging to target audiences by analyzing the content of the correlating page. For example: If a future bride is investigating wedding dresses, ads for other wedding necessities would be appropriate.
Contextual ads take the ability to place advertisements appropriately and deliver this at scale, creating more personalized web experiences.
Source:An Introduction to Cognitive Advertising | IBM Watson Advertising Thought Leadership. (n.d.). Www.ibm.com.