AI is the talk of the town these days, and in marketing, AI personalization is quickly becoming a way for businesses to gain deeper insights into their targeted audience than ever before. At Claritas, our AI engine, Clair, is leveraging our patented and advanced technologies to use media analysis to conduct real-time learning in order to improve the customer journey. The end goal of this predictive modeling is to increase engagement with more relevant content, helping to understand the different behaviors of each user base so it can make personally tailored decisions.

In this blog, we’ll explore the impact of AI personalization marketing and why strategically implementing the right tools for your business can lead to increased accuracy, speed, ease of use, and scale in your efforts to reach your intended user base in a constructive manner.

Benefits/Advantages of Using AI in Personalized Marketing

The main purpose of nearly every artificial intelligence tool is to learn over time and streamline a certain process. In essence, AI aims to become as efficient as possible to determine the most consequential variables it encounters while interacting with different users. Here are a few ways that AI personalization has become advantageous for marketing to specific individuals.

• Enhanced Targeting for Better User Experience – Understanding customer behaviors and other characteristics leads to more personalized strategies that resonate with the intended audience, leading to greater engagement potential.
• Customer Clarity and Understanding – Learning based on interactions and preferences can lead to tailored campaigns that focus on customer interests and allow them to realize the reason they’re being shown a specific creative or type of ad.
• Uncovering Previously Unknown Needs – Ongoing analysis can reveal new insights and trends that will help refine targeting and means of personalization.
• Real-Time Optimizations – AI diligently categorizes certain actions and makes adjustments to deliver the most efficient impact possible, improving the customer journey.
• Lower Costs – More deliberate targeting methods increase efficiency and may lead to an increase in conversions, lowering costs and increasing brand loyalty and reputation.

Examples of AI Personalization

There are quite a few ways you might encounter AI personalization marketing in the wild today. Marketers are leveraging this technology to create highly tailored customer experiences.

For instance, dynamic product recommendations based on browsing history, personalized email campaigns triggered by specific behaviors, and real-time ad adjustments based on user preferences are becoming commonplace. By understanding individual needs and preferences at a granular level, businesses can increase engagement, drive conversions, and foster stronger customer relationships.

While marketers have begun to leverage AI for specific campaign elements, a holistic, end-to-end AI-driven approach has been elusive. Until now, AI applications have been fragmented across the marketing lifecycle, hindering the realization of its full potential

To fully unlock AI’s potential, marketers must adopt a holistic approach that spans the entire marketing lifecycle, one that’s focused on optimization from start to finish. By integrating AI from campaign conception to measurement, businesses can optimize every touchpoint, leading to increased efficiency, higher ROI, and a deeper understanding of customer behavior. Click here to see how MLB leveraged Claritas’ AI Personalization to drive ticket sales.

How Claritas’ AI Redefines Optimization

AI can be incredibly helpful in refining the overall dynamic of multichannel campaigns, helping businesses implement more comprehensive strategies to bolster their overall marketing initiative. The following optimizations can be automatically achieved through data gained from AI analytics:

• Optimize Metrics – AI focuses on your targeted key performance indicators (KPIs) and makes educated adjustments to get the most valuable conversions.
• Optimize Channel – Based on KPIs, AI will direct you to the most effective channels to reach your intended audience, while also keeping budget in consideration.
• Optimize Audience – Segmented audiences allow for more intentional targeting that can be personalized based on a larger number of customizable factors. AI can play a pivotal role in creating specific cohorts from your targeted audiences based on specific behaviors different consumers take across their customer journey either with your brand or the brand of the client you’re representing.
• Optimize Creative – Based on its continuous learning, AI helps customize creatives based on understanding which elements resonate with an audience, comparing media like images, text, and video against each other and prioritizing based on performance.

AI Built on The Claritas Identity Graph

One of the most exciting tools we have at Claritas is our Identity Graph, which uses our patented technology to tie together over 40 billion data points monthly to produce the highest-def portrait of each customer and prospect. This proprietary data helps you better understand who your customers are and how they interact with your brand, what the best way to reach them is, and how to optimize your budget effectively.

The Identity Graph has the ability to gain analytics from nearly every household and is continuously applying data and behaviors of over 2.5  billion devices, all while maintaining validation methodology that ensures personal privacy compliance is being adhered to. Our priority is helping deliver relevant ads to the correct people, and we do this by allowing AI to point you toward the most accurate linkages as provided through our comprehensive analysis of a consumer.

In many ways, this is a perfect example of how Claritas uses creative AI personalization in our own business model to further improve our clients’ experience.

How AI is Used Responsibly

The most powerful use of AI in marketing is its ability to harness a plethora of personal information that’s accessible across user devices and the levels of authentication they use when accessing the digital ecosystem. These can include IP addresses, emails, physical addresses, and mobile IDs to information on demographics, financial status, media and technology usage, buying behavior, and more.

Claritas works together with industry leaders to make sure we comply with all regulatory privacy changes and evolving guidelines. We understand how important it is to keep individuals’ information safe, and we recognize the ethical obligation we have as owners of proprietary data. While we aren’t ascribing a name and face to the data, Claritas still strives to show each user ads that are truly applicable to their life and interests based on information that’s public.

The Future of AI Personalized Marketing

Though AI is already very much present in our digital lives, its influence will only continue to be more prominent as time goes on. Prediction monitoring is only going to get better, and as personal devices and systems become increasingly connected, contextual advertising will only become more accurate and personalized to meet the specific expectations of intended customers. Many AI tools are being developed and tested actively, so it will be imperative that companies prioritize privacy while looking for viable discrepancies worth sorting by.

Challenges of Using AI Personalization in Marketing

As we’ve already touched on several times, privacy continues to be the greatest concern among both businesses and consumers when it comes to leveraging AI in an efficient, yet ethical manner. While it would be ideal for every internet user to simply opt-in to terms of service and other network agreements, the growing awareness of this information sharing has caused many to become skeptical of who’s viewing their data and what it’s being used for.

This is why it is so important to assure your customers that you follow all federal regulations and promise their personal data will be secured. It removes uncertainty about how your activity is being repurposed and subsequently aims to increase targeting efficiency rather than showing you irrelevant things. Ultimately, AI algorithms hope to only serve useful content. Claritas is currently taking on many of these challenges in AI for marketing as we speak.

IDO – Identify, Deliver, Optimize

The specialty services provided by the Claritas platform allow our clients to identify, deliver, and optimize their marketing strategy using our propriety data. Using the Claritas Identity Graph, companies can identify their prospects using 2,500 Syndicated Audiences built from over 10,000 demographic and behavioral attributes. You can then prioritize these insights to ensure your particular campaigns reach their intended audience. Finally, using the AI tools provided in our robust platform, you can optimize your marketing efforts to hit your specific KPIs.

AI Personalization Marketing for Enterprises/Large Companies

The benefits of AI are easily seen by large corporations because of the sheer scale of their customer base. Since they usually have many more individuals to acquire data from, they can compartmentalize much of it and run more complex campaigns as a result. This allows for more enhanced targeting, leading to a better user experience and a higher rate of conversions.

Advantages of AI Personalization for Small Businesses

When it comes to smaller companies, AI is generally used to be more cost-effective. This permits them to focus on even more granular audiences while also saving time and money by not serving impressions to uninterested parties. It can also help these tailored businesses gain more insights about different segmentations, helping them compete with larger competitors.

Claritas is leading the way in specialized, performance-based marketing that leverages the power of our patented AI. Using 10,000+ highly predictive demographic and behavioral indicators and the most comprehensive multicultural data, our proprietary data assets give marketers the most complete understanding of the American consumer.

Sign up to harness the power of our analytics, modeling capabilities, and multichannel execution solutions and begin making the most of your marketing budget with Claritas today.