5.4 Smart-Technologies-The-Future-of-Personalized-Digital-Advertising

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Smart Technologies The Future of Personalized
Digital Advertising
by Jitendra Tomar
JT
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Smart Technologies The Future of Personalized
Digital Advertising
Explore how smart technologies are
revolutionizing digital advertising. Discover the
power of hyper-personalization. Personalized ads
show significantly higher conversion rates. This
presentation will cover the smart tech driving
this revolution.
by Jitendra Tomar
JT
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The Power of Data Fueling Personalized Ads
First-Party Data
Second-Party Data
Third-Party Data
Website interactions and purchase history provide
valuable insights. Track app usage to better
understand preferences.
Partnerships and data sharing agreements boost
insights. Ensure trusted sources for reliable
data.
Demographic and behavioral data offer broad
targeting. Consider privacy changes and ethical
implications.
Sephoras Beauty Insider program exemplifies data
use. They offer personalized product
recommendations.
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AI Machine Learning The Engines of
Personalization
AI Algorithms
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Analyze vast datasets. They identify patterns to
predict user behavior accurately.
Machine Learning
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Continuously refine targeting. Optimize ad
content for better performance over time.
Netflix uses ML to recommend shows/movies. This
drives 80 of streamed content, a massive
engagement boost.
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Real-Time Personalization Moments-Based Marketing
Trigger-Based Ads
Location-Based Offers
Ads appear based on real-time user actions.
Example abandoned cart reminders are effective.
Promotions tailored to a user's current location.
Drive foot traffic with relevant nearby deals.
Starbucks app offers location-based deals. This
increases foot traffic by 15 for the coffee
chain.
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Cross-Channel Personalization Seamless User
Experience
Consistent Messaging
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Maintain messaging and offers across web and app.
Unified Profiles
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Customer profiles offer a holistic customer
journey view.
Social Media Integration
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Maintain consistent messaging across all channels.
Amazon delivers personalized product
recommendations. This occurs via email, app
notifications, and the website.
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Privacy-Preserving Personalization Building Trust
Ethical Data
Collect data ethically. Use transparent data
policies.
Anonymization
Anonymize data to protect user identities
effectively.
Compliance
Comply with GDPR and other privacy regulations.
DuckDuckGo prioritizes privacy. Their search
results do not track user data at all.
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Smart Ad Creatives Dynamic Content Optimization
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Real-Time Adaptation
Demographic Based
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Maximize Engagement
Dynamic Headlines
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Google Ads use responsive display ads. They test
multiple ad variations automatically.
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The Role of IoT Extending Personalization to New
Touchpoints
Generate Data
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Connected devices generate valuable user data.
Smart Homes
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Understand IoT behaviors better.
Connected Cars
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Generate personalized experiences
A smart fridge suggesting grocery deals is a good
example. The suggestion is based on food
inventory.
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Measuring Success Key Performance Indicators
(KPIs)
6x
15
Conversion
Foot Traffic
Measure ad relevance, the effectiveness of
personalized ads and profitability.
Measure the long-term impact on customer loyalty
and brand advocacy.
80
Streamed Content
Track the efficiency of conversions and the
return on investment for all advertising.
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The Future of Personalized Advertising
Predictions and Opportunities
AI Growth
Privacy Focus
AI and machine learning capabilities will
continue to grow.
There will be an increased focus on privacy
technologies and privacy-enhancing measures.
Channel Expansion
Expansion of ads to new channels and platforms
like Metaverse is expected.
Prioritize the collection and application of
first-party data. Adopt AI and machine learning
for better outcomes.