AI has initiated a seismic shift in the way brands and advertisers collect data to build effective and efficient strategies to target their audiences. Today, AI can help businesses identify and automate complex processes, personalize content, and draw stark predictions that generally would be impossible to do by the human mind.
In image above: Lovetto Nazareth, Managing Director, Prism Digital.
As an expert in AI-driven performance ad targeting and marketing, I have witnessed the power of AI in enabling a strong conversion rate from performance-based campaigns. This is how AI can help:
- Improved targeting: AI can analyze customer data, such as browsing and purchase history, to identify patterns and predict the products or services they are most likely to be interested in. This allows businesses to create highly targeted campaigns that reach the right people at the right time with the right message, increasing the likelihood of conversion.
- Personalization: AI can use customer data to create highly personalized campaigns tailored to each individual's needs and preferences. Businesses can increase engagement and conversion rates by delivering customized messaging and offers.
- Optimization: AI can analyze real-time campaign performance data, making adjustments and optimizations to improve results. This allows businesses to refine their campaigns and improve their effectiveness continually.
- Predictive analytics: AI can use machine learning algorithms to predict customer behavior, such as the likelihood of purchasing or churn. This allows businesses to proactively take action to retain customers or drive conversions, improving overall ROI. AI can help companies better understand and engage with their customers, leading to increased conversion rates and ROI. By leveraging the power of AI-driven ad targeting and marketing, businesses can stay ahead of the competition and deliver personalized, relevant messaging to their customers.
- Optimization: AI can analyze real-time campaign performance data, making adjustments as and when required. AI can help businesses better understand and engage with their customers, leading to increased conversion rates and ROI. By leveraging the power of AI-driven ad targeting and marketing, companies can stay ahead of the competition and deliver personalized, relevant messaging to their customers.
Here are five examples of AI-driven campaigns where the ROAS was more than 50% and the campaign was very successful:
- A popular hotel in the UAE used AI to create a highly targeted ad campaign focusing on customers flying in from Russia to the UAE. Historical data on travelers was gathered using the global travel technology solution provider – Amadeus. With this data, the brand was able to predict the audience's potential travel dates to the UAE and target Russians with ad campaigns online. Based on highly trackable data on the targeted audiences' travel plans, the best deals were provided to right before they initiated their booking for summer.
- Travel and tours agency, specializing in adventure tourism, saw a spike in bookings for their sea cruises and other adventure tours with the help of an AI platform that helped the agency analyze search data and identify customers who were actively searching for adventure travel experiences. Highly personalized campaigns offering discounts with messaging that spoke directly to their interests were curated. As a result, the business saw a 68% increase in bookings and in ROAS by 60%.
- A popular beauty brand specializing in natural and organic skincare products wanted to target skincare enthusiasts wanted to increase sales of their anti-aging line. By analyzing social media data and search behavior using AI, the brand was able to identify users actively searching for anti-aging products. Targeted campaigns educating these users on the benefits of cruelty-free skincare were curated, resulting in a 53% increase in sales and a ROAS of over 70%.
- In the case of a food delivery service specializing in healthy meals, search behavior and social media data drew customers looking for healthy-eating options. Niche-targeted campaigns featuring healthy meal options and nutritional benefits of were curated, resulting in a 58% increase in sales and a ROAS of over 50%.
- A fitness supplement brand that sells workout gear and accessories, wanted to increase sales among gym-goers targeting gym-goers fitness. By analyzing social media data and search behavior, customers who were interested in fitness and actively searching for workout gear and supplements. We then created highly targeted campaigns that featured customer reviews and highlighted the quality and effectiveness of our client's products. This resulted in a 62% increase in sales and a ROAS of over 80%.
The methodology used to create and execute these campaigns involves vital steps. First, the data is analyzed from various sources, including search behavior, social media data, and customer data, to identify customers most likely interested in our client's products or services. Then this data is utilized to create highly targeted campaigns tailored to each customer's individual needs and preferences. These campaigns featured personalized messaging, customized offers, and relevant content that spoke directly to customers' interests.
Next, machine learning algorithms are used to optimize the campaigns in real time, making adjustments based on our collected performance data. This allows the agency to refine the campaigns and improve their effectiveness over time continually. Finally, advanced analytics tools are used to measure the ROI of each campaign and identify areas for further optimization. By leveraging the power of AI, campaigns are largely driven through Hyper-Targeting, personalization, and Optimization which delivers campaigns with High ROAS.