Personalization has been a game-changer in the world of advertising. 80% of people who consider themselves frequent shoppers say they only buy from brands that personalize their experience. AI platforms like Memorable are reshaping advertising landscapes with innovative tools designed to enhance personalized advertising strategies. As the AI-driven advertising landscape evolves, fintech platforms must prepare for potential transformations in consumer spending behaviors and ensure seamless customer journeys.
The success of OpenAI’s ChatGPT has sparked a wave of enthusiasm around AI applications.
Why personalization is important
Applications of extended language models (LLMs) are typically at the forefront of generative AI discussions. These systems consume enormous amounts of data to learn billions of parameters, allowing them to take an input text and predict a specified output. However, the broader applications of this technology encompass a wide range of sectors, including advertising. With the rapid advancement of generative AI for images and videos, the marketing world has seen a deluge of content flooding the market. Yet marketers remain faced with the daunting challenge of investing in the right content – ad creative that not only maximizes performance, but also contributes to brand development without depleting budgets. Personalized advertising is the key to winning hearts and minds and tapping into a greater share of consumers’ wallets.
Increased personalization is the next frontier in advertising.
Machine learning allows advertisers to more effectively identify audience behavior patterns. AI models are able to analyze a wealth of consumer data more quickly to make more informed decisions about the type of content a cohort might want to see. This, in turn, leads to increased engagement and increased conversion opportunities. 64% of AI users say they believe that AI technologies enable them to generate a competitive advantage. Targeting the right audiences can help improve advertising effectiveness, allowing businesses to more effectively allocate the dollars and resources needed to improve their overall results.
Who are the key players?
A growing number of startups are developing AI tools to help marketers improve their personalization efforts. Although still in their infancy, these platforms have attracted the interest of a large number of high-profile investors, including TenOneTenPlug and Play technical center, and LDV Capital. They have also attracted the attention of large consumer product companies like L’Oréal, which have partnered with these startups to test their value propositions.
A platform, Memorable, recently launched a tool it hopes will revolutionize the ease of creating personalized ads. Founded by Argentines Sebastian Acevedo and Camilo Fosco, PhD, Memorable trains machine learning models that enable brands to predict and optimize advertising creative performance. The company’s models are tailored to the needs of specific brands and produce high-accuracy forecasts for key media metrics, such as click-through rates and engagement. Founded in 2021, Memorable raised a $2.75 million pre-seed round the following year.
How AI can improve ad performance
Since then, the company has conducted multiple experiments based on the latest cognitive research and new machine learning approaches to accelerate the growth of its cognitive impact database. The result is their new product, Creative Compass, which addresses advertisers’ demands for personalization in three main ways. First, Compass’s AI can analyze top-of-funnel metrics like brand lift, recall, attention, and distinctiveness, as well as bottom-of-funnel metrics like view rate, engagement and conversions. Second, Compass leverages creative data to improve cost-per-acquisition (CPA) bidding by providing insights into which creatives perform best under various placement conditions with different target audiences. This can help advertisers optimize bidding decisions or replace underperforming creative. Finally, Compass gives clients direct insight into creative KPIs and provides AI-driven recommendations. This feature is particularly useful for platforms interacting with brands, providing customers with predicted results, recommendations and insights.
L’Oréal is one of many brands looking to optimize the effectiveness of their advertising using AI.
Ben Jones, the former global head of Creative Works, is excited about Compass’s prospects. “Compass fills an important gap as Gen AI tools come online,” he explained. “Generatives can produce ads, but without the intelligence to shape them to be effective, marketers will be inundated with more, but not necessarily better.”
The Effect of AI on Consumer Wallets
A key question remains: Will more targeted ads entice more consumers to part with their hard-earned cash? The answer is not clear. United States retail sales fell for the first time this year in October. Although the month-over-month decline is approximately -0.1%, these numbers, taken in conjunction with the slowing jobs report, suggest a slowdown in consumption. However, signs that inflation is finally relaxation can serve as a respite for tired consumers. As the holidays approach, advertisers are likely eager to test and learn from these new AI tools under the guise of festive ad campaigns.
The holidays will be a key test for advertisers this year.
What about fintech?
In this ever-changing AI landscape, fintech platforms must remain vigilant. If tools like Compass are successful in driving increased customer spending, the critical infrastructure layer that underpins successful financial transactions will be put to the test. End-to-end functions will need to work seamlessly to ensure the customer maintains a seamless experience at every stage of the journey: from first viewing an ad, to purchasing, to finally receiving the desired item. at his door.
While the exact shape of the future of generative AI remains uncertain, one thing is certain: your data has never been more valuable.