Artificial intelligence (AI) is rapidly changing the landscape of digital marketing. Many brands are concerned about growing “digital noise” and looking for new ways to stand out from the crowd. One way of cutting through a sea of content is by using AI-generated personalized marketing strategies. Coresight Research recently released a report on the topic and this guide contains all of the most important details.
Who Conducted the Survey?
The Motivating Customer Action and Driving Business Growth with AI-Generated, Personalized Digital Marketing was created by Coresight Research. Founded in 2018, the company’s main goal is to help retail clients accelerate innovation and growth. They provide research subscriptions on the latest global consumer, retail, and technology trends as well as proprietary data and analysis. Coresight Research also holds live events and offers strategic advisory services.
Coresight Research is based out of New York City and was founded by Deborah Weinswig. Weinswig also serves on the board of directors of several large organizations, including Goodwill Industries, Guess, and Xcel Brands, Inc. Coresight Research is a privately held company and is reported to have between 51 and 100 employees.
Today’s top brands are eager to create smarter content without adding to our current environment of “digital noise”. Here, Coresight Research dives into how brands and companies can use artificial intelligence to create more targeted, more personalized messages. Engaging, relevant messaging is more effective in driving higher conversion rates than more generalized marketing strategies. The report also takes a look at how first-party data can help companies create better messaging. First-party data is information a company collects directly from its customers. Unlike third-party data from an outside organization, the company itself owns first-party data and controls methods of collection.
With help from the AI software company Persado, this custom report from Coresight Research discusses how retailers can “address revenue and cost challenges by engaging customers with AI-generated, personalized digital marketing.” This comprehensive research report consists of relevant data points and statistics from the latest market reports and analyses.
Three Key Takeaways
1. Retailers are investing heavily into marketing personalization to stand out from increasing digital noise. Recent statistics show the global revenue for the customer experience personalization and optimization software and services industry is set to grow to $10.7 billion in 2025. The total was $8.3 billion in 2022.
2. Today’s marketers believe personalization has a direct and growing impact
on driving revenue, customer engagement, and marketing effectiveness. Data shows a significant increase in results from 2020 to 2021 in areas like brand engagement, conversion rates, and clicks per email.
3. Marketers believe driving online sales and enhancing personalization are among the top benefits of using first-party data.
What Does This Mean for Influencer Marketing?
The first takeaway shows a drastic increase in money spent on marketing personalization efforts worldwide. The report also uncovered several new retail marketing challenges on the horizon:
- Digital advertising costs are at an all-time high, meaning retailers are spending more than ever before to drive revenue and acquire new customers.
- First-party data is becoming more and more desirable, as global restrictions around data protection and third-party cookies become tighter. Retailers are going to have to fight a bit harder to gain insights into consumer behavior and provide customized experiences.
- The retail marketplace is flooded with digital messaging, which means the attention of a company’s ideal online consumer is now at a premium.
These challenges help explain the massive growth in the AI-generated personalized marketing space. In terms of influencer marketing, the new tools and strategies being adopted by top brands could impact the way they work with their influencer partners. For example, based on new data insights, influencer marketing campaigns may have stricter content creation requirements to ensure content is highly personalized.
The second takeaway provides further support for an increased amount of spending and attention on enhanced marketing personalization. The chart below shows several data points around areas where personalization has positively impacted customer engagement. Each of the engagement measures studied showed significant increases from 2020 to 2021.
One noteworthy measure of engagement was a better response to discount offers. This could be a major win for influencer marketers who rely on affiliate commissions from discount codes and programs. When messaging is better tailored to a brand’s ideal customer, they’re more likely to purchase a product or service. Influencers who work with a brand who prioritizes personalized marketing could potentially experience an increase in revenue.
The third takeaway highlights the rising popularity of first-party data. This could have a significant impact on influencers, especially around data collection. Brands will likely put more of a spotlight on influencer data integrity and may request more proof around an influencer’s past success with other brands. A recent report from Influencer Intelligence provides more details:
“Without verified or authenticated data, marketers can’t be 100% sure of the figures they are getting from influencer campaigns, and poor data leads to poor reporting, making it impossible to accurately prove ROI or justify spend. Inaccurate metrics can also lead to companies choosing to work with the wrong influencers entirely, opting for creators who don’t actually speak to the audience they’re trying to reach, because those individuals may not actually have the follower demographic they claim.” (from Why The Influencer Marketing Industry Needs First Party Data by Influencer Intelligence)
In other words, brands want to have as much control as possible around metrics when it comes to their marketing strategies. First-party data is more trustworthy than simply taking an influencer’s word for it when it comes to how successful their campaigns were and just how well they serve their target demographic. Influencers may need to invest in more sophisticated technology so they can provide top notch data to current and potential brand partners.
Overall, Coresight Research’s report provides solid evidence that marketers will continue to shift their strategies as consumer mindsets and their shopping behaviors adapt to an ever-changing economy. Influencers should keep this information top of mind as they look for new brand partnerships. AI-generated personalization and first-party data are important buzzwords to understand in 2023 and beyond.
Link to the Report
The full Motivating Customer Action and Driving Business Growth with AI-Generated, Personalized Digital Marketing report can be found on Coresight Research’s website, along with additional insights and case studies within the retail and technology sectors.