Seeking influence from AI and machine learning use in digital marketing, predictive advertising is becoming more than just an internet buzzword.

Rapid advancement has been taking place in the online advertising industry. The use of technology for advertising provides the industry with innovative channels to market brands and products. However, the huge strides in attempting to understand the mind of an online audience have succeeded in keeping marketers busy to date.

Nonetheless, predictive advertising is viewed as the new model helping advertisers, fully understand and predict consumer behavior.

What Is Predictive Advertising?

The continuously growing and developing form of advertising known as predictive marketing is a marketing application of predictive analysis.

The main purpose of predictive advertising is to help brands make advertisements based on more than just a single piece of data. It enables ad-makers to create advertising based on the wide range of information comprised of different customer attributes and other factors.

The use of consumer data, statistical algorithms, and artificial intelligence to identify what happens in the future, classifies predictive analysis.

The concept of predicting consumer behavior is not a brand-new idea. Since the earliest days of advertising, marketers always relied upon the past performance data of the advertisements. The past data based on what products and marketing messages successfully or miserably targeted consumers help advertisers in curating future advertising strategies.

However, with the advent of predictive analysis, big data, and artificial intelligence, advertisers target and create media buying strategies more efficiently. Predictive advertising helps advertisers in identifying their potential customers so that they can target them with relevant advertising content. The form of advertising helps advertisers in selecting the right platforms and the right time to target customers with relevant advertising.

How Predictive Advertising Helps Marketers Achieve Their Goals

Targeting the Lookalike Audience

Technology giants like Google and Facebook have already started earning benefits by using predictive advertising to study audience behavior.

Google‘s Lookalike Audience and Facebook Similar Audience tools use predictive advertising to study audience behavior in-depth. The tools help them anticipate customer demands, improve the price of click-through rates, and generate more revenue.

Predictive advertising provides companies with customer data and third-party behavioral data to help them identify their potential customers. This allows a business to expand its user base to earn more profits.

Predictive analysis fetches beneficial information by comparing your website visitors’ information with people who have similar buying behavior. These insights are then used to build a wider audience for websites.

After realizing the efficiency of predictive advertising many marketers are using this technique to build lookalike models based on old user data.

Relevant Content Delivery Through Content Automation

Content automation with artificial intelligence (AI) helps advertisers in creating high-quality content specifically for a particular audience.

AI is an effective tool to observe and collect data based on the buying behavior of customers. The tool then uses the data to predict the future buying patterns of customers. By using this model, ad-makers can create and deliver relevant content for the target audience.

The global retailer Amazon has already commenced using predictive advertising to expand its user base. The company is creating advertisements that deliver relevant content to the target audience.

Amazon’s advertising services remove the guesswork for the customer by showing ads to the most relevant audience.

Predictive advertising helps brands in learning more about their target customers by providing them with information based on their browsing history. For instance, if your business involves rendering TV and internet packages or cable and internet bundles, then predictive advertising helps you find out your target customers by determining what content they prefer reading on the internet.

Makes the Money Worth It

Every year, billions and billions of dollars are spent on online advertising that targets the wrong audience. Rakuten Marketing report in advertising reveals average marketers waste 26% of their advertising budget by targeting the audience at the wrong time, through the wrong channels, and by applying to wrong strategies.

Therefore, advertising experts suggest that ad-makers use predictive advertising to reduce wasted ad spending on their brands. Moreover, it will help advertisers achieve their marketing goals.

Summing Up

More than just a buzzword in the world of digital marketing, predictive advertising has become a crucial marketing tool for a successful advertising strategy. So if you haven’t created your advertising strategy for 2020 then add predictive advertising for benefits, values, efficiency, and ROI from advertising campaigns.

So what are you waiting for? With the power of machine learning, behavioral data, and statistical data, start identifying your target audience and influencing them with some relevant advertising content.