It’s a jungle, few places quite like the world of “smart” advertising.
There, marketing geniuses have developed increasingly sophisticated algorithms that take all the information gathered about you online or from your phone and piece together a customer profile that can include everything from your favorite pair of socks to names of your children.
By analyzing current market practices, Wicked Reports explored how artificial intelligence, or AI, can be used to collect data and make sales forecasts on the Internet. Some techniques you may be familiar with, such as persistent cookies that turn your computer into a ping hub for the websites you visit. Others are much more sophisticated, compiling all of your characteristics by analyzing what you’ve bought in the past, what you’ve put in your cart and abandoned, and what you’ve searched for. From there, advertisers can even create a version of similar clients to market to them as well.
The digital advertising industry is expected to reach $20 billion in 2022. That’s nowhere near enough to rank among the top 10 industries in the United States, but it’s a substantial amount of money, considering especially compared to the big ad buys of the past in splashy magazine spreads. Businesses today are more eager than ever to spend what it takes to attract ideal customers.
Keep reading to learn about some of the tactics AI uses to predict buying behavior.