The earliest forms of advertising can be traced back to ancient Egyptians who used papyrus to make sales messages. Other civilizations that used to advertise include the Greeks and the Romans.
Back then, the ancient Romans used painted messages on the walls of their shops to advertise their business. Fast forward to the 21st century; advertising has entirely changed, unlike before, where adverts were placed on a strategic location in the hope that they will attract potential buyers. These days marketers now use AI and Big data to know whom to target and whom not to target.
Why Adopt AI and Big Data
Think about it this way. An average campaign might cost somewhere between $10,000 – $1,000,000 depending on your target market and operational area. Let us assume that you are targeting 100,000 people.
In this case, your acquisition cost is $10 per person. However, here is the downside; not everyone will buy your product. Yes, they will see the advert, but if they are not buying your product, what is the need?
1. More Personalised Campaigns are More Impactful
Imagine window shopping for some expensive shoes that you know very well are out of your budget. However, AI-powered digital Signage immediately identifies you by name, and by using Algorithms based on your eye level and the direction it can tell which shoe you are interested in.
The Signage then welcomes you into the shop and offers a discount for those shoes.
This kind of advertising is more effective and impactful when compared to having a random shoe placed on the Signage.
2. Low Customer Acquisition Cost
Let me again use digital Signage to hammer this point. How many times have you walked down the street and seen a digital Signage play random adverting videos that nobody bothered to look at?
By using a combination of both AI and big data, digital Signage can be able to analyze who the pedestrians are in terms of gender, age, and race. If they have any known purchase history, then the Signage will display complementary products that they might buy.
3. You Remain More Relevant
Traditional marketing campaigns involve three stages: Idea, pitching, and execution. These three stages lack one crucial factor that will contribute to the success of the advert, Data!
Data can tell the marketer the kind of products that consumers want, the kind of the message they value, where to target them, and what time is most effective.
4. Customer Retention
One of the biggest companies in the world that use big data for customer retention is Coca-Cola. Coca-Cola has realised that the only way to stay ahead of the competition is to use big data. Data-enabled the company to introduce sugarless products after realising that consumers preferred healthier drinks.
Data has also being used by the company to plan their marketing campaigns after they realised that some consumers prefer music adverts while others prefer sports adverts. This is one of the reasons why their campaigns differ from one country to the other.
Another company that uses Big Data to retain its customers is Netflix. This movie streaming website can auto-suggest the next movie to watch based on previous data. Whether you are a marketing agency in Europe or an advertising agency in Kenya, you must always use data to stay ahead of the competition.
About the author
Robert Kamau is a rising entrepreneur working on his third start-up: Olkapiads. “We believe that no brand should close its shops because it cannot effectively target its customers. How we do this is by using visually attractive 2D/3D dislays on high mileage vehicles while using telemetry data. We like to do things differently, for the future belogns to who dream and imagine it.