Observed Signal · Oct 19, 2023 · Analysis · Source: CMSWire · Impact: 2/5 · Sentiment: Positive
How AI is Redefining Personalization in Marketing
This article examines the challenges and limitations of traditional marketing personalization, citing factors such as superficial tactics, customer skepticism, poor data management, and increasing privacy regulations. It advocates for a shift from personalization to relevancy, enabled by AI-powered Customer Data Platforms (CDPs) that unify first-party data and support real-time, context-aware customer engagement. The piece outlines practical steps for implementation, including executive buy-in, shared KPIs, identity resolution, intent data, and real-time lead scoring. It highlights research from Gartner, Forrester, and McKinsey to underscore the stakes and suggests that generative AI will further enhance personalization capabilities, offering a path to overcome historical barriers and improve ROI.
Insightful analysis on AI-driven personalization, relevant for MarTech and CX, but not breaking news.
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Key Takeaways & Evidence Grounding
- Gartner predicts that 80% of marketers who have invested in personalization will abandon their efforts within two years due to lack of ROI and data management difficulties.
- Forrester found that 50% of marketers using intent data experienced more successful sales prospecting.
- 27% of marketers believe their data strategy is the biggest obstacle to personalization, according to Gartner.
- McKinsey calculates that companies will need to spend 10-20% more to generate the same returns if they do not grow access to first-party data.
- AI-powered Customer Data Platforms (CDPs) are recommended to unify data, enable real-time personalization, and support identity resolution and lead scoring.
Connected Companies & Entities
4 Entities mapped“Gartner predicts that within two years, 80% of marketers who have invested in personalization will abandon their efforts....”
“Forrester found that 50% of marketers using intent data experienced more successful sales prospecting....”
“McKinsey calculates that companies will have to spend 10 to 20% more to generate the same returns if they don't work out how to grow their a...”
“There are hundreds of CDPs on the market: enterprise, mid-size and SMEs....”
Ontology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Verndale Launches AI Visibility & Content Supply Chain Services
Verndale, a digital consultancy, has introduced new services to help marketers measure and improve their brand's visibility in AI-generated answers. As AI assistants like ChatGPT and Google's AI Overviews increasingly influence research and buying decisions, brands need to know whether they are mentioned, recommended, and correctly described in these responses. Verndale's services include an AI Visibility assessment that tests real audience questions across major AI platforms, identifying gaps in brand mentions and citations. They also offer an AI-Ready Content Supply Chain Assessment to optimize content operations for AI-era discoverability. The company cites research from SparkToro showing 68% of Google searches end without a click, and Gartner reporting 45% of B2B buyers use generative AI for purchase research. A case study with Quinnipiac University demonstrated significant improvements in content optimization and AI readiness through governed agent workflows.
OK Future's AI 'Pressure Cooker' Campaign for Goodwipes
Former MullenLowe U.S. CEO Frank Cartagena launched creative shop OK Future to test generative AI's potential for a small agency. Their first project, a spoof of OpenAI's Astra ad for personal hygiene brand Goodwipes, was produced in four days using AI tools like ArtCraft, Seedance, and OpenAI's Astra model, cutting projected production costs from $700,000. The campaign, 'Meet Asstra,' gained over 1.5 million views on Reddit. However, Cartagena described the pace as 'unsustainable' and a 'pressure cooker,' with team members working around the clock and even threatening to quit. Goodwipes' SVP of Marketing, Meredith Diehn, emphasized trust in Cartagena and the value of experimenting with AI. The article highlights the growing use of AI in creative production, with 73% of marketers using GenAI for visual content and Gartner forecasting AI software spending to reach $981 billion by 2029.
AI Visibility Requires English-Language Footprint for European Startups
This article discusses how the rise of generative AI and conversational search is changing B2B buying behavior, particularly for European startups targeting international markets. It highlights that with ChatGPT surpassing 900 million weekly users and 94% of B2B buyers using generative AI in purchase decisions, visibility in AI-generated answers is becoming critical. Traditional SEO is giving way to Generative Engine Optimization (GEO), which relies on a company's footprint across credible English-language sources. The article notes that most AI assistants evaluate live sources, favoring English content, and that smaller European languages constitute less than 0.6% of web content. It advises startups to build an international ecosystem of mentions, structure content for AI extraction, and maintain an equally strong English footprint. The piece underscores the importance of tracking share of voice in AI models.
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