According to eMarketer, ads worth $ 81 billion (88% of digital ads displayed in the United States) will be traded programmatically by 2021 . Luxury brands use programmatic advertising to increase the effectiveness of ads and to compete not only with their competitors, but also with resellers and wholesalers who offer similar products or even their own brands. According to Media Radar, luxury brands’ programmatic spend has increased to 42% of all online ad spend , which includes BMW, Lexus, Mercedes, Swatch and the Kering Group which includes names like Gucci, Saint Laurent. , etc. In addition, the luxury categories in which brands have invested heavily in programmatic advertising are imported luxury cars, women’s fashion, fine jewelry and fine watchmaking .
2. AI enables personalized digital experiences A personalized approach is extremely useful in the luxury world where consumers need to feel unique, relevant and cared for. While this approach is already common in stores, where each seller Malta Phone Number List can speak to the buyer individually, delivering a personalized digital experience requires a much more advanced approach to data. By integrating artificial intelligence into the digital shopping experience, AI helps brands adapt and respond in real time to what users are looking for and provide them with personalized recommendations, for example, a certain style, a certain color or size, a nearby recommended store, etc.
Take Pink, For Example.
This is the same principle used by Amazon and Netflix, which take into account the preferences and history of each user when offering them products or shows. This is because AI allows marketers to maintain the same level of personalization that customers can receive in-store. Source: 3D personalization of Guerlain lipstick in cooperation with Hapticmedia. Learn more about this client project . When it comes to the benefits of AI-powered personalization , 63% of respondents mentioned the increase in conversion rates, while 61% confirmed the improved experience, according to a study conducted by Evergage. customer.
In fact, personalization has proven to be an effective marketing technique for increasing sales and conversions. According to Forbes Insights, 40% of marketers say personalization has a direct impact on sales optimization, cart size, and profits in direct-to-consumer channels, such as e-commerce, while 37% highlight increased sales and lifetime customer value through product or content recommendations. More than a third of those surveyed saw an increase in the frequency of their transactions thanks to personalization strategies. One example of the use of AI-powered personalization is beauty brand L’Occitane en Provence, which combines machine learning and user data to understand what consumers want.
This Color Is Feminine, Playful And Warm, With A Young And Modern Edge.
By visiting the brand’s website, users can enjoy a visual experience similar to a feed of products on social media, which have been selected especially for them. Other techniques used include social proof that informs the shopper of how other online consumers are behaving in a similar customer journey. He can then share the product via social networks or save his choices. This strategy saw the brand achieve a 2.86% increase in revenue per visitor and 3.55% increase in revenue per click .
3. Image recognition helps consumers find the items they want Luxury sellers need to make sure they are giving consumers exactly what they are looking for. To do this, direct-to-consumer sales channels use visual AI algorithms to break down images into items with precise visual attributes, browse inventories, and finally recommend products to shoppers. In other words, visual AI is able to understand the aesthetic preferences of each buyer and offer them the products or services that they desire the most. This technology helps increase conversions and is used by many fashion retailers like Asos. Consumers of this British giant can use its Style Match tool to upload photos and get product recommendations from over 850 brands and over 85,000 products .