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How AI is changing the retail media industry

Discover how AI is reshaping the future of retail media, transforming the way brands connect with consumers, from dynamic, personalised to inventory-driven ads.

In the fast-paced world of retail media, generative AI isn’t just a buzzword; it’s the powerful engine driving the next wave of innovation. As the advertising landscape continues to evolve, companies like Adhese are at the forefront of this transformation, actively developing our own proprietary AI engine designed specifically to meet the unique challenges of modern retail media.

By harnessing the incredible ability of AI to sift through massive data sets and draw intelligent conclusions, retailers and brands are fundamentally changing how they connect with consumers. Buckle up as we dive into how AI is transforming personalised advertising and ad targeting to create truly captivating consumer experiences.

The advent of AI in retail media 

Generative AI, the game-changer in artificial intelligence, is reshaping the advertising landscape. It equips brands with unprecedented capabilities to craft personalised ads that resonate deeply with individual consumer preferences. The outcome? Enhanced engagement, higher conversion rates, and a shift in the way brands tell their stories.

Key ways AI is transforming retail media

1. Personalised advertising strategies

  • Tailored experiences: Imagine an advertising ecosystem that instinctively understands your shoppers’ behaviours, preferences, and purchase histories. AI is powering that transformation, enabling brands to create tailored shopping experiences that keep customers coming back for more.
  • Increased ROI: Brands leveraging AI for personalisation are witnessing a staggering boost in their return on ad spend (ROAS). It’s not just about advertising; it’s about intelligent investment.
  • Dynamic content: Generative AI takes adaptability to another level, producing dynamic ad content that morphs based on context—whether it’s the time of day, location, or even cultural trends.

2. Bridging the online-offline gap

  • Omnichannel insights & in-store advertising: It’s more complex to measure the effects of omnichannel and in-store campaigns on physical sales, than it is with online campaigns. However, AI can make sense of both online and offline data and give a comprehensive view of customer behaviour. Eg. it can help analyse foot traffic data to improve in-store product placement, measure the impact of in-store advertising on sales, or track customer journeys on online as well as offline channels. This 360 view enables more targeted and effective omnichannel campaigns. 

3. Inventory-driven advertising

  • Efficient ad spend: AI keeps its finger on the pulse of inventory levels, dynamically adjusting campaigns to prevent the promotion of out-of-stock items—a win-win for both brands and consumers.
  • Targeted promotions: Use AI to analyse inventory data and target consumer segments with relevant promotions. This isn’t just efficient; it’s smart marketing.

4. Data-driven decision making 

  • Actionable insights: With AI, retailers can sift through mountains of data to uncover actionable insights. No more guesswork—just informed decisions.
  • Optimised campaigns: Focus on metrics that matter. AI enables retailers to optimise campaigns for maximum impact, ensuring your advertising dollars work as hard as you do.

Enhancing ad targeting with AI

Ad targeting is the bread and butter of effective marketing, but with AI, we’re taking it to stratospheric levels. With advanced algorithms, brands can analyze consumer data to identify valuable leads, ensuring every advertising dollar is spent with precision. 

AI-driven audience segmentation 

AI shines in targeting audiences with laser-like accuracy. By employing machine learning, brands can categorise consumers based on sophisticated behavioural patterns. Craft campaigns that resonate like never before with highly relevant ads shown at exactly the right time. 

Dynamic ad targeting 

Enter the world of dynamic ad targeting. Picture this: if a consumer frequently browses eco-friendly products, the AI adjusts its messaging in real-time to highlight sustainable initiatives. This kind of adaptability makes your advertising not just relevant but downright irresistible. 

Be Part of the AI Revolution in Retail Media 

As we delve into the myriad ways AI is transforming retail media, it’s essential to envision a future where advertisers can leverage cutting-edge technology to deliver more relevant, timely, and captivating experiences to consumers.  

Adhese is committed to leading the charge, and we invite you to be part of this exciting journey. Whether you’re looking to boost your advertising campaign performance or explore AI-driven solutions, reach out to us today.

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