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Home » AI and Real-Rime Advertising will Change the Relationship Between Companies and Consumers
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AI and Real-Rime Advertising will Change the Relationship Between Companies and Consumers

Md IqbalBy Md IqbalNovember 27, 2024No Comments5 Mins Read
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New user segmentation and hyper-personalized digital ads are emerging as the main trends with the incorporation of artificial intelligence in the sales areas of companies Bloomsberg Line — Companies are constantly looking to reach more customers through their communications, marketing, and advertising strategies, as well as to retain those with whom they already have a relationship.

However, much of a user’s data and interactions with companies are in limbo, as they are not used, and artificial intelligence (AI) could mark a change in this path. With the release of all the AI tools, hyper-personalization of tasks became quite relevant. The tools help us to get to know and connect better with consumers,” Camilo Martínez, co-founder and CEO of Leal, the rewards and customer management platform in Latin America, told Bloomberg Línea.

For example, in five Latin American countries (Mexico, Brazil, Colombia, Chile, and Argentina), companies advertising spending on digital media exceeded 50% of their entire advertising strategy, followed by television (between 17% and 30%) which accounts for another good part of advertising efforts, according to figures from eMarketer Forecast, presented in 2024. This trend reinforces the importance of “hyper-personalizing” messages to users, Martinez said. “In 5

years, 80% of companies that do not adopt AI will face extinction. They will not be able to maintain innovation and consumer expectations,” he added.

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What is the role of AI in the relationship between companies and consumers?
The new segmentation of consumers thanks to AI
Trends in Personalized Ads for 2025

What is the role of AI in the relationship between companies and consumers?

For Leal’s CEO, AI tools are helping companies to better understand consumers and improve their omnichannel sales, since before the boom in this technology, companies’ efforts were disjointed and data models were not prepared to provide a “good digital experience to users. Today, some providers collect data.

They have aggregators and marketplaces, and there they have a customer base with third-party sources. They have e-commerce, and there they have a database. They also capture data at physical points or networks. But that information is not centralized,” Martinez said, noting that most companies in the region cannot personalize communications.

Among the capabilities that Martínez detailed regarding AI about consumers, these were the main ones: Supervised, predictive, and statistical learning models with complexity, which with past behavior predict the user’s future behavior. Pattern identification and personalized product recommendation. Generative Artificial Intelligence (GenAI), to better plan and edit content, and conversations between companies and consumers. “Agents that respond to opinions in a human way and allow processing thousands of consumer comments, to give the brand an understanding that should be changing immediately,” said Martinez.

AI Testing will replace traditional AB testing by marketers, and analyzes, for a person, which is the right message at the right time and through the right channel, having the power to change it at the time of the user’s purchase.

The new segmentation of consumers thanks to AI

Leal, which has raised US$21 million in capital in recent years and was previously known for its loyalty programs for companies, announced the Leal 360 artificial intelligence platform, aimed at audience segmentation, customer behavior, and business-consumer relationships.

The last round of financing announced by Leal was in 2024, when it raised an additional US$5 million in a pre-series B, to incorporate AI into its business model. According to Martinez, through machine learning and AI, it is possible to determine the propensity to purchase, identify consumer behavior patterns ( even before the customer is aware of them ), as well as detect inactive, at-risk, or loyal customers.

Companies now have more capabilities with algorithms to convert data into audiences and micro-audiences that share certain topics so that brand communication is of interest to the user,” he explained, noting that segmentations eliminate uncertainties for companies when it comes to targeting their sales campaigns.

Based on the company’s figures, Martínez told Bloomberg Línea that some of its clients are seeing incremental sales by incorporating AI models in their relationship with consumers, as well as a 20% higher frequency of visits to company websites and an 8% increase in the average

purchase ticket. Among its clients are Miniso, Subwa,y, and Texaco, to name a few. Regarding the latter company, he said that the incorporation of AI models allowed the company’s Service Stations (EDS) to “increase sales attributable to Texaco campaigns by up to US$40 million, thanks to the brand-consumer relationship.”

Trends in Personalized Ads for 2025

Personalization of real-time advertising based on user behavior and high-quality visual content is already a consolidated trend for the remainder of 2024 and all of 2025. According to CSA, a data science and consulting firm and subsidiary of the Havas Group, hyper-personalization in paid media campaigns will be a central theme in the evolution of digital marketing strategies.

This change, which would be leveraged by Generative AI (GenAI), will take place with the help of models such as Google’s Image3, Stable Diffusion, DALL·E 3, MidJourney, and Runway ML, according to the firm. These tools allow the generation of images and videos from textual descriptions ( text-to-image or text-to-video ), transforming the creative process and Dynamic Creative Optimization (DCO) platforms.

Historically, these platforms have been essential to automating the production of multiple ad variations and improving their relevance. However, with recent advances in Gen AI, they are on the cusp of a radical change,” said Raymond Garcia, CSA’s regional director of data analytics in Latam.

With the integration of Gen AI text-to-image models such as Imagen3, Stable Diffusion, and others, DCO platforms will evolve to deliver ads that are more relevant, creative, and personalized than ever before, the firm explained. “The future of personalized ads will be visual, dynamic, and, above all, driven by Artificial Intelligence,” Garcia concluded.

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Md Iqbal

    I am an experienced Tech Writer with over 5 years of industry expertise and we love exploring the latest innovations and sharing insights on technology.

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