The Importance of Behavioral and Predictive Analytics
The amount companies spend on digital ads is expected to grow to as much as $77.37 billion in the US alone next year, and understanding the audience is vital to ensuring this is money well spent.
The ability to predict someone’s personality presents a clear opportunity for highly targeted advertising, enabling marketers to segment audiences according to personality type rather than by age or gender, which can often be unreliable. The benefits of personalization are well documented, with a 2015 Harris Poll study finding that 95% of respondents would be more likely to respond to personalized outreach. The Aberdeen Group also found that agencies best at personalization achieved up to a 36% higher conversion average and a 21% stronger lead acceptance rate.
Psychologists have attempted to understand different personality types and behaviors using checkboxes for decades, and digital marketers now have a significant amount of data about their customers available that could enable them to do the same. In a media release earlier this year from Universiti Teknologi Malaysia, research scholar Dr. Ikusan R. Adeyemi said, ’Our research suggests a person's personality traits can be deduced by their general internet usage,’ and it could do so using machine learning algorithms by analyzing just half an hour of web browsing.
Predictive analytics approaches examine data or content to determine what decisions should be made and what steps taken to achieve an intended goal. This approach uses algorithms to see what the effect of future decisions will be in order to adjust the decisions before they are actually made. This improves decision-making, as future outcomes are taken into consideration in the prediction. Predictive analytics can help you optimize scheduling, production, inventory, and supply chain design to deliver what your customers want in the most optimized way.
Personalization of offers and creative is common in programmatic advertising and is becoming more sophisticated. You can even accurately target your digital media to individuals across all their devices, which is sometimes called “people-based” marketing.
So what do you think – can you accurately predict personalities? Leave your thoughts in the comments below.