Thanks to Big Data and Artificial Intelligence-enhanced analytics, marketers can now tailor advertising efforts for consumers in unprecedented ways.
Digital technology provides a goldmine of data that grants insight not only into the spending habits of consumer groups but of individuals. As data analytics becomes more penetrating, particular spending habits and response to advertising pitches can be matched to individual characteristics, such as values, needs and personality traits.
Personality profiling is the latest factor informing AI enhanced marketing analytics. By taking qualitative web content found in social media posts, electronic forums and other online sources, AI analytics can create a picture of an individual’s personality traits. This informs marketers of the best products, choice of imagery, headline, tone and language to influence an individual to purchase.
Openness, Conscientiousness, Extraversion, Agreeableness, and Emotional Stability are traits known as “the Big Five” and have been shown to be consistent qualities in people. Using these traits as indicators of buying preference has garnered positive results. Advertisers use them to trigger the right thoughts and emotions in a given person to make a purchase more likely.
For example, if AI analytics determines an individual to be high in Extraversion (also known as extroversion), that indicates they are more compulsive buyers and respond better to variety and arresting imagery. Less extroverted consumers need more information. A person who is high in Conscientiousness does not necessarily respond better to variety and will tend to be more conservative. Unsurprisingly, those who rate high in Openness will be more willing to embrace new products and experiences than those who are low in Openness who will want more traditional, “tried and true” products.
With AI analytics now an integral part of marketing, businesses have increasingly more sophisticated and reliable tools at their disposal. Personality profiling is just one of the new ways they are profiling and reaching customers.
The topic of this article is derived from the curriculum for the Schulich ExecEd program Artificial Intelligence (AI) Based Marketing and Advertising (Dec. 3-4, 2019).
This new two-day AI Marketing program offers a comprehensive, non-technical overview and insights into how AI (Artificial Intelligence) and machine learning can revolutionize an organization’s marketing and advertising strategies.