Market for Content Personalization
In an increasing online world, competitors are only one click away. Therefore, businesses need better ways to differentiate themselves from their competitors. Building more personal relationships with their existing and prospective customers is crucial for success. Marketers generally agree that personalized content is the best way to achieve that goal. However, existing content personalization tools are not easy to use and are not very effective.
Content personalization is the ability to create a unique online experience based on the needs, preferences and interests of the user. Previous generations of personalization technology are primarily rule-based, such as “if this then show that content” type of rule. However, with 4.1 billion worldwide Internet users expecting to be treated as individuals, the number of rules required for effective personalization is astronomical and nearly impossible to implement. We believe that artificial intelligence (“AI”) techniques such as machine learning and big data analytics can process large quantities of data and variables to generate highly adaptive and personalized content specific to individual users, all in real-time. Doing so will bring marketers one-step closer to the holy grail of “1-to-1 Marketing.”
Need for Personalized Content
- 91% of consumers are more likely to shop with brands that recognize, remember, and provide relevant offers and recommendations. link
- 83% of consumers are willing to share their data to enable a personalized experience. link
- 60% of marketers struggle to personalize content in real time, yet 77 percent believe real-time personalization is crucial. link
- 59% of shoppers who have experienced personalization believe it has a noticeable influence on purchasing. link
- 83% lower response rate in marketing campaigns if content is not relevant. link
Market for AI Personalization
The Boston Consulting Group, in a 2018 research report, predicts that over the next five years in three sectors alone—retail, health care, and financial services—personalization will push a revenue shift of some $800 billion to the 15% of companies that get it right. We believe that AI-based personalization will help companies “get it right.”
TechNavio, in its 2018 research report, predicts that artificial intelligence-based personalization market will witness considerable growth during the period 2018-2022, with a compounded annual growth rate of 13%. The website personalization application segment, a near term market opportunity that we are focused on, will account for the highest growth in the AI-based personalization market. Other growing markets for AI-based personalization are display ads, social media, and e-mail.