What Is Predictive Advertising and Why it Can Transform Your Business

#Amazon Marketing Posted On: Feb 11, 2020


If we were to sum up the future for digital marketing, we’d sum it up in two words: Predictive Advertising!

This may sound like another exaggerated buzz word but predictive advertising has enough potential to RADICALLY TRANSFORM the way you do marketing online.

For instance, imagine what it would feel to predict what your customers want even before they tell you what they want. And, then show them the content that mostly meets their wants and needs.

That’s the power of predictive marketing.

Using it you can avoid wasteful spending by predicting data in real-time, understand the next move of your customer, and drive more conversions for your campaigns.

While all of this can be pretty overwhelming at first, understanding predictive marketing isn’t difficult.

So before getting into the nitty-gritty of things let’s first understand what predictive advertising is all about.

What is Predictive Advertising?



To put it simply, predictive advertising is a form of smart advertising that utilizes artificial intelligence, customer data, and statistical algorithms to figure out what could happen in the future.

Leveraging these crucial factors, predictive advertising accordingly shows the right content to potential customers on the right platform and at the right time.

In recent years, predictive advertising (a subset of predictive analytics) has dramatically evolved and has ever since changed the digital marketing landscape.

With the benefits and overall value predictive advertising provides, many businesses these days are implementing it in their digital marketing strategy to drive more relevancy for campaigns.

What Can You Do With PredictiveAdvertising?



If you’re wondering what you can achieve with predictive advertising, the possibilities are endless.

Apart from understanding key insights of your audience like purchase propensity and lifetime value, predictive advertising can add serious value to your overall digital marketing strategy.

Here’s what you can do.

  • Take Advantage of Massive Data

    Predictive advertising lets you take advantage of massive data that is available and let you leverage it to obtain important insights.

    You can mine anything from demographics information to behavioral data of your audience. You can gather third-party behavior intent data from numerous platforms available on the internet and even your competitor’s strategy and crucial performance data.

    Using this data as important touchpoints, you can understand the buying patterns and preferences of your customers.

  • Dynamically Optimize Your Ad Copy

    One area where predictive advertising shines is in dynamically optimizing your ad copy for digital marketing campaigns.

    Google Ads, for instance, offers you two dynamic ad targeting options namely dynamic ad targeting and demography-based ad targeting that work on predictions.

    1. Dynamic Ad Targeting

Google uses predictive advertising in your responsive PPC search ads to show the right type of copy to your audience. It takes in several ad copies but displays different ad copies to different users dynamically to identify which copy works best.

  1. Demography-based Ad Targeting

In this, Google dynamically shows different ad copies to different users based on demographic factors like location, behavior, language, etc. compared to just keywords.

  • Avoided Wasted Ad Spends

    Wastage of marketing budget cost millions, or sometimes even billions, to companies as oftentimes their ads reach the wrong people.

    Predictive advertising greatly reduces this risk and helps you optimize your marketing spends by dynamically adjusting the bids.

    One example of this is Google’s Smart Bidding functionality in Google Ads. Google lets you select a goal for your bidding strategy, fetches data from its advertising networks in order to dynamically adjust your bids in real time.

    Target Audience More Accurately

    Audience targeting can be made more effective and accurate by predictive advertising.

    You can utilize the data of your internal audience as well as third-party intent data to figure out new potential targetable customers.

    Using tools like Facebook’s Lookalike Audience and Google’s Similar Audience, you can gain behavioral touchpoints and reveal a better picture of your lead’s intent, which can tailor your marketing for success.

    Optimize for Micro-Moments

    Micro-moments, according to Google, are essentially intent-rich moments that drive a person to take action. For example, a person might feel like ordering a pizza at night and turn to his phone to take a particular action.

    This sudden desire to act on a need is a micro-moment that marketers can leverage using predictive advertising.

    By taking advantage of historic customer data, life events of your customers, and online tools, you can determine your customer’s needs before they give you a clue of any purchase intent.

    Once you know their needs you can start targeting ads to specific micro-moments of your customers.

Benefits of Predictive Advertising


There are some great benefits to doing predictive advertising for your campaigns.

Let’s You Predict Customer Needs Ahead of Time

Compared to other strategies that are reaction-based (for ex. Remarketing) , predictive advertising is based on real-time prediction.

This means instead of running behind people trying to sell your product, you can use predictive advertising to target your audience with a meaningful solution by predicting what they’ll need beforehand.

This makes a much bigger impact and increases the chances of driving more sales.

It Saves Cost

Manual data collection and analysis is not only a tedious task but also costs a lot in terms of money. With that said, predictive advertising solves this trouble.

It follows a simple approach to data analysis and easily lets you collect and optimize data through advanced machine learning algorithms, thus saving you the headache and cost of a manual procedure.

Drives More ROI

As predictive advertising is mostly based on a highly-accurate prediction of your audience’s behavior and intent, there is a much higher chance of your ads reaching the right people.

Thus, you can expect your ads to be delivered to the right customer just when they need a solution to their problem.

This gives you a much better bang for your buck and brings you more ROI for your spends which is otherwise not easily possible in other manual strategies.

Final Thoughts

Truth be told, predictive advertising is definitely the future of digital marketing and there is no reason not to take advantage of it.

It will not only drive you more conversions and leads but also make your brand resonate better with your target audience, helping you gain more loyal customers for your business.

Though keep in mind, to successfully leverage predictive advertising in your campaigns you’ll need a set of robust tools and marketing expertise.

Also, doing everything on your own might also not help you drive the best results.

Which is where we can help.

We are a reputed digital marketing agency that has helped plenty of businesses leverage their growth using predictive advertising in the realm of PPC and Display Ads and can help you too.

Get in touch with us and we’ll help you out!

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