How AI is shaping the future of ecommerce advertising   by Adobe x Meta

No matter what products or services your ecommerce business focuses on, elevating the customer experience is the key to unlocking better sales and conversions. In fact, businesses that have placed a strong emphasis on customer experience are not just meeting expectations; they’re exceeding them.

The State of Digital Customer Experience Report found that over the past three years, companies that prioritized customer experience have witnessed improved growth metrics, including:

• New customer growth: A 23% surge in new customer acquisition, indicating an expansion of the customer base.
• Lead generation: An 18% climb in lead generation, reflecting enhanced marketing effectiveness and customer interest.
• Referral rates: A 17% increase in referral rates, showcasing the power of word-of-mouth and customer satisfaction.
• Customer loyalty: 12% more repeat business, demonstrating a strong customer retention strategy.
• Profitability: A 9% rise in profit per customer or account, translating to a healthier bottom line.

By leveraging AI-powered solutions, you can take the customer experience to new heights. These technologies offer a seamless integration of personalization within advertising campaigns. By analyzing and utilizing customer shopping behaviors and trends, AI not only enhances ad performance but also drives sales and conversions. Personalizing ads at scale enables you to better connect with your customers and drive action that increases gross merchandising value (GMV) and return on ad spend (ROAS).

Analyze customer behavior and identify trends  

Knowing your customers and understanding their shopping behaviors allows you to create ads that resonate with them, which can help overcome challenges like shopping cart abandonment. AI-powered solutions help you evaluate ad performance and viewer demographics, and with features like built-in analytics, your ads are precisely targeted, allowing you to make meaningful connections with your customers. In fact, 46% of customers remember positive experiences that felt highly personalized, and 34% appreciate relevant ad content that meets their needs and interests.  

Using first-party data—information collected directly from your customers through their interactions with your website or app—is crucial for advertising. It enhances privacy compliance and reduces your dependence on third-party cookies, especially since cookies are on track to be phased out by web browsers.   

Adobe Commerce provides AI-powered tools that streamline the process of understanding and responding to customer needs. By analyzing data with AI, this platform can personalize shopping experiences by adjusting search results, content and recommendations to match each customer’s preferences. This approach not only improves your customers’ experience but also increases the likelihood of sales by providing them with exactly what they need when they need it.   

Drive better outcomes with personalized ads  

Personalization drives better ad performance, leading to improved customer outcomes. Companies that grow faster realize 40% more of their revenue from personalization than their slower-growing counterparts.   

AI-powered tools like Meta Advantage+ shopping campaigns can help you enable automation across each step of the ad creation process. These automation tools can improve performance by making media more efficient. You can also enhance your entire campaign flow end-to-end. Additionally, you can use automation to enhance select parts of a campaign, such as audience, creative, destination, placement or budget for more niche strategies. 

Automated catalog advertising solutions enable you to showcase your entire product range within a single campaign, personalizing ad creative by matching specific products with individual customers. For example, imagine a customer shows interest in a scarf but doesn’t make a purchase. Later, the system automatically crafts and serves a personalized ad featuring similar scarves or complementary accessories, with AI tools selecting the items most likely to convert the shopper, paired with the highest performing creative elements. This type of automation ensures your campaigns are “always on,” continually optimizing and promoting your entire inventory without requiring manual adjustments for each ad.  

AI can also help find and direct customers to the most likely conversion point, whether that’s on your website or a dedicated online store. This helps you meet shoppers where they are, providing them with more ways to shop and, in turn, enhancing their overall experience. These solutions improve return on investment by providing a comprehensive view of your customer’s journey.  

Reach the right audience with the right ad  

With AI tools in your marketing mix, you can enhance your ecommerce advertising by leveraging first-party data to deliver personalized experiences, boosting customer engagement, and improving conversions. The AI-powered solutions from Adobe Commerce and Meta are quick and easy to implement, providing you with the tools you need to take your ecommerce advertising to the next level. To learn more about how Adobe and Meta can help you reach the right audience with the right ad, download our eBook.

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