Targeting in digital advertising is becoming more precise by combining AI with customer relationship management (CRM) data. Based on brands' actual customer data, they are identifying the traits of "good customers" and expanding by using those insights to acquire new customers.
HS Ad(035000) said on the 25th that it proved the effectiveness of CRM- and AI-based ad targeting that analyzes a brand's CRM data with AI to discover ad target customer segments and links them with ad platforms to expand to potential customers.
CRM data refers to information a brand accumulates in its relationship with customers, such as purchase history and purchase cycles, coupon use, wish list responses, and purchase churn. In the past, it was common to define customer segments according to hypotheses set by marketers, extract the corresponding data, and use it in advertising.
HS Ad used AI to analyze actual customers' purchase and behavior data, found common traits seen in top customers, and, based on those, discovered similar potential customers. It exposed ads to new potential customers with traits similar to the "good customer" characteristics found in brands' actual customer data, using CRM data as a means to acquire new customers.
Applying this approach to a health supplement brand's marketing over the past three months, HS Ad found that the conversion rate (CVR) of AI lookalike targets generated from CRM data was 2.1 times higher than that of general targeting ads. Based on in-house purchase data, the average order value per purchase was also about 18% higher than general targets. The results were strong not only in the share of customers who saw the ad and proceeded to an actual purchase, but also in the amount a single purchasing customer spent.
The results were even more pronounced in certain customer segments. For lookalike targets generated from the behavioral traits of existing customers who had not purchased for a certain period, the conversion rate was about seven times higher than general targets.
Another differentiator in this case is that it connects ad platforms' conversion performance with in-house mall purchase data, allowing verification of which segment's incoming customers proceed to actual purchases and show higher purchase value. This enables evaluation and optimization of targets not only for short-term ad performance but also from a long-term customer lifetime value (LTV) perspective.
This project was carried out in partnership with the AI-based CRM marketing solution company "Markettab." HS Ad designed the strategy for how to analyze a brand's CRM data and which customer segments to use for ad target discovery, and execution was conducted through Markettab's platform.
Building on these results, HS Ad will continue to accumulate customer repeat-purchase and reactivation data to analyze long-term customer value by segment more precisely and expand CRM- and AI-based ad operations to a wider range of industries.
Yoon Jeong-min, head of HS Ad's IX (Integrated Experience) Center, said, "HS Ad will continue to create marketing approaches that connect AI and data based on an understanding of brands and customers, to improve not only immediate ad performance but also long-term customer value."