Personalization has been gaining popularity for some time now, driving businesses to invest in a more individualized approach. Many have scraped together what they feel is a good-enough programmatic targeting setup, leaving them to believe personalization has been properly put in place and that results are imminent.
But as marketers have quickly learned, true personalization is much more involved, requiring a lot of time, effort, and resources. Properly executed data-driven personalization relies on segmented website traffic (in itself a tedious data-heavy task), numerous test deployments with conclusive results, analyzed data, and measurement of every tested variation against each audience segment in order to determine optimal programmatic targeting rules.
Further evidence that marketers could use assistance is seen in a recent Personalization Maturity Assessment survey which found only 17% of companies claim to have personalization in place, citing “lack of resources” as their leading barrier (49%). These difficulties inherent to personalization often drive marketers to resort to guesswork or intuition-based targeting, leading to suboptimal results, for obvious reasons.
But while personalization is evidently still a nascent effort for many brands, A/B testing is a widespread and relatively easy-to-execute practice among most of today’s online businesses, continuing to faithfully identify the best variation or experience among your website’s traffic. However, the actions taken following a test are intrinsically flawed, as marketers tend to serve the winning variation to an entire visitor pool, effectively deploying a “winner takes all” strategy, the opposite of a personalized approach.
While an A/B test may reveal the best variation across your traffic on average, there will always be segments of visitors for whom the winning variation is not optimal. In other words, “winner takes all” may be the best bet for the majority of your visitors, but you’ll be compromising the experience for the other portion of your visitors, and most likely, leaving money on the table.
Combining the best of both A/B testing and personalization, Predictive Targeting, a new AI-Powered solution by Dynamic Yield, allows businesses to automatically convert every A/B test into an effective personalization opportunity. For those well-versed in the land of A/B testing, Predictive Targeting is a convenient bridge and entry point into the world of personalization.
Predictive Targeting runs in the background of every experience launched through Dynamic Yield, analyzing the performance of each variation across every traffic segment in real-time and identifying opportunities to serve the most relevant content to select audience segments. Once a personalization opportunity is uncovered, marketers have the flexibility to take immediate action, deploying the necessary targeting setup predicted to drive the most uplift in revenue for each segment, with a single click.
Let’s examine the following use case:
In an effort to identify the optimal product recommendations strategy to deploy on a PDP, a merchandiser from an iconic eCommerce sports site launched a test with three variations, each receiving an equal portion of traffic:
Variation A
1/3 of the traffic received recommendations for products that were manually selected (control group).
Variation B
1/3 of the traffic received recommendations for products that were similar to the product in focus.
Variation C
1/3 of the traffic received recommendations based on a fusion of strategies, including both similar and complementary products.
The results come back, stating conclusively that Variation C is the winner, expected to generate a 34.4% uplift in conversion rate vs. the control group. Following common practice, that merchandiser would intend to deploy the variation that on average expected to perform best overall for all users. In this case, Variation C. But would doing so really generate the best performance for all users?
During this test, Predictive Targeting ran in the background, analyzing the performance of each variation across every one of the site’s traffic segments. It revealed that if Variation C was served to the Audience titled “Frequent Visitors” while all other visitors received Variation B, a whopping uplift of 54.1% would be generated overall. And so it was.
Another customer recently launched a simple test to determine the best copy for a Display Ad campaign, consisting of a control group and treatment variation. The results revealed the control group to be the unequivocal winner while the treatment significantly hurt performance. Disheartened by the results, the customer was faced with an automated personalization recommendation. Instead of discarding the treatment, Predictive Targeting advised the user to serve the treatment to a subset of ad viewers (30% of traffic) who was identified to actually perform better to the treatment variation. In this example, Predictive Targeting effectively converted a “losing” test into an opportunity for better personalization!
With Predictive Targeting, you can overcome familiar marketing limitations, as it automatically handles all of the tedious data analysis tasks behind the scenes so that you won’t have to. All Predictive Targeting suggestions are statistically significant and data-driven, ridding marketers of the need to rely on guesswork or heavy duty analysis when executing personalization strategies.
Power True Personalization with AI-Driven Targeting
Automatically deliver the right experience to the right user at the right time
Predictive Targeting does not require any setup or development and is automatically ingrained in any campaign and test launched through Dynamic Yield. That means across any channel or platform, including mobile apps, email, and offsite advertising, allowing you to leverage all of your user data, surfacing recommendations at the moment they are identified.
With Dynamic Yield’s Predictive Targeting you receive:
- Constantly running algorithms for all campaigns for identification of revenue uplift opportunities
- Real-time recommendations delivered through the platform and by email for the highest impact opportunities
- 1-click deployment offering full control and flexibility to deploy any recommendation
- Winner declaration per audience segment vs. the winner takes all approach
Predictive Targeting is available to all Dynamic Yield customers. During its beta program, Predictive Targeting was fully tested and vetted, crunching data for over 2,500 experiments in real time and generating successful personalization strategies and deployments for some of the world’s leading retailers. With Predictive Targeting, personalization has become so much easier.
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}</script> <link rel="shortcut icon" href="https://www.dynamicyield.com/wp-content/uploads/2018/11/favicon-194x194.png" /><link rel="amphtml" href="https://www.dynamicyield.com/blog/introducing-predictive-targeting/amp/"></head><body class="post-template-default single single-post postid-27274 single-format-standard wp-featherlight-captions et_fixed_nav windows et_right_sidebar chrome et_includes_sidebar elementor-default default_header"><div id="page-container"><header id="main-header" class="et_nav_text_color_dark"
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href="https://www.dynamicyield.com/experience-os/"><span class="menu-banner-img-wrap"><img class="menu-banner-img-desktop" src="/wp-content/uploads/2024/10/expos-nav-updated.png" width="218" height="131" /><img class="menu-banner-img-mobile" src="/wp-content/uploads/2024/10/expos-nav-updated-mobile.png" width="114" height="98" /></span><span class="menu-cta-text-wrap"><span class="menu-cta-subtitle">Get an overview of Dynamic Yield’s product and see why we’re known as the Experience OS.</span> <span class="menu-cta-button">Learn more →</span></span></a></li></ul></div></li><li class="left"><div class="key_caps-wrapper"><h2>Core Capabilities</h2><ul class="links-list"><li class="key-caps-segment menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/segmentation/"><svg version="1.1" id="audience" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink" x="0px" y="0px" viewBox="0 0 30 30" style="enable-background:new 0 0 30 30;" xml:space="preserve"><path id="audience-green" fill="#4FB294" d="M9.291,30H30V9.291C18.562737,9.291,9.291,18.562737,9.291,30z"/><path id="audience-black" d="M12.527,15.947C9.240353,12.385597,4.806085,10.093244,0,9.471V30h7.639 C7.632218,24.897682,9.35532,19.943764,12.527,15.947z"/><circle id="audience-circle" fill="#4FB294" cx="15" cy="4.967" r="4.967"/></svg>Segmentation<span>Identify, build, and analyze audiences</span></a></li><li class="key-caps-omnichannel menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/targeting/"><svg version="1.1" id="personalization" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink" x="0px" y="0px" viewBox="0 0 20.987 30" style="enable-background:new 0 0 20.987 30;" xml:space="preserve"><path id="personalization-black-2" d="M20.987,19.507c0,5.795401-4.698099,10.4935-10.4935,10.4935S0,25.302401,0,19.507H20.987z"/><path id="personalization-pink" fill="#EE3968" d="M18.143,10.245c0,4.224978-3.425022,7.649999-7.65,7.649999S2.842999,14.469978,2.842999,10.245 H18.143z"/><circle id="personalization-black-1" cx="10.494" cy="4.307" r="4.307"/></svg>Targeting<span>Serve each customer with unique offers</span></a></li><li class="key-caps-recs menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/recommendations/"><svg version="1.1" id="recs" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink" x="0px" y="0px" viewBox="0 0 30 30" style="enable-background:new 0 0 30 30;" xml:space="preserve"><path id="recs_4" d="M15.953,30H30V15.953H15.953V30z"/> <path id="recs_3" d="M0,15.953V30h14.047V15.953H0z"/><path id="recs_2" fill="#FFA354" d="M30,14.047V0H15.953v14.047H30z"/><path id="recs_1" d="M14.047,0H0v14.047h14.047V0z"/></svg>Recommendations<span>Algorithmically predict customers’ interests</span></a></li><li class="key-caps-email menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/journey-orchestration/"><svg version="1.1" id="trigger" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink" x="0px" y="0px" viewBox="0 0 26.017 30" style="enable-background:new 0 0 26.017 30;" xml:space="preserve"><path id="trigger-black" d="M14.017,12h12l-12,18V12z"/><path id="trigger-purple" fill="#5D39B9" d="M12,18H0L12,0V18z"/></svg>Journey Orchestration<span>Reach customers at critical moments</span></a></li><li class="key-caps-abtesting menu-item menu-item-type-custom menu-item-object-custom"><a href="/optimization/"><svg version="1.1" id="testing" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink" x="0px" y="0px" viewBox="0 0 28.713001 30" style="enable-background:new 0 0 28.713001 30;" xml:space="preserve"><path id="testing-blue" fill="#6BDADA" d="M15.831,0c7.114532,0,12.882001,5.767468,12.882001,12.882S22.945532,25.764,15.831,25.764l0,0V0z"/><path id="testing-black" d="M12.882,30C5.767468,30,0,24.232533,0,17.118S5.767468,4.236,12.882,4.236V30z"/></svg>Optimization<span>Experiment on any digital property</span></a></li><li class="key-caps-search menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/search/"><svg width="16" height="16" viewBox="0 0 16 16" fill="none" xmlns="http://www.w3.org/2000/svg"> <g clip-path="url(#clip0_4082_5186)" id="cap-search-svg-bg"> <path d="M11.6757 9.81054C8.73958 9.81054 6.35089 7.42177 6.35089 4.48562C6.35089 2.62899 7.30664 0.992133 8.75134 0.0388074C8.50309 0.0155936 8.25193 0.00238037 7.99762 0.00238037C3.58066 0.00238037 0 3.58304 0 8C0 12.417 3.58066 15.9976 7.99762 15.9976C12.4146 15.9976 15.9952 12.417 15.9952 8C15.9952 7.86848 15.9916 7.73782 15.9853 7.60785C15.0166 8.94122 13.4462 9.81054 11.6757 9.81054Z" fill="black"/> <path id="cap-search-svg-circle" d="M11.6757 0.161346C11.2226 0.161346 10.7857 0.231773 10.3749 0.361649C8.62429 0.915114 7.35156 2.55436 7.35156 4.48561C7.35156 6.87003 9.29141 8.80988 11.6757 8.80988C13.5373 8.80988 15.1277 7.62753 15.7358 5.97437C15.9066 5.51 16 5.00851 16 4.48561C16 2.10119 14.0602 0.161346 11.6757 0.161346Z" fill="#FFC61E"/> </g> <defs> <clipPath id="clip0_4082_5186"> <rect width="16" height="16" fill="white"/> </clipPath> </defs> </svg>Search<span>Help customers find what they want</span></a></li></ul></div></li><li class="right"><div class="scale-wrapper"><h2>Made for Scale</h2><ul class="links-list"><li class="key_caps-element menu-item menu-item-type-custom menu-item-object-custom"><a href="/element/">Element<span>A groundbreaking new dimension of hyper-personalization</span></a></li><li class="key_caps-adaptml menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/ai/">AI & Automation<span>Increase automation, lower operational costs, and drive more revenue with a holistic AI personalization system</span></a></li><li class="key_caps-apis menu-item menu-item-type-custom menu-item-object-custom"><a href="https://www.dynamicyield.com/experience-apis/">Experience APIs<span>Give developers the tools they need to build the best customer experiences</span></a></li><li class="key_caps-enterprise menu-item menu-item-type-custom menu-item-object-custom"><a href="https://www.dynamicyield.com/enterprise-grade-personalization/">Enterprise solutions<span>Scale with security, privacy, and compliance, made for the enterprise</span></a></li></ul></div></li></ul><a href="/shopping-muse/" target="" class="banner"><div class="menu-banner"><span class="menu-cta-text"><strong>Meet Shopping Muse: </strong> Conversational commerce meets cutting-edge personalization.</span> <span class="menu-cta-button">Learn more →</span></div></a></div></li><li id="solutions" class="dropdown links"><a href="" class="label">Solutions</a><div class="content"><ul><li class="left"><div class="industries-wrapper"><h2>Industries</h2><ul class="links-list"><li class="industry-ecomm menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/ecommerce/">eCommerce</a></li><li class="industry-finserv menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/financial-services/">Financial Services</a></li><li class="industry-qsr menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/restaurants/">Restaurants</a></li><li class="industry-grocery menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/grocery/">Grocery</a></li><li class="industry-b2b menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/b2b-ecommerce/">B2B eCommerce</a></li><li class="industry-travel menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/travel/">Travel</a></li><li class="industry-gaming menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/gaming/">iGaming</a></li><li class="industry-media menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/media/">Media</a></li></ul></div></li><li class="right"><div class="channels-wrapper"><h2>Channels</h2><ul class="links-list"><li class="channels-web menu-item menu-item-type-custom menu-item-object-custom"><a href="/web/">Web<span>Create customer-centric web experiences</span></a></li><li class="channels-email menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/channels/email/">Email<span>Personalize emails with a no-code builder</span></a></li><li class="channels-mobile-apps menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/mobile/">Apps<span>Optimize mobile app experiences</span></a></li><li class="channels-ads menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/advertising/">Ads<span>Improve customer acquisition results</span></a></li></ul></div></li></ul></div></li><li id="why-dynamic-yield" class="dropdown links"><a href="" class="label">Why Dynamic Yield</a><div class="content"><ul><li class="impact-wrapper"><h2>Proven impact and success services</h2><ul class="links-list"><li class=" menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/clients/">Select customers</a></li><li class=" menu-item menu-item-type-custom menu-item-object-custom"><a href="/case-studies/">Case studies</a></li><li class=" menu-item menu-item-type-custom menu-item-object-custom"><a href="/customer-success/">Customer success services</a></li></ul></li><li class="scale-wrapper"><h2>Built for scale</h2><ul class="links-list"><li class=" menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/enterprise-grade-personalization/">Enterprise-grade solutions</a></li><li class=" menu-item menu-item-type-custom menu-item-object-custom"><a href="/adaptml/">AI Technology</a></li><li class=" menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/gdpr-and-privacy/">GDPR and data privacy</a></li><li class=" menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/security/">Security</a></li><li class=" menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/compliance/">Compliance</a></li></ul></li><li class="network-wrapper"><h2>Robust partner network</h2><ul class="links-list"><li class=" menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/partners/">Partner library</a></li><li class=" menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/partner-program/">Partnership program</a></li><li class=" menu-item menu-item-type-custom menu-item-object-custom"><a href="/partners/#technology-partners">Tech Partners and Integrations</a></li></ul></li><li class="resources-wrapper"><h2>Extensive product resources</h2><ul class="links-list"><li class=" menu-item menu-item-type-custom menu-item-object-custom"><a href="https://support.dynamicyield.com/hc/en-us">Knowledge Base</a></li><li class=" menu-item menu-item-type-custom menu-item-object-custom"><a href="http://academy.dynamicyield.com/">Academy & Certification</a></li><li class=" menu-item menu-item-type-custom menu-item-object-custom"><a href="https://support.dynamicyield.com/hc/en-us/community/topics">Community</a></li><li class=" menu-item menu-item-type-custom menu-item-object-custom"><a href="https://dy.dev/">API documentation</a></li></ul></li></ul><a href="https://www.dynamicyield.com/personalization-awards/" target="_self" class="banner"><div class="menu-banner"><div class="menu-cta--left"> <img src="/wp-content/uploads/2023/11/2023-award-badge.svg" width="60" height="60" /></div><div class="menu-cta--right"> <strong class="menu-cta-title">The Personalization Awards</strong> <span class="menu-cta-subtitle">Celebrating customers and partners setting the gold-standard for personalization</span> <span class="menu-cta-button">Learn more →</span></div></div></a></div></li><li id="company" class="dropdown button"><a href="" class="label">Company</a><div class="content"><ul class="links-list"><li class=" menu-item menu-item-type-custom menu-item-object-custom"><a href="https://www.mastercard.com/us/en/for-the-world/about-us.html">About us</a></li><li class=" menu-item menu-item-type-custom menu-item-object-custom"><a href="/blog/">Blog</a></li><li class=" menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/labs/">DY Labs</a></li><li class=" menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/careers/">Careers</a></li><li class=" menu-item 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exponential levels</a></li><li class="hidden-desktop menu-item menu-item-type-custom menu-item-object-custom"><a href="/learn/">XP<sup>2</sup> Hub<span>Take your knowledge to exponential levels</span></a></li><li class="resources-paths menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/learning-paths/">Learning Paths<span>Curated courses on key skill areas</span></a></li><li class="resources-webinars menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/talks/">Talks<span>Engaging discussions taking place in CX</span></a></li><li class="resources-articles menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/articles/">Articles<span>An expansive collection of in-depth playbooks</span></a></li><li class="resources-glossary menu-item menu-item-type-custom menu-item-object-custom"><a href="/glossary-terms/">Encyclopedia<span>A glossary of experience optimization terms</span></a></li><li class="resources-use-cases menu-item menu-item-type-post_type menu-item-object-page"><a href="https://www.dynamicyield.com/personalization-examples/">Inspiration Library<span>Personalization examples from real brands</span></a></li><li class="resources-maturity menu-item menu-item-type-custom menu-item-object-custom"><a href="https://www.dynamicyield.com/personalization-maturity/"><strong class="badge-new">Personalization Maturity</strong><span>How global businesses prioritize personalization</span></a></li><li class="resources-guides menu-item menu-item-type-custom menu-item-object-custom"><a href="/guides/">Guides & reports<span>Comprehensive topic-specific materials</span></a></li><li class="resources-benchmarks menu-item menu-item-type-custom menu-item-object-custom"><a href="https://marketing.dynamicyield.com/benchmarks/">Benchmarks<span>Industry performance metrics and insights</span></a></li></ul></li><li class="bottom"><a href="/rooted-personalization/" target="_self"><div class="menu-banner"><div class="menu-cta--left"> <img src="/wp-content/uploads/2023/03/rooted-icon.svg" width="60" height="60" /></div><div class="menu-cta--right"> <strong class="menu-cta-title">Rooted Personalization<span>new</span></strong> <span class="menu-cta-subtitle">Learn a scalable methodology for building an audience-based personalization program.</span> <span class="menu-cta-button">Find out more →</span></div></div></a></li></ul></div></li><li class="contact top-link walker-last mobile-only menu-item menu-item-type-post_type menu-item-object-page" data-content="connect-with-us" title=""> <a href="https://www.dynamicyield.com/contact/"><span class="button-arrow">Connect with us</span></a></li></ul><div class="bg-layer" aria-hidden="true"></div></div></div></li></ul></nav></div><div class="topnav-buttons"><div class="language-switcher header-language-switcher"><ul><li>en<ul><li><a class="active" 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Targeting</div><div class="lc-header-right lc-flex"><ul class="lc-header-social lc-flex"><li class="et-social-icon"> <a href="#" title="Share on Facebook" class="icon" onclick="window.open('https://www.facebook.com/sharer/sharer.php?u=' + encodeURIComponent(document.URL) + '&t=' + encodeURIComponent(document.URL)); return false;"> <svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 460.1990662 458.5138245"><path 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class="button-inner"> XP² Newsletter </span> </a></div></div></div><div class="lc-progress-wrap"><div class="lc-scroll-progress"></div></div></header><article id="post-27274" class="et_pb_post post-27274 post type-post status-publish format-standard has-post-thumbnail hentry category-product tag-predictive-targeting"><div class="article-content"><div class="article-breadcrumbs"> <a href="https://www.dynamicyield.com/blog/" title="Blog">Blog</a><ul class="post-categories"><li><a href="https://www.dynamicyield.com/blog/category/product/" rel="category tag">Product</a></li></ul></div><h1 class="article-title">Introducing: Automated Personalization with Dynamic Yield’s Predictive Targeting</h1><h2 class="article-excerpt">Predictive Targeting, a new AI-Powered solution by Dynamic Yield, automatically converts every A/B test into an effective personalization opportunity.</h2><div class="article-authors lc-flex"><div class="article-author-box lc-col lc-flex"><div class="article-author-image lc-col"><div class="entry_author_image"><img src="https://www.dynamicyield.com/wp-content/authors/UdiZisquit-42.jpg" alt="Udi Zisquit" width="76" height="76" /></div></div><div class="article-author-title lc-col"><div class="article-author-name"> <a href="https://www.dynamicyield.com/blog/author/udizisquit/" title="Posts by Udi Zisquit" rel="author">Udi Zisquit</a></div><div class="article-author-title-text"> Product Manager, Dynamic Yield</div></div></div></div><div class="entry-content article-entry-content"><p><script src="https://fast.wistia.com/embed/medias/m8f67fahf5.jsonp" async></script><script src="https://fast.wistia.com/assets/external/E-v1.js" async></script></p><div class="wistia_responsive_padding" style="padding:56.25% 0 0 0;position:relative;"><div class="wistia_responsive_wrapper" style="height:100%;left:0;position:absolute;top:0;width:100%;"><div class="wistia_embed wistia_async_m8f67fahf5 videoFoam=true" style="height:100%;width:100%"> </div></div></div><p><amp-wistia-player data-media-hashed-id="m8f67fahf5" width="320" height="180" ></amp-wistia-player></p><p></p><p>Personalization has been gaining popularity for some time now, driving businesses to invest in a more individualized approach. Many have scraped together what they feel is a <em>good-enough</em> programmatic targeting setup, leaving them to believe personalization has been properly put in place and that results are imminent.</p><p>But as marketers have quickly learned, true personalization is much more involved, requiring a lot of time, effort, and resources. Properly executed data-driven personalization relies on segmented website traffic (in itself a tedious data-heavy task), numerous test deployments with conclusive results, analyzed data, and measurement of every tested variation against each audience segment in order to determine optimal programmatic targeting rules.</p><p>Further evidence that marketers could use assistance is seen in a recent <a href="https://www.dynamicyield.com/personalization-maturity/">Personalization Maturity Assessment</a> survey which found only 17% of companies claim to have personalization in place, citing “lack of resources” as their leading barrier (49%). These difficulties inherent to personalization often drive marketers to resort to guesswork or intuition-based targeting, leading to suboptimal results, for obvious reasons.</p><p>But while personalization is evidently still a nascent effort for many brands, <a href="https://www.dynamicyield.com/ab-testing/">A/B testing</a> is a widespread and relatively easy-to-execute practice among most of today’s online businesses, continuing to faithfully identify the best variation or experience among your website’s traffic. However, the actions taken following a test are intrinsically flawed, as marketers tend to serve the winning variation to an entire visitor pool, effectively deploying a “winner takes all” strategy, the opposite of a personalized approach.</p><p>While an A/B test may reveal the best variation across your traffic <em>on average</em>, there will always be segments of visitors for whom the winning variation is not optimal. In other words, “winner takes all” may be the best bet for the majority of your visitors, but you’ll be compromising the experience for the other portion of your visitors, and most likely, leaving money on the table.</p><h2>Introducing Dynamic Yield’s Predictive Targeting</h2><p>Combining the best of both A/B testing and personalization, <a href="https://www.dynamicyield.com/predictive-targeting/">Predictive Targeting</a>, a new AI-Powered solution by Dynamic Yield, allows businesses to automatically convert every A/B test into an effective personalization opportunity. For those well-versed in the land of A/B testing, Predictive Targeting is a convenient bridge and entry point into the world of personalization.</p><p>Predictive Targeting runs in the background of every experience launched through Dynamic Yield, analyzing the performance of each variation across every traffic segment in real-time and identifying opportunities to serve the most relevant content to select audience segments. Once a personalization opportunity is uncovered, marketers have the flexibility to take immediate action, deploying the necessary targeting setup predicted to drive the most uplift in revenue for each segment, with a single click.</p><p>Let’s examine the following use case:</p><p>In an effort to identify the optimal product recommendations strategy to deploy on a PDP, a merchandiser from an iconic eCommerce sports site launched a test with three variations, each receiving an equal portion of traffic:</p><h3>Variation A</h3><p>1/3 of the traffic received recommendations for products that were manually selected (control group).</p><p><img fetchpriority="high" decoding="async" src="https://www.dynamicyield.com/wp-content/uploads/2018/01/PT_ManualSelection.png" alt="Manual merchandising strategy" width="751" height="242" class="alignnone size-full wp-image-27322" /></p><h3>Variation B</h3><p>1/3 of the traffic received recommendations for products that were similar to the product in focus.</p><p><img decoding="async" src="https://www.dynamicyield.com/wp-content/uploads/2018/01/PT_SimilarSelection.png" alt="Similar items merchandising strategy" width="1217" height="283" class="alignnone size-full wp-image-27323" /></p><h3>Variation C</h3><p>1/3 of the traffic received recommendations based on a fusion of strategies, including both similar and complementary products.</p><p><img decoding="async" src="https://www.dynamicyield.com/wp-content/uploads/2018/01/PT_Fusion.png" alt="Fusion of merchandising strategies" width="1316" height="283" class="alignnone size-full wp-image-27321" /></p><p>The results come back, stating conclusively that Variation C is the winner, expected to generate a 34.4% uplift in conversion rate vs. the control group. Following common practice, that merchandiser would intend to deploy the variation that on average expected to perform best overall for all users. In this case, Variation C. But would doing so really generate the best performance for <strong>all users</strong>?</p><p>During this test, Predictive Targeting ran in the background, analyzing the performance of each variation across every one of the site’s traffic segments. It revealed that if Variation C was served to the Audience titled “Frequent Visitors” while all other visitors received Variation B, a whopping uplift of 54.1% would be generated overall. And so it was.</p><p>Another customer recently launched a simple test to determine the best copy for a Display Ad campaign, consisting of a control group and treatment variation. The results revealed the control group to be the unequivocal winner while the treatment significantly hurt performance. Disheartened by the results, the customer was faced with an automated personalization recommendation. Instead of discarding the treatment, Predictive Targeting advised the user to serve the treatment to a subset of ad viewers (30% of traffic) who was identified to actually perform better to the treatment variation. In this example, <strong>Predictive Targeting effectively converted a “losing” test into an opportunity for better personalization!</strong></p><p>With Predictive Targeting, you can overcome familiar marketing limitations, as it automatically handles all of the tedious data analysis tasks behind the scenes so that you won’t have to. All Predictive Targeting suggestions are <a href="https://www.dynamicyield.com/glossary/statistical-significance/">statistically significant</a> and data-driven, ridding marketers of the need to rely on guesswork or heavy duty analysis when executing personalization strategies.</p><div class="blog-ebook-cta" style="display: inline-block; margin-top: 10px;"><span style="font-weight: 600;"><b>Power True Personalization with AI-Driven Targeting</b></span><br /> Automatically deliver the right experience to the right user at the right time</p><div class="ebook-cta-button"><a class="learn-more-cap" style="color: #fff; text-transform: uppercase; font-weight: 400;" href="/request-demo/">Get a Demo Now ›</a></div></div><p>Predictive Targeting does not require any setup or development and is automatically ingrained in any campaign and test launched through Dynamic Yield. That means across any channel or platform, including mobile apps, email, and offsite advertising, allowing you to leverage all of your user data, surfacing recommendations at the moment they are identified.</p><p><strong>With Dynamic Yield’s Predictive Targeting you receive:</strong></p><ul><li>Constantly running algorithms for all campaigns for identification of revenue uplift opportunities</li><li>Real-time recommendations delivered through the platform and by email for the highest impact opportunities</li><li>1-click deployment offering full control and flexibility to deploy any recommendation</li><li>Winner declaration per audience segment vs. the winner takes all approach</li></ul><p>Predictive Targeting is available to all Dynamic Yield customers. During its beta program, Predictive Targeting was fully tested and vetted, crunching data for over 2,500 experiments in real time and generating successful personalization strategies and deployments for some of the world’s leading retailers. With Predictive Targeting, personalization has become so much easier.</p></div></article><div style="clear: both;"></div></div></div><div class="article-content"><div class="article-separator"><svg width="54" height="26" viewBox="0 0 54 26" fill="none" xmlns="http://www.w3.org/2000/svg"> <path d="M53.0088 25.6367C52.7884 21.9564 51.8025 18.3625 50.1141 15.0849C48.4256 11.8073 46.0718 8.9181 43.2031 6.60203L43.2031 25.6367L53.0088 25.6367Z" fill="black"/> <path d="M14.4395 3.59038C10.3237 5.69174 6.82743 8.83082 4.29638 12.6973C1.76533 16.5638 0.28711 21.0239 0.0078125 25.6367L14.4395 25.6367L14.4395 3.59038Z" fill="black"/> <path d="M17.6563 2.20809L17.6562 25.6367L39.9829 25.6367L39.9829 4.36701C39.9829 4.36701 30.7303 -2.31342 17.6563 2.20809Z" fill="black"/> </svg></div><div class="article-tags-block"> <strong>Categories:</strong><ul class="post-categories"><li><a href="https://www.dynamicyield.com/blog/category/product/" rel="category tag">Product</a></li></ul></div><div class="article-tags-block"><strong>Tags:</strong><a href="https://www.dynamicyield.com/blog/tag/predictive-targeting/" rel="tag">Predictive Targeting</a></div></div></div><section class="lc-subscription-section"><div class="lc-subscription-form-block lc-subscription-inner"><h4 class="lc-subscription-title">Sign up for the XP² newsletter</h4><div class="lc-subscription-text">Join thousands of readers from Target, Citi, Spotify, Hulu, Google, Sephora, and other innovative brands who read our bi-weekly XP² newsletter, delivering educational content, research, and insights straight to your inbox</div><form class="mktoForm" data-formId="3876" data-formInstance="sub-inline"></form><div class="lc-privacy-wrapper"><div class="lc-privacy"> You may unsubscribe at any time. 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_form.vals({ mkt_tok: ls_mkto_tok });
}
// Fill in the UTM data from localStorage
var dy_utms = {
'utm_source': 'txt_source__c',
'utm_medium': 'txt_medium__c',
'utm_content': 'txt_content__c',
'utm_campaign': 'txt_campaign_name__c',
'utm_term': 'txt_term__c',
'gclid': ['GCLID__c', 'GCLID_c__c']
};
for(var i = 0; i < Object.keys(dy_utms).length; i++) {
var ls_key = Object.keys(dy_utms)[i],
ls_value = localStorage.getItem(ls_key),
form_key = dy_utms[ls_key],
form_field;
if(ls_value) {
if(ls_key === 'gclid') {
ls_value = JSON.parse(ls_value).value;
}
if(typeof(form_key) === 'string') {
form_field = form[0].querySelector('input[type="hidden"][name="' + form_key + '"]');
if(form_field) {
form_field.value = ls_value;
}
} else {
for(var j = 0; j < form_key.length; j++) {
form_field = form[0].querySelector('input[type="hidden"][name="' + form_key[j] + '"]');
if(form_field) {
form_field.value = ls_value;
}
}
}
}
}
// IP Address
fetch('https://www.cloudflare.com/cdn-cgi/trace').then(function(result) {
result.text().then(function(values) {
values.split("\n").map(function(item) {
var pair = item.split('=');
if(['ip'].includes(pair[0])) {
form[0].querySelector('input[type="hidden"][name="IP__c"]').value = pair[1];
}
});
});
});
// GA ID and Referrer
var dy_utms_cookie = {};
document.cookie.split(';').forEach(function(el) {
var splitCookie = el.split('=');
var key = splitCookie[0].trim();
var value = splitCookie[1];
dy_utms_cookie[key] = value;
});
if(dy_utms_cookie["_ga"]) {
form[0].querySelector('input[type="hidden"][name="Visitor_ID__c"]').value = dy_utms_cookie["_ga"].substring(6);
}
if(dy_utms_cookie["personalize_referrer_string"]) {
form[0].querySelector('input[type="hidden"][name="Referral__c"]').value = dy_utms_cookie["personalize_referrer_string"].substring(6);
}
// ZoomInfo
if(localStorage.getItem('ZoomInfoData')) {
var zoominfo_data = JSON.parse(localStorage.getItem('ZoomInfoData'));
if(zoominfo_data) {
form[0].querySelector('input[type="hidden"][name="Alexa_Rank__c"]').value = zoominfo_data.alexaglobalrank;
form[0].querySelector('input[type="hidden"][name="Employees__c"]').value = zoominfo_data.employeesrange;
form[0].querySelector('input[type="hidden"][name="Company_Revenue_Range__c"]').value = zoominfo_data.estimatedannualrevenue;
}
}
// Also, dispatch a dataLayer event on success
_form.onSuccess(function(values, follow_up_url) {
window.dataLayer = window.dataLayer || [];
if([3739, 4802, 5094, 5110, 4946, 5076, 5116, 5171, 5172, 5173].includes(_form.getId())) {
window.dataLayer.push({
'event': 'demo_request_complete',
'eventCallback': function() {
if(follow_up_url) {
window.location.href = follow_up_url;
}
}
});
return false;
} else if([3876].includes(_form.getId())) {
window.dataLayer.push({
'event': 'newsletter_signup_complete',
'eventCallback': function() {
if(follow_up_url) {
window.location.href = follow_up_url;
}
}
});
return false;
}
});
});
}</script> <script>if(typeof(jQuery) !== 'undefined') {
$ = jQuery.noConflict();
}
function getUrlParameter(sParam) {
var sPageURL = decodeURIComponent(window.location.search.substring(1)),
sURLVariables = sPageURL.split('&'),
sParameterName,
i;
for (i = 0; i < sURLVariables.length; i++) {
sParameterName = sURLVariables[i].split('=');
if (sParameterName[0] === sParam) {
return sParameterName[1] === undefined ? true : sParameterName[1];
}
}
}
$(window).load(function(){
var videoID = getUrlParameter('video');
if(videoID !== undefined){
if($('#wistia-' + videoID + '-1').length){
var videoName = $('#wistia-' + videoID + '-1').parents('.tab-pane');
videoName = videoName[0].id
}
if($('a[href="#' + videoName +'"]').length){
$('a[href="#' + videoName +'"]').each(function(){
$(this).click();
});
}
addScript('https://fast.wistia.com/embed/medias/'+ videoID +'.jsonp');
addScript('https://fast.wistia.com/assets/external/E-v1.js');
$('body').append('<span class="wistia_embed wistia_async_'+videoID+' popover=true popoverContent=link dy-wistia-popup" style="display:inline"></span>');
window._wq = window._wq || [];
_wq.push({ id: videoID, onReady: function(video) {
var video = Wistia.api(videoID);
video.popover.show(); // open the popover
video.play(); // play the video
setTimeout(function(){video.unmute();}, 500);
}});
}
});</script> <style>#adBanner {
background-color: transparent;
height: 0;
width: 1px;
}</style><div id="wrapfabtest"><div id="adBanner"></div></div></body></html>
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