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<Img
img="/uploads/cgi_c0fe75f0a0.png"
alt="CGI: What It Is and How to Apply It in Advertising"
/>

Marketing has long embraced technology. The IT industry has streamlined marketers' work with information gathering and analysis, while neural networks automate and expedite content creation. The advertising world has also adopted CGI from the film industry, where this technology brings non-existent worlds and fantastical characters to life, defying the laws of physics.

Thanks to computer-generated imagery (CGI), brand videos feature vibrant characters and gigantic objects on the streets of real cities.

This article will explain what CGI is, why it's used in marketing, and showcase examples that have left a lasting impression.

## What is CGI Graphics

CGI (Computer-Generated Imagery) is the creation of realistic or animated models of locations, objects, and people. Typically, these are 3D and 2D objects used in renders, videos, AR, and VR technologies. For a long time, CGI has been a part of the film industry, creating new worlds on screen, fantastical characters, or simply enhancing captured frames. Some films are nearly entirely made using CGI, such as "Life of Pi," which received Oscar nominations for its effects. CGI has opened up possibilities for writing any script, even the most implausible in reality.

The first film with computer effects was Alfred Hitchcock's "Vertigo" (1958), where animation appeared in the titles. The integration of graphics and shooting was first achieved in the 1973 film "Westworld." Since then, the technology has evolved, bringing increasingly realistic worlds to the screen. Films like "Star Wars," "The Matrix," "Jurassic Park," "The Lord of the Rings," "Avatar," and Marvel movies wouldn't have been possible without CGI graphics.

By the way, to seamlessly blend real objects with digitally created frames, filmmakers often use a single-color background, typically green or blue, a technique known as "chroma keying."

<Img
img="/uploads/endgame_movie_was_filmed_on_a_chroma_key_cd15253db6.png"
alt="Avengers: Endgame movie was filmed on a chroma key"
src="The massive battle of Avengers: Endgame movie was filmed on a chroma key"
/>

Gradually, other industries embraced the technology as well: interior design, development for modeling future homes and spaces, computer games. Of course, mass media channels adopted CGI too.

## CGI Graphics in Advertising

The nearly limitless visualization possibilities make CGI appealing for marketing. CGI advertising is widely used today, showcasing products and telling brand character stories in both 3D and 2D videos. For instance, the first CGI M&M's video debuted in 1995, and since then, [**clips featuring the red and yellow candies**](https://www.youtube.com/watch?app=desktop&v=utAw2j0khNk) and others have appeared for many years, with catchphrases even entering popular culture. This happened with the [**Christmas ad**](https://altcraft.com/blog/new-years-marketing) "He does exist! They do exist!"

<Img
img="/uploads/mms_christmas_advertising_video_d89bd30f7d.jpg"
alt="M&M's Christmas advertising video"
/>

## Why marketers use CGI design

**WOW factor and brand recognition.** CGI graphics allow the realization of any creative idea, increasing the chances of capturing audience attention and evoking emotions. Marketing campaigns with CGI videos garner millions of views, make headlines, and stimulate discussions, expanding brand audiences and enhancing recognition.

**Realistic product demonstration.** Particularly useful for products that don't exist yet. CGI can bring to life a future residential complex, strengthening [**marketing promotion channels**](https://altcraft.com/en/features/omni-channel-marketing). The visual representation of a product is the first thing users notice in the digital environment.

**Budget savings.** While CGI creation can be costly, in some cases, it's more economical than live shooting. It eliminates the need to assemble a large team for on-location shoots, providing the flexibility to create backgrounds digitally and film people in a studio.

**Ethical considerations.** High-quality CGI design is realistic enough to replace people and animals in a frame, sparing them from the potential discomfort of real filming. Representing animals like dogs, cats, tigers, bears digitally can be indistinguishable from real footage, avoiding stress for the animals and preventing brand audience backlash.

## How CGI advertising is created

Typically, a whole team collaborates on a CGI project, including animators, artists, 3D modelers, visualization experts, motion designers, CGI illustrators, and other specialists.

### Stages of CGI creation

To produce a CGI video, several stages need to be completed.

<Table>
| Stages | Description |
| ------ | ------ |
| Script writing | The first stage is coming up with an idea, which is turned into a frame-by-frame script. |
| Modeling | A model of an object is created that looks like a geometric figure with many faces. |
| Texture refinement | Textures are drawn on the object that they would have if they were real. |
| Working out the details (rigging) | Work out the light and shadows in the image to bring their appearance closer to more realistic ones. |
| Final assembly (compositing) | All created layers are merged and the final clip appears. |
</Table>

## CGI clips in advertising: examples

The most impactful and WOW-worthy advertising created with CGI often involves the appearance of impossible or challenging-to-implement objects in the real world. Such advertisements often leave viewers questioning whether [**video graphics**](https://altcraft.com/blog/video-marketing-for-brand-promotion) were used or if the brand actually crafted a gigantic installation.

### Jacquemus

In the spring of 2023, the Jacquemus brand had [**Bambino design handbags**](https://youtu.be/mnDNAv9HBSM?si=qAojI5fMm-VLnLt-) roam the streets of Paris instead of trams. The video turned out highly realistic and went viral. Global publications covered this advertisement, adding popularity to the company and the bag itself.

<Img
img="/uploads/viral_video_with_bambino_bag_by_jacquemus_89bbd72d46.png"
alt="Viral video with Bambino bag by Jacquemus"
/>

But the brand didn't stop there; in December, they released [**a series of CGI videos**](https://t.me/smmrus/10261) promoting the opening of stores in the mountain resort of Courchevel. The Jacquemus logo appears on ski lift cabins, on a snowboard carried by a diver, and even a Christmas tree with human legs skiing down the mountain.

<Gallery>
<GalleryItem
original="/uploads/courchevel_jacquemus_0c53329bb2.png"
thumbnail="/uploads/courchevel_jacquemus_0c53329bb2.png"
/>
<GalleryItem
original="/uploads/snowboard_carried_by_a_diver_ee400c6d13.png"
thumbnail="/uploads/snowboard_carried_by_a_diver_ee400c6d13.png"
/>
<GalleryItem
original="/uploads/ski_lift_cabins_jacquemus_6524b70175.png"
thumbnail="/uploads/ski_lift_cabins_jacquemus_6524b70175.png"
/>
<GalleryItem
original="/uploads/mountain_resort_of_courchevel_b6354e246d.png"
thumbnail="/uploads/mountain_resort_of_courchevel_b6354e246d.png"
/>
<GalleryItem
original="/uploads/christmas_tree_with_human_legs_77bb0466f2.png"
thumbnail="/uploads/christmas_tree_with_human_legs_77bb0466f2.png"
/>
</Gallery>

### Maybelline

Maybelline launched a CGI advertisement for mascara. A famous double-decker red bus with eyelashes [**drove through the streets of London**](https://youtu.be/zyaKUXOkeng?si=1ZYl6gG9SoJvia4r), and a giant brush attached to a building combed the lashes. Lashes also appeared on the subway train.

<Gallery>
<GalleryItem
original="/uploads/cgi_advertisement_for_mascara_eececbb809.png"
thumbnail="/uploads/cgi_advertisement_for_mascara_eececbb809.png"
/>
<GalleryItem
original="/uploads/maybelline_mascara_08eab67150.png"
thumbnail="/uploads/maybelline_mascara_08eab67150.png"
/>
</Gallery>


### Barbie

The advertising campaign for the movie "Barbie" was complemented by [**a giant doll coming out of its box**](https://www.youtube.com/watch?v=HNjqq8FJiVw) in Dubai near the Burj Khalifa skyscraper. Although the film featured many real locations, this appearance of Barbie only intensified interest in the project.

<Img
img="/uploads/advertising_campaign_for_the_movie_barbie_2132e2c4f5.png"
alt="Giant Barbie doll coming out of its box in Dubai"
/>

### L'Oreal

Another well-known cosmetic brand [**created road markings**](https://youtube.com/shorts/d5qAC300swc?si=bsSu-bSZ-n5XHwX1) in Paris using a retro car carrying red lipstick on its roof.

<Gallery>
<GalleryItem
original="/uploads/retro_car_carrying_red_lipstick_96c1fa280a.png"
thumbnail="/uploads/retro_car_carrying_red_lipstick_96c1fa280a.png"
/>
<GalleryItem
original="/uploads/retro_car_loreal_ffaa111acb.png"
thumbnail="/uploads/retro_car_loreal_ffaa111acb.png"
/>
</Gallery>

[**The advertisement for the brand's cream**](https://youtube.com/shorts/P0n-Ky029hA?si=GgJ2S0BJKnZFOgIX) became even more impactful as it showed a statue of Liberty holding and applying the cream to her face. Interestingly, before using L'Oreal's product, the main symbol of the USA has pimples, and they instantly disappear afterward.

<Gallery>
<GalleryItem
original="/uploads/the_advertisement_for_the_brands_cream_4b78dfe2d8.png"
thumbnail="/uploads/the_advertisement_for_the_brands_cream_4b78dfe2d8.png"
/>
<GalleryItem
original="/uploads/statue_of_liberty_with_cream_5f95769610.png"
thumbnail="/uploads/statue_of_liberty_with_cream_5f95769610.png"
/>
</Gallery>

### Rebranding of M.Video


The branding agency Linii vividly and effectively showcased the new logo for the "M.Video" company. The new three-dimensional brand symbol [**flies over the river**](https://www.instagram.com/reel/C0gxEDSCtdl/?igshid=MzRlODBiNWFlZA==) in Moscow with a helicopter. People passing by appear to be capturing it as if taking a photo.

<Gallery>
<GalleryItem
original="/uploads/new_logo_for_the_mvideo_company_7ae5be0509.png"
thumbnail="/uploads/new_logo_for_the_mvideo_company_7ae5be0509.png"
/>
<GalleryItem
original="/uploads/new_three_dimensional_brand_symbol_03c950ca42.png"
thumbnail="/uploads/new_three_dimensional_brand_symbol_03c950ca42.png"
/>
</Gallery>

### DOM.RU

A giant robot [**flies**](https://vk.com/wall-42949290_10438581?w=wall-42949290_10438581) around Samara and other cities, installing routers on buildings in an advertisement for the internet provider. The storyline of the video is presented as a live broadcast, adding realism to the CGI-created content.

<Gallery>
<GalleryItem
original="/uploads/giant_robot_7704d35728.png"
thumbnail="/uploads/giant_robot_7704d35728.png"
/>
<GalleryItem
original="/uploads/robot_in_domru_c62a15e1ac.png"
thumbnail="/uploads/robot_in_domru_c62a15e1ac.png"
/>
</Gallery>

### Sberbank

In 2021, [**a video featuring Gena and Cheburashka**](https://youtu.be/KX-3xPPyzzc?si=MarlTFDgc0lVh-Zl) waving to passersby from a screen in "Moscow City" was released. They then exceed the boundaries of the screen. The video goes on to highlight the products of the Sberbank ecosystem.

<Img
img="/uploads/sberbank_ecosystem_234e64f560.png"
alt="CGI ad by Sberbank"
/>

### Coca Cola

In the Coca Cola commercial, [**artworks come to life**](https://youtu.be/VGa1imApfdg?si=e9we83qeSOb1AEhp) in a museum, and visitors walk around. Of course, this happens to pass the iconic bottle of soda to each other. The actions of the exhibits remain unnoticed by people in the hall.

<Gallery>
<GalleryItem
original="/uploads/coca_cola_commercial_391bb97b81.png"
thumbnail="/uploads/coca_cola_commercial_391bb97b81.png"
/>
<GalleryItem
original="/uploads/coca_cola_artwork_9e8bf161ce.png"
thumbnail="/uploads/coca_cola_artwork_9e8bf161ce.png"
/>
<GalleryItem
original="/uploads/museum_advertising_coca_cola_ef0a168e56.png"
thumbnail="/uploads/museum_advertising_coca_cola_ef0a168e56.png"
/>
</Gallery>

### Balenciaga

The brand Balenciaga, in collaboration with Fortnite, has created a digital clothing collection. Characters from the online game serve as models [**on 3D billboards**](https://www.youtube.com/watch?time_continue=14&v=2lXwSJVlcwc&embeds_widget_referrer=https%3A%2F%2Foohmag.ru%2F2021%2F09%2F22%2Fbrend-sozdal-svoj-sobstvennyj-czifrovoj-mir-mody%2F&embeds_referring_euri=https%3A%2F%2Foohmag.ru%2F&embeds_referring_origin=https%3A%2F%2Foohmag.ru&feature=emb_yt_watermark). For instance, the Doggo skin is dressed in the brand's clothing.

<Img
img="/uploads/balenciaga_fortnite_collaboration_330e36a8ba.png"
alt="CGI powered Balenciaga & Fortnite collaboration"
/>

### Pokemon Go

[**The Pokémon Go advertisement**](https://youtu.be/appsZyaDLn0?si=W6MgjBtAjhaobBBx) also appeared on a curved screen measuring 154 square meters in Tokyo. Popular game characters appear one by one, engaging in a short storyline. Objects seem to scatter beyond the screen borders.

<Img
img="/uploads/pokemon_go_cgi_b457811556.png"
alt="Pokemon Go CGI powered advertisement"
/>

### Alexander Wang Underwear

[**The video featuring a giant bra**](https://www.youtube.com/watch?v=-_Q93WbF1_k) hanging from a bridge in New York seems incredibly realistic. However, it's once again CGI, part of the advertising campaign for the Alexander Wang Underwear brand. Passing cars interact with the installation, creating doubt about its unrealness.

<Img
img="/uploads/giant_bra_4c94b9a605.png"
alt="A giant Alexander Wang Underwear bra above the bridge in New York"
/>

### Poison Drop

[**The jewelry brand Poison Drop**](https://www.instagram.com/reel/C00-oWFN6aH/?igshid=MzRlODBiNWFlZA==) announced the opening of a new store near Patriarch Ponds in Moscow with a CGI video on their Instagram* account. Initially, giant silver droplets appear on the street, dissolve, and then the Poison Drop sign descends on the building. The video includes moving cars and street noise for added realism.

<Gallery>
<GalleryItem
original="/uploads/poison_drop_66a9bc7e9d.png"
thumbnail="/uploads/poison_drop_66a9bc7e9d.png"
/>
<GalleryItem
original="/uploads/cgi_video_poison_drop_cf52bceedc.png"
thumbnail="/uploads/cgi_video_poison_drop_cf52bceedc.png"
/>
</Gallery>

## Summary

CGI (Computer-Generated Imagery) is a computer graphics technology for creating realistic objects and characters in video format. It can depict either an entirely digitally created world or individual non-existent elements in the real world. CGI has been utilized in the film industry for many years, and marketers have adopted this technology for advertising purposes.

These videos often evoke a WOW effect, realistically showcase products, and save costs compared to traditional filming, especially in challenging conditions with large production teams. Marketing strategies incorporating CGI provide an ethical means of content creation without using animals.

Specialized teams of CGI experts handle the creation of CGI advertisements, going through stages such as scriptwriting, modeling, texturing, lighting, detailing, and compositing.

* *Meta is a product of the company recognized as an extremist organization in Russia.*

CGI is a graphics technology for creating realistic objects and characters in videos in a fully digital world or as non-existent elements in the real world.

medium_cgi.png

small_cgi.png

thumbnail_cgi.png

cgi.png

About what CGI is, why to use this technology in marketing and show examples that have produced a WOW effect.

CGI, Definition, Examples & How to Apply It in Advertising

CGI: What It Is and How to Apply It in Advertising

<Img
img="/uploads/machine_learning_858af4a826.png"
alt="Methods and Techniques of Machine Learning"
/>

In 2023, it is challenging to envision a news feed without the concept of "machine learning." It is anticipated that the market for this technology will reach 225 billion dollars by 2030. For comparison, the forecast for 2023 predicted [**growth to 26 billion dollars**](https://www.fortunebusinessinsights.com/machine-learning-market-102226).


In other words, machine learning is here to stay for the long term. The technology will continue to be integrated into various aspects of human life: predicting, classifying, generating objects. Therefore, it is essential not to fall behind and understand what machine learning is, how ML emerged, and what methods and techniques it employs. We will cover these topics in our article.


## Essence of machine learning


Machine learning is a branch of [**artificial intelligence**](https://altcraft.com/blog/neural-networks-in-business-marketing-and-life) that simulates human thinking processes. Unlike traditional software that follows a rigid sequence of actions, machine learning involves continuous "thinking," mimicking the way the human brain operates.


Machine learning entails making predictions based on vast amounts of data, where algorithms discover patterns. The concept is closely related to neural networks, which are part of one of the types of machine learning and operate through deep learning.


**Machine learning algorithms are used to create services that:**


- **Recommend products, services, and content,** including based on user actions. For example, online cinemas suggest movies and series based on viewing history. 

- **Forecast the future:** possible trends, sales volumes, patient illnesses in medical clinics based on their medical history, events, and more. Machine learning models determine credit ratings in banks and predict the behavior of customers who may struggle to repay a loan. 

- **Recognize objects in images and videos, understand speech, and analyze text.** This speeds up routine processes, simplifies human work, and even enhances security. For instance, recognizing vehicle license plates through surveillance cameras adds an extra layer of control.

## How machine learning works

1. **Defining criteria for selection and data collection** involves gathering vast amounts of information. 

2. **Data preparation** involves labeling the data, which is crucial for ML algorithms to recognize the desired elements. Currently, labeling is mostly done by specialists and is less frequently automated, making this process time-consuming. 

3. **Data verification and pattern identification** identifies errors in the data to correct them and make the next stage more precise by searching for patterns. 

4. **Model selection and training commencement.** The algorithm processes the data and produces results. 

5. **Obtaining and evaluating algorithm performance.** At this stage, errors are corrected, and algorithms may be adjusted for further operations.

<Img
img="/uploads/functioning_of_machine_learning_773a210191.png"
alt="Functioning of machine learning"
/>


## History of machine learning

### 20th Century

The first instances of machine learning date back to the mid-20th century. Scientists Walter Pitts and Warren McCulloch successfully mimicked a neuron in 1943. There is also the notable secret project by the U.S. Army in 1946, aimed at creating tables to improve shooting accuracy through software.

The flourishing era of [**machine learning**](https://altcraft.com/blog/customer-data-for-machine-learning) began in the 1950s, marked by the appearance of Checkers-playing, a program by Joseph Weizenbaum, Frank Rosenblatt, and Arthur Samuel that could play checkers.

During the same period, the Mark I Perceptron, a neural network model simulating human brain function, was introduced by Rosenblatt. In the late 1950s, the SNARC, a neural network capable of handling complex tasks, was developed by American scientist Marvin Minsky.

The term "machine learning" was officially coined in 1959 at a conference at Dartmouth College (USA).

In the 1960s, the prototype of the first virtual assistant was launched – ELIZA, a system that simulated a conversation with a psychotherapist. In the same decade, an algorithm capable of recognizing and classifying data was invented. Towards the end of the 1960s, Bernard Widrow and Sebastian Trun developed the backpropagation algorithm, a significant advancement in improving neural network performance.

In the 1980s, scientists once again employed technologies for gaming, this time in chess. Young researchers from Carnegie Mellon University devised the ChipTest system. Based on this development, the supercomputer Deep Blue emerged in the late 1990s, defeating the renowned chess player Garry Kasparov. This showdown between man and machine showcased the power of machine learning in predicting robot actions.


### 21st Century

In our time, the computing power has increased, and data volumes have grown, propelling machine learning (ML) into a new stage of development. In the 2000s, the concept of "deep learning" emerged. The early 2010s marked an era of discovering new projects related to neural networks. Notably, Google entered the race, and by 2012, a Google X Lab algorithm had learned to recognize cats in images and videos. Google also introduced the Google Prediction API, a service for analytics and machine learning.

Amazon, Microsoft, Facebook, and other giants were not left behind; they developed their platforms where machine learning methods were applied. Mark Zuckerberg's company, in particular, introduced the DeepFace technology, which achieved high-precision facial recognition.

In the 2020s, the role of machine learning continues to grow. Technologies are already operational in the fields of finance, healthcare, industry, and transportation, gradually integrating into people's daily lives.


## Machine learning techniques

<Table>
| Method | Description |
| ------ | ------ |
| Supervised learning | The model is trained on already prepared data (labeled) and ready answers. The algorithm has to choose the answer to the hypothesis: right or wrong, and the human has to control the result. This is a relatively simple way of ML that is suitable for data classification. It is learning with a teacher that helps to distinguish between objects. |
| Unsupervised learning | For training, information without markup is taken. The algorithm itself must understand the patterns and features that distinguish objects. Suitable for prediction and for automated cleaning of input data, recognizing and understanding human language. |
| Semi-supervised learning | Here marked and unmarked data are used. The rest of the partitioning is performed by the algorithm itself according to the specified parameters. Such training is useful for processing long files (e.g., longreads). |
| Reinforcement learning | The method is based on a point system that the model receives depending on the actions. It is similar to a reward system in a game, where the player gets a bonus for a correct action. |
</Table>


## Machine learning methods

### Naive Bayes classifier

The method is named after Bayes' theorem. Its foundation lies in determining the class of an object based on its features. Considered one of the simplest methods, it is used for categorization, object recognition in images, and identifying [**spam emails**](https://altcraft.com/blog/how-to-send-millions-of-emails-and-avoid-spam-filters).

<Img
img="/uploads/naive_bayes_classifier_in_ml_3fba99f3e8.png"
alt="Naive Bayes classifier in ML"
/>

### Decision Trees

In this method, the model identifies the relationship between events and objects, as well as the consequences of their interactions. Visually, this scheme can be depicted as "branching trees," representing different development scenarios depending on the choices made. It is similar to algorithmic tests with "yes" or "no" answers, leading to a result. The method's advantage lies in its systematic approach, but it is not applicable everywhere.

<Img
img="/uploads/decision_trees_in_ml_f32278a671.png"
alt="Decision Trees in ML"
/>


### Logistic regression

A statistical method that has found application in machine learning. The logistic function determines the relationship between one or more variables. Objects are categorized into two classes based on specific values in the range of 0-1.

Determining credit potential, predicting sales success, advertising campaigns, and other probabilistic events are identified through the logistic regression method.

<Img
img="/uploads/logistic_regression_in_ml_b1142fb219.png"
alt="Logistic regression in ML"
/>

### Support vector machines

Incorporating several algorithms, support vector machines classify objects in a hyperplane separated by vectors. The system's task is to find the most appropriate positioning of the line in the plane for optimal classification.

This method solves complex problems and can determine factors like whether there is a man or woman in a photo, what ads to show a user on a website, and so on.

<Img
img="/uploads/support_vector_machines_in_ml_618826ad84.png"
alt="Support vector machines in ML"
/>

### Linear regression

The essence of this method is to relate one variable (N) to another variable or several variables. Conceptually, on a plane, there are data points for which one needs to find the most suitable line that connects them.

<Img
img="/uploads/linear_regression_in_ml_8fe2d66c32.png"
alt="Linear regression in ML"
/>

This algorithm easily predicts trends and determines what information is missing in simple linear sequences. For example, what needs to be added to the sequence 10, 20, 30, 40, 50…

### Assembly methods

An ensemble of methods where various classifiers are generated and data is divided based on averaging or voting principles. This approach reduces the probability of errors. Assemblies include:

- **Bagging:** Basic models are trained in parallel with the collection of more complex classifiers.

<Img
img="/uploads/bagging_in_ml_e74a5f22b8.png"
alt="Bagging in ML"
/>

- **Boosting:** Strong models are created using weak ones. Training occurs on previous classifiers to improve and correct errors for subsequent ones.

<Img
img="/uploads/boosting_in_machine_learning_367667ed4d.png"
alt="Boosting in machine learning"
/>

### K-Means clustering

One of the clustering methods in machine learning. The algorithm utilizes a random number of clusters K. Each has its center (point), from which the distance to each data point in the groups is calculated. Then the center of each cluster is listed, vectors again partition data points into clusters. This process continues until no further changes occur.

Clustering is useful for biological research, IT technologies, and sociology.

<Img
img="/uploads/k_means_clustering_a983f099a5.png"
alt="K-Means clustering"
/>

### Generative adversarial learning

This method is based on the operation of neural networks that, in a way, compete with each other (hence the name). The algorithm involves discriminator and generator networks. The discriminator attempts to classify incoming data and correlate it with categories, while the generator, conversely, aims to choose images that fit the categories. The generator creates objects, and the discriminator checks their authenticity. This algorithm is capable of generating images of non-existent people that resemble real ones.

<Img
img="/uploads/generative_adversarial_machine_learning_3bf8f109d1.png"
alt="Generative adversarial machine learning"
/>

## Summary

Machine Learning is a form of artificial intelligence that simulates the activity of the human brain. The initial machine learning algorithms emerged in the 1940s and 1950s, but significant growth was achieved in the 21st century, and they are now utilized in various aspects of human life.

ML methods are classified based on human involvement. There is supervised, unsupervised, semi-supervised, and reinforcement machine learning.

Additionally, methods are categorized by the algorithm's operation. This includes Bayesian classifier, decision trees, logistic regression, assembly methods (bagging, boosting), K-means clustering, generative adversarial learning, among others.

**Product of the company Meta, prohibited on the territory of the Russian Federation.*

ML methods are categorized based on human involvement, comprising supervised, unsupervised, semi-supervised, and reinforcement learning.

medium_machine-learning.png

small_machine-learning.png

thumbnail_machine-learning.png

machine-learning.png

About what machine learning is, how ML appeared, what methods and methods it uses.

Machine Learning: Essence, History, Methods & Techniques

Methods and Techniques of Machine Learning

<Img
img="/uploads/what_is_statistical_power_a8256e4185.png"
alt="What is statistical power"
/>

Defining statistical power or the "sensitivity" of a test is an important part of planning before launching A/B testing. It allows you to introduce more positive changes to a website and increase your revenue.

## Definition of statistical power

**Statistical power** is the ability of a criterion to detect differences where they actually exist. The sensitivity of a test will show a significant result and reject the incorrect null hypothesis.

Before delving into the elements of statistical power, it's essential to understand the types of errors that can occur in tests and how to prevent them.

## Two types of errors

### Type I error

**Type I error** is a false positive result: rejecting the null hypothesis that is actually true.

**The null hypothesis** states that there is no difference between a pair of events or phenomena.

A false positive test shows that there is a difference between the compared variants, even though there isn't one in reality. Such a situation can occur due to an error in the test or if randomness creeps in.

The probability of a type I error is denoted by the Greek letter alpha (α) and indicates the threshold level at which an A/B test should be trusted. If a test is reliable at 95%, the remaining 5% represents the probability of a type I error.

If a business cannot tolerate a 5% chance of error, considering it too high, the probability of false positive results can be reduced by increasing the test's reliability. If the reliability is increased to 99%, the probability of a type I error decreases from 5% to 1%. However, there are some "pitfalls" in this calculation.

The decrease in the probability of type I errors increases the probability of type II errors because there is an inversely proportional correlation between these values. Therefore, reducing the alpha error level (for example, from 5% to 1%) ultimately reduces the overall statistical power of the test.

<Img
img="/uploads/types_error_36faa5eac7.png"
alt="Graph by statistical power"
src="Type I error and its proportional connection with type II error"
/>


Sometimes it's necessary to consciously increase the risk of type I errors (for example, from 5% to 10%) to achieve high test sensitivity.
### Type II error


**Type II error** is a false negative result, meaning the inability to reject a false null hypothesis. Such a test will not show the advantage of any of the options, even though there are options that are more effective than others.

The probability of a type II error (β-error) is inversely proportional to statistical power (1 - β). If the risk of a Type II error is 20%, the sensitivity of the test is 80%.

Since alpha and beta errors have an inversely proportional relationship, if a test has an extremely low alpha error value (for example, 0.001%), the risk of a type II error is very high.

Finding a balance is not an easy task. Through A/B testing, a business aims to determine the best combination of elements and identify the most effective variant among many. If the tests lack sufficient sensitivity, there's a great risk of not noticing a genuinely good option.


## Variables affecting test statistical power


Next, we'll examine four variables that influence the statistical power of a test. While studying these variables, it's important to remember that the primary task of a tester is to control the probability of errors. This can be achieved through:

- sample size; 

- minimum detectable effect (MDE); 

- significance level (α); 

- desired level of power (implied Type II error coefficient).


### Sample size


The sample needs to be sufficiently large; otherwise, conducting a good split test is impossible. It's crucial to calculate the sample size to ensure it's of the necessary and adequate size. A small sample won't provide enough test power, while an excessively large one will extend the test duration (long tests are more expensive and time-consuming).

Each analyzed variant or [**segment**](https://altcraft.com/help-center/manage-customer-database/database-segmentation-for-email-newslettering) should have a significant number of users. For this reason, the sample size should be planned in advance, ensuring that the test always has good statistical power. Otherwise, exiting the test might reveal too many variants or segments. If this realization comes too late, the test will have been conducted in vain.

Expect statistically significant results within a reasonable period (e.g., no less than a week or a business cycle). In most cases, it's recommended to conduct testing for 2-4 weeks. Any duration exceeding this might lead to sample contamination and issues with cookie file deletion.

Therefore, determining the sample size and testing duration beforehand is crucial. This helps avoid the common mistake of conducting A/B testing "blindly," ending before obtaining statistically significant results.


### Minimum detectable effect (MDE)


MDE is the difference between variants that needs confirmation. Small differences are hard to detect, requiring very large samples. Substantial differences are noticeable even in small samples.

However, there exists a paradox where small samples can be unreliable, leading to erroneous tests. There's always a risk of error, and there's a narrow range within which results can be considered reliable. Since there's no single rule for determining sample size, all nominal levels are not 100% reliable.

### Significance level


Testing results are considered statistically significant under the condition that the null hypothesis is incorrect.

In simple terms, if during a split test, one landing page can confidently be preferred over another (with a test confidence level of 95%), there's only a 5% chance that the observed improvement is due to chance or error. Conversely, there's a 95% chance that the observed difference is not due to chance.

The 5% significance level is the most commonly used initial level in online testing, representing a 5% chance of a type I error, as mentioned earlier. An alpha of 5% means there's a 5% chance of incorrectly rejecting the null hypothesis.

Under equal conditions, reducing alpha from 5% to 1% simultaneously increases the likelihood of a type II error. An increased risk of a type II error reduces the validity of the test.

### Desired level of power


If the statistical power of a test is 80%, there's a 20% chance that the real difference between variants won't be detected. If a 20% chance is too risky, it can be reduced to 10%, 5%, or 1% to achieve powers of 90%, 95%, or 99%, respectively.

Before concluding that a 95% or 99% power analysis will solve all your problems, note that each increase in analysis power significantly increases sample size and analysis time.

So, what level of test sensitivity do you really need? The acceptable level of false negative risk for conversion optimization is often considered to be 20%, corresponding to an analysis power level of 80%.

There isn't a universally recognized standard for 80% power, but it represents a reasonable balance between alpha and beta errors. Consider the following:

- What is an acceptable level of risk for missing out on a quality improvement for you? 

- What is the minimum sample size required for the test to achieve the desired sensitivity?


## Calculating the statistical power of a test

You can use an A/B test calculator. Enter known variable values to determine, for example, the required sample size to achieve sufficient test sensitivity.

For instance, you calculated that testing each variant requires a sample size of 681 individuals. Your calculations were based on the following initial values: test power of 80%, alpha of 5% (95% statistical significance). You also knew the conversion rate for the control group is 14%, and you assumed an expected conversion rate for the better variant of 19%.

<Img
img="/uploads/calculate_the_statistical_power_of_a_test_848e9bae89.png"
alt="Calculation of the sample size"
src="How to calculate the statistical power of a test"
/>


Using the same initial data, knowing the sample size, alpha value, and the desired level of statistical power (for example, 80%), you can determine the minimum detectable effect (MDE).

<Img
img="/uploads/determination_of_mde_f4e64ce91b.png"
alt="Calculation of the minimum detectable effect (MDE)"
src="Determination of MDE"
/>


As we can see, an A/B test calculator is quite convenient when you know the values of three variables and aim to find the fourth one.

## What to do if the sample size cannot be increased?

In some cases, there's a need for a more high-powered test, but increasing the sample size is not possible, such as when the page traffic is too low.

Let's consider a scenario: you've inputted your data into the A/B test calculator, and it shows that a sample size of 8000 or more is required.

<Img
img="/uploads/use_a_sample_size_calculator_34fab3e500.png"
alt="Determining the required sample size"
src="How to use a sample size calculator"
/>

But you don't have the ability to gather such a sample; it would take several months or even longer. In this case, you need to increase the minimum detectable effect (MDE). In the example below, increasing the MDE from 10% to 25% reduces the sample size to 1356.

<Img
img="/uploads/sample_size_depends_on_increasing_the_mde_1aac156651.png"
alt="Increase the MDE to get the desired sample size"
src="Sample size depends on increasing the MDE"
/>


Is it really always possible to increase the MDE to 25%? After all, this will reduce the quality of the test.

The second option comes into play if you're willing to accept a 10% risk of type I error. In that case, the optimal option would be to decrease the test's significance level to 90%.

<Img
img="/uploads/balance_between_errors_within_calculator_1d200f99e4.png"
alt="Reducing the level of confidence to obtain the required sample size"
src="Balance between errors within sample size calculator"
/>

Iterating through data in hopes of obtaining satisfactory figures isn't the most reliable strategy. Analysts recommend starting by determining the sample size and then arbitrarily adjusting other values until the results are deemed satisfactory.

## Conclusion

Statistical power helps avoid errors during testing and identifies genuinely impactful performance factors on your platforms.

Adhere to these simple guidelines:

- Choose the test duration wisely: ideally 2-4 weeks 

- Use a test calculator to determine an acceptable test power 

- Adhere to the requirements for the minimum sample size 

- Aggregate segments and test them if needed 

- Set sensitivity test requirements only after meeting the minimum sample size requirements.

Source: [**CXL**](https://cxl.com/blog/statistical-power/)

Statistical power gauges a test's ability to detect differences. It helps avoid false conclusions by assessing the test's sensitivity to find genuine changes.

medium_what-is-statistical-power.png

small_what-is-statistical-power.png

thumbnail_what-is-statistical-power.png

what-is-statistical-power.png

About how to correctly calculate the statistical power for testing.

Statistical Power: Definition, How to Calculate & Variables 

What is Statistical Power

<Img
img="/uploads/the_differences_between_cdp_and_others_systems_bfb5e0b8b8.png"
alt="The differences between cdp and others systems"
/>

Data is the fuel for marketing and sales. Every day, [**328 million terabytes of information**](https://explodingtopics.com/blog/data-generated-per-day#:~:text=According%20to%20the%20latest%20estimates,or%200.33%20zettabytes%20every%20day.) are generated. To navigate this vast stream of data and leverage it effectively, businesses require a Customer Data Platform (CDP).

Depending on a company's objectives, scale, and processes, various platforms are implemented: DMP, ESP, CRM, ERP, and CDP. Each of these platforms collects, stores, and organizes data.

In this article, we'll delve into what these abbreviations mean, identifying which among them is an automation system for marketing, where mass mailing services are provided, and why and when these platforms are beneficial for businesses.


## What is DMP

**DMP, or Data Management Platform,** is a system designed for collecting, structuring, and storing user data used in product and service promotion. It's a critical software for marketing.

**The DMP system stores** [**three types of data**](https://altcraft.com/blog/first-second-and-third-party-data):

- First-party data: information gathered directly from users and a company's own resources, such as email, orders, website visits, and more. 

- Second-party data: data on user behavior on partner sources like websites, apps, social media, among others. 

- Third-party data, considered external, is presented by aggregators. These third-party insights contain general audience information encompassing behavior, purchases, preferences, and more.


### When and why to use a DMP


- **Personalization.** Having ample customer data allows tailored presentations of product benefits that matter to each customer. Personalized offers increase advertising effectiveness and the chances of conversion. DMP [**personalization**](https://altcraft.com/glossary/personalization-what-it-is-and-why-personalized-marketing-matters) occurs for segments formed based on gathered information. 

- **Customer data management.** Having a surplus of information doesn't equate to successful marketing. A DMP effectively collects and organizes data to better understand the audience. 

- **Marketing budget optimization.** Proper data management enhances advertising campaigns and helps avoid working with low-yield channels. Essentially, the budget isn't spent blindly. Moreover, the volume of information in a DMP and its analytics capabilities provide insights for omnichannel promotion via marketing tools.


## What is ESP 

**ESP (Email Service Provider)** is a service designed for email marketing and other customer communications. This platform [**automates marketing**](https://altcraft.com/blog/what-is-marketing-automation-and-how-it-affects-business-development) by managing the customer database and sending emails.

**The email service supports:**

- templates for emails; 

- sending emails to segments, including testing successful variations; 

- collecting addresses and information about open rates, clicks, [**spam reports**](https://altcraft.com/blog/how-to-send-millions-of-emails-and-avoid-spam-filters), and more.


### When and why to use a ESP


**ESP platforms are user-friendly and serve the following purposes:**

- **Simplify a marketer’s work by automating email campaigns.** Thanks to templates, sending emails becomes quick and doesn’t require specialized skills. Set it up once, then monitor and adjust email campaigns. 

- **Conduct effective marketing communications with customers.** Email service platforms regularly remind customers about the brand, offering new products, promoting deals, and re-engaging inactive users. ESPs also include analytics tools to evaluate the effectiveness of email sequences. 

- **Gather and organize an email database.** ESPs [**integrate with other platforms**](https://altcraft.com/en/features/integration) (e.g., social media) for direct acquisition of addresses from advertising campaigns. The client base is segmented internally. Additionally, email lists can be easily imported from other sources.


## What is CRM


**CRM (Customer Relationship Management)** is a system for managing relationships with users, gathering information at every stage of the customer journey. Based on this data, a customer profile or unified record is created. Essentially, it's [**an omnichannel platform**](https://altcraft.com/en/features/omni-channel-marketing) that stores the history of deals, customer calls, support inquiries, and more. It unifies and closely aligns marketing and sales efforts.

CRM systems in business vary based on the areas they serve: some are marketing-oriented, others handle sales department operations, there are industry-specific ones tailored for particular business sectors. Additionally, there are platforms that combine different functionalities.


### When and why to use a CRM


**CRM is used for:**

- **Tracking customer actions at each stage of** [**the sales funnel**](https://altcraft.com/blog/what-is-sales-funnel). All interactions are recorded and analyzed, allowing you to identify reasons for successful or unsuccessful paths to conversion. 

- **Automated collection of customer data.** CRM eliminates manual actions and spreadsheets; information typically enters the system through integrations and established automation processes. This speeds up work and reduces the risk of errors and duplicates. Data collection results in personalization. 

- **Efficient customer engagement.** CRM implements marketing and sales automation through reminders based on gathered data. The platform suggests when to call or send an email to engage with customers. This supports continuous communication and prompt issue resolution, crucial for fostering loyalty and increasing sales.


## What is ERP


**ERP (Enterprise Resource Planning)** is a platform that automates internal business processes and consolidates them in one place. It encompasses manufacturing, financial modules, integrates reporting, personnel management data, procurement, supply chains, among others.

An advanced ERP system can even synchronize with external partner networks. Enterprise resource planning is applied across various industries with specialized solutions.


### When and why to use ERP


- **Increase the speed and productivity of operations.** Processes are automated, freeing employees from routine tasks, providing time for strategic issues, reducing overload. 

- **Access real-time information at any given moment.** ERP serves as a system for managing customer data, employees, and departments, allowing quick and easy access to generate the required report rather than gathering information from scattered sources. 

- **Enhance business transparency.** When business processes are displayed in a single system, identifying operational failures and analyzing difficulties becomes easier. It serves as another control tool and enables swift responses to changes.


## What is CDP and what are its advantages over DMP, ESP, CRM, ERP


**CDP (Customer Data Platform)** is a system that gathers data from various channels for organization and unification. The software also creates a unified customer profile that contains contact information and details about their actions and orders.

**CXDP (Customer Experience Data Platform)** is an advanced version of CDP that retrieves information regarding user interactions from external sources. In CXDP, this functionality is implemented in a separate block, planning customer communications based on data.


### When and why to use CDP

[**CDP platform**](https://altcraft.com/en/features/cdp) is a tool to: 

- **Gather all customer data.** Personal information and behavior details across social media, websites, messenger apps, all linked to the CDP, accumulate within the customer profile, creating a comprehensive customer portrait.

<Img
img="/uploads/customer_digital_profile_724970456c.png"
alt="Customer digital profile"
src="Customer digital profile within Altcraft Platform"
/>

- **Manage communication channels in a single real-time window.** Through CDP, automation in internet marketing is achieved, enabling [**omni-channel communication**](https://altcraft.com/en/features/omni-channel-marketing). Email delivery systems, push notifications, SMS, and messaging apps are connected to a single platform, streamlined for marketers.

<Img
img="/uploads/automation_scenario_513dfbfddc.png"
alt="Automation scenario"
src="Automation scenario within Altcraft Platform"
/>

- **Personalize offerings.** Data volume and structuring serve as the foundation for detailed audience segmentation. Automated marketing becomes [**a data-driven approach**](https://altcraft.com/blog/data-driven-marketing): companies know what and when to offer a customer based on their order history, actions, and inquiries.

<Img
img="/uploads/audience_segmentation_91e79d55f0.png"
alt="Audience segmentation"
src="Audience segmentation in Altcraft Platform"
/>

- **Analyze outcomes and build effective marketing strategies.** CDP platforms offer extensive analytical functionalities to understand campaign responses, traffic sources, goal achievements, hindrances, and more, aiding marketers in refining their strategies.

<Img
img="/uploads/channel_report_on_campaigns_2766be3adf.jpg"
alt="Report in Altcraft Platform"
src="Report on Email in Altcraft Platform"
/>

- **Protect customer data.** With increasing system breaches and [**customer data leaks**](https://altcraft.com/blog/how-to-respond-to-data-breaches), ensuring the security of stored data is critical. [**On-Premises CDP platforms**](https://altcraft.com/en) are embedded within the business framework, making it nearly impossible to access confidential information, thus enhancing data security.

 
### Advantages of CDP over other systems


<Gallery>
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original="/uploads/advantages_of_cdp_over_dmp_96f23d2109.png"
thumbnail="/uploads/advantages_of_cdp_over_dmp_96f23d2109.png"
/>
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original="/uploads/advantages_of_cdp_over_crm_eb4d83d7de.png"
thumbnail="/uploads/advantages_of_cdp_over_crm_eb4d83d7de.png"
/>
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original="/uploads/advantages_of_cdp_over_esp_29c9b86200.png"
thumbnail="/uploads/advantages_of_cdp_over_esp_29c9b86200.png"
/>
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original="/uploads/advantages_of_cdp_over_erp_cf28ad9535.png"
thumbnail="/uploads/advantages_of_cdp_over_erp_cf28ad9535.png"
/>
</Gallery>


## Using CDP with the Altcraft Platform


The functionality of the CDP platform within the Altcraft Platform performs marketing and other tasks for companies: accelerating ad campaign launches, increasing sales, transitioning to omnichannel operations, and more. Let's explore some examples of positive impacts after implementing the system.


### Increasing an insurance company's profit

The AlfaStrakhovanie Group [**increased its profit**](https://altcraft.com/blog/alfastrakhovanie-increased-crm-marketing-profit) by 714% over four years thanks to the Altcraft Platform. The marketing automation platform integrated 15 communication channels for the company's CRM marketing initiatives. In the first year, the company's revenue grew by 42%, and by 2022, three years later, it increased by 98%.

CDP enhanced AlfaStrakhovanie Group’s customer communications, addressing challenges in audience retention, boosting engagement and repeat sales, and attracting new users.


### Cuva travel voucher service increased sales by 7%

Cuva, a company selling vouchers for stays in Russian hotels (date undisclosed), chose the Altcraft Platform to address their marketing needs. Through [**automated communication scenarios**](https://altcraft.com/blog/how-cuva-implemented-personalized-marketing-and-achieved-better-sales-results) (welcome emails, upsells, activation, and omnichannel campaigns), integrating Telegram, they managed to personalize offers. In 2022, their sales increased from 8% to 15%. The marketing automation system showed its best results in email campaigns, contributing to 54% of "Black Friday" sales.


### Online cinema accelerated campaign deployment 

The PREMIER service [**integrated the Altcraft Platform's CDP**](https://altcraft.com/blog/case-study-online-cinema-premier) to consolidate communication channels and ensure secure customer data storage. Configuring automated scenarios, broadcasts, trigger campaigns, and personalization increased Open Rates by 1.5 times and Click Rates by 2 times.

Managing all channels became easy and quick: marketers launched campaigns within one hour instead of the previous three-hour timeframe.


## Summary

DMP, ESP, CRM, ERP, and CDP systems play vital roles in managing data and enhancing a company's operations, each with its unique specifics.

DMP gathers first, second, and third-party data to shape marketing propositions. ESP is responsible for compiling databases and conducting email outreach. CRM encompasses the entire customer journey from sales contact to conversion. ERP serves as a tool for managing a company's internal resources.

CDP consolidates, structures, and unifies customer data into a unified profile, managing communication tools with the audience. This platform enhances marketing efficiency, automates processes, and personalizes offerings.

DMP, ESP, CRM, ERP, and CDP systems play vital roles in managing data and enhancing a company's operations, each with its unique specifics.

medium_the-differences-between-cdp-and-others-systems.png

small_the-differences-between-cdp-and-others-systems.png

thumbnail_the-differences-between-cdp-and-others-systems.png

the-differences-between-cdp-and-others-systems.png

About what CDP, DMP, ESP, CRM, ERP mean and why businesses need these platforms.

Vital Differences Between CDP and DMP, ESP, CRM, ERP

Understanding the Differences Between CDP, DMP, ESP, CRM, ERP

<Img
img="/uploads/examples_strategies_of_internet_marketin_bda50446a4.png"
alt="Examples & Strategies of Internet Marketing in E-commerce"
/>

In 2023, retail sales online reached $6.3 trillion, and it's projected to surpass eight trillion by 2026. The shift of buying goods and services into the digital sphere is increasingly evident, intensifying competition in this space.

Retailers are now inventing new approaches, leveraging VR, AR, and other technologies for marketing purposes. They're also adapting existing tools (SEO, Push notifications, SMS, etc.) to maintain visibility to customers. Thus, as e-commerce expands, so does internet marketing, encompassing various channels and promotional strategies.

In the article, we'll delve into what e-commerce marketing entails, the tools it employs, and successful promotional strategies.

## What is E-commerce Marketing

Firstly, let's clarify what electronic commerce involves.

[**E-commerce**](https://altcraft.com/glossary/e-commerce-types-examples), or electronic commerce, refers to conducting business through online channels, which serve as the primary means of customer attraction and communication. It typically involves the online sale of goods and services.

The e-commerce market grows annually, largely supported by promotional channels. Digital marketing has long been a vital component of e-commerce. It's challenging to imagine an online store without email campaigns, advertisements, and other means that enhance product visibility.

E-commerce marketing encompasses digital methods and practices used to promote a business's goods and services online, aiming to boost sales. For e-commerce, marketers enhance brand recognition and highlight specific products to capture user attention. The tools of digital marketing vary based on the goals and objectives of the online business.

## E-commerce marketing tools

Internet marketing technologies evolve rapidly, but some core tools remain constant.

### Website and SEO

To establish an online presence, an e-commerce platform is essential – a software enabling the creation of an online store and the execution of transactions (payment, order processing). A user-friendly and properly functioning website or [**landing page**](https://altcraft.com/glossary/what-are-landing-pages-and-why-they-matter) is the foundation of e-commerce.

However, to gain visibility for your business, promoting the website is crucial. One effective method is SEO optimization. It's a technique that elevates your website's ranking in search engine results through keywords, page speed enhancements, and various strategies.

<Img
img="/uploads/seo_optimization_for_brand_promotion_75c86030ed.png"
alt="SEO optimization for brand promotion"
src="SEO optimization is a good method of brand promotion"
/>

### Advertising

Digital marketing in the online world encompasses various types of advertising chosen by businesses based on their objectives.

**1. Contextual**

Advertisements appear in search engine results based on user queries and include specific keywords.

<Img
img="/uploads/contextual_ads_in_google_f8aa934a4a.png"
alt="Contextual ads in Google"
src="Contextual ads within Google showing pictures marked as “product” with a link to a page of the online store"
/>

**2. Targeted**

Advertising messages are tailored to a specific audience (usually on social media) sharing certain characteristics. Unlike contextual advertising, targeting doesn't precisely know if a user needs the product or service, but it “guesses” their preferences and presents the relevant offer. Retargeting is a distinct form of targeted advertising, where users are shown products they previously viewed.

<Img
img="/uploads/targeted_advertising_from_360learning_afe48c1b08.png"
alt="Targeted advertising from 360Learning"
src="Example of targeted advertising from 360Learning"
/>

**3. Banner**

These are pop-up or static banners on websites.

<Img
img="/uploads/banner_advertising_c57e2eb84e.png"
alt="Banner advertising"
src="Example of banner advertising"
/>

**4. Native**

Embedded advertising within content that resembles recommendations and seamlessly fits into the material's context.

**5. Video advertising**

Clips shown before, during, or after main videos (trailers, informative content, etc.).

<Img
img="/uploads/video_ads_from_uber_21df244377.png"
alt="Video ads from Uber"
src="Example of video ads from Uber"
/>

### SMM

It's hard to imagine digital marketing without the support of social media, which sometimes become independent platforms for e-commerce. Companies use their social media pages to showcase products, create posts about their services, and engage with followers.

Social media platforms even offer their own sales tools, such as product cards on VK, for instance.

<Img
img="/uploads/smm_promotion_from_essie_4a41bf0f29.png"
alt="SMM promotion"
src="SMM promotion from Essie"
/>

### Email newsletter

The email marketing channel remains relevant and continues to be a crucial tool for internet marketing strategies. Emails are used to inform customers about new arrivals, promotions, order confirmations, payments, and delivery updates. In some cases, they also remind 'forgetful' customers [**who left items in their carts**](https://altcraft.com/blog/how-to-reduce-cart-abandonment-rate) but did not complete the purchase. Email remains a familiar and preferred means of communication with brands for many.

<Img
img="/uploads/newsletter_with_personalized_product_selections_10e6b3693b.png"
alt="Email newsletter with personalized product selections"
src="Email newsletter with personalized product selections from Sephora"
/>

### Push notifications
Internet marketing and e-commerce have long embraced [**push notifications**](https://altcraft.com/blog/mobile-marketing-101-push-notifications) – short messages that pop up on a smartphone screen. Their functions often mirror email, informing users about promotions, new products, or delivery statuses. The advantage of push notifications is their higher likelihood of being seen compared to an email in one's inbox.

<Img
img="/uploads/web_push_notification_91cafd836a.png"
alt="Web push notification"
src="Web push notification with the news from The Washington Post"
/>
### SMS

Though digital marketing leverages new tools, [**SMS messages**](https://techjury.net/blog/sms-marketing-statistics/) continue to be utilized. Their main advantage lies in their high delivery rates to recipients. While a user might not always see an email on the same day, or push notifications might be turned off, SMS messages [**boast an open rate of up to 98%**](https://techjury.net/blog/sms-marketing-statistics/). Text messages can be received without internet access, just by being connected to the network. Although they lack multimedia elements like photos or videos, SMS ensures precise delivery of information. The downside of SMS is its cost, but that doesn't deter e-commerce from choosing this promotional channel.

<Img
img="/uploads/sms_newsletter_ebd9ed3b1a.png"
alt="SMS newsletter"
src="SMS newsletter with offers from Adore Me"
/>

### Messengers

Communication via messaging apps [**has taken the world by storm**](https://www.similarweb.com/blog/research/market-research/worldwide-messaging-apps/). Hence, e-commerce also leverages this tool, aiming to cover all communication channels. 

[**Messaging apps**](https://altcraft.com/blog/messenger-marketing) have become one of the touchpoints where customers engage with online store managers.

<Img
img="/uploads/social_media_buttons_on_a_product_page_8232e93e74.png"
alt="Social media buttons on a product page"
src="Share via social media buttons on a product page"
/>

They also serve to promote products on websites. For instance, within the WhatsApp Business* features, there's an option to create product catalogs.

Telegram channels have become a distinct channel for content distribution, capable of functioning as a company blog.

### Content

Content marketing is an alternative to direct advertising. Through sharing useful, engaging, and entertaining content, trust and connections with the audience are formed. This approach to internet marketing doesn't pressure the user; instead, it gradually introduces them to the company's products and explains how to use them.

Content is published in various formats: articles in corporate blogs, posts on social media, videos on YouTube, podcasts, and more.

<Img
img="/uploads/useful_content_on_social_media_a1506fdb45.png"
alt="Useful content on social media"
src="Useful content on social media from a small brand"
/>

### AR/VR technologies in e-commerce

Internet marketing and e-commerce are swiftly adapting to high-tech advancements, integrating them into their promotional strategies. Through augmented and virtual reality applications, customers can virtually try on clothing or visualize furniture within the actual interior of their homes. Products with 3D visualizations are already surfacing in [**Google search results**](https://evergreen.team/articles/3d-and-ar-in-serp.html).

<Img
img="/uploads/vr_technology_1e2d78f963.png"
alt="VR technology"
src="VR technology from L'Oréal brand"
/>

## Strategies for digital marketing in e-commerce

Strategies for digital marketing in e-commerce vary based on business goals and capabilities. Here are examples of some methods used by marketers, individually or in combination:

### Working on the website

It's a misconception that merely [**creating a website**](https://altcraft.com/blog/ways-to-keep-visitors-on-your-website) will autonomously generate revenue. For e-commerce, the website needs constant improvement for user convenience and search engine optimization.

**To ensure successful indexing by search engines:**

- Develop content that addresses user queries rather than solely focusing on keywords. Search engines are smarter, so deceiving them with phrases like "buy cheap sofa" in a text about cucumber planting won't work. Factors like time spent on pages and bounce rate (the number of users leaving the site) are considered.

- Improve loading speed and site usability. Users won't wait for heavy images or animations to load. If they can't quickly understand how to place an order, they'll likely move to competitors.

- Adapt the site for mobile devices. Prioritize user convenience – the easier it is to order from a smartphone, the higher the chance of conversion. In 2023, having a site not optimized for smartphones is odd.

SEO is a long-term strategy that brings relevant leads. However, continually optimizing your web resources is essential; otherwise, you'll be overtaken by others.
### Content marketing
Content marketing is another long-term strategy essential for building trust with customers, increasing loyalty, and explaining how to use your products.

[**Content marketing**](https://altcraft.com/glossary/content-marketing-what-is-it-for-and-how-to-launch-it) is also intertwined with SEO because articles can incorporate user queries and keywords. Engaging content encourages readers to stay on the page longer, boosting its performance.

Additionally, content marketing includes publications on external platforms—partner blogs, specialized sites, social media, podcast platforms, and YouTube.

### Мultichannel marketing

[**Мultichannel marketing**](https://altcraft.com/en/features/omni-channel-marketing) involves synchronizing communication with customers across various channels. This means that data from emails, push notifications, SMS, messaging apps, and other sources are collected into a unified platform. For instance, if a user initiates contact with a company via email and later reaches out about the same order via a messaging app, a well-integrated multichannel approach merges these two interactions into a single record, avoiding duplicates and inaccurate data.

Multichannel marketing is crucial for [**personalizing interactions**](https://altcraft.com/glossary/personalization-what-it-is-and-why-personalized-marketing-matters) with e-commerce customers. By tracking every step and order of a customer's journey, a company can analyze this information and curate product recommendations or offer tailored incentives. This approach boosts loyalty and encourages repeat purchases. Centralizing and managing this data is often facilitated by a CDP.

### Social media

Social media is a straightforward way to reach an audience, analyze their interests, and needs. It's also an effective platform to seamlessly present your product. Some brands gain popularity primarily through their social media presence. For instance, the clothing brand IRNBY became known due to its founder Anastasia Mironova. She started as a fitness blogger, amassing over a million followers, later venturing into sportswear, and now designs clothing for everyday life.

<Gallery>
<GalleryItem
original="/uploads/networking_on_social_media_6ec088891c.png"
thumbnail="/uploads/networking_on_social_media_6ec088891c.png"
/>
<GalleryItem
original="/uploads/present_your_product_in_social_media_27e06b1522.png"
thumbnail="/uploads/present_your_product_in_social_media_27e06b1522.png"
/>
</Gallery>

Currently, the IRNBY brand has over 300,000 followers, and this account attracts attention not only because of the personal brand of its founder. It showcases stylish and unconventional photoshoots, often featuring atypical models.

<Gallery>
<GalleryItem
original="/uploads/example_of_smm_3ee21ab96a.jpg"
thumbnail="/uploads/example_of_smm_3ee21ab96a.jpg"
/>
<GalleryItem
original="/uploads/stylish_and_unconventional_photoshoots_3998b489de.jpg"
thumbnail="/uploads/stylish_and_unconventional_photoshoots_3998b489de.jpg"
/>
</Gallery>

This case also falls under [**influencer marketing**](https://altcraft.com/blog/what-is-influencer-marketing-how-to-build-strategy), where promotion occurs through a well-known personality. For instance, Reese Witherspoon was an ambassador for the beauty brand Avon and frequently appeared in the brand's advertising campaigns and catalogs.

<Img
img="/uploads/influencer_marketing_from_avon_512ad0f8d2.png"
alt="Influencer marketing"
src="Example of influencer marketing from Avon"
/>

### Personalized offers

Offering customers exactly what they want increases the chances of a purchase. E-commerce companies create individual product selections based on user data to showcase items that might appeal to them.

<Img
img="/uploads/individual_product_selections_bcbcbe3f37.png"
alt="Individual product selections from Nordstrom"
src="Personalization from Nordstrom"
/>

Online streaming platforms excel in creating selections based on user interests, assessing previously watched movies and series. This engagement often retains subscribers for the following month or encourages them to upgrade their subscription for expanded content access.

<Img
img="/uploads/selections_based_on_user_interests_dd894a9950.png"
alt="Selections based on user interests"
src="Offering TV shows based on preferences"
/>

### The PPC method

The Pay-Per-Click (PPC) advertising campaign is a time-tested promotion method where an ad is placed on a specific platform (website). Conducting such a marketing campaign is cost-effective since payment is made solely for the number of clicks it receives, directing users to the advertiser's site. This type of advertising is tailored according to users' search queries.

This method swiftly generates traffic and enhances the visibility of a company's products. Creating PPC campaigns requires a thorough understanding of the audience and the correct selection of keywords.

### Promotion through users

The first method is leveraging [**customer reviews**](https://altcraft.com/blog/how-to-use-customer-feedback-to-increase-sales) from satisfied buyers. When ordering products online, the opinions of other buyers play a significant role, with [**90% of people reading reviews**](https://inclient.ru/stats-reviews/) before making an online purchase. Hence, brands encourage users to leave their feedback.

The second method of promotion is through referral programs, also known as "refer a friend." An individual recommends an e-commerce business's product or service to someone they know. When the referred person makes a purchase, the existing customer receives a bonus, such as a discount, special terms, a gift, and so forth.

## Five examples of automated email chains for e-commerce

### Order tracking

Keep the customer informed about changes in the order status until its receipt after the purchase is made.

<Img
img="/uploads/scenario_order_tracking_bf69578786.png"
alt="Order tracking"
src="Scenario Order tracking"
/>

### Reminder about “Favorites” items

Often, people mark items as “Favorites” but forget about them. Remind the customer about the things they've saved for later but haven't purchased yet.

<Img
img="/uploads/reminder_of_favorite_items_20af74f2b8.png"
alt="Reminder of favorite items"
src="Scenario Reminder of favorite items"
/>

### Increasing abandoned cart efficiency

Another example of customers forgetting is when they add items to their cart but don't complete the purchase. The reasons can vary: the person got distracted and forgot, didn't add a payment method and postponed the purchase, or didn’t have enough funds on the card, and so on. Remind the customer about the [**abandoned items**](https://altcraft.com/blog/how-to-reduce-cart-abandonment-rate) via email. For regular customers, you can motivate them to make the purchase by offering a pleasant promo code available only for the items in their cart.

<Img
img="/uploads/improving_the_efficiency_of_the_abandoned_cart_fc4f0bb739.png"
alt="Improving the efficiency of the abandoned cart"
src="Scenario Improving the efficiency of the abandoned cart"
/>

### Personalized offers in the user account

Provide the customer with the opportunity to feel special. When they log into their account, show them a banner with a personalized offer.

<Img
img="/uploads/personalized_offers_in_the_personal_cabinet_6b98581802.png"
alt="Personalized offers in the personal cabinet"
src="Scenario Personalized offers in the personal cabinet"
/>

### Store anniversary

A great opportunity to thank customers for staying with us. Prepare an exciting contest or prize draw [**to enhance their loyalty**](https://altcraft.com/blog/customer-loyalty) and trust in the brand.

<Img
img="/uploads/birthday_of_an_online_store_c7a9775f81.png"
alt="Birthday of an online store"
src="Scenario Birthday of an online store"
/>

## Summary

E-commerce internet marketing encompasses a variety of online tools and methods that promote products and services for companies primarily operating through the internet. The primary goal is purchasing, achieved through various strategies: SEO optimization and website usability enhancements, content marketing, omnichannel approaches, social media management, PPC campaigns, personalized offerings, and others.

E-commerce marketing employs a diverse range of promotion tools: email, push notifications, SMM, messenger platforms, online advertising (targeted, contextual, and others), SEO, augmented and virtual reality solutions.

Strategies and tools are tailored individually by each company, depending on their goals and resources.

**Product of Meta, recognized as an extremist organization in Russia.*

E-commerce marketing uses online strategies, like SEO, content marketing, PPC, email, social media, and online ads, to drive sales and engage customers.

medium_examples-strategies-of-internet-marketin.png

small_examples-strategies-of-internet-marketin.png

thumbnail_examples-strategies-of-internet-marketin.png

examples-strategies-of-internet-marketin.png

About what e-commerce marketing is and what tools are used in this process.

Examples & Strategies of Internet Marketing in E-commerce

Internet Marketing in E-commerce: Examples and Strategies

<Img
img="/uploads/new_year_marketing_bebbc2804c.png"
alt="New Year's Marketing"
/>

Every year, already at the beginning of December, cities are captured by New Year’s euphoria – shops are decorated with trees and themed decor, and brands launch holiday advertising campaigns both online and offline.

This time is called the “hot” season, especially in retail which traditionally remains the most important supplier of gifts. Before the New Year, receipts and sales amounts increase, and correct and timely marketing can multiply them.

Therefore, every year marketers choose which promotions to launch in December to finish the year effectively. In the article, we have collected examples of new brand campaigns that are worth paying attention to. Save ideas for your New Year’s marketing.


### Why New Year’s marketing is profitable

Consumers tend to make purchases faster before the New Year because they often have to choose gifts at the last moment. A profitable promotion can encourage them to make a purchase.

People are accustomed to New Year’s marketing and are already anticipating special offers from brands. Customers begin to look more carefully at the messages they receive through different marketing channels so as not to miss out the benefits.

Holiday marketing before the New Year provides an opportunity to simplify the choice of gifts for customers, specifically by suggesting ready-made solutions in email newsletters, via push notifications, or [**messengers**](https://altcraft.com/features/messengers). This can increase sales and customer loyalty, as customers will be grateful to the brand for saving their time.

New Year’s promotions and sales can attract new customers and bring back old ones. Therefore, developing a marketing strategy before the New Year is a crucial stage in business.


## The rules for a successful New Year’s marketing campaign

**1. Effective advertising is timely advertising.** Plan [**New Year’s promotions**](https://altcraft.com/blog/email-campaigns-about-promotions) in advance and take into account past results: identify peak sales periods, top-selling products, and the most successful promotions and content. This way you will find the best time to launch New Year’s advertising and avoid repeating mistakes.

**2. Evoke emotions and holiday atmosphere across all marketing channels.** Let the client feel the New Year’s mood. Use creative designs, heartwarming pictures, and videos associated with the holiday. Don’t be afraid to stand out.

**3. Keep New Year’s content light-hearted.** Avoid discussing serious topics. Share holiday life hacks, jokes, and offer games and interactives.

**4. Make personalized offers.** While customers often switch into buying mode during this season, [**personalisation**](https://altcraft.com/glossary/personalization-what-it-is-and-why-personalized-marketing-matters) remains crucial. Your competitors are also running New Year’s advertising campaigns, competing for the same clients. And the automation of internet marketing will help you win. Plan promotions in advance based on the data that [**the CDP Altcraft Platform**](https://altcraft.com/) will collect for you, and conduct mailings in a single-window mode.

## Examples of New Year’s advertising campaigns from brands

### Promotions and discounts

The simplest but still relevant solution for the New Year’s campaign is to reduce the price of your products. It’s important that the discounts are significant for the client.
For example – the New Year’s discount calendar from SberMarket.

<Img
img="/uploads/discount_calendar_from_sbermarket_6535555d2d.png"
alt="Discount calendar from SberMarket"
/>

SberMarket also offers ready-made product selections for the New Year.

<Img
img="/uploads/ready_made_product_selections_96e1eac956.png"
alt=" Ready-made product selections by SberMarket"
/>

### Selections of images and gifts

Online stores place special holiday selections on the front pages of the site to simplify the choice of a gift or New Year’s image. For example, the Street Beat store put up a special selection of gifts for various interests.

<Gallery>
<GalleryItem
original="/uploads/holiday_selections_539d778d2c.png"
thumbnail="/uploads/holiday_selections_539d778d2c.png"
/>
<GalleryItem
original="/uploads/streetbeat_holiday_selections_1aa1431a9e.png"
thumbnail="/uploads/streetbeat_holiday_selections_1aa1431a9e.png"
/>
</Gallery>

### Countdown

Waiting for New Year’s Eve is a tradition, and for marketers it’s another technique to remind customers to buy gifts. The brand’s website launches a countdown to the days until the New Year. For example, Yves Rocher company.

<Img
img="/uploads/yves_rochers_website_countdown_872c72aacf.png"
alt="Yves Rocher company"
/>

### New Year’s decoration

The easiest thing to do for New Year’s marketing is to add thematic design to the site, application and banners. Let’s consider an example of how the Gold Apple store created a game with thematic design in the application and on the website.

<Img
img="/uploads/the_gold_apple_game_with_thematic_design_81ddd3acd5.png"
alt="The Gold Apple store created a game with thematic design"
/>

### Interactive

Games, predictions, and other entertainment content with which you can interact. It attracts attention and engages users. The “Myth” publishing house invites you to go on a trip and follow the path of a hero. Open windows with gifts and pick up promotional codes.

<Img
img="/uploads/the_myth_publishing_house_path_of_a_hero_9f18d3f76f.png"
alt="The path of a hero by the “Myth” publishing house "
/>

### Raffles and gifts

On New Year’s Eve, we always hope for a miracle, such as winning a prize or receiving a gift from a brand. Big companies with their ecosystems reach a large audience at once and take into account different interests. For example, the Reiss store organized a 12-day drawing of their brand’s gifts.

<Img
img="/uploads/the_reiss_brands_gifts_f98845c720.png"
alt="The Reiss store organized a 12-day drawing of their brand’s gifts"
/>

<Img
img="/uploads/reiss_store_organized_gifts_31590da61d.png"
alt="The Reiss store organized a 12-day drawing of their brand’s gifts"
/>

### Nostalgia

New Year is the time to sum up and immerse yourself in memories. That’s why nostalgia is involved in holiday marketing here. Spotify has a cool feature to sum up your listening history.

<Img
img="/uploads/sum_up_your_listening_history_by_spotify_cfafef5d7c.png"
alt="Spotify has a cool feature to sum up your listening history"
/>

### Useful content

Before the New Year, it’s not necessary to share recipes and films for the holidays. Educational content is also suitable for the New Year’s campaign, the main thing is to keep it light. The Higher School of Economics invites you to watch interactive videos about artificial intelligence.
 
<Img
img="/uploads/interactive_videos_about_artificial_intelligence_5a95fdb059.png"
alt="Interactive videos about Artificial Intelligence by HSE"
/>


### Offline advertising

Every year, city streets, malls, and company offices are decorated for the holiday to create a New Year’s mood. This decor attracts attention and increases brand awareness because people like to take pictures with bright installations.
Chanel has beautifully decorated the facade of building in Paris this year.

<Img
img="/uploads/decorated_the_facade_of_building_chanel_261d0d11cc.png"
alt="Chanel has beautifully decorated the facade of building"
/>

Also, consider an incredible installation on the facade from the Dior brand.

<Img
img="/uploads/facade_from_the_dior_brand_1849622031.png"
alt="Installation on the facade from the Dior brand"
/>

## Summary

New Year is not only a time of miracles but also creative marketing campaigns and increased sales. People start to buy more actively and become more loyal to brands. Therefore, businesses should consider promotions, discounts, and other ways to attract customers and encourage gift purchases.
Effective marketing for the New Year is the one that is thought out in advance. It’s important to create emotions and a holiday atmosphere, provide light-hearted content, and personalize offers.
The main formats of holiday advertising campaigns include sales with significant discounts, selections, interactives and prize draws. It’s also important to decorate both offline and online brand resources for the New Year to capture attention.

In this article, we talk about examples of new brand campaigns that are worth paying attention to and saving ideas for your New Year's marketing

medium_new-year-marketing.png

small_new-year-marketing.png

thumbnail_new-year-marketing.png

new-year-marketing.png

About which brand New Year's campaigns are worth paying attention to.

Holiday marketing before the New Year, bright brand campaigns

The New Year’s Marketing: Bright Examples of Brand Advertising Campaigns

<Img
img="/uploads/trends_in_cdp_2024_bb8e8dcdff.png"
alt="Trends for 2024 in Customer Data Platform"
/>

In the modern world, user data lies at the core of innovative tools rapidly advancing and benefiting businesses. Guided by established customer behavior models and real-time insights, companies make strategic decisions, outpacing their competitors.

This happens for companies equipped with the right software aiding them in achieving data management goals and enhancing the customer experience. Is there a single solution for these tasks? Yes, there is - it's a specialized Customer Data Platform (CDP).

By 2026, the CDP market [**is expected to exceed $5.7 billion**](https://www.idc.com/getdoc.jsp?containerId=prAP50581323), doubling global data volumes.

As more resources flow into customer data, the demand for privacy, neural network capabilities, flexible management processes, and automation will rise.

## Five Key Trends in CDP Development

[**Data management platforms**](https://altcraft.com/en) have been rapidly evolving, particularly in recent years. As brands aim to better understand and efficiently engage with their customers, an increasing number of companies are turning to CDP technologies for data collection, integration, and management to create unified customer profiles. Such profiles are essential for personalizing marketing campaigns and enhancing the consumer experience.

CDPs enhance data structure and organization without the need for a complete overhaul of existing customer support systems. Businesses leveraging AI or machine learning in their operations require a reliable CDP for seamless functionality.

In 2024, several prevailing trends stand out in the CDP market.

### 1. CDPs leveraging neural networks

[**Artificial intelligence**](https://altcraft.com/blog/neural-networks-in-business-marketing-and-life) is transforming every industry, and the CDP industry is no exception. This trend is expected to continue in the near future, with machine learning algorithms becoming commonplace for data analysis, scenario creation, and planning that influence marketing strategies.

For instance, neural networks will be utilized to analyze human behavior and forecast future purchasing trends. This information will then be applied in targeted marketing strategies.

The Altcraft Platform's CDP includes [**an ML module**](https://altcraft.com/blog/altcraft-platform-updates-machine-learning-new-reports-whatsapp) called “Best Send Time.” This function aims to enhance customer service quality through a self-learning algorithm analyzing buyer behavior to determine the optimal time for sending an email to a specific subscriber. This increases the likelihood of the recipient opening the email. Predictive analytics significantly boosts marketing efficiency.

<Img
img="/uploads/best_send_time_altcraft_be3c6fa00e.png"
alt="Send Time within Altcraft"
src="Best Send Time within Altcraft Platform"
/>

Improving service efficiency through ML is a recent trend. For instance, in June 2023, Figma released a major software update. Alongside various enhancements, Figma introduced an artificial intelligence plugin enabling users to tackle tasks like generating icons on demand, creating diverse interface element variations, and modifying information within them.

<Img
img="/uploads/on_demand_icon_generation_281520c433.png"
alt="On-demand icon generation"
src="Example of on-demand icon generation"
/>

<Img
img="/uploads/on_demand_interface_generation_76f204bba3.jpg"
alt="On-demand interface generation"
src="Example of on-demand interface generation"
/>

### 2. Enhanced focus on user data protection

[**Data protection laws**](https://altcraft.com/blog/customer-data-privacy-issues-in-digital-marketing) are tightening, prompting audits to identify breaches in data collection, storage, and utilization by companies.

By 2024, CDPs are expected to prioritize data protection more rigorously. Platform providers must ensure compliance with legislation, and transparency regarding the collection, storage, and use of customer data is crucial.

### 3. Real-time data processing

One of the significant advantages of CDPs is aggregating customer data from various sources to create [**a unified customer profile**](https://altcraft.com/en/features/cdp). However, this process is time-consuming, and the obtained data may lag behind real-time information.

<Img
img="/uploads/customer_profile_in_altcraft_platform_d7720fb7ee.png"
alt="Profile in Altcraft Platform"
src="Unified customer profile in Altcraft Platform"
/>

This challenge is tackled through the development of CDPs that collect and process information in real-time, enabling businesses to make quicker managerial decisions based on up-to-date data. CDPs analyzing customer behavior online, like Altcraft Platform, gather and analyze data immediately upon receipt.

The CDP Altcraft Platform provides detailed analytical reports, allowing for campaign effectiveness tracking and informed decision-making. These include:

- Channel reports

- Traffic reports

- Goal reports

- Sales funnel

- Click map

- Return reports

- Undelivered message reports

- LTV (Lifetime Value) reports

- Audience growth reports

- Cohort analysis

<Img
img="/uploads/channel_report_in_altcraft_platform_9ab35b1279.png"
alt="Channel report in Altcraft Platform"
src="Example of a channel report in Altcraft Platform"
/>

<Img
img="/uploads/traffic_report_in_altcraft_b2f024a43e.png"
alt="Traffic report in Altcraft Platform"
src="Example of traffic report in Altcraft Platform"
/>

### 4. Demand for multichannel capabilities will continue to rise

Today, consumers engage with companies across multiple channels, including email, social media, and [**messengers**](https://altcraft.com/en/features/messengers). Consequently, to meet customer expectations, companies must ensure consistent interaction across all touchpoints.

This anticipates a surge in demand for CDPs with multichannel capabilities, such as [**the omnichannel CDP Altcraft Platform**](https://altcraft.com/en/features/omni-channel-marketing). It aggregates and integrates customer data from various channels to develop personalized marketing strategies and enhance customer service quality.

<Img
img="/uploads/channels_of_interaction_with_customers_81cf2f76ae.png"
alt="Channels of interaction with customers"
src="Channels of interaction with customers on Altcraft Platform"
/>

### 5. Priority on integrating CDP with various marketing services

In recent years, marketing automation platforms have rapidly advanced, aiding companies in [**automating marketing operations**](https://altcraft.com/blog/what-is-marketing-automation-and-how-it-affects-business-development) and personalizing strategies, with customer data utilization being a primary focus.

As a result, by 2024, integration between CDP and various marketing platforms will become inevitable. This will enable companies to leverage all customer data for developing more [**personalized**](https://altcraft.com/glossary/personalization-what-it-is-and-why-personalized-marketing-matters) and effective marketing campaigns.

<Img
img="/uploads/integration_with_other_services_ca6fa86a6d.png"
alt="Integration with other services"
src="Integration of CDP Altcraft Platform with other services"
/>

## Conclusion

Are you harnessing the benefits of customer data? Most modern CDPs come equipped with robust [**analytical systems**](https://altcraft.com/en/features/analytics) capable of storing, enriching, and analyzing data for profit generation. Unfortunately, many users are unaware of these capabilities. Currently, 59% of marketers primarily use CDPs as simple data collection and storage tools.

It's time to think bigger: CDPs are crucial in creating a unified data ecosystem, extracting insights, and implementing data-driven strategies.

Primary source: [**Lytics**](https://www.lytics.com/blog/privacy-agility-and-ai-emerging-cdp-trends-for-2024/)

*products of Meta, a recognised extremist organisation in the Russian Federation

CDPs evolve for better marketing strategies. Trends: AI-driven analysis, data protection, real-time processing, multichannel capabilities and more. 

medium_trends-in-cdp-2024.png

small_trends-in-cdp-2024.png

thumbnail_trends-in-cdp-2024.png

trends-in-cdp-2024.png

In this article about what trends in the field of CDP should be paid attention to in 2024.

Trends for 2024 in Customer Data Platform Development

Key Trends in CDP Development in 2024

<Img
img="/uploads/digital_marketing_b059d225a4.png"
alt="Digital Marketing Trends '24: Personalization, AI, and More"
/>

While artificial intelligence continues to integrate into digital marketing, the trends in 2024 will shift towards human-centric approaches. Technologies will remain fundamental to online promotion but will serve as assistants to marketers in content creation, forecasting, and intensified personalization.

The upcoming year's trends will focus on user engagement and building customer relationships. Digital promotion will become more targeted and thought-out.

Let's delve into the specifics of digital marketing in 2024.

## Human-centricity

The use of robots for content creation and user communication was meant to streamline marketing efforts and enhance brand positioning. However, it often leads to the opposite effect: people become less engaged when they realize that the text was authored by artificial intelligence or the image was generated by [**a neural network**](https://altcraft.com/blog/neural-networks-in-business-marketing-and-life). According to research findings, [**over half of users**](https://hootsuite.widen.net/s/mgqjjznhsx/hootsuitesocialtrends2024_report_en) react this way.

Furthermore, there's a growing amount of information inundating audiences with offers and news, leading to fatigue.

Therefore, in the coming year, brands should shift focus from pressuring customers with constant 'buy' messages to building trustful communication—creating emotions and demonstrating values. This approach can help establish a strong connection with the audience.

## Personalization 

Consumers [**expect**](https://www.statista.com/statistics/1415837/customer-expectations-for-better-personalization-worldwide/#:~:text=Circumstances%20under%20which%20consumers%20expected%20better%20personalization%20worldwide%202023&text=In%202023%2C%20around%20three%2Dquarters,more%20personal%20data%20with%20businesses.) brands to intensify [**personalization**](https://altcraft.com/glossary/personalization-what-it-is-and-why-personalized-marketing-matters) due to technological advancements and increased spending on companies' products. Therefore, individualized approaches will strengthen in 2024.

Offers based on purchase history, customer preferences, and online behavior are set to become the norm for brands aiming to remain relevant and retain their audience. Flexibility and omnichannel presence are also crucial: communication channels must be convenient for customers.

An added benefit will be personalization in offline touchpoints, where a salesperson can access information about a customer's orders when they visit a store.

In online personalization, the accuracy of offers sent through email services and messaging platforms will increase.

## Advertising within marketplaces and apps

Major retailers, marketplaces, and aggregators are already positioning themselves as comprehensive advertising platforms and are creating their own retail media. They publish brand advertisements and generate revenue not only from listing products on their platforms.

Various formats are used: simple banners, story posts, articles, reviews. For instance, on Facebook Marketplace (owned by Meta, deemed extremist in Russia), paid-promoted items appear among general product listings.

<Img
img="/uploads/advertising_within_marketplaces_1a1242838f.png"
alt="Advertising within marketplaces"
/>

This format will continue to evolve because advertising in online sales points is effective: marketplaces attract people who are already prepared to make a purchase.

## Interactivity 

Content that users interact with enhances engagement, increases viewing time, and drives users through [**the sales funnel**](https://altcraft.com/blog/what-is-sales-funnel). Interactivity is a way to stand out in the information flow.

This method of promotion in digital marketing will remain relevant in the upcoming year. Interactive formats include quizzes, surveys, and animations that respond to user actions.

<Img
img="/uploads/social_media_game_from_a_brand_b5f2e48294.png"
alt="Social media game"
src="An example of a social media game from a brand"
/>

## Marketing technologies

Machine learning, AR, VR, artificial intelligence, and neural networks are making headlines in the marketing world every day. These are new tools that generate text, create designs, and produce images and videos.

Machine learning tools predict trends and consumer behavior, AI processes customer information and identifies patterns. The integration of these technologies is unstoppable, so automation in marketing will remain relevant in the coming years and beyond. For instance, the AI technology market for marketers is projected [**to reach $145 billion**](https://www.precedenceresearch.com/artificial-intelligence-in-marketing-market) by 2032.

[**Chatbots**](https://altcraft.com/blog/the-benefits-of-chatbots-for-businesses) will become smarter, capable of engaging in more effective real-time dialogues. This will expedite issue resolution for customers and increase loyalty.

[**Voice search**](https://altcraft.com/blog/voice-search) will become more sophisticated, changing the approach to SEO optimization. Brands will need to incorporate long-tail keywords and even entire phrases mirroring natural speech into their content.

Another trend in the coming year is CGI advertising, where realistic, oversized brand products are inserted into real-world videos using computer graphics. For instance, in a Jacquemus brand ad, a bag might replace a tram traveling through the streets of Paris.

<Img
img="/uploads/jacquemus_brand_281d7aed38.png"
alt="Jacquemus brand ad with a bag traveling around Paris"
/>

## Data security

In 2023 alone, Russia experienced dozens of data breaches from databases of major companies. Such incidents decrease user trust. In 2024, threats to personal information will increase, making secure data storage a priority for companies.

While a few years ago, brand claims about preserving customer information were not frequently part of advertising promises, today, it has become an essential element of promotion.

This trend is also associated with policy changes regarding data collection ([**GDPR**](https://gdpr-info.eu), [**CCPA**](https://learn.microsoft.com/en-us/compliance/regulatory/ccpa-faq)). Obtaining third-party information from browsers and other sources has become more challenging. Therefore, brands are emphasizing [**first-party data**](https://altcraft.com/blog/first-second-and-third-party-data) collected directly from customers.

## Continuing diversity trends 

The world continues to embrace diversity — recognizing individuals of different genders, ages, nationalities, and health conditions while advocating against discrimination. This trend is evident in brand content. Photos now feature not only models with ideal figures and faces but also ordinary people we encounter in our daily lives. This trend is especially pertinent for the female audience, which has historically faced stringent beauty standards — slenderness, youthfulness, and smooth skin.

Diversity will persist and expand the audience for brands willing to engage with various people in their advertising.

For instance, on the Victoria's Secret account, known for its flawless "angel" models, there are now women of different body sizes. Likewise, the jewelry brand Viva la Vika showcases the hand of a mature woman to display one of its accessories, indicating an orientation towards diverse age groups.

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## Influencer marketing

Promotion through bloggers and other influencers is gaining momentum. [**The influencer marketing**](https://altcraft.com/blog/what-is-influencer-marketing-how-to-build-strategy) market reached [**$21.1 billion**](https://influencermarketinghub.com/influencer-marketing-statistics/) in 2023, a significant increase compared to [**$16.4 billion**](https://influencermarketinghub.com/influencer-marketing-statistics/) in 2022.

The trend of collaborating with micro-influencers—individuals with a small but engaged audience—will continue. Zoomers (users born in the 2000s and 2010s) are actively entering the online space and becoming bloggers themselves.

At the same time, advertising by bloggers is becoming more and more native: it is integrated into the content, sometimes into story clips.

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More influence will be wielded by influencers who don't position themselves as bloggers but have an audience. The goal for these individuals isn't to profit from their media presence but to create content. Hence, their recommendations are trusted more.

## Video content

The speed of content consumption favors [**the video format**](https://altcraft.com/blog/video-marketing-for-brand-promotion), which is easy to watch on the go, holding just a phone. All major social media platforms have introduced separate feeds for vertical videos: YouTube Shorts, VK Clips, Reels on Instagram (owned by Meta, prohibited in Russia), as well as on “Dzen”. Telegram launched 'Stories', where users can upload short video clips.

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In the future, brands will continue adapting their content for short videos. Today, videos feature product reviews, [**storytelling**](https://altcraft.com/blog/let-the-client-feel-like-a-hero-how-storytelling-works), and user tutorials. Major YouTube creators promote their longer horizontal videos through short-form content like Shorts.

Storytelling is gaining momentum — it's a method of engaging and intriguing the audience while promoting products through video narratives.

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Kate Spade New York is a good example of storytelling. The series follows Anna Kendrick's escapades in a hotel, integrating the brand's products seamlessly. Throughout, she exclusively features Kate Spade handbags and accessories. This fictional narrative effectively promotes the brand while entertaining the audience, showcasing how a relatable storyline and credible portrayal can enhance brand credibility.

Long-form videos will remain a tool for digital promotion as well. [**Billions of hours**](https://www.demandsage.com/youtube-stats/#:~:text=YouTube%20has%20more%20than%202.70,via%20its%20Website%20and%20Apps.) of YouTube video views prove that the familiar horizontal format isn't going anywhere.

## Conclusion

In 2024, digital marketing will become more human-centric: brands will shift focus towards building trusting relationships and pay more attention to customer experience. Personalization will reach new levels. There will be increased emphasis on the security of personal information that customers entrust to brands.

The backbone of digital marketing will continue to be AI, AR, VR technologies, neural networks, and machine learning, necessary for content creation and data processing.

Influencers remain influential. Bloggers with smaller audiences will become more appealing to advertisers.

Vertical videos continue to gain popularity for their easy consumption, but long-form videos will remain popular too. Brands will continue launching interactive ad campaigns to engage users and actively advertise on marketplaces.

In 2024, marketing gets more personal, prioritizing trust, security, and AI-driven technologies. Influencers, vertical videos, and interactive ads shape brand strategies.

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