2025 trend: Digital twins evolve to enable hyper-personalized advertising

Leading organizations are applying the transformative power of digital twins. By mirroring real-world systems in real time, digital twins enable sophisticated simulations of consumer behavior, marketing channels, and organizational processes. For example, Coca-Cola Company is leveraging the technology, combined with AI, to simulate marketing scenarios and consumer responses.

GenAI is catalyzing digital twin adoption across several sectors. Marketing and advertising agencies are creating synthetic consumer personas that enable deeper levels of campaign testing and refinement. For example, a national food retailer saw a 20% increase in overall campaign effectiveness after implementing digital twin technology to simulate customer behavior, according to Harvard Business Review.

Current digital twin systems can learn and evolve through continuous feedback loops powered by genAI. Organizations can now run ongoing simulated scenarios, implement changes, and gather real-time data to refine their models iteratively. In marketing applications, this means that companies can test and optimize personalization strategies at scale.

Predictions

AI simulations will increasingly supplant traditional focus groups. These AI-powered tools will enable marketers to model entire customer segments and complex interactions, thereby providing richer insight into market dynamics before campaign launch.

Digital twins will transform campaign execution. In 2025, marketers will shift from traditional audience segmentation methods to running numerous personalized campaign simulations before launch. This shift will dramatically improve targeting accuracy and ROI.

AI assistants will become strategic advisors. Marketing teams will deploy specialized AI tools that can independently analyze market conditions and recommend tactical adjustments, moving beyond current campaign optimization techniques.

Read the full report, Tech Trends to Watch in 2025.