Artificial Intelligence (AI) has significantly transformed the field of digital marketing by enabling businesses to deliver highly personalized campaigns to targeted audiences. Traditional marketing methods focused on mass communication, whereas AI-powered marketing uses customer data, behavioral analysis, predictive analytics, and automation to optimize campaign performance. The present study examines the impact of AI-driven personalized marketing campaign optimization on customer conversion rates and Return on Investment (ROI). This research was conducted at InsightQuest Business and Consulting Service Company using a secondary dataset consisting of 90 digital marketing campaigns executed by five US-based companies during 2023. The study adopts descriptive and causal-comparative research designs. Statistical tools such as descriptive statistics, percentage analysis, Pearson correlation analysis, and quartile segmentation were used to analyze campaign performance across different digital channels, customer segments, languages, and campaign durations. The findings reveal that Email marketing recorded the highest conversion rate (4. 41%), while Google Ads achieved the highest ROI (142. 34). The study also identified that acquisition cost has a strong negative relationship with ROI (r= –0. 575), indicating that reducing customer acquisition cost significantly improves profitability. Furthermore, engagement score showed almost no relationship with conversion rate (r= 0. 011), proving that likes and shares do not necessarily lead to purchases. The research concludes that AI-driven personalization improves marketing effectiveness when campaign variables such as channel selection, audience targeting, and campaign duration are strategically aligned.
M.B. Arun Karthik (Mon,) studied this question.