Smart, Conditional, or Dynamic Merge Tags will allow you to create dynamic content conditions based on recipient data . You can build messages that present content that is unique to each recipient. Also, you can handle fields that you want to populate with list data and handle cases where not all recipients have a required merge value.
How Things Are Done Now*
The format for this conditional merge tags is
*|INTERESTED:GroupTitle1:groupname1|* where "GroupTitle1" is an example of one of your group titles and "groupname1" is an example of one of your group names.
In this format, interests are checked, as you would imagine, against the grouping name specified.
* If the grouping name does not exist, the popup preview will show the INTERESTED block with a message saying as much. Emails and Archives will silently ignore it if sent to.
As it has always been, if the group name does not exist, it simply won't match and the content won't be displayed anywhere (popup preview, email, archives).
More Information
When you work with Groups and conditional content, these rules will apply.
If you have these Groups set up in your list...
Group Title 1 = Skills
group name 1: Newbie
group name 2: In Between
group name 3: Expert
Group Title 2 = Position
group name 1: Insider
group name 2:Outsider

...then these are some examples of conditional merge tags you could use in a campaign to that specific list (TIP! Don't put too many line breaks between each tag, that will help with the layout.):
*|INTERESTED:Skills:Expert|*
You've already got a great skill set! (You can say whatever you want to your experts here. Maybe a challenging DIY project?)
*|END:INTERESTED|*
*|INTERESTED:Skills:Newbie|*
You're just getting started, but we think you're going to be awesome!
*|END:INTERESTED|*
*|INTERESTED:Position:Insider|*
Isn't it great to live in the city. Here are some places to check out.
*|END:INTERESTED|*
*|INTERESTED:Position:Outsider|*
Hey Suburbanite, here are some great places for you to check out. (Or include a coupon image just for Outsiders.)
*|END:INTERESTED|*
Display Content to Subscribers Who Aren't In Groups
It's also possible to specify an "else" block that will display content to those users who aren't members of the specified group(s):
Just one group and something for everyone else:
*|INTERESTED:Skills:Newbie|*
You're a newbie!
*|ELSE:|*
You're not a newbie!!
*|END:INTERESTED|*
Multiple groups and something for everyone not in one of those groups
*|INTERESTED:Skills:Newbie,Expert|*
You're a newbie or an expert
*|ELSE:|*
You aren't a newbie or an expert. (You could be "in-between" or not in one of these groups at all.)
*|END:INTERESTED|*
Nesting with multiple groups to show unique content to each group and a default to anyone else:
*|INTERESTED:Skills:Newbie,Expert|*
*|INTERESTED:Skills:Newbie|*
You're a newbie!
*|END:INTERESTED|*
*|INTERESTED:Skills:Expert|*
You're an expert!
*|END:INTERESTED|*
*|ELSE:|*
You aren't a newbie or an expert. (You could be "in-between" or not in one of these groups at all.)
*|END:INTERESTED|*
Stuff That Doesn't Fly
*|INTERESTED:Learner:Newbie|*
You are a beginner and you want to start learning!
*|END:INTERESTED|*
This example has a bad Group Title name (there was no Learner group set up) - the block will display an error in the popup preview and be ignored everywhere else.
*|INTERESTED:Location:Grapes|*
You are in the city and you like Grapes!
*|END:INTERESTED|*
This example has a bad group name (there was no Grapes group name set up) - the block will be silently ignored.
*|INTERESTED:Chocolate|*
You like Chocolate!
*|END:INTERESTED|*
This example has a bad group name (there is no Chocolate Group (so sad))- the block will be silently ignored.
*Some Education, Old School
Old school Groups + Conditional Merge Tags:
Before our 5.1 release, MailChimp only allowed one set of Groups. With the release of 5.1, we allow for more than one set of Groups, so we have to adjust any previously set up Conditional Merge Tags. For anyone that set up a campaign with dynamic content before our 5.1 release, this is how we will handle smart merge tags in replicated campaigns and archives.
Old Style INTERESTED is:
*|INTERESTED:group1|* (don't copy and paste this into your campaigns! this is for education purposes only!)
When this format is used, we pick the first/oldest grouping on your list and *only* compare group1 with the groups in that grouping. (So whatever you had set up as your only Group pre 5.1 will be the first/oldest Group by default on lists that transitioned to 5.1.)