An interesting topic that we are exploring is the application of AI to digital marketing and how it could shape the future of marketing.
According to Wikipedia, the term “artificial intelligence” is used to describe machines and computers that mimic “cognitive” functions that humans associate with other human minds, such as learning and problem-solving. In essence, machines that think. If that sounds futuristic it is not; it’s already happening. Applications in robotics, image recognition, natural language processing, problem solving and, of course, digital marketing are already happening.
For the purpose of this blog we will focus on the application of AI to digital marketing. Thanks to the ability to analyze and react to big data quickly, AI is changing digital marketing. With vast amounts of information available the ability to make quick and accurate decisions based on analyzing data is becoming of paramount importance. This is where AI comes into play.
With the ability to collect data, analyze it, apply it and then react to it, AI is revolutionizing digital marketing. As the amount of information on potential consumers grows, AI will become more important due to its ability to make data-based decisions quickly and accurately. Here are some ways AI is changing digital marketing:
1. CRM
With the widespread adoption of CRM tools to analyze and segment your customer base, AI could help gain various insights from the behavior of your potential customers, collecting data from various platforms and then target the user with appropriate marketing strategies. From analyzing your past purchasing history, to analyzing which pages you browse the most and the tools and apps you most often use, market intelligence would be greatly enhanced.
By providing recommendations and analyzing the customer buyers’ journey, AI could address the customer needs more efficiently.
2. AR/VR
Augmented reality and virtual reality could change the way the consumer purchases a product. Think about how the customer experience could change for the retail store where a consumer could virtually try on a dress/clothing, up to the infinite customization possibilities of the product and the ability to see it in virtual reality. I think once the technology is available and widely adopted VR has the potential to transform the whole shopping experience.
3. Email Marketing
By personalizing email marketing campaigns AI enables marketers to better manage the process taking into consideration user behavior, and triggering the launch of emails depending on certain actions. Subjects, product recommendation and messaging content will all be personalized and based on consumer behavior.
4. Digital Advertising
AI is already used in digital advertising on platforms like Facebook, Google and Instagram in order to provide the best possible experience. By analyzing the demographics and preferences of the user and managing big data through AI, these platforms will be able to provide relevant ads, significantly improving the performance and conversion effectiveness of these ads including analyzing trends and managing spending appropriately.
5. Content Marketing
Content marketing can be revolutionized by AI. Instead of using heat maps with AI we could understand which content is more effective to the user, definitively improving the User Experience and getting better results. Marketers will be able to better understand what type of content works best for their target audience, enabling them to create more specific content targeted to that audience.
The ability to provide suggestions and recommendations based on the user behavior and experience is probably the most powerful application of AI for marketers.
How is AI Changing the Face of Digital Marketing?
From Google’s RankBrain and Voice Search to personalized Amazon recommendations, AI is changing the face of today’s digital landscape.
With effective data analysis and the ability to adapt to input, AI is taking over the human role of identifying marketing trends. Brands and marketers are leveraging AI digital marketing to save time and resources through automated digital marketing services.
Personalized Product Recommendations
The application of AI to e-commerce is particularly important since it enables us to track customers’ preferences, habits and buying behaviors. Insights are important for marketers and with AI we can skip the whole market research process and understand the consumer and provide the right recommendations and suggestions for the products or services that they’re interested in.
AI and technology are much faster and more accurate than humans to make these decisions, enabling the User Experience to improve by engaging and increasing e-commerce sales. For example, Amazon is being using this for a while.
Enhanced Shopping Experience
AI and augmented reality can significantly enhance the shopping experience by allowing the possibility to try a product before you buy it instead of just browsing a picture. Retailers can create virtual fitting rooms and check out how a dress looks just by standing in front of a screen and a camera. IKEA, for instance, is launching an app that will enable customers to visualize products in their own home.
AI is transforming digital marketing with the ability to analyze big data. It is estimated that more than 80% of the digital media market, will be using some form of AI powered technology this year. This is just the beginning. As technology evolves marketers and advertisers realize the power to collect, store, and analyze an ever-increasing amount of customer data. An attempt to reach customers without the help of AI will be a recipe for failure.
The Difference Lies in Performance
One of the reasons for the explosive growth of AI in digital marketing is performance. When AI is combined with digital marketing campaigns not only the creative impact is enhanced, but also a more accurate audience targeting, and in particular by making optimization easier it ultimately boosts conversions.
In addition, AI enables enterprise level campaign management tools that allow marketers to place a huge number of ads across a wider range of networks.
Marketers with AI have the ability to make optimizations in real time and drive down the cost of the marketing campaign. For instance, with AI you can obtain the most efficient cost per mille and cost per acquisition, deliver media proportionately throughout the sales funnel and allocate budget wisely.
Leaders in the Application of AI and Digital Marketing
Companies like Amazon, Netflix and Spotify have used AI to completely change customer expectations for brands. The algorithms deployed by these companies to recommend products, movies or music have forced competitors to focus more on anticipating customer needs and transformed the way people buy.
How to use AI in Digital Marketing
Below are a few strategies that can be used to generate outstanding results with AI.
Improve Customer Journeys
AI offers the ability to gain great insights into customer motivation, behavior and needs. AI also reduces the efforts needed to analyze these data and put those insights into action.
By learning more about your audience with AI, and what creative messages work, you can continuously find out more about the customer journeys that align with your audience’s desires and expectations.
Develop More Comprehensive Media Plans
AI enables marketers to have real-time data and real-time signals from competitive activity avoiding time consuming market research, gut feelings or assumptions. For example, AI powered and voice enabled platforms such as Alexa and Siri or Chatbots are improving the way they communicate with customers; these tools are transforming the media landscape.
Generate Better Leads
AI reduces the sales cycle and makes it more cost effective. Marketing automation platforms combine demographics and psychographic data to paint a clearer picture of your ideal customer and filter prospects by their likelihood to purchase.
In conclusion, AI in digital marketing is becoming widely adopted, but still in the early phases. It’s a good moment to start investing in machine learning tools and data science. You can either outsource them or build them in house, but AI tools are necessary in order to compete in this changing world of marketing.