What is AI in marketing?

The creation of machines intelligent enough to perform tasks that require human knowledge and intelligence is the focus of the larger field of computer science known as artificial intelligence or AI. In its most basic form, artificial intelligence (AI) is a field that uses databases and computer science to solve problems. It contains the parts of machine learning and deep learning that are frequently mentioned in relation to AI. AI algorithms are employed to create expert systems that classify input data. So, how might AI impact your online marketing efforts?

The primary goal of AI in marketing is to make the marketer’s job easier.

Customer segmentation, data collection, analysis, and a variety of other tasks can all be performed (very quickly) by AI, allowing arduous tasks that would previously take hours to be completed in a fraction of the time and with little or no human involvement.

AI helps in understanding-

• What platforms is your audience on
• What content do they like
• How they behave on the platform
• When they visit those platforms

To put your content to the right people at the right time. 

AI transforms data into something handy, saving you time and money!

How do Artificial Intelligence and Machine Learning work in digital marketing?

Artificial intelligence and machine learning provide data-driven intelligent decision-making solutions.

Reach 

To reach the target audience more efficiently, AI helps with the following-

• Smart content curation
  Identifies, categorises, and recommends content based on previously purchased products. 

• Programmatic advertising 
  Identifies target audiences and serves ads to the most relevant users.

• Content creation 
  Refers to applications that generate human-centric content based on optimised, personalised, targeted words or phrases that elicit specific groups of customers. 

• Natural language processing 
  It expands customer reach and is applicable to voice searches and voice commands via PDAs (personal digital assistants).

Act 

AI uses algorithms to help marketers to take action during each marketing campaign that follows- 

• Predict user behaviour
  Tendency to predict user behaviour, modelling collects and processes large datasets of previous users’ actions. 

• Ad targeting 
  Predicts and defines which advertisements will perform well on specific user groups and at what stages of the purchasing cycle.

• Forecasting
  Predictive analytics forecast customer behaviour before the customer begins the purchasing process. Based on data prediction analysis, lead scoring determines the value of a potential sales lead and whether it is worth the effort.

Convert 

To affirm conversion, AI works parallelly with digital marketers in the following area-

• Dynamic pricing 
  Identifies prospective customers who require an additional incentive to convert. 

• Re-Targeting 
  Develops user-profiles and identifies those who will return to a website to make a purchase. 

• Personalisation 
  Web & app personalisation is the process of personalising the content and interface of a web page or app to increase conversion rates. 

• Chatbots 
  Respond to user questions like humans, suggesting purchases, completing orders, and so on.

Engage

To engage audiences and customers harmoniously, AI works in the following ways-

• Predictive customer service 
  Specifies and engages clients by reaching out to them after purchases with offers, coupons, and suggested information to increase the engaging audience and avoid churning. 

• Marketing automation 
  Categorises customers and uses optimised content based on when to contact them, what phrases should trigger them, and what offers the company wants to make. 

• Dynamic emailing
  1:1 dynamic emailing is a sophisticated method of promoting relevant products and services to the recipients.

How can AI affect your digital marketing campaigns?

Did you know that 80% of tech leaders and businesses agree that AI increases productivity by 40%? It’s amazing how AI can affect your digital marketing campaigns. 

Customer segmentation

It would take a long time to compile your customer data and experience into a small group of ideal customers (not to mention highly dull).

Fortunately, AI has a specialisation in doing just that. AI enables you to complete complex customer segmentation tasks in real-time, crunching billions of data points into tailored, usable customer profiles based on information such as

• Geolocation
• Customer conduct
• Customer behaviour and data (age, sex, marital status, etc.)
• Previous brand interactions 
• Similarities with other existing customers

These AI-powered profiles will be the foundation for many of your other digital marketing efforts, so completing them is critical.

Campaign personalisation

Nobody wants to receive bland and generic marketing communications; there’s a big difference between saying “Hello there” and “Hi, Adam.” When someone speaks directly to us, we feel more important and interested.

Campaign personalisation is customising marketing messages and campaigns to fit the specific needs, interests, and preferences of individual customers or groups of customers. 

This can be done through personalising technologies such as machine learning algorithms and artificial intelligence, which can analyse customer data and create personalised content and recommendations.

It helps businesses increase the relevance and effectiveness of their marketing efforts, leading to higher engagement and conversion rates.

There are several ways to personalise campaigns, including- 

• Using customer data to tailor the messaging and content of marketing materials, 
• Using customer behaviours and preferences to select the channels and platforms used to reach customers, and 
• Using A/B testing to determine which approaches are most effective.

Predictive marketing

While predictive marketing is not new, artificial intelligence has made it more manageable and accessible. Data extraction, analysis, and other tasks that used to take weeks or months can now be completed in minutes. Companies that use predictive marketing to guide their campaigns frequently see better results.

• Businesses can predict using predictive marketing.
• Customer purchasing habits.
• When are customers most likely to make purchases?
• How much will they spend based on previous purchases?

Such customer insights are incredibly beneficial. Businesses that curate their marketing strategies based on this data can expect to see increased engagement, increased revenue, better leads, and better marketing budget allocation.

AI-powered chatbots

Chatbots use artificial intelligence technology and natural language processing to interact with online customers and complete orders for them. Chatbots can be embedded in websites as well as social media pages. Chatbots increase engagement, assist customers 24 hours a day and handle multiple customers simultaneously.

Chatbots can respond to customer queries instantly via chat interaction or voice. Many online businesses are already using chatbots to provide better customer service. According to Gartner, by 2021, 85% of customer interactions are handled without the involvement of a human. 

Effective pricing

Most businesses use dynamic pricing to generate buzz in their niche. As a result, the price of a product or service can fluctuate due to various factors, including;

• Demand changes.
• Peak usage periods.
• Customers who are being targeted.
• Changes in the marketing environment.

Unfortunately, businesses cannot be notified of these changes in real-time. This is where artificial intelligence comes in. Airlines are currently the primary beneficiaries of AI-influenced dynamic pricing. Retailers can also use machine learning technologies to influence product prices and generate profits.

Social listings tools

Building and protecting your good business reputation is crucial. That is why you must respond to every customer’s comment or review promptly and courteously, even if the feedback is negative.

AI will also improve the capabilities of these tools. They can detect brand mentions across the internet and inform you of what customers say about your company. 

However, you can expect these tools to become more potent as time goes on, and they will use text analytics to determine how users feel about your brand.

Not only that, but social listings tools can help you avoid PR disasters before they become a problem. AI can:

• Spot brand mentions (both positive and negative), allowing you to stay on top of trends.
• Examine the text and tone of voice (to judge opinion).
• Recognise major themes.
• Determine the location of your company’s logo.

This will allow you to stay ahead of the curve, detect undertones that traditional social media listings tools may miss, and protect your reputation.

Marketing automation

We already have the technology and tools to differentiate between gender, age, hobbies, browsing habits in the past, and a variety of other factors. For example, it is common practice to show different headlines and images to different target audiences. However, digital marketing customization is still in its early stages.

AI and machine learning will allow you to tailor your marketing efforts to your specific needs.

When you use AI techniques with personalisation, you can divide your audience into even more granular target groups. Instead of targeting a 1000-person audience, you’ll be able to create even smaller specialty audiences of 10 or even one person .

Create highly personalised experiences for prospective customers. There’s no denying that ultra-personalization across all channels, from Facebook to email and everything in between, will boost conversion rates.

Content curation & personalisation

Artificial intelligence is crucial in content marketing.

Marketers can use AI-powered Natural Language Generation technology to generate content automatically. The NLG (Natural Language Generation) platform transforms your data into readable, exciting narratives. Data-specific content, such as sports stories, stock updates, and financial reports, can be written by AI. 

AI can generate 2000 articles per second. Artificial intelligence will also improve the efficiency of content creation.

The process of gathering and organising information relevant to a specific topic is known as content curation. Artificial intelligence is used in content curation. 

E-commerce websites such as Amazon are excellent examples of content curation. They recommend similar products based on what you’ve previously looked at or purchased.

Audience targeting

In an online business, targeting the right audience at the right time with the right product is crucial. Google analytics powered by AI can segment the audience based on location and demographics such as age, gender, education, income, profession, etc. Psychographics such as interests, preferences, attitudes, and so on. It aids in determining which target audience is best suited to your product or service.

Artificial intelligence analyses millions of data on a single user profile. It allows digital marketers to effectively market products to various customer segments.

Advanced ad management

Today’s digital advertising techniques would only be possible with artificial intelligence. Artificial intelligence-powered delivery systems can even power LED billboards. These systems run independently, displaying the appropriate advertisements to the relevant people based on advanced algorithms and massive data. This is known as “programmatic advertising.”

Ad development was once primarily a creative endeavour. It still is, but if companies want their advertisements to be effective, they must look beyond creativity. These days, it’s all about targeting and delivering the right message.

Advertisements bombard consumers and business-to-business (B2B) buyers every day. They close the ad or move on to their next interest because most are insignificant. When this happens, advertisers lose money.

Why is digital marketing AI so popular?

The usage of AI among marketers has dramatically increased from 2018 to 2020. 29% in 2018 to 84% in 2020. AI enables us to go beyond basic demographics to understand what makes a person tick truly – who they are, their interests, behaviours, wants, and needs.

The impact of digital marketing AI

1. Artificial intelligence in SEO

Some routine SEO tasks, like data analysis and reporting, can be carried out automatically by machine learning. This does not imply that SEO specialists will lose their jobs. Instead, it means that machine learning will assist SEO professionals in obtaining quicker and more effective results.

As AI will significantly impact the following areas, SEO professionals must be well-prepared in this complex environment.

• Keywords research & analysis
• Link building
• Virtual assistance
• Chatbots 

2. AI for content marketing

Every company should produce top-notch content in the hypercompetitive online market. Your ROI will decrease daily if you don’t prepare for the upcoming year. Recognise the significance of incorporating AI into your content marketing strategies going forward. 

A few important artificial intelligence techniques can enhance content marketing plans. That is-

• Content creation
• Predictive analytics

3. AI in email marketing

To find the best offers, content, and frequency for each subscriber, marketers must conduct a significant amount of A/B testing in email marketing. 

Instead, the right AI tools can automate and optimise several email marketing features, including content, send times, frequency, and more, allowing you to increase engagement and conversions. 

The tactics listed below will help you optimise your email marketing for AI.

• Email frequency
• Personalised content
• Promotional mail

4. AI and social media marketing

Everyone uses social media in today’s generation. An AI tool comprehends and keeps track of customer behaviours, including how much time they spend online, which products they prefer, and other factors. 

Here are some tactics you can use to increase your chances of success.

• Enhanced CRM
• Better campaign success
• Social sentiment analysis

5. Artificial intelligence in affiliate marketing 

AI can facilitate affiliate recruitment, freeing up marketers’ time. The AI technology quickly completes administrative tasks and recommends the best affiliates for business after identifying the program and affiliates available on an existing program. 

Although AI tools may be useful in locating affiliates, humans are still needed to identify and choose the most appropriate opportunities based on the client’s needs at a specific point.

Benefits of AI marketing

Did you know that when brands offer personalised experiences, 80% more customers are likely to purchase? Conversions increase when the appropriate content is delivered at the appropriate time to the appropriate audience.

When AI is used to test what content your audience responds to and what channels they prefer to see it on, it improves your digital marketing. This knowledge will assist you in determining how best to allocate your marketing budget.

The benefits of AI marketing include the following:

• Automating routine tasks like posting to social media, sending emails, and making appointments
• Gathering customer data to spot behavioural trends and predict future moves based on current behaviour 
• Track brand images online using sentiment analysis to understand user needs.
• Identify the most recent trends and patterns by analysing big data to streamline marketing strategies and campaigns.
• Utilise heat maps to analyse a website in detail and find any barriers that could improve user experience.

Future of AI in the world of digital marketing

Without AI, testing content across channels can be expensive and time-consuming because manual tests require a person to analyse all the data and take the time to run them. It is preferable to find platforms with AI that can collect and analyse the data they receive to make wise decisions to improve your marketing efforts quickly.

Online advertising is one of the simplest ways to determine the appropriate channels and content for your audience. You can quickly test content with a large audience on platforms like Google and Facebook and hone in on your audience’s wants.

The contribution of AI in digital marketing are as follows-

• Improvised algorithms
• Real-time data tracking
• Visual content & video marketing
• The rapid growth of AR & VR applications
• Increasing demand for voice search
• Rise of chatbot marketing 
• Email marketing optimisation 

Some amazing facts about AI and machine learning in digital marketing

Did you know that: Netflix saved more than $1 billion by applying machine learning technology to provide a personalised movie recommendation for each user? 

The magic of AI and machine learning in digital marketing has just begun. There’s a long way to go. Within the past couple of years, AI has made remarkable changes in every industry it has touched. 

Here are some amazing facts about AI and machine learning in digital marketing

• AI recognises human speech with more than 95% of accuracy.
• 61% of digital marketers claim that AI is vital for data and marketing strategy.
• Smartphone users worldwide use AI-powered voice assistants 97% of the time.
• Customers make a purchase 60% of the time if a brand offers personalised experience.

Bottom line

Artificial intelligence is a revolutionary technology that has the potential to advance numerous aspects of digital marketing. We anticipate that even more automated and streamlined tasks will greatly enhance customer experience and satisfaction.

AI will continue to improve digital marketing strategies and offer insightful customer data more than it has done in the past. Marketers should indulge in cutting-edge technology to stand out in the crowded digital marketplace.

We expect more advanced and effective AI-driven marketing solutions in the years to come.

Have any inquiries regarding your digital marketing? Contact us right away!