AI Marketing - New Opportunities in the Marketing World
How many times have you wondered how the advertisement of the product you are interested in reaching you at the right time for shopping? And no, it's no coincidence that this morning you were delighted by the advertisement with a discount on a laptop for which you have been collecting money for a long time. Have you heard of the term AI marketing?
Marketers know that behind this "magic" is a whole system of tools and programs in which artificial intelligence is woven.
What is Artificial Intelligence (AI)?
Before we continue, it would be appropriate to get acquainted with the very term artificial intelligence.
Although it is ubiquitous today and makes our lives easier almost every day, we often associate the term "artificial intelligence" with only some of its applications. So it becomes synonymous with big projects like autopilot and cyborgs, forgetting that it is an integral part of thousands of tools and applications that work quietly behind the scenes, making our lives simpler.
How does AI work?
Artificial intelligence is a subfield of computing that uses computer systems to simulate the process of human intelligence.
It works on the principle of algorithms that find and extract relations and established patterns in large data sets. Based on this information, algorithms conclude and make predictions.
This automates the learning and decision-making process, which greatly improves efficiency and performance, and it is no wonder that an increasing number of industries use AI, both in solving those less interesting repetitive business activities and those complex ones that require accuracy and timeliness.
As marketing is one of the essential areas of business, the introduction of artificial intelligence at the core of digital marketing came quite naturally. You can find out more about artificial intelligence here.
Dizzying market changes and the introduction of AI in marketing?
Technology has advanced rapidly over the years, which has had a major impact on the global economy. Just fifteen years ago, desktops were the primary link to the Internet world, and the presence of customers in the market was limited. Today things are completely different. Thanks to a multitude of "smart" devices, customers are provided to be always on, ie to be present on the market 24 hours a day.
The range of possibilities for various promotional activities has significantly expanded, and communication with customers is moving from monologue to two-way, flexible communication. Customers are no longer just passive recipients of messages, but their power in the market has multiplied.
Thanks to a dynamic and transparent internet environment, customers are getting to know new products and services every day, the market is becoming more competitive and companies are forced to constantly search for more creative and better ways to highlight their products and attract and retain audiences.
To do better in such dynamic conditions, reduce mistakes, and be more efficient, more and more marketing teams with the help of artificial intelligence manage to get accurate answers to questions on how to best build a solid relationship with customers and provide them with personalized service better than the competition.
How does AI marketing work, and what does it mean?
AI marketing involves the use of "smart" technologies that collect and analyze data on customers, their preferences, and economic trends. These technologies offer opportunities to get to know each customer as well as to understand his behavior.
As the amount of information about potential consumers grows, the analysis is more detailed, and the algorithms can adapt more quickly to customer needs.
Considering that this system does not have working hours, but works even when marketers are resting, it constantly processes the received data and over time becomes more and more capable of timely and accurate decision-making. From this data, AI concludes and provides answers to questions such as "Will this person be interested in my product?", "What are the most suitable place and time for advertising?" or "What results can be expected from the campaign?" This approach helps marketers to better understand the needs of their customers and build thorough and lasting relationships with them.
Why introduce AI marketing to your business
In addition to enabling marketers to save time and resources through automated services, AI marketing brings many benefits to a company’s business. Some of the benefits that AI brings to business are:
1. Increasing the return on investment - ROI
If marketers use AI tools correctly, they can draw significant conclusions from the analyzed data and, based on them, adjust their marketing strategy on time.
This gives a better insight into the structure of customers and makes it easier to segment and lead them to the next step, to make their experience as enjoyable as possible.
Based on the data analyzed by artificial intelligence, marketers have a better insight into the needs and desires of customers. By understanding what customers want in a wide arc, one can avoid spending the budget on efforts that do not give the desired effect. For example, marketers can identify a campaign that is not effective in time, end it ahead of time, and direct the planned budget toward a more cost-effective campaign.
2. Personalized contentAI enables dynamic messaging of products based on past consumer interactions. This way marketers can update or customize marketing communication with customers in real-time.
For example, AI tools allow marketers to identify risky customers, target them and refocus their attention on their brand.
3. Smarter and faster decision making
AI conducts tactical data analysis faster and more accurately than humans. As we mentioned earlier AI with its detailed analysis easily draws significant conclusions about the impact of a marketing campaign. Marketers need a lot more effort and time to accurately analyze all the data and often have to wait until the end of the campaign to make decisions. With artificial intelligence, they can use real-time analytics and make better strategic choices.
4. Increasing the measurability of success
Organizations often have trouble navigating the vast amount of data that digital campaigns produce, making it difficult to link success to specific campaigns. Platforms that use artificial intelligence provide a more comprehensive overview of all actions launched so that marketers have an insight into the effectiveness of their campaigns at all times.
5. Improving the performance of the marketing team
AI is used in marketing to enable employees to improve their work through various programs and tools, reduce the frequency of errors, segment the market more easily and automate routine tasks. Thanks to this, marketers could skip boring routine jobs and focus the time saved on solving creative and strategic challenges.
If you have figured out all the ways AI can help your company efficiently achieve its business goal, before introducing AI tools you should be familiar with all the challenges of their implementation.
Although the tools we use are called smart tools, they do not automatically know what actions they need to take to reach the goal you set. They need some time to recognize customer preferences, spot “movements” in the data, and establish the relationships on which reasoning is based.
2. Data quality
For artificial intelligence tools to achieve the best possible results over time, they need a large amount of quality data. If the data is not accurate, timely, and representative, the tool will not make optimal decisions.
Given that the entire system is based on a large amount of data coming from the customer, the issue of privacy is quite natural. Although they need large amounts of data, marketing teams must ensure that they use consumer data ethically and follow standards such as the GDPR or risk severe penalties and reputational damage.
Practical application and examples
Predictive marketing analytics
What if you knew what your customers wanted even before they asked you? Predictive analytics makes this a reality.
This type of artificial intelligence in marketing is based on technologies that, based on a constantly growing customer database, estimate the probability of a future event. This allows you to create personalized micro-campaigns for each customer.
The brand that uses predictive analytics very successfully is Starbucks. Through the loyalty card and the mobile application, customers authorize to collect a large amount of data on shopping habits, starting from their favorite drink, the place of purchase, to the time of day when shopping most often takes place.
Starbucks has been very successful in building relationships with its customers. Based on the history of purchases, it can suggest new products, and create discounts and rewards on certain items based on unique customer preferences. Starbucks also has a system for targeting customers who have not bought products for a long period. Through personalized marketing messages, the system reminds customers of some of their favorite items from its basket and invites them to reactivate them.
Creating quality content for your website can be time-consuming.
Did you know that as many as 47% of marketers claim that the biggest challenge for them is improving the content?
AI can help you create content faster and on a larger scale. It can also help you build a content strategy based on real data, not instinct.
Chatbots are online programs for fast and practical communication with customers who use artificial intelligence.
They are designed to understand customer questions and answer their needs without the involvement of a human operator. In those best-designed chatbots, it's very difficult to say that you're talking to a programmer, not a real person.
A very successful example of using chatbots is Duolingo. Duolingo is a popular
language learning application that encourages practicing a new language
through custom "games".
Users are constantly looking for ways that can allow them to practice communication, but if they were paired with each other based on the language they want to learn, for example, a French-speaking English speaker and an English-speaking French speaker, it would cause people to fear and trepidation, which would slow down the learning process a lot.
To overcome this challenge, Duolingo created an original chatbot in its application and thus helped users learn conversational skills and practice what they learned without additional tension.
To adapt to different personality types and use different learning styles, Duolingo has also created several language teaching bots, allowing its users to talk at any time of the day, with any character from the app, until they feel brave enough. to practice a new language with other users.
This solved the big pain point of consumers and made learning through the application much more comfortable and fun.
AI can help make brands more competitive by enabling dynamic pricing. AI platforms can propose optimal prices for products in real-time by estimating huge amounts of historical and competitive data.
Amazon is one of the largest e-commerce platforms, whose website is visited by
197 million people a month. Amazon uses a large amount of collected data on the consumer buying
behavior and market trends to change the prices of its products. These changes
happen every 10 minutes.
Through a business that uses a dynamic pricing strategy, Amazon generated revenue of $ 386 billion in 2020, making it the third-largest company in the world in terms of revenue.
In today's market, customers expect a very high level of personalization of products and services. Therefore, to be effective, marketing messages need to be based on customer interests, purchase history, past interactions with the brand, and a host of other data.
AI helps marketing teams learn about consumer preferences on a granular, individual level. This helps brands create experiences based on the unique tastes of customers.
Spotify uses artificial intelligence to create custom playlists based on what the user has listened to in the past, current hits in various genres, and what music is being talked about.
AI helps brands personalize email marketing campaigns based on user behavior analysis. This allows them to deliver relevant emails to customers. With product themes and recommendations selected based on their previous preferences and actions. You can find out more about email marketing and the tools used here.
Artificial intelligence has long made great strides and is already shaping not only the future of marketing but the entire business world.
The impact of AI on customers during the selection is undeniably great, which is reflected in the provision of relevant recommendations and timely service.
The better you look at and take advantage of all the opportunities that AI marketing offers you, the easier it will be for you to develop an image of your brand. To meet the expectations of your customers and stand out in the sea of competitive products.