Applications of Artificial Intelligence are relatively rare in marketing industry, and therefore many marketing experts have not yet approached it, and only understand it vaguely. Within marketing agencies, as well as small- to medium-sized companies, we see that AI is very carefully introduced because most marketers are unsure about its real benefits.
Artificial intelligence is an opportunity to be leveraged across all segments, its cost-effectiveness will have progressed at an exponential rate of 38% by 2035. While some people are still reluctant, AI is essentially a solution to concentrate on higher value-added activities and thus enhance business performance. Besides, it is also a very valuable tool to expand your customer base, as advertising is creating new openings for businesses online. In addition, AI can help a company to be more competitive and to change its business model, including through marketing intelligence.
It is time to fill this gap and consider the main benefits of AI in marketing!
Let’s have a look at the most important features of artificial intelligence!
Below you can find a summary of the general benefits of applying AI in marketing so that you know early on what’s in for you:
Marketing and business intelligence plays a significant role in strategy development process. As a result, implementing AI in marketing processes can help you to make better decisions, be more efficient, reduce costs and increase your brand awareness.
Sounds pretty good, right?
History of AI in marketing
The last two decades have been greatly affected by the spread of artificial intelligence across businesses. As an almost ubiquitous actor in marketing, AI has supported the most novice to experienced marketers to not only create better and more targeted content. But also contribute to personal assistance through chatbots, with a better understanding of the market and consumers. Here is a quick drawback on the history of AI in marketing.
1998 – smart, smarter, smartest
This urge to understand customers more clearly and to offer them what is best for them was initiated by Amazon in 1998, with “collaborative filtering“. They are now made through an interpretation of multiple internal and external data (link marketing intelligence), much more complex, of customers thanks to AI. This model is now widely used by Netflix, Youtube, Spotify to name some big fish.
2013 – fast, faster, fastest
Companies quickly took the turn of AI in content marketing, the incredible rise of this activity was an opportunity to seize. Companies like Verizon amass a vast amount of information and then restructure it at a phenomenal speed in an article written by a computer. In 2013, Verizon, then Yahoo’s Wordsmith Automated Insights, published 300 million articles.
2016 – good, better, best
The AI can now interact with the customer, it knows how to listen, learn and respond. This is in any case what assistants like Alexa or some chatbots powered by the AI have shown us, assisting customers and diminishing the amount of time spent on human work. Artificial intelligence is an automation technology that overall increases performance as it has a great and fast problem-solving ability.
Future of AI in marketing
The consumer is the centre of attention these days, businesses are closely monitoring their preferences, researching, and increasingly using content marketing and speech recognition. There is no doubt that the future of AI in marketing is mainly about innovation through its ability to process, analyse and react to data. Some people fear what will become of AI in the future, but we must see this intelligence as a tool and be pragmatic.
Because from online translation to the apps you use on a daily basis, it is not the future, but the present of the company. Because overall, AI companies will be more innovative, including a hyper-customisation of the offer, predictive analytics as well as time and budget optimisation.
AI in marketing examples
We will see examples of the use of AI quite common in marketing to give you an idea of its importance in business strategy.
1. Customer behavior
CRM (customer relationship management) uses metrics like the customer journey can lead to a clearer idea of the type of habits and needs than the customer. By gathering a customer’s behavioural information, companies understand the average customer and to know who their potential customers are. Knowing your customers is knowing where you have to be.
2. Brand-related Surveillance
AI can collect information on a brand from online publications. All feedback is gathered, positive or negative, and then segmented. In addition, AI can understand the tone of the publication and then interact with it. For example, you leave a negative opinion about a product on a forum or something else, an AI could answer you in a relevant way. That is, the AI can reassure you about the brand, or offer you solutions.
To go further and introduce another example, AI is widely used in ad-targeting. Its goal is to calculate the efficiency of each ad of your campaign and use the data collected to make ads that will tend to convert better.
Find out more about AI marketing tools in our next article!
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Encourage Better Decision-Making.
With the help of AI, data interpretation is more readily available for marketers, and therefore better decisions can be made more efficiently. Business intelligence is crucial in terms of defining the marketing strategy for your business. Machine learning technologies helps you to answer such questions as: what is the right marketing channel to double down on? Or which marketing campaign should you stop implementing?
As a result, application of artificial intelligence helps you to make decisions faster and more efficiently.
Opportunity to Analyze Massive Data Volumes.
One of the greatest benefits of AI is the ability to analyze and interpret larger amounts of data in a short time. Applications of artificial intelligence make it possible to detect anomalies or trends in a large set of data. Business intelligence can help you to analyze each transaction on your website, and track social media metrics or your conversions.
Increase Precision & Accuracy.
Application of artificial intelligence significantly reduces the occurrence of human errors. As a result all the proposals and decisions are based on reliable data in comparison to the intuition. Despite the fact that most modern marketers prefer to trust data-driven solutions, a lot of decisions are still made based on intuition due to a lack of appropriate and precise data insights.
Marketers had to use such methods as common sense and recommendations in order to choose the right timing for launching their marketing campaigns. AI algorithms that analyze customer data can calculate the optimal timing in order to increase the customer reach. With that, you can stop sending customers emails when they are unreachable or don’t want them.
As a result application of artificial intelligence in marketing can help you to reach more potential customers.
Boost efficiency & save time.
Thanks to AI technologies, marketers have the ability to automate even more of their repetitive and manual work such as data gathering and manual data cleansing/sorting, as well as data analysis.
Moreover, one of the most important benefits of AI is its adaptiveness. AI technologies not only optimize your processes but also adjust their behavior in order to achieve the set goal. Business intelligence is goal-oriented and can even make some decisions for you. It helps to allocate resources and efforts depending on the desired objective.
Accordingly, marketers have more time on strategic and proactive marketing solutions.
Repetitive, manual tasks can be replaced by machines, which allows companies to cut costs in specific marketing roles and focus more on strategic optimization of their campaigns.
That is why, application of artificial intelligence helps you to save money and time on more important tasks.
Now, you have a short overview of the actual benefits of AI implementation in marketing and what you can get out of it.