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AI in Digital Marketing: Examples and Benefits

  • Ayush Singh Rawat
  • Aug 03, 2021
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We are only at the start of the AI revolution, but we already have a decent idea of how artificial intelligence will transform the face of digital marketing. With marketers adopting this futuristic technology, artificial intelligence's use in digital marketing will transform the entire globe.


You're not alone if you haven't fully jumped on board or have only begun to dip your toes into the ice. Consumers' responses to and interactions with marketing messages are evolving. Traditional marketing techniques like media advertising and direct mail are no longer as effective as they once were.


AI in digital marketing


Artificial intelligence (AI) is a broad field of computer science that focuses on creating intelligent computers that can do activities that would normally need human intelligence. 


Although AI is a multidisciplinary discipline with many methodologies, advances in machine learning and deep learning are causing a paradigm change in nearly every sector of the IT industry.


It's a branch of computer science that aims to decipher the core of intelligence and create a new intelligent machine that thinks, responds, and executes tasks based on the input it receives, much like people do. 


Robotics, speech recognition, picture recognition, natural language processing, problem-solving, and other AI-related tasks are highly technical and specialised. (Interesting to read: History of AI)


AI is now widely used in digital marketing, operating in the background to improve the effectiveness of pay-per-click advertising, personalise websites, create content, anticipate behaviour, and more.


According to Forbes, 84 percent of marketing firms are integrating or growing their usage of AI and machine learning in 2018, indicating that marketers are fast understanding the benefits of the technology.


Businesses may utilise AI in two ways to boost their digital marketing. One is on the backend, where marketers utilise AI to anticipate product demand, create consumer profiles, and buy programmatic ads, among other things. 


The other is the consumer-facing side, where marketers utilise AI to enhance the customer experience, strengthening the brand and increasing sales. In fact, 75% of companies that use AI and machine learning claim that it improves customer satisfaction by more than 10%.


Marketing, whether digital or traditional, necessitates some degree of guessing. When developing a new marketing strategy, certain assumptions are made in order to target the correct demographic. This guessing is done by Artificial Intelligence using a number of algorithms and prediction analyses. It analyses previously acquired data and makes predictions based on it. This is useful for making informed judgments while running marketing efforts.


AI-assisted predictive analysis can also predict future outcomes. The ‘Estimate' metrics displayed while writing Ad Campaigns on Google and Facebook are an example of this. 


These figures indicate the number of individuals who can be reached and the number of people who will respond to an ad campaign. This is determined by a thorough examination of audience behaviour based on past data.


(Most related: Digital marketing tools



How AI is transforming digital marketing?


AI is changing digital marketing with its capacity to gather, evaluate, apply, and respond to data. AI will become increasingly essential as the amount of data about potential customers rises, due to its capacity to make data-driven judgments rapidly and correctly. 


Here are a few examples of how AI is influencing digital marketing:


  1. Recognize and analyze


Customer relationship management (CRM) is a business strategy that focuses on collecting and filtering valid customer data in order to create a customer-centric approach to the company.


When CRM, AI, and big data technologies are integrated, they may optimise the gathering of user data from various platforms, get precise insights into target consumers, and identify users' requirements, allowing businesses to decide the best marketing plan.


The key is that any behavioural data can be used to conduct AI analysis. For instance, the kind of items someone purchases, the pages they visit, the tools they frequently use, and so on.


Marketers may quickly assess a potential customer's demands and adjust the AI utilised to improve sales using all of this acquired data. You are better able to envision the customer journey and give the appropriate solution, simplifying the shopping experience and assisting the client in reaching the checkout with recommendations that better represent them and their habits.


(Also read: Targeting marketing using AI)



2. Enhances User Experience


Machine Learning (ML) is a concept used by Artificial Intelligence to learn about its users. It can analyse their habits and display information tailored to their tastes, keeping the audience interested and engaged. People are more inclined to acquire items or services if they have a positive user experience.


Here are a few instances of how AI may improve the user experience.


  • Youtube with ‘Suggestions’ Tab

  • Amazon with ‘People also buy’ Section

  • Google Search Results with ‘People also ask’ Section


(Suggested read: Social media marketing)



5 Benefit of AI in Digital marketing

Listing benefits of AI in digital marketing as;   1) Application of AI chatbots 2) Dynamic pricing 3) Predictive and targeted content 4) Better advertising 5) Creating and generating content.

Benefits of AI in digital marketing

  1. Application of AI chatbots


We're all familiar with automated replies, which are used by businesses to respond to consumer inquiries and also in data collecting to keep customers informed about products and services. 


Chatbots have several uses, and the combination of chatbots with artificial intelligence and machine learning is the new game changer.


To begin with, AI chatbots allow companies to move beyond traditional "one-to-one" customer care. Chatbots, on the other hand, may provide "one-to-many" help to several clients at the same time and in various time zones.


Second, AI chatbots do not require rest, allowing them to respond to consumer inquiries at any time and in real time. Not only will they be more efficient, but they will also be able to give help outside of office hours, enhancing the client experience.


Customers may also select the language used by AI customer care based on their preferences, allowing a business to provide tailored customer support.


Many businesses have begun to connect with their consumers using messaging apps such as WhatsApp, Facebook Messenger, and Slack, all of which may benefit from AI chatbots to make the process more efficient.


(Read also: AI applications in business)



  1. Dynamic Pricing


Although offering discounts is a guaranteed method to boost sales, some customers will choose for a lower discount or no reduction at all.


To maximise both sales and profitability, AI may be used to dynamically determine product prices based on demand, availability, client profiles, and other variables.


The website camelcamelcamel.com, which records the price of Amazon goods over time, is a good example of dynamic pricing in action. A graph for each product shows how much the price changes depending on the season, popularity, and other factors.


If you've ever looked for a flight and then returned to buy it a few days later only to find the price has gone up a few thousand rupees, you've experienced dynamic pricing at work.


(Recommended blog: Applications of AI)



  1. Predictive and Targeted Content


AI may be used to acquire more data on prospects and customers, as well as anticipate future behaviour and generate more focused messages, in addition to addressing queries via chatbots.


That material might be supplied by a chatbot, dynamic content on a web page, or email, as mentioned above. Because AI can help send the appropriate email message at the right time by employing dynamic content and identifying that material based on prior customer behaviour, AI can assist in delivering the right email message at the right time.


AI can intelligently choose the material most likely to appeal to a given consumer and automatically populate an email with that content by knowing which web sites a customer visited, which blog posts they read, which emails they interacted with, and more.


AI can also anticipate when customers are disengaging from a business and assist to deliver tailored content that is most likely to appeal to and re-engage them using a technique known as "churn prediction."


(Most related: Applications of AI in digital marketing)



  1. Better Advertising


The ability to reach the proper audience is a necessity for every marketing campaign's success. Businesses can target consumers more easily using AI digital marketing.


AI gathers data from users, analyses it, and forecasts future behaviour. Brands can target advertising based on the user's choices using this information.


Machine learning and artificial intelligence are already used by Facebook and Google ad networks to discover users who are more likely to take the advertiser's desired action. To do so, they examine user data such as interests, demographics, and other factors to learn and identify the ideal audience for their business.


Google AdWords already offers an auction-based mechanism that allows marketers to pay the lowest cost per convert feasible. 


(Must catch: Netflix digital marketing case study)



  1. Creating and Generating Content


Even while AI can't write its own political opinion for a newspaper column or a blog post on the finest and most practical advice for a certain sector, there are some areas where AI-generated content may be beneficial and attract visitors to your website.


It can help you save a significant amount of time and money. AI can already create stories and news based on facts and information, for example.


Intelligent tools like Wordsmith, Articoolo, and Quill are already being used by the Associated Press and Forbes to create news, which leads to clicks on their websites. Using templates and fill-in-the-blanks to enter data and keywords can create unique content that gives the impression a human wrote it. 


So, you’ve probably read content that was generated by AI since BBC, CBS, the New York Times and Reuters are also implementing this technology.


(Learn more about AI algorithms/models)





As a result, Artificial Intelligence may help you improve your digital marketing strategy. AI isn't here to take over marketers' and advertising' jobs; it's here to help them maximise their full strategic and creative capabilities. Advertisers and marketers must adapt to the current AI trend in order to achieve this.

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