What is AI?
AI stands for artificial intelligence – the mimicking of human intelligence by machines. AI often describes computer systems that can perform functions that usually require the human mind, such as learning, speech recognition, and reasoning.
As a field of scientific research, AI tries to deconstruct the nature of intelligence and build smart machines that can think and respond to the data they receive. The AI field is progressing quickly, and scientists create faster, more complex, and more efficient systems every day. It is possible that one day, some aspects of AI may be more effective than human intelligence.
AI has a diverse range of applications, and many companies and individuals are incorporating AI into their field of work. For example, AI can help fight disinformation, navigate smart cars, and provide automated translations from one language to another.
AI and Digital Marketing
Digital marketing strategists were initially reluctant to use AI; however, in recent years, marketers worldwide have realised the incredible benefits AI can offer. Many businesses now rely on AI to promote their products, with 61% of companies saying that artificial intelligence and machine learning are the most important aspects of their data strategy.
AI can support digital marketing in a variety of ways, including:
- Using data on a shopper’s previous searches, purchases, and views to show only products that are relevant to them
- Analysing current trends of consumer spending and making accurate predictions for the future
- Using chatbots to provide automated help and support for consumers navigating a website
How Is AI Shaping Digital Marketing?
So what does AI mean for the future of digital marketing? AI allows companies to understand their consumer base better than they ever have before and to provide increasingly personalised shopping experiences. It supports a consumer-centric approach to marketing that focuses on precisely identifying a customer’s needs and carefully directing them to the products or services they want to buy.
Here are some of the ways that AI is transforming digital marketing:
Data Collection and Analysis
Combining AI with mass data collection produces an extremely powerful tool for digital marketers. Many businesses are adopting a CRM (customer relationship management) strategy that aims to maximise the collection of customer information and gain valuable insights into where customers are in the buying cycle. It identifies the needs of users to help companies build the most effective marketing strategy.
Data may be collected from various platforms and takes many forms – it could be the kind of products a customer buys, the web pages they browse, or which advertisements they click on. A strategist can then design a quicker and more tailored shopping experience that takes the customer directly to products they want, thereby increasing the chance of a conversion.
AI Chatbots
Advances in text recognition, speech conversion, and translation technologies have supported the development of automated customer support services known as chatbots. Chatbots offer a one-to-many service that allows companies to support far more customers at any one time than with manual customer service.
Chatbots provide a twenty-four-hour service that operates outside of working hours, allowing for greater support and an improved customer experience. Shoppers can receive help and advice in real-time and do not have to wait for the start of the next working day for a real person to come online. Chatbots may be able to provide a wider range of languages than manual staff too.
Email Marketing
AI can analyse a customer’s behaviour and automatically send out emails in response to certain actions. These emails may have personalised subject lines, product recommendations, and text based on consumer data.
AI also allows marketers to quickly evaluate different kinds of marketing campaigns to optimise their results. While traditional optimisation may involve testing various content and designs individually over several weeks, AI-based tools quickly and efficiently provide dynamic analysis.
Digital Advertising
Digital advertising analyses a user’s gender, age, interests, and other information to show them relevant advertisements. Facebook, Google, Instagram, and many other platforms all use digital advertising to optimise the performance of digital ads.
Digital advertising is a rapidly expanding industry – worldwide spending grew by 12.7% in 2020 despite the economic effects of the pandemic. Emarketer predicts total digital ad spending to reach $455.30 billion this year. Optimising digital advertising strategies is a crucial part of any marketing plan.
AI helps marketers to spot and predict trends so they can make informed decisions about how to allocate their budget and decide what user segment to target. This approach allows companies to streamline their advertising to avoid wasting money by showing customers an advert that will not interest them.
Marketing Content
AI helps companies evaluate different kinds of content and gain insights into how different consumers respond to different material. It provides marketers with a better idea of what kind of content will appeal to their consumer base so that they can produce content that converts into sales and improve ROI.
Artificial Intelligence in 2021
The IDC forecasts the AI industry will grow by 17.4% in 2021 as enterprises turn to AI to enhance business resiliency and productivity. With further technological developments expected, AI is likely to become an even more important part of digital marketing strategies in the coming years.
