AI Marketing: How AI is Reshaping the Landscape of Digital Marketing and its Fundamental Applications

AI marketing
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AI marketing uses artificial intelligence technology to enhance your organization’s marketing efforts. Use AI tools to gather insights about customers for better content and marketing campaigns or to help your team make better decisions backed by data. Artificial intelligence can truly transform any organization’s marketing approach.

Today’s marketing landscape is crowded, especially in the digital scene. Every business is constantly competing with one another to generate the best content, capture the most eyes, and grow their audience. Because this is all happening online, where customers interact with countless brands in minutes, ensuring your marketing content and efforts stand out is crucial.

Read on to learn how AI is reshaping the digital marketing landscape and how to apply it in your business today.

 

Understanding AI in the Context of Digital Marketing. 1

Core Areas of AI Application in Digital Marketing. 2

#1 Personalization. 2

#2 Predictive Analytics 3

#3 Automated Customer Interactions 3

#4 Content Optimization and Creation. 3

#5 Targeted Advertising. 4

Conclusion. 4

 

AI marketing uses artificial intelligence technology to enhance your organization’s marketing efforts. Use AI tools to gather insights about customers for better content and marketing campaigns or to help your team make better decisions backed by data. Artificial intelligence can truly transform any organization’s marketing approach.

Today’s marketing landscape is crowded, especially in the digital scene. Every business is constantly competing with one another to generate the best content, capture the most eyes, and grow their audience. Because this is all happening online, where customers interact with countless brands in minutes, ensuring your marketing content and efforts stand out is crucial.

Read on to learn how AI is reshaping the digital marketing landscape and how to apply it in your business today.

Understanding AI in the Context of Digital Marketing

AI marketing is the process of using AI tools and technologies, like data models and machine learning algorithms, to optimize your marketing efforts and gather valuable customer insights that can be used to improve spending, create customized content, personalize the customer journey, and automate time-consuming aspects of marketing that bog down your team.

Some common examples of AI marketing include chatbots, image recognition software, personal assistants like Amazon’s Alexa and Apple’s Siri, product recommendation systems, and targeted advertising.

AI marketing is a precious tool to have in your toolbox if your organization does a lot of digital marketing or if you’re looking to start. Many businesses already use AI marketing strategies, and those that do see boosted ROI on marketing efforts and improved campaign performance.

Since AI marketing technologies emerged on the scene, businesses that use these tools have been reaping benefits like these:

  • More innovative advertising
  • Better online SEO or search patterns
  • Increased customer satisfaction and engagement
  • Improved customer service

AI marketing is wildly different from traditional marketing approaches. AI marketing is tech-driven, relying on complex algorithms to deliver highly targeted content and tailored customer recommendations.

Traditional marketing is a one-way communication that offers limited interaction between your brand and audience. Even if you engage with your customers through social media comments or emails, AI marketing communications are often not as polished. It won’t resonate with the customer because you’re not delivering a personalized message specific to them.

Core Areas of AI Application in Digital Marketing

In general, AI is used in marketing to pull actionable insights to help you make tailored recommendations and effectively manage your relationships with your customers. AI marketing’s primary use case is to optimize marketing efforts and the customer journey. To do this, consider five core areas of AI application.

#1 Personalization

AI marketing tools thrive in creating personalized content for your target audience. You can use AI to automatically gather and sift through customer data, such as their behaviors and demographic information like age and location, to curate experiences tailored to each individual or each segment of your audience.

This personalization can even happen in real-time to completely change a customer’s experience interacting with your brand. This is dynamic content that changes depending on the user. This could be as simple as addressing customers by their name in marketing content and email copy or issuing more personal experiences with marketing assets, like personalized web pages, social media posts, email copy, and recommendations.

Recommendation systems are a great example of using AI marketing for personalization and two companies that excel at making personalized recommendations are Netflix and Amazon. If you’re a regular Amazon shopper, your homepage on the site and the app will be filled with product recommendations based on your likes, viewed products, and purchase history. Not only will it recommend products you might like based on your history, but it will also show you products that are frequently bought together based on data from other customers.

This is an excellent move on Amazon’s part because it makes customers feel like the brand is paying attention to them and understands their wants and needs. Not only is this great for boosting customer satisfaction, but it also drives more sales, thus increasing profits.

Netflix also has a great recommendation system in place. The streaming giant will make content recommendations tailored to everyone based on their watch history and their likes and dislikes. For example, if you watch a lot of romantic comedies, the system will pick up on that and continue recommending those types of movies and shows to you. Or, if you watched a horror movie about a haunted house and didn’t like it, you can give it a “thumbs down,” and Netflix will know not to recommend any similar shows or movies to you in the future.

#2 Predictive Analytics

AI marketing tools can also be used to forecast consumer behavior and trends. Data analytics is one of the primary use cases for AI marketing. AI tools can automatically gather, organize, and summarize the findings of large amounts of data quicker than humans can. This can include customer data and data on how marketing campaigns are performing.

Based on the findings in these data sets, AI tools can be used to predict how marketing campaigns will fare and how your audience will respond to them, called predictive analytics. For example, historical data points like consumer engagement metrics, purchase behaviors, time spent on web pages, and email open rates can all be referenced when planning marketing campaigns.

This data lets you predict how well a campaign will perform and gives you the necessary insights to make strategic decisions regarding where and how you spend your marketing resources.

#3 Automated Customer Interactions

Automation is another big part of AI marketing, and being able to automate customer interactions can be a significant time saver for your business. There are several ways to use automation in your marketing efforts, but one of the most common practices is using chatbots.

Created with natural language processing (NLP) technology, chatbots can quickly solve customer problems, nurture leads, answer basic questions, and connect customers with live representatives if necessary.

Chatbots streamline and improve an organization’s customer service offerings. Gone are the days of waiting for a simple question answered by a live rep during business hours. Instead, if a business has an AI chatbot on its website, customers can seek help 24/7.

Similarly, virtual assistants can automate customer interactions, too. They can tell Siri or Alexa to complete tasks like placing orders or adding items to a shopping list. When your customers are happy with how your business meets them and the level of service you provide, they’ll engage more with your brand.

FACT: Data-based automation increases the likelihood that customers will become brand loyal and recommend you to their friends and family, expanding your reach and building up your audience.

#4 Content Optimization and Creation

AI tools are great for streamlining marketing tasks, including content creation. AI can develop image captions, social media posts, email subject lines, and blog copy. AI has advanced to the point where sometimes it’s hard to tell AI-generated content apart from human-created content. There are AI platforms available that just need you to tell it what the blog’s subject is, and it then creates a blog post with great skill.

That said, AI-generated content isn’t always immediately ready for publishing. It’s best practice to fact-check, edit, and adjust the AI writing to ensure it fits your brand’s voice and doesn’t sound too much like a robot. This practice of using AI to help you get your content started helps marketers create optimized content much faster.

AI marketing tools can also help optimize content for search engines. You can improve your SEO and search engine rankings by analyzing website traffic and frequent keywords used in searches to ensure you’re showing up in front of your customers. Some tools can also help you optimize your email content by ensuring your emails are engaging while considering customer behaviors, like email opening and click-through rates.

#5 Targeted Advertising

You can also use AI marketing tools to create targeted advertising, and the ability to personalize content plays a significant role in this. By using AI marketing tools to sift through and categorize customer data, you’ll have a better grasp of who your customers are as individuals and how they may group together in specific customer segments.

You can also reference customer data to predict consumer behavior based on historical data that reveals purchase habits. With this information, you can start creating targeted advertising campaigns. Data back these targeted campaigns and will likely be more effective than campaigns you create based on guesswork or campaigns that are too broad and don’t feel personal to audience members.

You can also use AI marketing tools for programmatic advertising, which uses automation technology and algorithms for media buying in the digital advertising space. Because it’s AI-powered, programmatic advertising happens in real-time, ensuring ads are targeting the right audience at any given time. Programmatic advertising is a very streamlined, efficient process that’s scalable and flexible — both criteria to have when trying to excel at targeting customers.

Integrating AI into your marketing strategies can be a major ROI boost. Offering more personalization and then using that information to create targeted advertising campaigns are all ways in which AI makes your advertising smarter. When your advertising is more intelligent, it will be more effective. Reach more customers, drive more sales, increase conversions, and boost clicks on your digital marketing content.

All the above is critical to boosting your marketing ROI. When you rely on data to enhance your marketing efforts, you’re ensuring that you are spending your resources, namely time and money, on campaigns that are actually going to benefit your business and have the desired outcome, whether it’s increased sales, more engagement, or something in between.

Conclusion

AI marketing uses artificial intelligence technology to enhance marketing efforts. From using AI tools to gather insights about customers to create better content and stronger marketing campaigns to relying on AI marketing tools to help your team make better decisions backed by data, AI and automation tools can completely revitalize your marketing approach.

In the digital scene, businesses constantly compete to generate the best content, capture the most eyes, and grow their audience. This space is crowded online and can be hard to break through as customers interact with hundreds of brands rapidly via social media. This is where AI marketing sets your business apart from the crowd.

As technology and business practices evolve, businesses must start considering how to embrace AI marketing and automation tools to remain competitive and relevant. It’s never too late to explore AI and automation and consider how these tools and technologies can take your marketing efforts to the next level.

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