How Artificial Intelligence is changing Digital Marketing
With AI technology, marketers can spot micro trends and even predict trends. They’re going to then make strategic decisions about where they allocate their budgets and who they aim. As a result, brands can reduce digital
advertising waste and confirm that their spend delivers the only possible results
Artificial intelligence is already transforming the face of selling as we all realize it. AI technology can help to optimize and speed up many different marketing tasks, improving customer experiences and driving conversions.
If you’re involved in enterprise marketing, there’s an honest chance you’re already using some kind of AI-powered solution in your martech stack. But many marketers still don’t understand the benefits of AI and machine learning over traditional “non-intelligent” marketing software.
If you’re not fully on the bandwagon yet or you’re just considering dipping your toes within the water, you’re not the only one. Investing in new technology could also be an enormous commitment and it is often intimidating when it’s underpinned by complex concepts like machine learning algorithms.
Improved Personalization & Recommendations
The way that buyers answer and interact with marketing messages is changing. Traditional marketing methods like media advertising and spam aren’t anymore as effective as they once were.
One of the reasons for this is often; today’s consumers expect brands to tailor messages to their location, demographics, or interests. Many won’t engage with or even may ignore non-personalized marketing.
A report by industry firm Accenture found that over 40% of consumer’s switched brands because of a scarcity of trust and poor personalization in 2017. 43% are more likely to make purchases from companies that personalize the customer experience.
Consumers are more likely to interact with personalized marketing messages. Data from Experian shows emails are 26% more likely to be opened once they need personalized subject lines. Further, 79% of consumers during a worldwide poll conducted by Marketo said they’re only likely to use brand promotions if they’re specifically tailored to past interactions.
AI enables marketers to personalize their communications on a personal level rather than the generic target groups that marketers relied on within the past.
This technology works by predicting customer behavior supported intelligence learned from previous brand interactions. This means that marketers can send content and marketing communications that are presumably to convert the lead into a sale, at the only possible times to drive conversions.
Most people will already be familiar with the tailored recommendations that are offered once you log into a site like Amazon or Netflix.
These recommendation engines became increasingly sophisticated over the years and should be startlingly accurate, particularly for users who have had an account for several years therefore the service has been able to collect much data. For instance, Amazon features a record of:
- Every purchase you’ve ever made
- Your product browsing history
- The addresses you’ve lived and worked at
- Items you’ve wished for
- TV shows and music you’ve played
- Apps you’ve downloaded
- Product ratings you’ve made and reviews you’ve left
- Devices you’ve used to watch movies or download ebooks
- Everything you’ve asked Alexa if you have an Echo
Providing discounts could also be a surefire because of accelerating sales, but some customers will buy with a smaller discount, or if there is no discount within the least.
AI is often used to set the price of products dynamically relying on demand, availability, customer profiles, and other factors to maximize both sales and profits.
You can see dynamic pricing in action using the online site camelcamelcamel.com, which tracks the price of Amazon products over time. Each product features a graph showing just what proportion the pricing fluctuates relying on the season, popularity, and other factors.
If you’ve ever searched for a flight then gone back to buy for it a few days later only to hunt out it’s gone up a couple of hundred dollars, this is often also an honest example of dynamic pricing at work.
Customer Service Chatbots
Facebook Messenger, WhatsApp, and other messaging apps became a popular and convenient way for patrons to contact companies, but ensuring the accounts are constantly staffed with customer service agents are often expensive.
To reduce the workload and provide a faster response to customers, some organizations are now using catboats to affect common customer queries and provide instant replies at any time of the day or night. Chabot’s are often programmed to provide set replies to commonly asked questions and to direct the conversation to an individual’s agent if the question is simply too complex. This means that customer service time is reduced and thus the workload lifted, leaving the agents free to affect conversations that need a more personal response.
With virtual assistants like Siri, Google Assistant, Alexa, and Cortana, we’re getting easier with catboats and in some cases even preferring them to a real person. AI language processing algorithms became incredibly advanced in recent years, making it possible for machines to exchange human agents in customer service and sales roles.
Chabot’s aren’t only less costly than hiring more team members to affect inquiries, but they’re going to also appear the hay during a more efficient and sometimes even more “human” way. Machines never have a nasty day unlike humans so as that they’re often relied on to always be polite, engaging, and likable.
Search algorithms are improving all the time in every aspect from small database product searches on e-commerce sites to seem engines like Google that are employed by many of us each day.
Integrating AI into search can devour misspellings and suggesting alternatives (“did you mean…”) and will be influenced by your past browsing or shopping behavior.
Google is becoming increasingly sophisticated at understanding searcher “intent” as an example if someone searches for “Apple” are they trying to seek out information about the fruit, the technology company, or the record label?
Most search engines know if a user is on their mobile and finding out “coffee shops” they’re trying to seek out a restaurant within a few miles, rather than researching coffee shops generally.
Special results like shopping and Google My Business results are also providing a much better user experience for searchers, and voice search is becoming more commonplace because the amount of AI-powered devices and assistants continues to grow.
Further, with the expansion of mobile internet usage and smart home speakers, voice search is increasing all the time and expected to continue doing so.
AI is vital to interpret complex patterns in speech and to acknowledge meaning from spoken search queries, which are very different from traditional typed searches.
Marketers can also use AI to optimize their content for voice search, helping to reinforce SEO and site traffic as we move increasingly into a voice-operated digital world.
PPC Ad Optimization
A/B testing is that the normal approach to optimizing marketing messages and display ads, but it’s a painstaking process with an infinite number of variables to undertake out, and thus takes up plenty of some time and resources. With AI algorithms you’ll continually and automatically optimize your ads relying on conversions and interactions.
That said, are becoming more immune to ads. The rise of apps like Ghostery, to detect and block tracking technology, has made things tougher for publishers and advertisers alike. The impact on the publishing industry is staggering: By the highest of this year, revenue losses at $35 billion are estimated assuming the speed of adoption continues.
In the past, brands like Unilever and agencies like Havas chose to freeze Google and YouTube spending thanks to ad placement besides “undesirable or unsafe content”. This, on top of the questionable reporting on viewability, and thus the rising incidences of ad fraud are making brands and agencies alike become more cautious about how they spend.
Here’s the thing: the customer journey begins from the moment of interest. How we engage thereupon customers to put the foremost relevant information before them, at the time they could have the absolute best likelihood to reply is that the grail. The last decade has witnessed practitioners during this young digital landscape testing, implementing, and succeeding in applying techniques to maximize performance.
Google has realized is that knowing what ads works can’t be done by measuring performance in aggregate. The rationale they’ve moved to conversion metrics (CV) is that the Click-through rate (CTR) could also be a misnomer. It’s not a measure of true intent. How you measure intent isn’t an aggregation of behaviors by ad format (yes, I’m simplifying). Rather, it’s by understanding the events within the buying funnel that attribute to the buying behavior. And here’s our introduction to AI and why it’ll be subsequent evolution within the journey for the CMO.
AI ad optimization is additionally in use on social networks like Instagram. Algorithms analyze the accounts that a selected user is following and may show the ads presumably to be relevant to this user. This provides a much better experience to the user and a much better ROI for the advertiser as fewer ads are shown to folks that aren’t interested in them.