AI Marketing

Artificial Intelligence is a fascinating subject and has made its impact in the marketing world. Digital Marketing has made its impact through Chatbots, Analytics (through SEO, SEM) and is continuously improving. This article gives you brief information about AI marketing, its core elements, challenges, benefits, examples and much more.

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Digital Marketing is a modern way of marketing and is evolving continuously. So, it is not strange for Artificial Intelligence to be a part of it. In this article, we will discuss AI Marketing. Before we start with AI Marketing, let us discuss AI as in Artificial Intelligence. Most probably you came across this term in Sci-Fi movies or Series. But what is really an AI is? Let’s find out.

What is AI?

Artificial Intelligence is a branch of Computer Science that deals with the building of Machines or programs which can perform activities that require Human Intelligence.

In layman terms, AI helps to perform activities and task which require human interference since these tasks or activities are complex to understand for normal machines.

AI is basically defined by four different ideas

1. Thinking Humanly
2. Thinking Rationally
3. Acting Humanly
4. Acting Rationally

From these four ideas, the first two ideas connect with processes and reasoning, while the remaining two deals with behaviour. I am no expert in AI, but I came across this amazing article by BuiltIn which will help you to get in-depth information about AI.

What is AI Marketing?

Now that you know about AI, it is time to get familiar with AI Marketing. ‘AI marketing is basically a method which with a help of customer data and AI concepts such as machine learning predicts customers next move and improves the customer journey.’ This definition provides a broader view of AI Marketing. In fact, there is a lot more to it.

With the help of AI marketing, Digital Marketers can greatly boost their campaigns performance and ROI.

Core elements of AI Marketing

AI Marketing is used to overcome the gap between Data Science and Execution. It is basically analysing the huge amount of data. But to minimize the gap you need information about some important core elements of AI.

Following given are some of them.

Big Data

The term explains itself. Big Data simply means a huge amount of Data and by huge, I mean huge data. For example, Google receives 5.6 Billion search requests every day. This is one form of Big Data that Google analyses. These types of big data then help for the betterment of the services and products of the company.

Machine Learning

Now you have got Big Data in your hands. Then what? You can analyse it yes, but how? This is where Machine Learning comes into place. It is based on Algorithms and tools which predicts results by analysing this Big Data. Machine learning platforms are useful when marketers try to make sense of this data. They help in identifying trends or common occurrences and effectively predict common insights, responses, and reactions.

Power Solutions

AI marketing solutions understand the world as a human would understand. This means that the platforms can identify themes across huge data sets and that too incredibly fast. AI solutions understand emotions and communications like a human, which makes these AI platforms able to understand content like social media, natural language, and email responses.

Challenges in AI Marketing

Training Time

Though Artificial Intelligence is an amazing concept, it requires time to achieve desired prediction accuracy. AI systems go through the trial and error method to enhance themselves. These iterations are in millions and take time to complete. Even AI systems like Google Assistant, Siri, Alexa are learning constantly to get accuracy.

Data Quality

Data quality is an important factor. If you have high-quality data, then results predicted by your AI system is accurate and if data quality is low then predictions obtained through the AI system is inaccurate and can be wrong.

Privacy

Privacy is a big concern and recently became an issue. The main reason behind this is some unethical work behaviours by organisations and people. It is necessary that marketing teams need to ensure of using data ethically and following standards such as GDPR or risk heavy penalties and reputation damage. This is where companies need to design AI tools in such a way that they are using proper measures for data safekeeping and uses.

Deployment Best Practices

Since AI is a comparatively new tool in the market, it has become necessary on how to use and where to use it. There are still best practices that are yet to be found. You can say AI is in the stage of growth.

Adapting to a Changing Market

The market is changing and is on its way to automation. Digital Marketing is proved it. Now, AI has taken its place in this changing marketplace. This study by Gartner has shown that 6 out of 10 people in Analysts and marketing specialists is being replaced by Marketing technology.

Benefits of AI Marketing

Due to the use of AI, there are lots of plus points that came on the table. There are improvements in the areas of risk reduction, increased speed, customer satisfaction, increased revenue etc. These benefits can be measured using sales volume. But impact based on User engagement is hard to measure.

Now, Let’s talk about the benefits of AI Marketing.

Increase in ROI

Due to the use of AI in marketing campaigns, there is observed an increase in value and impact. The use of AI gives analytics, insights, predictions and much more which helps in improving marketing campaigns which in terms increases ROI.

Customer Relationships Personalization

AI is an amazing tool, and due to its ability to respond and improve in real-time, it is a great way to interact with customers and in a personalised way. Some companies are also using AI to Re-Engaging their customers.

Make Decisions Faster

Since AI depends on Data and Machine learning, it makes analytical work very easy. Due to this, you will get detailed analytics and solutions which will help you in making various marketing decisions.

Examples of AI Marketing

Starbucks

To serve its customers with personalised solutions, Starbucks uses predictive analysis. Due to this approach, they have seen organic revenue increase to 21% from 12%.

Alibaba

Alibaba has created a FashionAI store in Hong Kong. The goal behind this store is to give customers a streamlined experience of retail with the help of Artificial Intelligence.

Nike

Nike used ‘Nike Makers’ experience’, which allows customers to put on blank Nike Presto X sneakers and choose their own graphics and colours by using AR (Augmented Reality) and projection systems. All the designing and printing takes around 90 Minutes.

BMW

BMW has created an AI-enhanced sports car which is designed for the car and technology enthusiast (Prices start at $150,000). The car has the technology to learn about the driver and then automatically adjust systems and cabin experience to suit the individual.

Conclusion

AI has become part of our lives and it is no wonder that it took its place in the Marketing world. So far it had a good impact and it is promoting Good marketing to get optimized results using analytics and machine learning.