Artificial Intelligence (AI) seems to be an omnipotent phenomenon that influences a wide range of industries. The global AI market is predicted to snowball in the next few years, reaching a $190.61 billion market value in 2025.
That’s possible because AI covers everything from medicine and physics to business and social networking.
Digital marketing is by no means an exception.
On the contrary, it derives much of its current power from AI. A new form of intelligence enables marketers to drastically improve customer experience, approaching it from previously unknown angles and points of view.
But how is this possible? In this post, we will focus on five ways AI is revolutionizing digital marketing.
AI in Marketing: Definition and Statistics
AI is a broad term, but we will simply say it’s a way of programming computers to make decisions for themselves. It is the result of applying cognitive science techniques to artificially create a program that performs human-like tasks such as reasoning, natural communication, and problem-solving.
For example, a computer might be taught how to play chess by being shown millions of board positions and the possible moves that can be made from each position. The computer can then use this information to decide for itself which moves are likely to lead to a win. In the process, AI has become a more powerful decision-maker than human beings.
The same logic applies to digital marketing, which is why modern businesses use AI to enhance their services. Niche stats prove the potential of AI in marketing:
- Marketing teams with high performance are averaging seven different uses of AI and machine learning.
- Sales leaders predict that their use of AI will increase 155% in the next two years.
- According to Statista, AI has helped 40% of businesses improve performance, accelerate revenue growth, get actionable insights, and so on.
- More than 60% of companies say pressure to reduce costs will require them to use AI.
The impact of AI on digital marketing sounds impressive, but we also want to explain how it works in real-world circumstances.
5 Use-Cases of AI in Digital Marketing
AI-based digital marketing is still evolving, so we can expect it to generate dozens of valuable use cases in the years to come. However, our goal is to focus on examples that already reached their fullest potential. Here are the top five examples.
1. Personalized customer experience
It has been a long-standing goal for marketers to provide personalized experiences to customers, but it’s hard to do so when you have little data about your audience and they act in different ways at different times.
That’s all set to change with the arrival of AI.
You no longer have to sift through a mountain of data to find meaningful connections between different customers and their moments of truth with your brand. With the help of advanced algorithms, you can learn from previous interactions with individual customers to understand what they need in the present moment.
That’s exactly why customers see personalized product suggestions every time they browse the Internet, scroll through social media newsfeeds, or visit eCommerce stores. AI instantly targets each user to provide him/her with relevant content based on their behavioral data and browsing history.
2. Content creation
Creating a unique piece of content is a huge challenge for some companies. That is why content marketing platforms are becoming more and more popular these days. After all, it requires extensive research and reflection on new ideas to engage with their audience in new ways and manage all the marketing content activities. That’s where AI comes in to save the day.
Brands can use AI to create budget-friendly personalized content that satisfies customer needs without putting much strain on their team. But this doesn’t mean AI completely replaces humans in the content creation process.
It works in tandem with the actual authors and data science consultants to provide the final boost that makes the difference between mediocre and outstanding content. Simple and repetitive tasks are the only field where AI can fully replace human writers.
For instance, AX Semantics provides automated content personalization by leveraging real-time user data to generate content, such as product descriptions, that is tailored to each unique visitor.
3. Dynamic pricing
Price optimization is one of the most common uses of AI in digital marketing. You can see it whenever you visit an airline company website, Amazon, or any other online store.
Here’s the deal: if you’re selling products or services, then dynamic pricing is a must for your business. Not only will it help you maximize revenue by creating different prices for different customers at different times, but it can also provide you with crucial insight into customer behavior and preferences.
After all, dynamic pricing models are based on real-time measurements of your company’s success and predictions for future customer behavior. These data points can be gathered by AI, which then uses this information to adjust prices and maximize revenue potential without sacrificing the user experience.
4. Customer service
AI has the power to transform the customer service industry, making it more efficient than ever before. And you can improve your business by leveraging AI for a number of tasks that revolve around customer relations.
For example, chatbots are gradually becoming the new norm for customer service. They are able to provide answers faster than humans can and reduce waiting times by interacting with customers online without human intervention. A study shows that chatbots are able to handle almost 70% of conversations from start to finish.
And that was back in 2019! AI-powered chatbots have become even more powerful in the meantime, taking over the vast majority of customer interactions.
5. Trend prediction
Understanding trends is a huge challenge for most companies. However, it can be easily overcome by leveraging the power of AI to learn from customer behavior and spot emerging trends before they actually happen.
By observing how people behave on your website, social media channels, or eCommerce store, you unlock huge volumes of valuable information. This can help you detect trends in real-time, understand market needs, and adapt your business to the ever-changing customer preferences.
AI enables you to make better marketing decisions based on data predictions obtained from social listening tools. If you do it right, then you’ll never fall behind rival brands when it comes to offering new products or services that drive sales.
Digital marketing is constantly evolving, and it’s crucial for businesses to keep up with the latest trends in order to stay competitive. In this post, we’ve outlined 5 ways that AI is revolutionizing digital marketing.
By leveraging the power of AI, businesses can improve their customer relations, increase revenue potential, and stay ahead of the competition. What will you do to incorporate AI into your digital marketing strategy?