AI Marketing and Beginner's Guide to Driving Results with AI

Safalta Expert Published by: Samyak Jain Updated Tue, 20 Feb 2024 05:29 PM IST


In the rapidly changing world of digital marketing, incorporating AI (Artificial Intelligence) has proven to be a game-changing strategy for businesses aiming to enhance their methods and stay ahead in the market.

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In the rapidly changing world of digital marketing, incorporating AI (Artificial Intelligence) has proven to be a game-changing strategy for businesses aiming to enhance their methods and stay ahead in the market. The use of AI in marketing is transforming the way companies interact with their audience, fine-tune their campaigns, and tailor user experiences. This article aims to analyze the various aspects of AI marketing and explore how businesses can effectively utilize this powerful tool to drive success.
According to a recent study from professional services firm Waterhouse Cooper (PwC), it is projected that by 2030, artificial intelligence (AI) will generate more than USD 15 trillion for the worldwide economy and boost local economies by around 26%. (1) However, what potential does AI hold specifically in the field of marketing? With its ability to provide personalized content, automate tasks, and analyze data, Artificial intelligence has an abundance of potential uses in the realm of marketing, yet it also poses various risks and limitations. 

Marketing AI statistics

Marketing departments around the world utilize artificial intelligence for various purposes, including advertising strategies and customization. Here are a few noteworthy statistics on the use of AI in the marketing industry:

Source: safalta

The projected earnings for the marketing industry in AI are estimated to reach $107 billion worldwide by 2028.
2. A large number of marketers around 90%  from 35 different countries employed artificial intelligence technology to streamline customer interactions.
3. 88% of marketing professionals using AI report that the technology has helped them customize the customer experience across various platforms.
4. More than 80% of marketers worldwide incorporate multiple forms of AI in their online marketing practices.
5. Approximately 57% of B2B marketers in the United States utilized chatbots as part of their request generation strategies to gain a deeper understanding of their audience.
6. Over 55% of B2B marketers in the United States and India reported using chatbots to generate fresh business prospects.
7. 47% of advertising professionals from the United States, United Kingdom, India, and Canada expressed their confidence in using AI for advertisement targeting.
8. A survey found that 42% of marketing professionals in the US, UK, India, and Canada have confidence in AI's ability to personalize content and deliver it in real-time, while 39% trust AI to improve email send-time.
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Table of Contents:

  1. What is AI marketing?
  2. Types of AI marketing
  3. AI Digital Marketing Tools
  4.  Key Components of AI Marketing
  5. Examples of AI Marketing
  6. AI Marketing Pros and Cons

What is AI marketing?

AI marketing involves utilizing artificial intelligence technologies and tools to simplify and improve various marketing operations. These include analyzing data, categorizing customers, creating personalized content, and using predictive analytics. The objective is to implement AI algorithms and automation to make well-informed choices, enhance customer engagement, and ultimately increase return on investment.
The use of artificial intelligence presents great potential for marketers to effectively tailor their messages and content to customers. This ensures that customers receive relevant material that can be activated by their interactions with a platform, advertisement, or branded communication. 
AI does not alter the roles and behaviors of individuals. Rather, it is a technology that enhances and enhances them, but it still requires individual skills to use it effectively.

Types of AI marketing

Integrated automation apps
Incorporating automation programs also operate using rules based on logic, but they do not learn from their interactions and require very little intelligence. Unlike independent applications, they function within a larger system. According to conduct, automation is commonly employed in CRMs to assist with routine tasks, such as customer classification
Level of complexity: Low
Example: If a client subscribes to the smaller business version of an accounting application, the customer relationship management system could automatically categorize them as a small business, rather than a large corporation.

Stand-alone machine learning apps
AI is responsible for the "I" in artificial intelligence, as it is the source of its true magic. Independent AI systems utilize vast amounts of data to make intricate choices, while advanced AI tools can also learn from user engagement to improve their forecasts and decisions.
Level of complexity: High
Examples: There are tools available that can create personalized projects for individuals, like a daily skincare routine based on facial analysis. Additionally, there are advanced chatbots that observe user behavior and determine when it is appropriate to connect them with a live customer service representative.
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Integrated machine learning apps
When incorporating artificial intelligence into tools such as a CRM or ad generator, it is possible to utilize its full potential. Merging AI systems can effectively analyze user behavior and promptly determine the most suitable offerings for them.
In contrast to other independent artificial intelligence programs, users do not have to request information from a separate platform. Instead, integrated applications automatically retrieve and provide insights without requiring prompting.
Level of complexity: High
Example: A combined app utilizing artificial intelligence can collect data on users' browsing and purchasing activities to provide precise and personalized advertisements.

AI Digital Marketing Tools

While chatbot is often the topic of conversation when it comes to language models, there are many other options currently being utilized by marketers to aid in their daily responsibilities. These tools can assist with a range of tasks, including content creation, automation, SEO, and building.

Here are some of the most effective AI tools out there: 
Jasper - A content creation tool designed to enhance the production of content. - Utilizing AI and algorithms based on artificial intelligence to improve real-time customer experiences.
Surfer SEO - A web-based tool for optimizing on-page content that evaluates and contrasts your pages with current ranking results on the search engine results pages.
Writer - An acclaimed software for generating content, which can also adapt existing content and features an AI writing helper.
Midjourney - An advanced AI technology that can convert ordinary spoken cues into visual representations.
Optimove - An AI-driven marketing system incorporated into a consumer data platform.
Zapier - Assists in streamlining processes by linking together the software and services used by your company.
Perplexity - A web-based tool for optimizing your website's on-page elements, which evaluates and contrasts your pages with the current top-ranking results on search engine results pages (SERPs).
Manychat -Uses NLP to engage with customers on social media platforms, like WhatsApp, and create an interactive customer experience.

Key Components of AI Marketing

1. Data Analytics
Using artificial intelligence (AI) in marketing has proven to be highly effective for information analytics. By utilizing AI, vast amounts of data from various marketing campaigns can be collected and analyzed, resulting in valuable insights. AI can also use historical data, such as consumer engagement metrics, purchases, time spent on a page, email opens, and more, to predict the outcomes of future marketing campaigns. This can help you quickly strategize and increase your marketing resources for your campaigns.

2. Chatbots and Virtual Assistants
AI-driven chatbots have become a crucial element in customer engagement. These digital helpers can quickly answer customer inquiries, guide them through the sales process, and handle transactions. This not only improves the customer experience but also allows human resources to focus on more complex tasks.

3. Automated Email Marketing Campaigns
Automated digital marketing has been in existence for quite some time. However, on occasion, AI tools can aid in creating more captivating email content and gaining insights into the behaviors of your email subscribers. The objective is for marketers to spend less effort on research and brainstorming, allowing them to focus on executing successful campaigns. With the advancements of AI, incorporating an automated digital marketing system into your overall marketing strategy becomes increasingly crucial.

4. Forecasting Sales
One effective application of AI in marketing is predicting sales. While this may seem more relevant to sales than marketing, AI can also aid marketers in understanding the projected outcome of their campaigns and resources. This knowledge can help marketers create more successful campaigns that drive sales and return on investment.

5. Predictive analytics
Artificial intelligence is highly proficient in analyzing large amounts of data to identify patterns that may be difficult for humans to perceive in advance. Rather than relying on educated guesses, AI tools use predictive analytics to provide automated and organized insights into how your customers' priorities may change.

6. SEO
The primary advantage of AI in SEO is its ability to enhance content for popular online search engines such as Google and Yahoo. By utilizing AI algorithms, web traffic can be analyzed and relevant keywords can be identified to improve rankings on these search engines. 

Additionally, AI-powered tools allow marketers to gain insights into their target audience's interests and tailor their content accordingly. These tools can also track the activities of competitors in the market.

Examples of AI Marketing

You might be wondering, "Okay, but what's the practical use of this?" So, let's examine some real-world examples of how major media companies have incorporated AI into their advertising strategies.

1. Netflix

As a marketer, it is essential to deliver the appropriate message to the correct individual at the perfect moment.

Netflix utilizes artificial intelligence (AI) to achieve this goal.
The Netflix technology blog outlines the company's approach to using past viewing habits to determine the best artwork for recommended films and TV shows.
For example, If you have watched a lot of movies starring a certain actor, they may suggest another film they are in. However, if the movie's artwork does not showcase the actor, you may lose interest and not watch it. Therefore, if the movie is recommended to this specific viewer, the artwork will prominently feature that actor.
A viewer may prefer to watch comedies over romances. In this case, when Netflix suggests a movie, they may change the artwork to highlight funny scenes rather than romantic ones.
Let's see how Netflix would suggest the movie "Good Will Hunting" to someone who enjoys watching romance films compared to the promotional material they would use to recommend it to someone who prefers comedies.

Why does Netflix do this? 

The aim is to increase conversion rates and improve the user experience on their platform.

2. Spotify

Spotify employs a similar approach to Netflix. The company will use artificial intelligence to understand a user's music preferences, favorite podcasts, purchase history, location, login activity, and other factors.

Next, personalized playlists and recommendations are created specifically for every individual.

The implementation of content customization has greatly benefited major media companies such as Spotify, elevating them to the status of top streaming platforms. However, the personalization does not stop there. Spotify will also send out automated digital marketing messages featuring tailored recommendations. The objective is to create automated marketing messages and generate wealth that will revolutionize a customer's experience, as the message will be tailored specifically to them.

3. Amazon

AI is used in marketing primarily for predicting sales and analyzing data. Amazon employs AI specifically for these purposes. On Amazon, there is a recommended makeup section that uses predictive analytics to determine whether a customer is likely to make a purchase.

This assists the marketing departments at Amazon in determining which cosmetics to showcase in front of their customers. Additionally, they can predict the potential success of a product through their well-designed advertising campaigns.

The author of this AI technology aids in increasing conversions, improving customer happiness, and elevating the overall success and return on investment of various marketing strategies.

AI Marketing Pros and Cons

Up until now, we have discussed a range of topics, including the applicability of AI marketing in the real world. However, it is worth considering whether implementing AI marketing is necessary for your company. In the following section, we will examine the various advantages and drawbacks of AI marketing.

Utilizing AI in Marketing Strategies

Segmentation and Targeting: Artificial intelligence enables precise targeting of the audience, taking into account various factors such as demographics, behavior, and preferences. This empowers marketers to customize their messages and offerings to specific consumer groups, ultimately increasing the likelihood of engagement and successful conversion.
Content Creation: Tools powered by artificial intelligence can automatically generate content through the creation of personalized emails, social media posts, and website content. Utilizing natural language processing (NLP) algorithms, these tools ensure that the content produced is contextually relevant and connects with the intended audience.
Dynamic Pricing: Using AI algorithms, dynamic pricing enables companies to modify their prices in response to current market conditions, demand, and rival pricing. This guarantees the use of competitive pricing strategies and maximizes profits.
Customer Journey Optimization: Artificial intelligence assists in improving the customer experience by pinpointing areas of difficulty, streamlining the purchasing process, and providing tailored recommendations. This leads to a smooth and enjoyable interaction for the customer, promoting loyalty and repeat business.
AI marketing has become a valuable tool for businesses looking to enhance their marketing strategies in the era of data-driven decision-making. By utilizing machine intelligence, marketers can gain valuable insights, enhance personalization, and optimize various aspects of their campaigns. As AI technology continues to advance, companies that embrace and effectively utilize it will be better equipped to adapt to changing industry trends and provide exceptional customer experiences.

How is AI used in marketing

Artificial intelligence (AI) tools are designed to enhance customer interactions and enhance the efficiency of marketing tasks. They can automate certain aspects of marketing, such as chatbot conversations, as well as analyze customer data and economic patterns to provide recommendations for decision-making. Rather than replacing them, AI typically aims to enhance existing marketing practices.

Is artificial intelligence the future of marketing

AI can help simplify some tasks within marketing. Personalized content, customer journeys, creating basic content, and segmenting audiences can all be achieved through the use of AI tools. However, there are instances when establishing a personal connection with the audience is crucial in marketing, and this is something that AI tools are unable to do.

Will AI impact marketing jobs

Although AI tools are a valuable addition to your marketing technology lineup, there is no need to worry about them replacing human jobs. They lack emotional intelligence and precise language processing, making it impossible for them to fully take over your workforce. While AI can help streamline your business and automate certain tasks, there will always be a need for human involvement to ensure accurate results and metrics.
Be on the lookout for additional information on Marketo Engage's newest AI-enhanced feature, Predictive Audiences, coming in June. In the meantime, learn more from the success stories of these customers - and don't forget to check out the Marketo Engage Experience Program's Data Science Workspace for unlocking valuable insights from your data and providing an exceptional experience for your customers.

What role do chatbots play in AI marketing, and how can they benefit businesses

AI-driven chatbots enhance customer engagement by providing immediate answers to inquiries, guiding users through the sales process, and facilitating transactions. This results in increased customer satisfaction and also allows human resources to focus on more complex tasks.

How can businesses successfully integrate AI into their marketing strategies

The successful integration of AI in marketing strategies involves pinpointing specific areas where AI can provide value, acquiring suitable AI tools and technologies, and ensuring proper training for the marketing team. A strong partnership between the marketing and IT departments is crucial for a smooth implementation.

Is AI marketing suitable for businesses of all sizes, or is it more beneficial for larger enterprises

The use of AI in marketing has the potential to benefit businesses of any size. While larger companies may have the means to invest in advanced AI technologies, there are also cost-effective and adaptable AI solutions suitable for smaller and medium-sized businesses. The crucial factor is to understand the specific needs and goals of the business and choose AI applications that align with them.

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