Artificial intelligence (AI) is already beginning to revolutionise the way that businesses market their products and services, and its power in digital marketing shouldn’t be underestimated. In this article, we discuss how AI is transforming the future of digital marketing and how advertisers can take advantage.
One of the major advantages of artificial intelligence is its ability to highly personalise the customer experience. AI algorithms can analyse and learn from data on variations such as customer behaviour, preferences, and history to deliver highly targeted, personalised marketing messages and content.
Major steps have been brought forward by the Covid-19 pandemic as the world moved solely online as a result of international lockdowns. The need for a better, online customer experience skyrocketed and brands that previously didn’t have a digital-first approach scrambled to catch up. 58% of consumers expect more from services than they did pre-pandemic, the need for integrated, omnichannel CX with room for personalisation is key to digital transformation and higher conversion rates and loyalty.
AI can be instrumental in helping businesses save time and resources by automating certain marketing tasks. Businesses often fail to form meaningful, positive relationships with consumers when processes become tricky to navigate. For example, support tickets are passed from department to department without proper follow-up.
Messaging has become the go-to way to reach businesses and between 2019 and 2020, social messaging rose in popularity by 110% – that’s huge.
In AI terms, automated chatbots can handle customer inquiries and provide instant responses, freeing up human customer service representatives to handle more complex tasks.
AI can be used to predict future trends and customer behaviour, helping businesses make more informed marketing decisions. AI algorithms analyse and learn from data on past customer purchases, social demographics and search patterns to predict which products a customer is most likely to buy in the future, allowing businesses to tailor their marketing efforts accordingly.
Using AI and truly understanding your customer prevents a huge amount of wastage, particularly when it comes to marketing budgets. Research by Promixa has indicated that up to 60% of marketing budgets are wasted.
On the other hand, it can also open up a world of opportunity. The use of AI may enable you to spot new opportunities for your business and discover where your customers are. For example, you may be investing a huge amount of budget into Facebook but could be missing out on a large majority of your customers who are using TikTok and making purchases based on what they’ve seen on the platform.
Improved ad targeting
Online advertising can often be a gamble, with a vast number of marketing channels to choose from, you need to be in the right place at the right time.
AI can improve the targeting of online ads, ensuring that they are seen by the right audience. AI algorithms can analyse data on a user’s browsing history, demographics, and interests to deliver highly targeted ads that are more likely to be relevant and effective.
Knowing where you should be investing your budget can help with wastage, and in the current economic climate, this has become a priority for marketing leaders.
AI can help businesses save money by automating certain marketing tasks and improving the efficiency of their marketing efforts. By reducing the need for human effort, businesses can lower their costs and allocate their resources more effectively.
The use of AI in digital marketing is expected to continue growing in the coming years, as more businesses recognise the benefits it can provide. Whether it’s through personalisation, data-driven ad targeting or efficiency, AI has the potential to completely transform a business. Businesses can see reduced costs when it comes to advertising spend and increased revenue using AI to spot the gaps in their ad strategy.
BOSCO™ is an AI-powered digital marketing platform, designed for growth-driven marketers who want to spend more time optimising performance and less time reporting. If you’d like to save tonnes of reporting time, better predict how your ad spend will perform and have a clear view of your ad performance, book a 15-minute chat with one of the BOSCO™ team.