By Kunal Shah
Artificial Intelligence (AI) has been a hot buzzword since many years now, and for good reason. It has permeated so many aspects of our modern life that we have reached a point of accepting it as completely normal. It has changed the way we live, work, shop, learn and entertain ourselves. But its impact is not limited to just our day to day lives. Despite being at a relatively nascent stage, artificial intelligence is also transforming the way business is done across the globe. There is hardly any industry or sector which has been left untouched by AI, and we can see it being used across finance and banking, marketing, technology, retail, medical and even the defence sector.
The advertising and marketing industry is no exception. In fact, this is among the few sectors at the vanguard of implementing AI in one form or the other-be it in the form of smart packaging materials, AI activations, AI driven campaigns and more, and this is even more evident when it comes to modern digital marketing. Things that are now considered intrinsic to digital marketing, such as the ability to analyze and profile potential customers who visit your website / app, predict their interests and behaviour and deliver customized communication to them in real time, would not have been possible without artificial intelligence. Intelligent chatbots to offer 24×7 customer service, customized recommendations on video streaming platforms and ecommerce sites, customized landing pages for unique search queries are some other common examples of AI in action.
Over the last few years, we have witnessed many exciting applications of AI in the digital marketing space, expanding our perception of what is possible. The reason for this exponential growth in AI implementation can only be attributed to one thing-performance. With the inclusion of AI in your digital marketing arsenal, you can enjoy higher marketing agility, improved cost efficiencies and gain better consumer insights. All of these when combined, can give your brand the much needed edge in today’s competitive environment.
5 undisputable ways in which AI is improving digital marketing today:
We have many current applications of AI being used across the different stages of the campaign process-from the strategy and planning to the implementation, measurement and insights. And while we will likely have more use cases as the technology evolves, I have shared the top ways in which the use of AI is transforming digital marketing.
Rich, real time consumer insights
With AI implementation, you will gain access to rich consumer data in real time, allowing you to understand exactly how your audience is responding to your campaign, what aspects are working and what are not. This data can be converted into actionable insights, and can be used to tweak or modify your campaign strategy to maximize effectiveness. You will no longer need to wait for research results, or rely on assumptions when it comes to making decisions.
Improving user experience
Creating a customized user experience is at the core of a successful AI implementation. With the real time insights derived from an AR campaign, it is possible to anticipate the needs of your consumers and create a personalized experience that is relevant to them. This can take the form of personalized recommendations based on their past behavior or even creating custom landing pages that are timely and relevant, and we can most commonly see this on online shopping portals and travel sites.
Automating campaign optimization
With the right AI tools and a smart team by your side, you can practically have your marketing program run on its own! Programmatic advertising can automate the manual tasks of buying, selling and placing your ads, and also optimizing them to improve ROI. The time and efforts saved will also drive efficient budget allocation and higher savings, enabling you to enjoy a noticeably lower cost per acquisition in lead based campaigns, not to mention freeing up your time which can then be used for adding value in other ways.
Using AI can also help you focus your marketing budgets on your most relevant audience. Tracking and analyzing individual customer behavioral trends will give you a better idea of which marketing actions and platforms will be better suited for them. This will allow you to serve customized communication in the best way possible-with an apt placement, apt creative and the right geo targeting as well. In other words, AI can help you achieve every marketer’s dream-of reaching the right consumer with the right message at the right time.
Driving higher revenues
All of the above points-right from creating a better user experience, serving contextual and relevant communication with precise targeting, and optimizing your campaigns in real time will work together to increase conversions at a fraction of the cost and at a much faster pace. Not only will this increase overall productivity, but will also significantly improve ROI. A report by Marketing Profs stated that businesses which implement AI see 54% more traffic and engagement, 52% increased conversions and 58% higher revenues. This will only improve as AI gets more effective. So if this isn’t compelling data, then I do not know what is.
Having said this, no matter how tech-driven digital marketing ends up becoming, the need for human supervision cannot be undermined. It is also essential to garner the right insights from analytics, and translate them into measurable results. This can be done by closely monitoring and updating the data that you pick up from your AI campaigns, which will further improve the way AI works for you. If you haven’t already invested in AI tools or resources, now is the time to start. It is a decision you won’t regret.
The author is director, Rank My Business
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