Artificial Intelligence

How Artificial Intelligence Is Shaping The Digital Marketing Industry

Artificial Intelligence (AI) is quickly revolutionizing the marketing industry. It enables automation and personalization on a scale once thought impossible. AI empowers marketers to turn prospects into leads and leads into long-lasting customers. More and more businesses are looking for ways to utilize artificial intelligence to enhance a company's performance and increase profits.

Businesses may build their teams in-house or find an offshore software outsourcing company for their AI projects.

Setting up a team to develop AI may be resource-intensive, costly, and time-consuming. However, with the help of an offshore outsourcing company such as Xenia, businesses can have their team up and running in record time.

What is Artificial Intelligence? Marketing?

Artificial Intelligence (AI) is intellect exhibited by machines. As machine learning is advancing at an exponential rate, many industries are utilizing it to grow and expand their business. Marketing is one of the fields in which AI is expected to overtake completely in the coming years.

AI Marketing (AIM) is a method of leveraging artificial intelligence technology for a business’s marketing process. AI automates decisions to improve customer satisfaction based on data collection and analysis of economic trends and various other factors.

The Importance of Artificial Intelligence Marketing

Marketing is just one of the industries currently being transformed by AI. Travel, entertainment, logistics, and transportation are all being impacted by AI systems.

As AI is a branch of computer science that concerns the ability of a machine to "think,” or learn from experience and solve problems like humans, many marketing tasks such as collecting prices for keywords, analyzing bids, and choosing the optimal time for running ads can all be accomplished in mere minutes by AI.

AI’s Impact on Digital Marketing

  1. Delivers Highly Personalized Website Experiences

AI is capable of delivering highly unique, interactive customer experiences. For instance, AI can give purchasing recommendations based on customer preferences and can flawlessly target content or goods to a specific audience group. AI can increase profits by providing personalized experiences formed from broad data collection and analysis.

  1. Optimize for the Mobile World

According to the GSMA Intelligence Report, there are currently 5.22 billion mobile phone users worldwide, with the number expected to grow 7% annually. Data from GWI shows 77% of the world’s internet users make monthly purchases online, the majority of which are made via mobile devices rather than from desk or laptop computers.

Therefore, optimized content for mobile devices plays an important role as it helps businesses differentiate their services and products from competitors and increase sales and profits.

  1. Improve Customer Engagement

AI is not affected by cultural differences or language barriers. As a result, website personalization, product recommendation, and content customization can be streamlined and completed in a cost-effective and timely manner. AI also heightens the efficiency of both customer service and customer experience.

  1. Churn Prevention

A business’s churn rate refers to the rate at which customers stop doing business with a company. AI is an effective tool to prevent the likelihood of a customer churning from your product or service. Not only can it predict when customers are anticipated to churn, but also provide the reason why. As such, AI tools can optimize decision-making to; better predict sales, make financial decisions, and deploy marketing tactics.

  1. Provide Valuable Customer Insight

Artificial intelligence creates a systematic method of supplying valuable customer insights that are essential to market research. With repetitive data structures, algorithms in AI collect vast quantities of data that allow it to identify patterns of information. Because AI is programmed to utilize various marketing statistics for different customers, the software can make conclusions that can be used to better understand and predict customers’ needs, wants, and expectations.

  1. Dynamic Pricing

Dynamic pricing is a business strategy that utilizes flexible pricing based on market value. Companies around the world have begun using AI for pricing their services dynamically. At present, all major e-commerce platforms such as Amazon and Walmart have implemented AI technology to help manage pricing. The process works by analyzing an infinite amount of customer data. That data is then used to adjust pricing based on time of year, location, sales volume, and competitors’ prices, just to name a few.

  1. Automate Image Recognition

The marketing industry is responsible for creating engaging and creative content for customers. The images and videos customers are exposed to must be polished and attractive, as well as powerfully effective at grabbing a customer’s attention and keeping them hooked. Up until recently, social media content, television commercials, and billboards have been designed and created manually by marketers. This is typically time-intensive and costly. However, artificial intelligence can streamline this process by utilizing image recognition technology to better decide on optimal graphics and content to serve a customer’s specific needs.

  1. Enhance Pay-Per-Click Advertising

Pay-Per-Click advertising is a style of marketing in which advertisers pay a user each time an online ad is visited. Simply put, businesses running adverts are not paid unless someone clicks on the ad. While ad choice and monitoring used to be handled manually by developers, AI is now able to automate the decision-making, freeing up valuable time for developers to engage in more complex duties. These advancements will have a positive effect on PPC advertising by improving capabilities such as search advertising, automated bidding, lead scoring, and more.

  1. Create Powerful Content

Artificial intelligence will power content creation in the marketing industry, personalizing inbound marketing to match each consumer's unique wants and needs. Machine learning will enable behavior targeting across channels, ensuring that content is targeted and personalized to the customer's needs. AI can also predict analytics to ensure that marketers are communicating at the exact right time and place.

  1. Chatbots

Have you ever visited a website and were immediately prompted via a chat window to speak with a service representative? This was most likely a chatbot. Chatbots are a type of AI software that allows customers to engage in online conversations with a computer through text or text-to-speech rather than communicating with a human. Chatbots are advantageous to online businesses as they are capable of retrieving valuable customer feedback and insight without having to hire customer service representatives. Chatbots are becoming increasingly popular across e-commerce platforms.

Today's businesses must leverage AI marketing in order to stay competitive. The lightning-quick advancements in AI have altered the way businesses are run by quickly learning from past experiences, adjusting to changes, and predicting future trends to better optimize their marketing efforts and maximize return on investments.

Marketing agencies that fail to empower AI will surely be outperformed by those who do.


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