It’s no surprise that artificial intelligence is making waves in every industry it touches. Currently, AI digital marketing campaigns are on the rise and revolutionizing the online marketing space. In fact, chances are you’ve already purchased a product or service that you found through AI-powered digital marketing.
Artificial intelligence (AI) allows enterprise marketers to maneuver the vast online space and connect with potential buyers. That said, below are the ways AI is changing digital marketing for businesses.
1. Ultra-personalized campaigns
Artificial intelligence can help digital marketers create personalized marketing campaigns for leads, leads, and customers. Almost all digital marketing techniques these days require a lot of customization. While there are tools that segment your audience based on age, gender, browsing habits, and interests, they may not provide enough information for a personalization campaign.
Currently, it is common for a specific target audience to see different marketing messages, headlines, and photos from another group. However, machine learning and AI go further in personalizing your marketing campaigns. AI allows marketers to segment their audience into even smaller groups.
For example, instead of targeting 1000 people, you can create a small niche audience, say 50 people or less. These marketing messages may even contain references to past products they have purchased. Fortunately, such personalization can be applied to various marketing channels, including Facebook, Twitter, and email marketing.
2. Rise of predictive marketing
The growing adoption of AI in digital marketing is driving an increase in predictive marketing. As the name suggests, predictive marketing is where marketers determine the most appropriate marketing strategy for specific situations. Predictive marketing starts with AI tools analyzing data and suggesting marketing actions with the highest probability of success.
Although predictive marketing is not a new practice in marketing, artificial intelligence has made it manageable and accessible. Data mining, analysis, and other tasks that previously took weeks or months can be done in minutes. Companies that use predictive marketing to guide their marketing campaigns often achieve better results.
Businesses can use predictive marketing to predict;
• Buying behavior of customers
• When are customers likely to make purchases?
• How they will spend – based on previous buying behavior
Having such customer insights is very beneficial for businesses. As a result, businesses that organize their marketing strategies around this data can see improvements in engagement, increased revenue, better leads, and better allocation of marketing budget.
3. Dynamic Product/Service Pricing
Most companies use dynamic pricing as a strategy to create buzz in their niche. A great example is how Uber revolutionized transportation costs with dynamic pricing. Essentially, with dynamic pricing, the cost of products or services is flexible. Therefore, the price of the products or services may change due to several factors, such as;
• Changes in demand
• Maximum hours of use
• Type of customers targeted
• Changes to marketing conditions
Unfortunately, companies cannot be informed of these changes in real time. However, this is where the AI comes in. Currently, airlines are the primary beneficiaries of AI-influenced dynamic pricing. Retailers can also incorporate machine learning technologies to influence product prices and generate profits.
Ultimately, dynamic pricing allows companies to set perfect prices for their customers based on the circumstances. Unlike before, AI makes this process easier, as it simplifies the collection of customer data and any other information that influences pricing algorithms.
The essential
AI will undoubtedly influence significant changes in the field of digital marketing. In support of this, there are a few facts about AI worth noting;
• Over 80% of technology and business leaders agree that artificial intelligence increases productivity by 40%
• 97% of smartphone users use AI-powered voice assistants
• 61% of digital marketers see AI as a critical part of their data strategy
Netflix has saved over $1 billion by leveraging machine learning to provide personalized movie recommendations.
Therefore, as AI becomes accessible, digital marketers should use it to analyze data, predict customer/market trends, and refine their marketing strategies.
Mike Gingerich is President of Digital Hill Multimedia (www.DigitalHill.com), a Goshen web design, web software and social media marketing company. He is also a business blogger on technology, marketing and growth. Learn more about www.MikeGingerich.com/blog/.