AI in digital marketing empowers companies by automating many marketing tasks and improving processes. It helps marketers save time on tasks that would be difficult or even impossible to do manually within a reasonable time frame.
The global artificial intelligence market is estimated to generate $433 billion in sales from 2020 to 2023. And AI marketing is expected to snowball in the coming years, with revenues exceeding half a trillion dollars by 2023.
Let’s take a deep dive into the answers and see how AI is used in digital marketing!
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What Is AI in Digital Marketing?
Artificial intelligence allows marketers to create a combination of intelligence elements with human hands. Using AI in digital marketing facilitates and improves processes, in parallel to the main motive of AI-driven technological advances.
Offering more than automation or other simple digital tools, artificial intelligence imitates the human mind to make decisions and function. As a result, it helps marketing teams create effective marketing plans and workflows.
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AI in digital marketing needs data to carry out its responsibilities for companies within the framework of models created by algorithms. The raw material of artificial intelligence algorithms and models is data. That’s why data collection or data protection is a hot topic in today’s business world.
The amount of data produced in the digital marketing world is enormous. It’s meta to sell, buy, own, and protect. The solution to the challenge of the management and analysis of this big data lies in AI technologies so that companies can benefit from it to improve their marketing performance.
How Do Companies Use AI in Digital Marketing?
Developing artificial intelligence helps businesses and brands in digital marketing create various alternatives in the ways and methods of communicating with their target audience. In digital marketing, it is possible to conduct target audience-oriented marketing by collecting data about customers, consumers, potential customers, and the target audience with artificial intelligence technologies.
Artificial intelligence can evaluate and process big data in real time with a predetermined design. In this way, marketers will be able to create competitive marketing strategies by seeing the whole picture. Artificial intelligence technologies and branches like Natural Language Processing (NLP) and Machine Learning (ML) play an active role in digital marketing on personalized content suggestions, email marketing, improved customer service, real-time customer support, and social media marketing.
Artificial intelligence provides companies with solutions to be more effective in their advertisements and constitutes a critical promotional expense. In addition, AI digital advertising with the right content enables companies to reach their target audiences at the right time and in the right environment.
AI marketing relies entirely on well-matched data, analytics, and research. Combining AI with digital marketing is currently one of the most successful ways to work wonders regarding lead capture for marketing strategies.
Let’s look at some key aspects where AI is used in the digital marketing landscape:
AI in Marketing Visual Creation
The role of AI in visual content creation is becoming increasingly evident. As marketing visuals are crucial for audience engagement, AI is proving instrumental in enhancing this domain. Tools like Midjourney and Leonardo.ai are utilizing AI to refine designs and anticipate upcoming trends, all in real time.
A noteworthy example of the use of AI for marketing visuals is Heinz’s partnership with the agency Rethink. Together, they introduced a unique ad campaign featuring visuals entirely crafted by AI, aptly named “A.I. Ketchup.” They prompted the AI with inventive concepts like “ketchup in space,” and the generated images unmistakably echoed the Heinz brand identity, even without specific branding. Intriguingly, the online community soon joined the initiative, offering their own prompts, reinforcing the deep connection between the Heinz brand and ketchup.
This progression in visual marketing isn’t just about expedited content creation; it’s about evolving strategies that resonate with consumer behaviors and desires.
Curious about other ways AI is reshaping marketing campaigns? Here’s another blog post by DAN; this time, you’ll explore more AI marketing campaigns by agencies. After viewing these successful campaigns, we don’t think that you can resist the urge to skyrocket your campaigns with AI, and luckily, you’ll have our curated list of the best AI marketing agencies.
AI in CRM
Customer relationship management, also known as CRM, is a business strategy that adapts to a customer-centric approach by filtering valid information and maximizing the collection of user information. It is an excellent AI-driven strategy for gaining accurate insights.
Combined with CRM and AI, companies can now understand consumer behavioral information, such as which products or services they are interested in, how much they would ideally spend on those products, and more. Besides, AI-based CRM tools help companies access their marketing data around 95% faster.
Such tools allow companies to create an effective AI marketing strategy to increase leads and conversions. Marketers analyze consumers’ needs through this data and adopt artificial intelligence to increase sales. In this way, AI and CRM are helping to change the world of digital marketing.
Spotify is one of the companies that use AI-based CRM tools. Its choice is to go with Salesforce to enhance its account engagement and build differentiated consumer journeys, besides providing the users with an omnichannel support system to meet their needs as quickly as possible.
AI Chatbot Applications
With the developments in semantic definition, such as artificial intelligence’s language processes and matching the questions asked with relevant topics, chatbot applications have started to provide many advantages to improving customer experience and customer services. For example, while customer representatives deal with a single person, chatbots can deal with many customers at the same time.
Another advantage AI can provide is a fast and smooth 24/7 service. As a result, you can establish uninterrupted communication with your customers. It helps you stay one step ahead of your competitors who do not provide such a service. In addition, if your company carries out operations abroad, your communication with your customers continues without interruption thanks to different language options and regardless of the time zones.
Let’s see an example of a company providing customer service with a chatbot:
By enabling users to easily get information about balances and expenses, and set up customized notifications, the chatbot has made managing finances more intuitive and user-friendly. This is just one example of how chatbots and AI are transforming the financial industry and enhancing the customer experience.
AI in Digital Advertising
Undoubtedly, one of the areas where AI studies are most successfully integrated is digital advertising. For the best possible experience, big brands such as Facebook and Google use artificial intelligence in their advertising platforms.
It analyzes user information, such as age, gender, areas of interest, and location, and shows its ads to people or audiences to whom the business is relevant. This results in a higher return on investment (ROI) from advertising.
Another example of using AI in digital advertising campaigns is generated by Coca-Cola. The brand uses artificial intelligence to generate logos, texts, and narratives in ads automatically.
As the use of and interest in AI grows, the number of AI-driven ad campaigns shows an increase. Every other day, another brand announces its new AI-generated digital advertising campaign.
For example, industry giants like Unilever and Nestlé notably utilize generative AI. They pointed out that they have been leveraging AI tools such as OpenAI’s DALL-E 2 to both enhance their ad campaigns and realize cost savings. These companies’ digital agency, WPP’s CEO, mentioned that the use of AI can benefit up to 20 times the investments.