Artificial Intelligence in marketing, is changing how companies help and interact with their customers.
It has the potential to make your brand more human, and your business – more competitive, efficient, and profitable.
But how exactly Artificial Intelligence (AI) works for marketing and sales? Where to apply AI? Here, we will answer.
In the post:
- What is Artificial Intelligence? Why is AI important for marketing?
- 10 examples and applications of artificial intelligence in marketing (including digital marketing, email marketing, content marketing, and market research)
- Popular AI-powered marketing software tools
- Infographics in PDF
What Is Artificial Intelligence And Why Is It Important For Marketing?
AI is a technology that allows computers to perform tasks that usually people perform. For example, the ability to communicate with customers, the ability to make some decisions, etc.
AI is a complex technology that works via software tools.
The AI tools are designed to process and analyze large sets of data, then making conclusions and predictions based on that data. AI software is also used for automating a variety of repetitive tasks.
This functionality can power everything from chatbots to Amazon recommendations.
The AI’s main goal is to help you do things better, faster, and cheaper while allowing you to make successful data driving decision making.
AI gives brands a range of tremendous opportunities. With it, you can create better marketing content, faster and at scale, build trust, and deliver an excellent customer’s journey.
10 Key Applications of AI in Marketing: Examples
1. AI Takes Market Research To New Levels
AI improves traditional market research and can do a better job in many ways. And one of the most important ones is saving time.
For example, an AI-powered, fully self-service platform that automatically creates research reports, makes a huge difference in time spent.
Collecting open-ended feedback from a target audience is critical for market research.
AI-based market research platforms can perform open-ended feedback analysis and extract meaning and emotions from the collected text. This ability allows you to make better decisions based on accurate market research data.
AI-based market research software delivers actionable results in real-time, automatically classifies and mines text data, and select the right target customers.
Moreover, it can remove human errors and even track a customer’s eye movements to catch what attracts their attention.
AI is so important in the market research today, that the biggest names in any industry are making huge investments in it.
For example, Google renamed its research section to Google AI. It means artificial intelligence plays a critical role in their market research.
From computer vision to healthcare research, Google increasingly implements AI technology in nearly everything they do. Google AI comprises state-of-the-art research techniques across Google.
2. Chatbots Are Changing The Marketing World
A chatbot is a software that imitates human conversation (or a chat) with users over websites, mobile apps, phones, etc. It’s an AI-powered digital assistant that communicates with people.
Chatbots are changing the marketing world.
They are able to provide instant responses to customers’ inquiries and offer support and service 24 hours a day – outside working hours.
Chatbots work in social media platforms, collecting data about every single user with whom they chat. You can use this data for further analysis of customer behavior.
Chatbots can boost your sales as offer personalized shopping advice based on the customer’s purchase history. Furthermore, they engage with your customers and retain them for longer.
A chatbot learns from its interaction with customers. Thus, it can provide customers with relevant information about products and services. In other words, it can up-sell and cross-sell in a personalized way.
A chatbot is also a great opportunity for you to collect feedback from customers as it naturally introduces questions in the chats with users.
Sephora (a cosmetic brand) has a chatbot that provides tutorials for makeup, tips for skincare and reviews of the product. This way bookings through chatbot have increased.
Sephora also launched the Sephora Reservation Assistant (a chatbot that communicates with clients in identifying store location) and the Sephora Color Match (an AI-powered chatbot that picks a color from an image and finds a suitable match from its beauty catalogs products) on Facebook Messenger.
3. AI Makes Email Marketing More Powerful Than Ever
Email marketing is one of the most cost-effective digital marketing channels. Today, artificial intelligence plays a vital role in email marketing and makes it more powerful than ever.
AI-powered software can produce automated email campaigns that are driven by customer history data such as past purchases and browsing behaviors.
AI tools also show you what kind of content is going to be most effective in creating your welcome emails or retention emails.
AI-powered tools use pre-written copy, promotions, blog post snippets, images, links, curated content, and many others to produce and deliver emails that are optimized for high customer engagement.
Optimizing email subject lines is one of the important AI uses in email marketing. AI is able to provide you with a great email subject line that stands out in the receiver’s inbox, stimulating them to click through.
Personalization has great power in email marketing and AI expands its possibilities. For example, email marketers use AI to suggest recommended products or posts that a particular customer is likely to be interested in.
AI also is great at choosing the frequency of your email campaigns as well as determining the best time to send out your emails so they’ll be read.
The number of companies that benefit from AI-powered email marketing campaigns is enormous.
A good example is Netflix. If you are a Netflix fan, you surely receive their attractive promotional emails which are mostly driven by AI.
4. AI Makes Advertising Efficient And Profitable
Most marketers use some type of paid advertising and this is one area where artificial intelligence is already producing very good results.
AI can write and test advertising copy for you on different platforms such as Facebook, Instagram, and SMS. Thus, you can optimize your ads for more clicks and more revenue.
AI technology is used to analyze how your ads perform across platforms and channels, then offer suggestions on how to improve your performance.
Besides that, artificial intelligence shows you exactly which customers to target and how to make them act on your ads.
The AI-powered tools scan videos, images or content across the web. Then, they analyze this data to help you place ads where consumers are most likely to notice and click.
Artificial intelligence is so powerful that it can optimize your budget in real-time across channels. The goal is you to save money on advertising.
Finally, AI-powered software can partially or fully create ad content for you, based on your needs and goals.
Many companies use AI for advertisement. One of the great examples is RedBalloon (e-commerce company).
The biggest pain point RedBalloon had was paid advertising. The company wasn’t very good at it.
To better results, RedBalloon started to use AI-powered software that analyzes data across ad accounts and customer databases, then target, run and optimize ad campaigns.
The results were so impressive, striking, and immediate that RedBalloon fired its ad agencies.
See more on the post “How One Ecommerce Company Used AI to Get a 3,000% Return on Ad Spend”
5. AI Improves SEO Significantly
For many marketers, AI is an essential element of Search Engine Optimization (SEO) strategies.
AI plays a critical role in how search engines (like Google and Bings) rank pages. It not only gives you a big opportunity to improve your page rankings, but it also allows you to produce better content.
There are robust AI-based SEO tools that allow you to analyze your competitor’s website, create and improve your keywords, analyze your traffic report, and much more.
AI tools provide suggestions on what you should be creating content about to win search traffic and to rank better in search engines for specific keywords.
Moreover, the tools show you what your competitor’s sites are doing to appear first in search engines for a given query.
AI can offer suggestions on how you can improve your existing content in order to rank higher.
AI also makes sure your business shows up accurately in search across many different geographic areas. AI solves this at scale.
CION investments ( a B2B finance company) increases position one keywords 58%.
CION used an AI-powered SEO tool – BrightEdge to check in on data and to utilize Recommendations and Keyword Research to power its SEO efforts.
CION created multiple principal keyword groups to focus on. They found out what is the importance of differentiating articles. Using those keyword groups, CION created unique content that steered them around and away from their existing pages.
As a result, CION guides customers straight to their product pages.
“At CION, they write and optimize content their consumers want to read, including educational pieces that elevate CION Investments as a thought leader in the finance industry. From the end of their first quarter to the end of the second quarter using BrightEdge, CION saw a 58% increase in keywords ranked in position one, a 97.9% increase in keywords ranked in position two, and a 100% increase in keywords ranked in position five through ten.”
See more here
6. The Power of AI In Augmented Reality
AR creates a whole new world of untapped and unique sources of sustainable competitive advantages.
AR is a set of technologies that superimpose virtual objects to reality. It creates the illusion that computer-generated images and real-world images are in the same space by overlapping them.
In other words, it allows you to put virtual objects in your real environment and situation.
Imagine you want to add a sky with the sun to the ceiling in your room. AR can do it. And of course, marketing can benefit immensely from AR, especially if AR is combined with AI.
For instance, AR gives the customers who shop online the chance to view the product, in the same way, they would if they were in a physical store. This allows customers to see how the product fits into their lives before the purchasing decision.
Augmented reality and artificial intelligence can be used together to create unique customer experiences.
AI makes AR much more effective. How?
AI can be used in AR to predict the interface a customer might need within a given situation. AI can show options for a User Interface (UI) or create a UI that is perfectly suited.
AI can work in AR for object recognition and tracking, gestural recognition, and eye-tracking. AI enables AR interfaces to become multidimensional and thus produce a whole new layer of insight.
Numerous companies provide AR support to customers in a variety of industries.
For example, IKEA provides customers with a catalog of products in AR-format with an app.
With the help of this app, you can use your smartphone to see how the furniture will look in the interior of your home. It lets you fill an entire room with virtual furniture.
Another example: in its China stores, L’Oreal has “Magic Mirrors.” These devices are powered by AI and AR and allow customers who standing in front of these mirrors, to virtually try on makeup with different tints.
Then, the application sends the customer to the products that they selected.
7. AI Is The Future Of Video Marketing
Studies show that 54% of consumers want to see more video content from a brand or business they support. And consumers are expected to even spend more time watching video content.
AI is the future of video marketing. Why?
There are AI-powered tools that do amazing things such as emotion-detection that measures user facial expressions. Ai also identifies and verifies faces in videos. Thus, you will know how viewers react to your video advertisement.
The tools can also provide businesses insight into an audience’s viewing behavior. This data will help you understand where and why viewers stop watching business videos and which video content makes viewers purchase.
And as you might guess, AI is very good at personalization. AI is able to recommend video content that is best suited to the user’s interests and needs. Personalized video content is proven to result in higher engagement.
AI analytics allows you to test video content and have an idea of results before investing in a video effort. This opportunity to test and learn shows you a clear view of what your video content can achieve.
IPG (a multi-national provider of marketing solutions) uses the software solution Kairos Emotion Analysis to conduct large-scale, consumer-focused video research. The company tested advertisements across different geographical locations and demographics.
Thus the company determines how the same video content is received in different demographic groups over thousands of people.
Kairos processed thousands of videos through Kairos Emotion Analysis to glean important insights about panelists.
Jonathan Jusczyk, Associate Director, Intelligence Solutions & Strategy in IPG says:
“The fact that [Kairos] is fast, affordable, and simple gives our clients a powerful tool to understand consumer preference that was previously only possible in an expensive physical in-lab setting.”
See more here
8. AI Transforms Social Media Marketing
Artificial intelligence transforms the way brands create and manage their social media marketing while allowing them to increase revenue and reduce costs.
AI tools can completely auto-generate social media content across networks and channels and even automatically include hashtags and links.
They can also auto-schedule these shares in bulk and handle some types of social media creation.
AI software tools deliver valuable insights from your brand’s social media presence as they analyze social media posts at scale and understand what your audience says in them.
That data allows you to track your brand reputation, find new audiences to target and identify promising customer trends.
AI is great at making predictions about how often to publish in social media and what content to create so you can get as many as possible clicks, likes, and shares.
Trussardi (a famous Italian fashion house dating back to 1911) has achieved a 83% increase in link clicks for an Instagram-driven product launch.
For the launch of their new Dreambox bag – an ‘accessory for young digital natives’, Trussardi turned to the social media management platform – Socialbakers. Trussardi engaged their followers on Instagram to choose the name of the new bag.
Trussardi used Socialbakers’ content insights and social attribution dashboards to build and analyze a content strategy measured against social and digital KPIs.
The three-week campaign resulted in a 90% increase in Stories Impressions and a 2,000% increase in new website sessions from Instagram Stories.
Moreover, fans engaged deeply with Trussardi’s Instagram Stories with a staggering 83% increase in link clicks from the Instagram bio.
See more here
9. AI Reshapes Customer Segmentation Strategies
Businesses across industries have been creating and analyzing target market segments to provide customers with highly personalized offers for years.
But today, AI reshapes segmentation strategies. It ensures actionable segmentation quickly and accurately and finds new customer segments to help you grow your business.
AI helps you create more personalized messages to your customers, achieving a unique one-to-one interaction that can result in brand loyalty.
With the use of artificial intelligence, customer data is analyzed more deeply to produce more detailed, targeted segments while automating the process of personalization for each segment.
AI technology adjusts numerous variables and factors specific to the targeted segments. These variables and factors include things like colors, images, delivery time, and a subject line.
Then, customers’ behavior is monitored via metrics such as click-throughs, and the personalized content is scheduled and tweaked for the next recipients in real-time.
AI can also analyze and predict which actions your target segments are likely to take upon receiving your offer or message.
AI has many other roles and benefits in customer segmentation such as: removal of human bias, finding hidden patterns in data, automatic updating of segments, a higher level of personalization, and high scalability.
One of the most popular examples of how AI works in customer segmentation that power product recommendations are Amazon and Netflix.
Already, 35 percent of what consumers purchase on Amazon and 75 percent of what they watch on Netflix come from product recommendations based on such algorithms.
Source: McKinsey & Co
10. AI In Competitive Intelligence
Competitive intelligence is the process of collecting and analyzing information about your current and potential competitors, industry, and business environment.
In our AI age, it’s easier than ever before to conduct competitive intelligence, research, and analysis.
With the help of various AI software tools, you can effortlessly spy, track, and understand what your competitors are doing and what makes them successful.
AI-powered tools can harvest data from millions of web pages with info about your competitors. These tools are able to track a competitor’s complete digital footprint (on and off their website).
With AI tools, you can monitor competitors’ pages, news, press realizes, job openings, product offerings, customer reviews, marketing campaigns, social media activities, etc. In other words, AI captures every move a competitor makes.
AI analyzes these footprints daily, searching for changes to them. It then draws insights to give you competitive intelligence at scale.
Thus, you can spot competitor trends and analyze competitor strategies or benchmark your brand position in the market.
The leading companies cleverly harvest the benefits of someone else’s successes or failures to make their business growth strategies. Google carefully pays attention to the mistakes in Yahoo’s UI.
Uber exploited the public enthusiasm for Lyft. Apple redefined the mobile market — a category which Motorola pioneered.
Artificial intelligence is a technology that can help you create successful marketing strategies backed by data at scale.
It helps brands engage with consumers and prospects and create personalized experiences for each user or visitor.
Artificial intelligence has also the ability to increase profit and reduce costs for marketers who use it properly and effectively.
This is especially true in digital and content marketing, where AI-based software tools ensure better promotions that increase revenue. At the same time, the tools automate costly and time-consuming duties and thus free employees to focus on more important tasks.
I hope the above applications of artificial intelligence in marketing, help you expand your understanding of the AI power and give you an idea on how to apply AI in your business.