Artificial Intelligence in marketing

 

Artificial Intelligence in marketing overview

 Rising technological advancements, combined with increasing demand for improved production and automation, have resulted in the rapid adoption of AI in a wide variety of areas in recent years. Recent advances in the development of machine-learning operations (MLOps), as well as advances in cloud technologies, are playing a significant role in the adoption of AI technologies. According to the IBM Global AI Adoption Index 2022, the global AI adoption rate has steadily increased to 35%, a four-point increase over the previous year. Around 44% of organizations are working to embed AI in their marketing applications and processes to emphasize the importance of consumer accessibility. AI is rapidly providing new benefits and efficiencies to organizations all over the world through new automation capabilities, greater ease of use & accessibility, as well as a broader range of well-established use cases. AI is being used in both off-the-shelf solutions such as virtual assistants and in existing business operations such as IT processes. However, rapidly changing market trends, lack of quality data along with ethical and moral concerns about consumer data privacy are some of the major barriers to AI adoption in marketing.

 

Key Takeaways

·       Growing demand for customer-centric marketing strategies, as well as the increasing use of voicebots and chatbots in retail shops, are influencing the use of artificial intelligence in marketing.

 

·       Bigdata analytics, machine learning, and emotional AI are key artificial intelligence - based marketing tools.

 

·       AI-powered personalized content delivery, lead management, automatic email marketing campaigns and virtual customer support services are some of the top benefits using AI in marketing.

 

·       IBM, Google Cloud, Microsoft and NVIDIA are among the key market players offering AI services in the marketing domain.

 

Dimensions of Artificial Intelligence in marketing

 

Technological: Bigdata analytics, machine learning and emotional AI are major AI gears in marketing. These technologies aid in the identification of market trends, the estimation of demand and the provision of customer-oriented services. AI-powered digital marketing solutions can interpret customer emotions and communicate accordingly. Furthermore, deep learning, context-aware computing, and natural language processing technologies are playing important roles in analyzing & interpreting data to forecast future trends, mapping datasets to business goals & objectives, and so on. According to a Forbes report published in February 2021, AI and Machine Learning are on track to generate between $1.4 Trillion and $2.6 Trillion in value over the next three years by solving marketing and sales problems. Thus, technological advancements, combined with rising consumer expectations, are creating a favorable environment for the use of AI tools in marketing and sales functions.

 

Functional: Artificial intelligence and big data solutions can help digital marketers identify key areas where they should focus their efforts by analyzing user search patterns. AI reduces the efforts of marketers by automating advertising campaigns. It is one of the applications of artificial intelligence in digital marketing. The industry is recognizing the value of artificial intelligence in marketing for delivering tailored content to a specific audience. Marketers can effectively retain customers by utilizing AI-powered customer service Chatbots. Artificial intelligence greatly assists marketing teams in smart lead management and lead nurturing. Conversational AI tools in marketing can provide personalized experiences for customers while also adding value to various brands. Additionally, personalized content delivery, lead management, streamlined activities, automatic email marketing campaigns, and virtual customer support services powered by AI are also among the top benefits of AI for digital marketers. In November 20222, Trading Master launched an AI-enabled Master Bot that can help traders automatically solicit buy and sell signals across the stock market. It is intended to provide traders with the opportunity to gain market knowledge and learn easily while also limiting the downside risk of price volatility. Such factors are analyzed to positively impact the integration of AI technologies with marketing and advertising applications in the coming future.

 

Key Industries: Google, Amazon, and Facebook are among the key players that are incorporating AI to automate marketing functions. For instance, Facebook launched a campaign in which millions of users were shown ads for a beauty product that were tailored to their personalities based on their Facebook likes history. On average, about 1.5 out of every 10,000 people who saw the ads purchased the product. Although 1.5 in 10,000 people may not appear to be a large number, personalization of ads increased the likelihood of a purchase by 50%. These major market players are positively influencing the adoption of AI tools in varied domains.

 

Factors accelerating the adoption of Artificial Intelligence in marketing:

Growing utilization of customer-centric marketing strategies, an increase in demand for virtual assistants along with the rising adoption of social media for advertising are the primary factors driving demand for AI-based marketing and business solutions. Virtual assistants are increasingly being used in sales since they are designed to increase productivity and eliminate time-consuming lead generation activities, freeing up sales associates to focus on more productive tasks. According to a Persado report published in June 2022, AI marketing tools are expected to generate $800 billion in additional revenues for brands globally over the next ten years.  Through highly personalized experiences, it is estimated to increase message conversion rates by 40% on average, drive engagement and loyalty. Such factors are analyzed to accelerate the integration of AI with marketing solutions in the coming time.

 

Factors limiting the adoption of Artificial Intelligence in marketing:

 

To support an effective AI-driven marketing procedure that generates massive amounts of data, a strong IT framework is required, which necessitates high-performance hardware. These computer systems can be prohibitively expensive to set up & maintain, and they require regular updates & maintenance to function properly. Their adaptability and efficiency have the potential to result in massive job losses in the future, as well as privacy risks to consumer data. According to Pecan's State of Predictive Analytics in Marketing 2022, marketing and data science face unique challenges when attempting to collaborate, with 84% of respondents saying their ability to predict consumer behavior feels akin to speculation. According to a report published by Invespcro, 54% of companies say the biggest challenge to data-driven marketing success is a lack of data quality and completeness. These factors are limiting the adoption of AI-enabled automated marketing tools.

 

Recent Advances

 

 

·       In October 2022, IBM aimed to make its IBM Watson, an AI for the business toolset, available to industry leaders and the advertising ecosystem as a whole. AI capabilities in language, automation and trust can be improved by changing existing business practices.

 

·       In October 2022, Microsoft showcases a new design tool for AI Art Generation in marketing campaigns. AI-generated art is set to cause a major upheaval in digital marketing, with businesses able to use AI-generated images for free, changing the game for stock image providers, artists, and others.

 

·       In May 2022, IBM announced a Strategic Collaboration Agreement (SCA) with Amazon Web Services, Inc. (AWS) to make a large portion of its software catalog available as Software-as-a-Service (SaaS) on AWS. The two companies are working together on a variety of joint investments to make it easier for clients to consume IBM Software on AWS, such as integrated go-to-market activities across sales and marketing and others.

 

·       In January 2020, Google Cloud launched new solutions for sellers to improve product search results in retailer applications.

 

·       In October 2020, Microsoft launched new features to its digital marketing center in order to provide marketers with the accuracy and power of AI at no additional cost.

 

 

References

 

·       IBM Global AI Adoption Index 2022

·       10 Ways AI And Machine Learning Are Improving Marketing In 2021

·       Trading Master Launches automated AI driven Bot for all trading needs

·       Psychological targeting as an effective approach to digital mass persuasion

·       Persado

·       IBM launches AI-powered 'Watson Assistant' for businesses

·       State of Predictive Analytics in Marketing 2022

·       The Importance of Data Driven Marketing – Statistics and Trends

·       Microsoft Previews New ‘Designer’ Tool Which Enables AI Art Generation for Marketing Campaigns

·       IBM Signs Strategic Collaboration Agreement with Amazon Web Services to Deliver IBM Software as-a-Service on AWS

·       GoogleCloudlaunchesnew solutions

·       AI Powered Campaign Management: Microsoft Launches New Features To Its Digital Marketing Center


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