Artificial Intelligence in Marketing: Learn From the Best

Welcome to the golden age of artificial intelligence (AI)! It’s safe to say that AI has transformed the world in more ways than one. We now have self-driving vehicles, digital assistants, and image recognition software thanks to this technological innovation. Basically, what we once thought was just fictional thinking has become a reality in today’s world.

AI has found its way into different fields, including finance, sales, retail, and, most importantly, marketing. For experienced industry experts, artificial intelligence isn’t a new term in their ever-growing glossary. Quite the contrary, it’s the latest technology that has made personalization, PPC, and email marketing easier. So, it’s no wonder AI has taken the digital marketing industry by storm.

Although this may sound a bit dramatic, every day your brand isn’t using AI-powered solutions in your marketing strategies, you’re falling behind your competition. A lot of international companies have realized this and implemented the technology in their everyday business lives.

In fact, artificial intelligence is the foundation of popular products and services, including Netflix, Google, and Amazon. And now it’s helping brands to enhance every step of the customer journey.

If you’re not sure how to use artificial intelligence in marketing, we know that the examples we’ve prepared will help you get started. But before that, let’s delve a bit into AI and marketing.

Here we go!

What Is Artificial Intelligence in Marketing?

Artificial intelligence in marketing is the use of technology and customer data in order to improve the buyer’s journey and experience. Some experts leverage it to boost their return on investment (ROI) as well. They rely on machine learning, big data analytics, and other processes to understand and gather information about their target audience. Naturally, this information is beneficial for brands while they’re planning new marketing campaigns. And it can be beneficial for you as well!

Namely, AI in marketing allows you to automate processes that depend on humans, enabling you to focus on other, more pressing matters. PPC advertisements, content creation, web design, and chatbox, they can all be managed by artificially intelligent systems.

Most importantly, with the help of AI in marketing, brands have managed to improve personalization— for example, numerous eCommerce brands today are using conversational text message automation mechanisms for different goals such as reducing cart abandonment rate, increasing re-orders and subscriptions, etc. This “warmer” approach has increased sales, driven traffic, and boosted engagement. Plus, consumer experience personalization is much cheaper if you utilize this innovative technology.

Basically, marketers would spend huge amounts with traditional campaigns in the past. And they weren’t even able to achieve the same level of personalization as they have with AI. Now, whenever a customer or a prospect interacts with a brand, this data is recorded and saved for future optimization. This means that marketers have more detailed and accurate consumer profiles at their disposal. In turn, their campaigns produce better results.

Let’s see some figures that prove artificial intelligence in marketing is all the rage right now.

AI Fever Is Spreading Fast

Artificial intelligence constantly brings something new to the table. Over the last few years, its popularity and acceptance have changed the way businesses look at everyday processes. According to one forecast, the AI market is likely to be worth $190 billion by 2025. So, nothing will stop this technology from spreading.

In a way, it’s astonishing to see the role of AI in our daily lives. Want to play music on Spotify? AI is there to curate a playlist for you. Looking to buy something new? An ecommerce app will offer perfectly tailored recommendations for you.

So, the possibilities of artificial intelligence in marketing are limitless. And research proves that brands have accepted this as a fact:

• 85% of customer interactions will be handled without a human in the future.
• 80% of businesses say AI has boosted their productivity.
• 61% of marketers say artificial intelligence is the most important aspect of their data strategy.

So, whether you want to bring tailored content on social media, improve the work of customer service, or simply stop doing mundane processes manually, AI in marketing is there for you.

It’s time you start thinking about how artificial intelligence can help you leave your competition in the dust. To help you get started, TargetVideo has prepared four impressive examples of artificial intelligence in marketing.

Artificial Intelligence in Marketing Done Right

AI enables brands to achieve one goal that previously appeared unattainable — to engage with every customer in a more personalized and meaningful manner. Modern consumers appreciate personalization now more than ever before. In fact, 91% of customers are more likely to shop with brands that send them relevant offers and recommendations. This is where AI comes into play.

Here are four brands that have taken artificial intelligence in marketing to the next level.

Netflix

Most streaming services use artificial intelligence to bring relevant content to their subscribers. However, none of them does it as well as Netflix does. So, it doesn’t come as a surprise that over 190 million internet users currently subscribe to Netflix. How does the streaming service utilize AI?

Through data science, Netflix personalizes the streaming experience based on user behavior. Basically, it classifies and tags all of its content to find out what consumer preferences are. The available content is classified based on its genre, duration, plot, mood, etc. So, when a customer watches a horror movie, Netflix’s engine will find other films of the same genre that might attract the viewer’s attention.

Content micro-classification and recommendation engine allows Netflix to improve customer experience. Indeed, Netflix states that 75% of viewer activity is driven by recommendations. From the moment a person subscribes, the company tracks their viewing habits and brings relevant content to their screens. As a result, Netflix is the epitome of personalized user experience today, and it owes this to artificial intelligence in marketing.

Starbucks

According to one research, companies that utilize predictive analytics to identify customers wants and needs can increase their organic revenue by 21%. Like many other retailers, Starbucks relies on AI and predictive analytics to deliver a more personal experience to its customers.

The company isn’t only sending tailored emails on customers’ birthdays — it has gone a step further to merge digital marketing and its physical stores. Namely, Starbucks uses location data to find out when a customer is near its stores. Once the system recognizes that the customer is approaching, it generates relevant content. This is artificial intelligence in marketing at its best.

The customer gets offers on their smartphones. It is through these offers that Starbucks analyzes buying habits and works on increasing the customer’s average spend per visit.

Alibaba

Another great example of the use of artificial intelligence in marketing comes from the retail giant Alibaba. A few years back, Alibaba opened a “FashionAI” concept store. The company wanted to simplify the shopping experience with the help of AI, and it has achieved this goal since then.

The store is equipped with smart mirrors that display information about a particular product and suggests coordinating items. Then, it also has intelligent garment tags that provide specialized information about garments, including their color and size.

Let’s see how another famous retailer used artificial intelligence in marketing.

Nike

Back in 2017, Nike introduced a system that enabled customers to design their own sneakers in a physical store. The so-called “Nike Maker” Experience allows individuals to make their own version of Nike Presto X shoe. They can choose their own graphics and colors through revolutionary design tools. Using augmented reality, Nike’s system then displays the final design of the shoes. In about 90 minutes, customers can buy their creation in the store.

This example of artificial intelligence in marketing shows howtechnology can help companies drive sales and discover customer preferences. Nike used the data it collected and ran it through machine learning algorithms to design future products.