What are the main advantages of AI in marketing and how can it help you optimize your campaign’s performance?
Find out more about the potential of AI marketing.
Today, more than 60 percent of companies use artificial intelligence in their daily decision-making. There are indeed many advantages to implementing AI technologies. It enables marketers to collect and process huge amounts of data. In this way, AI not only helps companies to automate various processes, but also to gain more insight into their data and significantly increase their profitability through process optimization. Therefore, AI marketing trends such as predictive analytics and campaign optimization continue to shape the industry.
Although the implementation of AI technologies is still viewed more as a competitive advantage today, it will soon be essential for companies to be successful. In this post we will discuss what are the benefits of AI in marketing and what are the top AI marketing trends in 2020. We focus on the possibilities of optimizing marketing campaigns with the help of AI.
What are the benefits of AI in marketing?
With the rapid development of AI technology, it is becoming increasingly difficult to enumerate all the benefits of implementing it in business. Four main advantages of using artificial intelligence in digital marketing are defined below:
- Advanced personalization
According to Voucherful.co.uk, personalization will be key to marketing success over the next five years. According to a survey by the company, businesses that actively focus on personalization are seeing sales increases of five to 15 percent.
In fact, today people are more likely to interact with a personalized message that addresses their specific needs than they are with a non-personalized one. The more personalized the advertisement, the higher the chances of conversion. Artificial intelligence in this context enables marketers to take personalization to the next level. AI can easily aggregate and process huge amounts of customer data, uncover valuable insights and correlations and automatically implement highly personalized interactions on an individual level with dynamic content.
- More knowledge about your data
Artificial intelligence gives marketers the option to learn more about their data, spot unusual patterns, and suggest ways to improve strategy. Although the majority of companies have a large amount of valuable data, these companies often fail to analyze the data or they analyze it inadequately. In most cases, it just happens because of the human factor: people are prone to failure.
AI technology, however, helps to solve this problem. Artificial intelligence can merge different databases and do a thorough analysis without making mistakes. As a result, by implementing AI technologies, marketing professionals are able to make better data-driven decisions and adjust their marketing strategy.
- Predictive Analytics
Artificial intelligence also makes it possible not only to analyze existing data, but also to predict the effectiveness of a marketing campaign. With a dedicated algorithm, marketing professionals can gauge the potential outcome of their marketing efforts and improve their strategy.
- Optimizing a Marketing Campaign
Finally, AI technologies enable marketing teams to significantly reduce advertising costs and increase the return on advertising spend (ROAS). Modern AI-controlled marketing tools also promote the optimization of Omni channel campaigns. By implementing a meaningful algorithm companies are able to manage their advertising costs by up to 30 percent to reduce.
What are the top AI marketing trends in 2020?
As mentioned earlier, thanks to AI technologies, marketers can learn more about their data, better understand target audience behavior, and optimize various processes. Although artificial intelligence has already remarkably shaped its own marketing industry, it is still evolving and evolving. It is expected that more and more companies will adopt AI technologies in the near future.
The growing popularity of such trends as predictive analytics, personalized target group approach, optimization of Omni channel campaigns or the development of visual and voice-controlled search will be exciting to watch.
Marketing campaign optimization using AI
Unfortunately, we don’t have unlimited budgets to run marketing campaigns. Therefore, budget allocation plays an important role when it comes to developing an effective marketing strategy. However, if you’ve ever tried starting a paid marketing campaign, you know how difficult it can be to define which channel to use and how much money to spend on it. How can you also define which channel could contribute the most to the marketing ROI?
Often times, these questions confuse many marketing professionals for two important reasons:
- Multi-channel distribution of data: On average, digital marketers use more than ten marketing tools to manage their business. As a result, it is difficult to collect and process this data.
- The data are not comparable: even if you manage to collect all the data in one place, an analysis is not possible if the data base is not standardized.
This is where AI comes in. An algorithm for optimizing multi-channel campaigns enables marketers to predict demand for their products and future sales based on the analysis of historical data. After the predictions are made, the algorithm calculates and estimates all possible variations in the multi-channel budget allocation and chooses the one that will maximize the overall ROI.
As a result, the AI helps you by optimizing the processes to increase the chances of success of marketing campaigns and thus to increase the ROI with comparatively low investments. In other words: Artificial Intelligence analyzes and processes over 100 versions of possible budget distributions across different marketing channels and ad sets. She then suggests the best option.
In addition, modern AI technologies are able to continuously advise marketers on the best option for budget shifting. This translates into better ad performance and a reduction in marketing costs. By optimizing marketing campaigns, Artificial Intelligence helps improve overall marketing performance and ROAS with minimal investment.