Without a doubt, the future of marketing is data-driven and 88% of marketers agree that the increasing adoption of AI is essential to meet customer expectations and stay competitive.
The world of digital marketing has already begun to change and artificial intelligence (AI) is certainly at the forefront of this change. As brands and digital agencies strive to remain competitive in this monumental change, the adoption of AI-based strategies has become not only beneficial, but indispensable.
In this article, we will explore how AI can be used by digital agencies and brands to improve their marketing efforts by using data-driven insights to create effective, personalized and engaging marketing campaigns.
Let’s get started!
The role of AI in modern Marketing
AI is not just a buzzword, but a game changer. In fact, 54.5% of marketers already see AI significantly improving their marketing efforts, as stated in the benchmark report.
AI in Marketing refers to the use of intelligent and machine learning algorithms to analyze large amounts of data, predict trends and automate decision-making processes. It allows you to market, understand your target audience at a deeper level, personalize customer experiences, optimize your marketing campaigns and adjust your strategies accordingly. This gives marketers an important advantage to retain customers and increase conversions. When integrating AI into your marketing, you need to consider two issues: a responsible approach and ethical considerations.
The impact of AI on consumer behavior
The purchasing behavior of consumers is likely to be influenced by AI personalization. Personalization can only be achieved if user behavior is deeply understood through data analysis, including demographics, online activity and psychometry. In this way, AI can help agencies and brands to perform future actions in advance and recommend relevant products or services to customers. This will potentially result in improved conversion rates, customer lifetime value (CLV) and return on investment (ROI).
Recent studies confirm that AI-based recommendations can have a significant impact on consumer behavior. For example, a report from McKinsey & Company shows that AI-based personalization strategies can reduce acquisition costs by up to 50%, increase revenue by 5-15%, and improve the effectiveness of marketing spending by 10-30%.
Data-driven strategies for implementing AI
Use of predictive analytics
Predictive analytics transforms raw data into actionable information for marketing purposes. AI technology can work better than humans when analyzing large data sets. Since agencies and brands must respond to rapidly changing customer preferences and market trends, speed is paramount.
Predictive analytics assisted by AI allows Hyperpersonalization in all aspects of marketing. Brands can implement AI technology to predict customer needs and preferences and create tailor-made targeting strategies.
Let’s take an example: Netflix. Promise, I won’t suggest anything that is relevant to your preferences – because Netflix does it for me!
