Artificial intelligence (AI) has already become highly disruptive, with technology directly impacting almost every domain of industry.
Here are a just a few examples of the pervasive usage of artificial intelligence in our modern business ecosystems:
- Self-driving cars
- Automated manufacturing processes
- Image recognition applications
- AI enabled supply chain management
- Machine learning enabled marketing
The demand for machine learning developers across all kinds of companies and businesses is rapidly increasing. This soaring demand has also increased the machine learning developer salary substantially in the marketplace.
The global market size of machine learning enabled solutions is expected to reach $8.81 billion by 2022. That would constitute a whopping 44.1% compound annual growth rate (CAGR) between 2016 and 2022.
Machine learning for marketing has extensively changed the landscape of digital marketing by focusing on personalization, behavioral targeting, micro-targeting and other marketing parameters. The implementation of ML algorithms in the marketing sector is producing phenomenal results for all sizes and domains of businesses globally.
Let’s take a closer look at the machine learning methods and how they are used in modern digital marketing!
Artificial Intelligence (AI) & Machine Learning (ML) in Marketing
According to the QuanticMind survey, more than 97% of the industry experts believe that the future of the digital marketing will be fully influenced by machine learning techniques and AI-based marketing automation. The triumvirate of skillful people, artificial intelligence and machine learning-based smart automation is going to be the future of digital marketing.
The major drivers of ML and AI-based marketing include the following:
- Chatbots for great user experience
- Personalization of marketing at scale
- Micro-moments or right information at the right time, in a real-time environment
- Increasing volume of dark social sharing
- The advent of modern AI and machine learning tools
- Predictive intelligence based content creation
The marking and sales impact on modern businesses due to machine learning in action is amazingly high. According to the Capgemini Consulting report, more than 75% of companies boosted sales by more than 10% by implementing these methods in their marketing strategies.
How AI and Machine Learning Are Changing Marketing
The difference between AI and machine learning marketing based marketing and the traditional variety is quite clear. Traditional marketing is launched with very limited insight into the behaviors and purchasing patterns of the targeted audience. Meanwhile, AI-based projects for digital marketing are fully equipped with specific information about customer behavior, purchasing patterns and many other parameters. This added information helps in achieving better conversion rates and a substantial increase in the company sales.
Numerous kinds of ML models are extensively used in present-day digital marketing to unleash the power of AI in the modern businesses.
A few very important machine learning based marketing models include the following:
- Effective risk prediction and interventions
- Efficient predictive data modeling
- Machine learning based pay per click campaigns
- ML insight based content campaigns
- Highly targeted email campaigns
- Real-time content help through chatbots and other tools
All of the above models powered by different types of algorithms help marketers to increase the targeted customer outreach, improve the relevance of their audience, trigger a response or action, and create a great user experience.
Key Benefits of AI & Machine Learning in Marketing
Artificial intelligence and machine learning are extensively changing the landscape of modern marketing. Numerous tools based on powerful machine learning languages are already doing a great job in the marketing domain. And many new tools, cloud-based platforms and apps, are emerging in the marketplace on a regular basis.
There are many great benefits offered by AI and ML-based marketing. A few important ones are listed below:
- Improved marketing qualified leads (MQLs)
- Increased sales qualified leads (SQLs)
- Improved insight into customer behaviors for better positioning of marketing strategies
- Increased relevance of the targeted audience
- Data-driven optimization of marketing drives
- Increasing precision of marketing campaigns
- Increasing sales and profitability
- Reducing the overall marketing cost
- Quick solutions to marketing problems
- Improved user experience and customer satisfaction
- Fast and accurate sales projections and forecasts
- Development of strong customer relationship and support
- Substantial reduction in customer churn
- Increased competitive advantages
- Reduction in unnecessary stocks and inventory through smarter point-of-sale systems
- Getting better value from big data
- Better fine-tuning of propensity models for focused marketing strategies
- Improved personalized marketing
- Accurate incentivized and interactive marketing portfolios
- Provides 360 degrees customer view
- Effective exploitation of business opportunities
The main objective of AI and machine learning based marketing is to better understand the customer and provide intelligent solutions. This leaves a great impact on the business bottom line.
Great Examples of Companies Using AI in Marketing
According to Statista, digital advertising spending will exceed $335 billion globally and $117.53 billion in the USA alone by 2020. This is a clear indication that the companies are spending extravagantly in the domain of digital marketing.
There are great examples of big companies that are using AI and ML marketing for their businesses. A few very important examples of are given below:
- Amazon uses AI and ML for its online store
- Netflix uses the predictive analysis tool for better content curation
- Google, for website ranking
- Yelp, for image processing
- Pinterest uses them for its recommendation algorithms and content detection for better user experience
- IBM Watson’s extensive use in the better recommendation for cancer treatments in many healthcare organizations in the USA and abroad
- Salesforce uses its Einstein Machine Learning Technology for scoring and lead prediction purposes in digital marketing
- Virgin Mobile uses Amperlo AI-based marketing platform for customer life value maximization and optimization of customer interactions
- Walmart uses machine learning based software for anticipating customer needs and providing suitable solutions for them
Other than the above mentioned, there are numerous companies that use the commercial machine learning platforms for their marketing needs in the marketplace.
Major Tools and Technologies for AI Based Marketing
The number of AI-based marketing tools is already huge, and it is expanding on a regular basis. Many native as well as commercial applications, platforms and tools are emerging in the marketplace. A few very important ones are listed below:
- Alexa
- Motiva AI
- Adobe audience manager
- AgileOne
- Oracle BlueKai
- Automated Insights
- CloudSight
- Salesforce Einstein
- Ascend
- Albert
Common Mistakes to Avoid in AI Based Marketing
Artificial intelligence and machine learning technology have progressed tremendously. However, the role of the marketer has not diminished, and each still needs the help of human strategies.
A good marketing strategist should avoid the following common mistakes while devising AI-based marketing strategies.
- Extensively relying on gut feeling
- Planning with less customer information
- Forgetting to analyze and test the performance of marketing campaigns
- Ignoring repetitive or loyal customers
- Targeting a broader and generic audience
- Focusing on multiple results/outcomes
- Adopting generic customer approach
- Depending on the valueless content
- Ignoring relevance and touch-point approach
- Fully relying on marketing channels only
Final Takeaway
The future of digital marketing is closely associated with artificial intelligence and machine learning based marketing. A huge number of big corporations are already benefiting. Now, many small and medium-sized organizations are extensively pursuing this path to get the most of its great power in the domain of digital marketing.
Your Thoughts?
We all know this marketing revolution is in its infancy. Have you integrated any aspects into your marketing? Do you have any specific areas of interest that you’d perhaps like to see more written about? Please share any or all thoughts on this exciting subject, in the comments section, below.
You may also want to read: 4 Ways Artificial Intelligence Will Impact The B2B Industry
How Artificial Intelligence Will Impact SEO and Search
The Bond Between Artificial Intelligence and Knowledge Management
How Will AI Ultimately Redefine Human Intelligence?
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