What is AI Marketing

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In the past few years, various companies — along with their marketing teams — have quickly adopted intelligent technologies that not only optimize their operations, but also improves their customer experience. Due to these advanced platforms, marketers are able to gather a more comprehensive understanding of the audience they’re after.

Furthermore, the insights they gather through this process are used to increase conversions while easing workloads for their marketing teams. In this Blog Post, we explore more about AI Marketing, including when it started, how it’s used in marketing, how it benefits our businesses, and more.

What is AI Marketing?

This process makes use of artificial intelligence technology to develop an automated decision, where information is gathered from data analysis, data collection, and other observations based on economic trends or other factors that might have an impact. Companies will often use AI in marketing efforts that need to be completed quickly.

AI uses customer profiles and data to understand how to best capture a customer’s attention, communicate with them, and then serve tailored messages to ensure maximum efficiency. Timing is an essential part of this process, where the AI delivers its messages without any intervention from the marketing team. Today, AI is used to perform various tactical tasks that help with day-to-day marketing that doesn’t require much refinement from humans.

What is AI?

Artificial Intelligence is a machine that demonstrates the capability of intelligence. If you notice software or a machine that follow these three steps, you’ll know you’re working with AI:

  • Receives large amounts of data
  • Processes that data into an output
  • Performs tasks that are optimized to achieve its goal

However, we often associate the term AI to describe a computer that mimics the cognitive function of a human. What we don’t realize is, any simple calculation that our computer makes is the function of an AI. If you play chess on our computer, you’re playing against an AI. If you ask Alexa to give you directions to the nearest Starbucks, you’re talking to an AI. If you’re using programmed advertising that places banner ads to optimize CTR, then you’re using AI.

However, it’s also important to understand the various kinds of AI that apply to marketing, as well as how this technology is changing the industry. Our businesses can use AI marketing for cases such as:

  • Natural language processing
  • Data analysis
  • Media purchasing
  • Making automated decisions
  • Generating content
  • Real-time personalization

When AI Marketing Started

In the last 20 years, AI has helped advance the advertising market by providing efficient solutions and optimizing operations. AI is particularly well-built for programmatic and content creation, refining advertising platforms, and emulation conversations through virtual assistants and chatbots. Due to its versatility, artificial intelligence is able to dictate exactly how our advertising decisions should occur.

In 1998, Jussi Karlgren, a Swedish computational linguist at Columbia University released a report on “digital bookshelves.” It highlighted the concept of gathering consumer behaviors in order to predict future behavior. It was also in the same year that Amazon had introduced “collaborative filtering” which enables recommendations for all their customers.

Due to this breakthrough, we can enjoy the benefits that AI programming provides us. Today, Netflix is able to suggest films and shows we might like, Spotify can recommend music we might like, and Facebook suggests people that we might know.

It might be hard to believe, but this all comes from AI-based clustering through the interpretation of consumer data, combined with demographics and profile information. Each of these AI-based systems will continue to adapt to the information you feed it and will react with new and tailor-made recommendations in real-time.

How Does Our Business Benefit from AI Marketing?

Currently, AI marketing is already being used by plenty of companies to boost the ROI and performance of digital marketing campaigns. Moreover, we can also take advantage of these benefits for our businesses:

  • Personalized content: By combining AI, machine learning, and data, marketers will be able to refine analytics to get to know customers on a personal level and provide them with content geared specifically towards them.
  • Smarter advertising: AI can help to enhance marketing solutions through the use of data, creating smarter online ads, and promoting insightful analysis.
  • Improved customer service: Consumer engagement tools such as chatbots have been on the rise and will only continue to grow as AI performance gets more and more sophisticated.
  • Make searching better: AI is able to analyze the digital search patterns of customers and can help to pinpoint important areas in which to focus all marketing strategies.

Whether we notice it or not, AI marketing is all around us — social media, online shopping platforms, and even on the various apps we use. This practice has been around for the past two decades and will only continue into the future because of its potential and the results it has already shown. Don’t get left behind, utilize this amazing marketing strategy and watch as you reap the benefits it can provide.

To learn more about AI marketing check out our Ultimate Guide to AI Marketing.