Artificial intelligence will disrupt our everyday life in every possible way. We are no longer surprised by self-driving vehicles equipped with artificial intelligence, “smart” virtual assistants, robots that help fight deadly diseases, or algorithms that predict the future behavior of customers. The marketing industry is also going thru some major changes. New marketing startups powered by AI algorithms are launched on daily basis. The world’s largest digital industry leaders (IBM, Microsoft, Google, Amazon, and Facebook) make significant investments in the development and implementation of artificial intelligence in their products and services.
Below are use cases for the application of artificial intelligence in marketing and advertising.
Big data analysis and forecasting
Identifying data correlation and using it as the basis of AI marketing. Brands have a huge amount of information about users such as their online activities, social media presence and preferences, information about completed purchases and abandoned shopping carts, search queries, and personal choices. Artificial intelligence helps to structure, rank, and select the data that helps to solve a specific marketing problem and to predict the outcomes. For example, AI powered programs can suggest products and offers that are relevant to a particular customer and define the timeframe when user is most likely to make purchases.
Prediction using big data is the most important area of application of artificial intelligence for any industry. A marketing forecast based on this analysis becomes the basis for an effective brand strategy in the market. Data collections of online user activity will be a priority task for most of the companies.
A large set of Google’s Cloud AI tools for analyzing business data and creating learning models are based on artificial intelligence. Salesforce Einstein is a platform that allows the use of artificial intelligence to automate work with customer activity data, to create forecasts and recommendations based on the data, and use the forecasts and recommendations in business processes.
Artificial intelligence reinvents the online search as we know it. For example, the self-learning algorithms of RankBrain, part of the Google search engine, generates search results that are customized and relevant to a specific user. It can literally “guess” what users are looking for and offer suitable answers, without pulling out huge amounts of information based solely on keywords.
Algorithms are now able to understand the verbal intonation of a query so that voice search goes beyond the scope of semantic analysis and recognizes the emotional state of the user. It can determine whether a person is under stress or in good spirits and whether they are in a crowded room, on the street or at home The AO then suggests the most appropriate solutions.
The optimization of marketing and promotional materials for intelligent search engines becomes a key requirement for brand promotion.
Conversational commerce and user support
Conversational commerce is at the intersection of natural-language interfaces (such as text messengers and voice services) and e-commerce. It involves communicating between companies and users through chats and instant messengers on Facebook, Telegram, WhatsApp, and others.
Consumers can chat with a brand representative (This can be a person, chatbot or a joint chat.) to get user support, ask questions, get personal recommendations, read reviews and even make a purchase right inside their messenger.
Recent studies have shown that monotonous repetitive tasks (For example, answering hundreds of typical questions in a chat room or on a hotline.) can cause a nervous breakdown or provoke an unethical behaviour. Artificial intelligence helps to significantly smooth out the situation by reducing the waiting time for the consumer, providing an instant search for the necessary results, and personalizing the message within the dialogue. This leads to increased customer satisfaction and optimizes onboarding clients for a company.
Creative design and content
It is believed that creativity is the only advantage of the live person versus artificial intelligence. Nevertheless, content and design created by computer algorithms also prove its viability as a cost-effective business solution. For example, some financial and sports news on niche portals are written by artificial intelligence algorithms based on real-time data.
In addition, by analyzing large amounts of information and working with insights about the target audience, the algorithms can understand which message and creative elements will attract the consumer. So you can “tune” the creativity to fit preferences of a particular user: from the color and stylistic adaptation of visual elements to the verbal and audio components of all communication materials.
Hyper-personalization and customization
We have heard many times about the importance of personalizing services and the efforts that companies are making to find an “individual” approach to the consumer and to keep him engaged.
Personalization was based on usage of a user’s personal data like name, location, or purchase history. Hyper-personalization has replaced it. It takes into account user behavior in real time. The data obtained about a person online allows a company to almost immediately adapts communication with the user and makes it even more personal. Regardless of the size of the audience, artificial intelligence is able to create a unique dialogue with each user (for an advertising message, email newsletter, or on the webpage) and provide relevant information that will help him with his purchase decision.
It is likely that artificial intelligence will allow brands to plan, purchase, and optimize their advertising placement in-house, without the involvement of agencies in the nearest future. For example, the German car manufacturer Volkswagen has already entrusted the management of media purchases in Germany to artificial intelligence and claims that it copes better than a traditional agency. The brand took advantage of the recommendations of the Danish media agency Blackwood Seven, which uses artificial intelligence and predictive analysis to make decisions on media placements. Now Volkswagen sells more cars, according to Lutz Kothe, head of the Volkswagen marketing department in Germany.
Artificial intelligence is gradually making a revolution in the industry. It is used in dozens of areas of modern marketing and advertising. In the coming years will change our way of life, affecting our consumption of information and how we make purchasing decisions. So it it is better to start using AI it right now in order to be among the leaders of AI marketing in a few years.
Victoria Liset is strategic business & technology consultant to SMEs. She helps businesses improve their performance by using data more efficiently, and helping them to understand the implications of new technologies such as AI, Machine Learning, Big data, blockchain and IoT.