Technology is developing at such a rapid pace that sometimes it feels like each day we see a groundbreaking new gadget. Artificial intelligence (AI), the practice of creating intelligent machines that perform human tasks, is becoming an important part of every facet of life. Businesses are already harnessing the power of AI and machine learning to provide customers with better products and services. Digital marketing is one of the fastest-growing and most exciting businesses sectors around. From social media platforms to online advertising, brands are using the Internet to help grow their customer base and spread their message.
In fact, digital marketing is such an attractive prospect that there are many companies out there working on developing AI privately. AI has begun to enter this sector as it offers a quick and effective solution to helping marketers with all aspects of targeting their customers – whether that’s improving customer service or increasing sales. In the near future, AI will be able to finish tasks – like customer segmentation and analysis, campaign automation and reporting, and A/B testing – faster and more efficiently than humans. So, let’s explore ways that artificial intelligence technologies are expected to disrupt digital marketing in the near future.
Predictive Marketing
Predictive marketing aims to identify consumer segments that are most likely to respond to a marketing campaign or piece of content, thus removing the need for advertisers to trial numerous individual marketing activities and use limited resources to do so. This is accomplished by the AI assistant examining data analytics to find out the marketing strategies and actions which will have the highest probability of succeeding. While it’s no secret that AI-based predictive analytics is disrupting B2B customer relationship management and enterprise resource planning, we can also expect it to transform an industry as personal as marketing, as well.
As AI becomes more mainstream, more people will have access to tools that allow you to apply predictive marketing to find a broader set of customers and predict which of these customers are most likely to act in a specified way. This will allow businesses to make better decisions about what they sell, how much they sell it for, and where they do business. That said, using AI-based predictive tools will also allow you to create campaigns and actions which are overall better targeted to your customers.
Personalization
Gone are the days of standard lists of demographics you can target when creating campaigns and ads. Now we have to consider behaviors, online activity, and location. The possibilities of what you can personalize are endless. Personalization is one of the keys to success when you're marketing online. Consumers are tired of being treated like a drone and want to know that brands have something to offer them. This means that they feel like the brand is involved in their life, answering questions and connecting with them at every step of the process. A big part of this is making sure that you are segmenting your customers according to what they want, their needs, where they live, and much more.
AI is going to help you create even more personalized campaigns and ads for customers and leads. The concept of personalization is pretty straightforward: deliver content to your users that is more relevant to their preferences, whether we are talking about specific products and services or anything else. And with AI now an integral part of all our systems, the idea of ultra-personalization is taking over. We can, of course, gather lots of information from people who visit our sites and our social media pages, but AI offers a level of interaction that goes far beyond what we’re used to seeing. This means you will not only be able to find out more from your users, but also use this information to create relationships that are very personal indeed.
Dynamic Pricing
Dynamic pricing is not a new concept in business. It is a marketing strategy that has become increasingly popular recently, despite being around for many decades, and has been used by companies like Uber, Airbnb, and Expedia. Dynamic pricing has proven to be highly successful at increasing profits, growing customer satisfaction and even increasing sales. One of the most widely publicized uses of dynamic pricing is Uber, which has disrupted the taxi industry by dynamically adjusting the price of its service based on demand. This strategy can be applied to almost any industry because it's based on basic human psychology and understanding how people think you can drive sales.
Dynamic pricing has not been well received from both consumers and e-tailers. It is the main reason why many of them are afraid to adopt it in their business model. However, its adoption will only increase over time as AI takes away the guesswork and reduces costs applied to dynamic pricing by businesses trying to determine prices. One of the biggest challenges for online retailers is to find the best way to convert those visitors into customers. Dynamic pricing enables you to increase your prices if certain items are not selling. It’s important that you set up the right way in order to see the maximum potential and get more customers having a higher average order value.
AI is one of the most disrupting forces in digital marketing today. In the next five years, as more brands and agencies employ AI technologies to run their campaigns, the art of marketing will start to look a lot different. Digital marketing employees should be bracing for changes that include new competitive challenges, displaced jobs, and the need for innovative thinking paired with cutting-edge technology. But there are also a number of benefits stemming from the deployment of these technologies that marketers can take advantage of to separate themselves from their peers. AI is the current “it” thing, with tech startups and major corporations alike scrambling to own their share of this booming market.