AI Marketing: A Complete Introduction and Overview
Finding the right prospects requires the necessary development, within the marketing industry, and that of artificial intelligence. This creates both opportunities and new challenges as AI marketing develops in the coming years. This sort of technology has become increasingly prevalent in consumers’ day-to-day use, which is frequently used on smartphones. Research tells us that nearly 97% of smartphone users make use of AI-powered voice assistants, with roughly 40% using these technologies to function at least once every day. The ability to see the future of marketing will determine which companies survive to experience it. Their research with HSBC’s customer rewards initiative shows that AI is able to interpret a much wider breadth of data, in far greater depth and at far faster speeds, could.
The specific applications of AI in various marketing segments and their transformations for marketing sectors are examined. Artificial intelligence (AI) is not just a technology but a powerful force reshaping and benefiting societies by reducing costs and risks, increasing consistency and reliability, and providing new solutions to complex problems (Taddeo & Floridi, 2018). Among other things, AI applications and systems can be discriminatory in various respects. On the customer level, discrimination can arise from customer prioritization based on demographic and economic factors (e.g., Libai et al., 2020) and targeting (e.g., Matz & Netzer, 2017) or alienation (e.g., Puntoni et al., 2021) of vulnerable consumer groups. On the company level, market share concentration through AI-enabled e-commerce platforms (e.g., Lee & Hosaganar, 2019) and unequal representation on them (e.g., Milano et al., 2021) can disadvantage some companies while privileging others. Such discriminatory treatments can reinforce and exacerbate existing economic and societal inequalities.
AI in Digital Marketing: How AI is Modifying the Digital Marketing Landscape
This empowers marketing teams with a deep understanding of their customers and accurate predictions of their behavior. From a purely deontological perspective, AI applications could be entirely called into question when non-maleficence cannot be taken for granted. In consequence, promising opportunities to serve customers and beneficence on the customer and company levels would be missed. Thus, a principled, deontological AI ethics approach with normative imperatives and maxims could to be inappropriate to account for colliding principles. A “deontologically inspired tick-box exercise” (Hagendorff, 2020, p. 112) might be ill-suited to scrutinize such far reaching ethical concerns. Instead, a utilitarian perspective weighing benefits and costs across all stakeholders—for instance, utilitarian calculations based on ethical foresight (e.g., Floridi & Strait, 2020)—could complement high-level ethical principles.
For example, Affectiva partnered with Ford to create AutoEmotive sentiment analysis, to try to figure out drivers’ emotional states. Each of these four kinds of data is important, but many marketing teams particularly use engagement data and behavioral data to understand the efficacy of their campaign’s marketing strategy. To enhance its content marketing efforts and create personalized communications for its audience, global food and beverage giant Nestle used natural language processing (NLP) technology to produce targeted content for various segments of its audience. Starbucks uses predictive analytics to serve customers with personalized marketing messages. They include recommendations when a user approaches a local store and special offers to increase the customer’s average order value. The success of an AI marketing tool depends on the accuracy and relevancy of the data it’s trained on.
What is Artificial Intelligence (AI) Marketing? A Complete Guide
Over 80% of the shows people watch on Netflix are now based on its personal recommendations platform – a testament to its power in a time where people demand more value than ever from the brands they’re willing to invest in. Boasting a whopping 31.2 million mobile customers to date, it’s clear that initiatives like this are driving incredible levels of growth and engagement across the globe. Not only did the bot-powered help broaden Grab’s brand offering (extended to grocery deliveries, bill payment assistance, and ordering takeaways), but it also engaged consumers from six new international markets through Facebook Messenger. To put this notion into perspective, here we explore some quite different but equally inspiring uses of AI in digital marketing. By analyzing past conversations and communications with clients you’re able to identify common characteristics amongst customers who’ve stopped using your services. Social listening involves tracking online mentions of your brand and repurposing them to increase brand awareness.
KFC Ecuador noticed that many of the company’s customers were using their app to download coupons but weren’t going through the process of redeeming the offers. Looking to drive engagement with these promotions, the brand found an AI marketing technology that uses predictive insights and automation to deliver these marketing campaigns right when recipients are most likely to engage. By using AI to reach out to customers at the right time, KFC Ecuador was able to increase revenue by 15%.
The pros and cons of AI in marketing
Content marketing is exceptional at engaging and building relationships with customers, but it also requires significant effort and resources to create and distribute quality content. AI can reduce the demands of distribution by automating content campaigns, improving ROI. It takes data from your campaign, processes it, and helps you create a better campaign that appeals to more people in your audience. If you have an unhappy customer, you will miss out on sales and hurt your reputation, too. With AI marketing, you will improve the customer experience to promote conversions on your site.
This is just one example of how AI is transforming the marketing landscape, creating more engaging and personalised experiences for customers. In fact, the value of artificial intelligence in marketing is expected to increase to more than $107.5 billion by 2028, and for good reason. This is just one of the many ways AI proves helpful in marketing- from personalised recommendations to creating content for marketing messages; AI keeps both you and your customers content. Incentives to opt in to the brand’s gas—such as coupons, packaged deals, or redeemable rewards points—can then be accrued on the customer’s app-based account. While the company asserts that the information gleaned isn’t being used to better understand user behavior, their recent open-sourcing of the platform opens up the gates to the possibility that other companies can leverage this predictive technology as well.
This book will not teach you to be a data scientist—but it does explain how Artificial Intelligence and Machine Learning will revolutionize your company’s marketing strategy, and teach you how to use it most effectively. Data and analytics have become table stakes in modern marketing, but the field is ever-evolving with data scientists continually developing new algorithms—where does that leave you? This book walks you through the “need-to-know” aspects of Artificial Intelligence, including natural language processing, speech recognition, and the power of Machine Learning to show you how to make the most of this technology in a practical, tactical way.
While beneficence entails to the promotion of well-being as well as social, environmental, and common good (Jobin et al., 2019; Thiebes et al., 2020), the tenet of non-maleficence cautions against the potentially negative aspects of AI. It emphasizes the importance of safety, security, and privacy as well as the prevention of risks and any harm—both accidentally/unintentionally (overuse) and deliberately (misuse) caused (Floridi et al., 2018; Jobin et al., 2019). Although beneficence and non-maleficence seem logically equivalent, they are not opposite ends of a continuum but coexist (Floridi et al., 2018). The principle autonomy refers to self-determination and the power to and whether to decide in an uncoerced way. That is, it concerns balancing human and AI agency and decision-making power (Floridi et al., 2018; Morley et al., 2020).
A step-by-step guide to incorporating AI into your marketing strategy
As a result of widespread detection of the novel Coronavirus, digital software and solutions have been adopted throughout the supply chain industry to boost productivity and advance the business. Due to competition, the market is being driven by the need for artificial intelligence to be implemented in marketing & promotion. As a result of the COVID-19 epidemic, businesses are increasingly turning to AI services and solutions to solve their problems. In order to help the economy cope with the stagnating approach caused by the spread of the pandemic, the government is heavily investing in innovative strategies to implement and understand the breadth of artificial intelligence. Moreover, the major market participants are seeking innovative and strategic ways to implement AI-based products, services, and solutions during the forecast period in order to improve the marketing path of the AI in marketing market. Artificial intelligence consultants advise high-level organizations to use AI data analytics in their marketing operations to make better predictions.
This enhances customer engagement, increases conversion rates, and fosters long-term customer loyalty. To the best of our knowledge, our conceptual analysis is the first study to systematically apply the ethical principles related to AI to AI applications in marketing from a multi-stakeholder perspective. Our systematic conceptual assessment of the ethics of AI in marketing is informed by a comprehensive review of the literatures on both AI ethics and AI in marketing and provides two important contributions to both streams of research. First, we reveal interdependencies and tensions of ethical principles in dependence of the stakeholders concerned. Particularly, the principles beneficence and non-maleficence are interrelated and judged differently across the customer, company, and societal and environmental levels.
Ultimately, AI content tools must be implemented thoughtfully across your inbound marketing program. Understand how AI tactics will help you guide prospects to solving their pain points. Don’t turn to AI because it’s the hot new thing but rather because it will help you help your customers more efficiently and turn leads into customers quicker. Customers don’t always like chatbots or even talking to computers on the phone
Simple, unsophisticated chatbots can sometimes make it obvious that there is no human on the other end. This can make certain people (especially those of older generations) very uncomfortable.
In fact, in 2012, the retailer made headlines when they were able to correctly predict the pregnancy of a teenager based off of her purchasing habits, before she had even discovered she was (unexpectedly) expecting. Leverage a real-time CDP to orchestrate personalized multichannel campaigns optimized by AI. Data privacy is a topical issue in AI-backed operations because of its sensitivity.
- Finally, most marketing automation tools will include some level of reporting and dashboarding to allow marketers to view results of the automations being put in place.
- In a comprehensive review, Barredo Arrieta et al. (2020) identified intelligibility (i.e., human understanding of a model’s function without any need for explaining its internal structure or underlying data processing algorithm) as the focal concept related to XAI.
- Ensuring accessibility for all requires finding affordable solutions or alternative approaches.
The technology even uses motion capture to replicate the user’s movements — so when they walk past a store, the mirror matches their gait. Not only that, but the organization has also been able to produce more efficient content, completing over 130 optimizations and publishing more than 150 blogs. Find out how Carvel Ice Cream uses the feature to improve their response time on Twitter.
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