Artificial Intelligence Marketing: What Is It And Why You Should Care

Artificial intelligence is nowadays used in many industries to accelerate business processes, make operations more efficient and ultimately generate a higher revenue. In the hands of marketing specialists, AI solutions have the power to improve user experience significantly, increase accuracy in the analysis of technical information, budgeting, and more. 

Artificial intelligence can be a powerful tool for your marketing department to excel at understanding your clients and therefore getting ahead of competitors. AI is gaining traction rapidly within large and small organizations alike. A survey by consulting giant Deloitte proves that over 85% of UK businesses have already plans to invest on this technology by 2020.

In this regard, Paul Thompson, UK digital transformation leader at Deloitte explained: “AI will have a profound impact on the future of work. Human and machine intelligence complement each other, and AI should not simply be seen as a substitute. Humans working with AI will achieve better outcomes than AI alone, and businesses need to get this careful balance right.”

That said, it is vital for marketers to know where the hype about Artificial Intelligence Marketing (AIM) stops and where real functionality starts.

What is Artificial Intelligence Marketing?

AIM is the automation of the process of gathering and interpreting customer insights for the purpose of marketing efficiency. Thus, marketers leverage customer data and AI concepts to predict their customers’ next move and to help improve the customer journey down the sales funnel. Ideally, this provides a sustainable solution to marketers as it helps them have a clearer picture of their target audience. 

Even better, digital marketers can have access to reliable big data which provide analytic solutions to boost their campaign’s performance as well as their ROI. And there is no better time for marketers to incorporate AIM strategies other than now since AI is expected to grow across all industries and segments.

A report by MIT researchers in this field demonstrates that investment in AI is hyped. In the image below, you can see AI investment on the left, against total investments on the right.

Core Elements of AI Marketing

Artificial Intelligence enables marketers to deploy a comprehensive data-driven approach to digital marketing and decision making without the time-consuming data analysis. AI automates data analysis from multiple sources and leverages it for practical use.

Big Data

This enhances the ability of a marketer to aggregate and segment large amounts of data with minimum efforts, which would otherwise be incredibly tedious if done manually. With big data, one is able to target the right audience, increasing the chances of turning them into customers.

Machine Learning

Machine learning has transformed the landscape of digital marketing by focusing on behavioral targeting, personalization, micro-targeting, among other parameters. Its implementation has so far produced incredible results for both small, medium, and large organizations. Some of the crucial machine learning marketing models include: 

  • Effective risk prediction and interventions
  • ML insight based content campaigns
  • Highly targeted email campaigns
  • Machine learning based pay per click campaigns
  • Real-time content help through tools (i.e. chatbots)
  • Efficient predictive data modeling

Powerful solutions

AI marketing has provided solutions that traditional marketing couldn’t offer. And it’s all thanks to the integration of huge data and the segmentation engines powered by AI fragment data which provide precise information such as the gender and age of a user, as well as their location and other crucial marketing data.

Benefits of AI Marketing

A research carried out by PWC showed that72% of the marketersinterviewed believed that AI was a “business advantage” that enables decision makers to focus on meaningful work. Here are the top benefits of AI for marketing operations:

AI saves your team valuable time

AI allows marketing teams to analyze extensive pieces of data that would be humanly impossible to process, or at least too costly.  With the ability to collect and analyze vast amounts of data, the marketing team can undertake more conclusive tests instead of wasting time and resources trying different variants for a single factor.

AI delivers accurate, customized offers

Using personalized content is aspiring to current users and potential customers. A study carried out by Accenture outlined that 91% of customers around the globe are more likely to purchase products or services from a company that remembers their preferences. With AI, your marketing team can customize elements of the sales strategy to suit various clients’ preferences.

AI helps you reach your audience

Based on data analysis, AI is able to help formulate accurate targeting settings to ensure maximum efficiency of your ad campaigns. In other words, reducing CPC costs while reaching to the largest possible audience.

Other benefits include

  • Reduction of overall marketing costs
  • Increase in sales and profitability
  • Higher precision of marketing campaigns
  • Enhanced competitive advantage
  • Improved user experience and customer satisfaction
  • Development of strong customer relations
  • Reduction of customer churn
  • Increase marketing qualified leads (MQLs) and sales qualified leads (SQLs)
  • Data-driven optimization of marketing campaigns

Use Cases for AI in Marketing

Last year, a survey by the technology firm MemSQL showed that 65 percent of managers are using, and planning to adopt ML/AI to increase the efficiency of their data strategies and ultimately take better decisions. These are the most common use cases for AI in marketing:

Recommendation Engines

In 2017,Alibabareported a 20% higher conversion rate in a single day on their personalized landing pages, which were powered by recommendation engines. But the Chinese empire isn’t the only company relying on this technology. It is estimated that more than 80% of TV shows that people watch on Netflix are discovered through the recommendation option.


Most companies have managed to move from forecasting using outdated data to real-time, ML-assisted forecasting which is more accurate and leads to substantial results.

Addressing Churn

Marketers can easily identify issues that could cause a customer to leave and helps to address them to provide better customer experiences. French e-commerce retailerShowroomprive.comis an example of it. The company used an AI-powered churn prediction system which helped identify potential churners with a 77% accuracy.

Content Generation

Finding which content works best among your users is challenging. AI helps you to develop content that will most likely boost traffic to your website or app, and elevate conversion rates.

Hyper-targeted advertising

A study carried out bySalesForceindicated that 51% of consumers expect that by 2020, companies will have anticipated their needs and made appropriate suggestions before making contact. AI-based solutions make sure your marketing department develops attractive, customized offers and delivers them to the people that matter the most to you. Integrating old and existing data from multiple sources, AI is able to form patterns in searches and behaviors to successfully identify who is who in the online world.

Lead Scoring

Predictive analytics will lead to more accurate scoring, increasing effectiveness of marketing and sales. A research byIDCillustrated that up to 83% of companies either use or plan to use marketing and sales predictive lead scoring.

The Bottom Line

AI has a long way to go before we could all sit back and let the machines do all the ‘heavy lifting’. But even today there are already affordable solutions that might help your business — small or big — generate better results.

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