How Artificial Intelligence is Driving Innovation in Digital Marketing

The world of marketing has come a long way over the last decade, making a steady, dramatic shift from traditional to digital strategies. If there’s anything that has had a huge impact in this transformation, groundbreaking advancements in technology have undoubtedly played a major role. A technological development of growing popularity, artificial intelligence (AI) has brought about a paradigm shift to ways by which professionals go about their business, not only in the marketing world but also in different industry sectors.

Artificial intelligence has become a strong driving force in revolutionizing digital marketing. Here’s how.

Streamlined Marketing Approach

In recent years, proliferation of data in the Internet gave way to the accessibility of over 80 percent of all known data throughout the world. This has provided businesses the means to access valuable information through various sources — from sales, advertising, email or web analytics. For marketers in particular, this is a gold mine. But in the absence of AI-powered systems, using this overwhelming collection of information to advantage can also prove challenging. So how do marketers utilize this information to get ahead of the rapidly changing behaviors and needs of consumers?

All this sourced data enables marketing experts to identify customer preferences, even sentiments and emotions, and predict consumer behaviors

AI’s diverse capabilities to collect and process data have enabled marketing experts to fully understand their audiences in a deeper, more insightful level. Humans can only assess a finite amount of information, and with the advent of Deep Learning algorithms, it has become possible for businesses to develop effective marketing campaigns in a time-efficient manner. Gathered digital footprints of a user, including browsing patterns, search data or social media activities, can then be analyzed and used to strategic advantage by marketers to drive more engagement. All this sourced data enables marketing experts to identify customer preferences — even sentiments and emotions — and predict consumer behaviors, allowing them to effectively target defined ads, curate relevant content and customize an entire customer experience distinct to a user.

Curated Content and Personalized Customer Experience

Personalization is a key tenet of today’s digital marketing era. In order to accomplish personalized customer experience, marketers primarily need to know their audiences and understand what motivates them. AI-powered systems empower marketers with a better insight to specific customer needs, which essentially enables them to deliver relevant message and best-suiting content, and create tailored experiences to the right customer at the right time.

Netflix reported that 80% of content discovery on their platform happens through algorithmic recommendations

Hyperpersonalization of content is presently a major AI-driven marketing trend, which is also expected to remain prevalent in the coming years. In fact, in a survey conducted by Salesforce, 61% of marketing leaders expect AI to substantially drive transformation on hyperpersonalization of content in the next five years. AI can also leverage hyperpersonalized product recommendations for customers, which has proven to be an efficient strategy in re-engaging audiences. A good example of which is Netflix and its hyperpersonalized content recommendation for their subscribers. The streaming service giant inspires user interests by providing suggestions based on their viewing habits and preferences, and it is through recommending content relevant to the interests of their subscribers that they remain glued to the service. Netflix reported that 80% of content discovery on their platform happens through algorithmic recommendations and approximately 80% of their subscribers trust and view recommended content.

Optimized Customer Interactivity through Chatbots

In today’s fast-paced digital marketing landscape, customers have developed high expectations for service and support functionality. Gone are the days where customers receiving a delightful agent-assisted support is a perk, and here are the times where customers expect nothing less than time-efficient, resolution-driven yet equally pleasant interactions. In addition, customers determine the avenues by which they interact with brands — whether via phone call, online conversation, email or text messaging — making presence and consistency across multiple channels increasingly important. So how do brands manage to deliver a positive customer experience in an omnichannel environment?

A report by the Gartner Customer 360 Summit suggests that customers will manage 85% of their relationship with businesses without actual human interaction by 2020

Chatbots have enabled businesses to incorporate automation into interactions through various channels. They serve as an efficient yet cheap way to provide customer service and, most crucially, cultivate stronger relationships with clients. Chatbots can work for hours on end to address queries, personalize resolution and deliver customer interaction, as well as analyze and handle issues as they arise. The utilization of chatbots have become increasingly prevalent in differents platforms of communications, such as Facebook and Twitter, and is projected to rise even further. In fact, a report by the Gartner Customer 360 Summit suggests that customers will manage 85% of their relationship with businesses without actual human interaction by 2020.

AI has fueled considerable changes in digital marketing and these are just some of them. As technology advancements continue to intensify, it won’t be long till we are introduced to the next myriad of innovative ways AI will continue to reshape industries and businesses.