How is AI used in marketing?

How is AI used in Marketing

Table of Contents

AI is human-like intelligence in machines. AI was invented to lessen the human burden and assist humans in every way possible, from doing daily chores (i.e., vacuum cleaning robots) to even accompanying deep-sea exploration. 

So, How is AI used in marketing? 

We all know how vast marketing is. It includes everything, from distributing physical brochures, templates, and flyers on roads, buses, and trains to placing a million-dollar digital billboard ad in New York Times Square. It’s all part of marketing on distinct levels.

Anyways, marketing serves the end purpose of all businesses and organisations across industries of reaching customers and increasing profit. 

 Imagine now integrating marketing efforts with the benefits of AI and the level of excellence it will deliver.

Let’s find out the excellence, usage, and impact of AI on marketing.   

Key Takeaways 

  • Understand What is AI Marketing. 
  • Learn How AI is used in Marketing. 
  • Get to know about the Impact of AI on Marketing. 
  • Learn the pros and cons of using AI In marketing.  

What is AI Marketing?

Before we talk about AI in marketing, let’s first talk about AI. 

AI is intelligence in machinery that replicates human intelligence and gives the capability to think and learn. 

For example, Alexa, Siri, self-driving cars, etc. 

Simply put, how can Alexa or Siri answer your query in real-time, or how can a self-driving car operate on its own, even in traffic? 

It’s not that earlier we didn’t know how to drive cars. At the end of the day, both types of cars are a piece of metal, right?

So what makes the difference? 

Artificial intelligence! It is AI that powers a self-driving piece of metal and gives it human-like intelligence to increase speed, slow down, take turns, and push breaks whenever required. 

It enables the car to drive itself like a human, but without humans. 

AI in marketing is the same. It replicates human intelligence in a machine to do marketing for us. 

How is AI used in marketing?

AI in marketing is expected to grow from $13.51 billion in 2021 to $17.46 billion in 2022. 

The statistics make AI’s presence in the marketing domain loud and clear. Now let’s see how AI is transforming marketing.

  • Data analytics: Collecting and sorting large amounts of data, with the help of AI, helps to save time and effort in this process. 
  • Automation: Chatbots are the biggest example of automation, as it is conversing and dealing with leads and prospective customers. 
  • Optimizing campaign monitor:  Machine learning is a subset of AI that helps to learn from its experience and improve. In marketing, it helps in better optimisation of the campaign by studying and learning from previous campaign experiences.
  • PPC conversion: AI expertise in PPC ads brings the best results for you. It can adjust Pay Per Click(PPC) bids, improve retargeting, assist in running dynamic ads, find relevant and target keywords, and much more.
  • SEO: Google has already started using RankBrain for search queries and a machine learning algorithm to apply spam filer. Now marketer also depends upon SEO AI tools for SEO activities like site growth analysis, keyword research, search engine algorithm analysis, competitor analysis and many more.  
  • Sales and trend forecasting: Based on the study of customers’ past purchases and market trends, AI can forecast sales for those businesses. It best helps an organisation in inventory management and manufacturing of goods.
  • Consumer insight: AI helps to identify the target audience better with the data that is available and helps in suggesting actionable insight out of it. 

Also Read: What Is The Role Of SEO In Digital Marketing?

What is the Impact of AI on Marketing?

AI’s impact on marketing is similar to any other stream of work. It lessens the human workload and increases work efficiency. 

To better understand AI’s impact on marketing, let’s go through the case study of eBay and Phrasee’s email marketing campaigns. (AI-powered content creation SaaS platform) 

This AI and email marketing collaboration’s impacted into 

  • 7,00,000+ more open rate per campaign. 
  • 16% average open rate uplifted.
  • 56000+ more clicks.
  • The average click rate increased by 31%.      

Also Read: Artificial Intelligence And The Future Of Humans

Why did eBay use AI for its email marketing campaign in the first place?

Because they were facing a few problems, like 

  • 100 million + email subscribers across nations but speaking different languages.
  • How to persuade different subscribers to open emails and improve the open rate?
  • Challenge of writing personalised subject lines and CTA that cater to all audiences.
  • Challenge of a suitable workforce for creating marketing copy at this scale as it was time-consuming and required a lot of effort.   

Also Read: 5 Reasons Why Email Marketing Is Not Dead

What did Phrasee do for eBay’s email marketing campaign that gained this level of results?

  • Especially for eBay, they built an AI language model that mimics eBay’s brand tonality in any writing copy. 
  • Produced engaging copy and spiked both open and click rates. 
  • Produced natural language generation by utilising a deep learning model.
  • Per campaign set up time was reduced to just 5 mins. 
  • Achieved phenomenal results across the US, UK, and Germany. 

Pros and Cons of AI in Marketing

Pros of AI in Marketing Cons of AI Marketing 
Automation of processAI Chatbots lack personalisation and human touch 
Increased speed of workAI can be costly to be introduced in an organisation 
Better output efficiency and reliability  Algorithms are not 100% accurate 
Time-saving Human intervention is still required 
Data-driven work Limited creativity 

Conclusion

Machine isn’t any new to humans, but now AI has empowered machine to mimic human intelligence and make decisions as well. 

Big brands like Nike, Google, BMW, and Starbucks have started utilising AI simply because AI in marketing has a lot of potentials to contribute and execute marketing efforts in a more refined and effective manner.

Check Out: 7 Applications Of Artificial Intelligence In The Healthcare Sector

Frequently Asked Questions (FAQS) 

What is an AI marketing bot?

An AI marketing bot is a chatbot that is the first point of interaction with customers or leads to get through any inquiry.

How does AI benefit marketing?

Some benefits include automation of processes, increased speed of work, better output efficiency, reliability, time-saving, data-driven work, etc.

How is AI used in digital marketing?

AI is used in many stages of marketing, from research to forecast demand, customer acquisition, customer service and experience, data-driven insight, etc.

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