The Impact of Artificial Intelligence on Digital Marketing

Wayne Kernochan

Updated · Dec 12, 2023

The Impact of Artificial Intelligence on Digital Marketing

Because artificial intelligence (AI) can efficiently analyze and interpret vast amounts of data, it has become an essential tool for digital marketers. Generally, AI technology has the potential to revolutionize digital marketing by boosting personalization, productivity, and impact. As AI continues to advance, it will likely unveil new applications for digital advertising.

What is the Use of AI Algorithms in Digital Marketing?

#1 Predictive Marketing

Predictive marketing, a technique that determines optimal marketing strategies based on data analysis, will become increasingly accessible and manageable with the application of artificial intelligence. Tasks that used to take weeks or months for humans to extract and analyze data will now be completed in a fraction of the time by AI.

A recent Everstring report revealed that 71% of marketers have an interest in enabling AI for personalized marketing and 68% believe that predictive techniques are critical to digital marketing success. By adopting predictive marketing and making data-driven decisions, companies can expect significant improvements in results.

#2 Flexible Price

You can revolutionize your business with the strategic implementation of Dynamic Pricing. Just take a look at how Uber shook up the transport industry using this approach within a short span of time.

Dynamic pricing involves flexible pricing for products or services, based on various factors such as increased demand, peak user times, target demographics, and evolving market conditions. Although airlines are commonly associated with dynamic pricing, this strategy can also be applied to retail products. Retailers who utilize machine learning to influence pricing, like Amazon, have witnessed tremendous benefits.

By the way, you can benefit from a dynamic pricing strategy as a customer. You can install a VPN and change your location to check the price of a product in another region. If you are unable to bypass the site filter, use a dual VPN from VeePN. This feature involves using two servers in a series, which increases security and makes it impossible to determine the real location.

#3 Personalization

You can enhance content personalization by leveraging AI algorithms that analyze customer browsing behavior, demographics, and preferences. AI empowers marketers to deliver personalized content, offers, and ads, resulting in an improved user experience and more effective marketing campaigns that boost conversion.

To achieve digital marketing personalization, you can take advantage of AI in the following ways:

  • Analyze customers’ past behavior to send personalized offers and product recommendations.
  • Track customers’ browsing habits in real time to provide timely product recommendations.
  • Utilize AI-powered chatbots for quick product recommendations and prompt responses to customer inquiries.
  • Analyze customer viewing patterns to offer relevant videos or visual content.
  • Leverage AI to analyze social media, product reviews, and surveys to personalize branding efforts.

#4 Automation

You can automate email, social media, and data analysis tasks with AI-powered marketing automation tools. These tools enable you to focus on strategic and creative tasks to boost sales, marketing performance, and efficiency.

AI-powered marketing automation tools offer several benefits for digital marketing campaigns:

  • Machine learning algorithms use AI predictive analytics to analyze user data and predict which users are most likely to convert or take specific actions. This allows you to focus your marketing efforts on the most promising leads.
  • Real-time optimization of digital marketing campaigns is possible using AI campaign optimization tools. These tools automatically adjust paid search ad bids or marketing email content based on user behavior.
  • AI lead scoring algorithms assign a score to each lead based on their likelihood to convert. This helps you prioritize follow-up and allocate resources effectively.

#5 Powerful Data Analysis

You can benefit from the exceptional speed and efficiency of AI algorithms when analyzing vast amounts of data. Unlike humans, AI algorithms do not tire or become overwhelmed by large volumes of data. They effortlessly handle extensive datasets, making them efficient and effective at extracting valuable insights.

Moreover, AI algorithms continuously improve their analysis capabilities over time by learning and adapting. They effortlessly identify patterns, trends, and correlations in the data that would often be challenging or time-consuming for humans to uncover.

#6 Help in Content Creation

In the current content creation economy, AI is a game changer. You can use it to:

  • Craft captivating blogs with language that feels human
  • Develop social media posts that strike the right chord
  • Create personalized email campaigns to nurture customer relationships
  • Produce innovative visual content driven by AI-powered tools for content ideation
  • Identify and optimize keywords for SEO, enhancing content visibility

Although AI might raise concerns about job displacement, people increasingly view it as a helpful tool for human creators, rather than a threat. Striking this balance is crucial.

#7 Voice Search

In 2020, half of all searches were conducted through voice. A recent study predicts that by 2022, the majority of consumers – 71% to be exact – will prefer asking queries aloud rather than typing them. Furthermore, Google has advanced algorithms that accurately understand human language with an impressive 95% accuracy rate.

Using your voice to search is a faster and more convenient way of finding information, don’t you think? Voice search will revolutionize SEO strategies in the future, so marketers must optimize their content using voice-friendly long-tail keywords. Don’t forget to optimize your website for local search, as users often include words like “near me” when performing voice searches. Lastly, make sure your web pages provide direct answers to common questions, as voice search always seeks answers to WH questions.

Conclusion

AI can give marketers a better understanding of the market and customers. The marketer’s task is to correctly interpret the data and create an effective marketing strategy based on it. AI alone will not be able to do this, so there is no threat from it to the profession. However, it is reasonable for large companies to implement the technology, as it gives quite tangible results.

Wayne Kernochan
Wayne Kernochan

Wayne Kernochan has been an IT industry analyst and auther for over 15 years. He has been focusing on the most important information-related technologies as well as ways to measure their effectiveness over that period. He also has extensive research on the SMB, Big Data, BI, databases, development tools and data virtualization solutions. Wayne is a regular speaker at webinars and is a writer for many publications.

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