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How AI Can Affect Your Digital Marketing Campaigns

Artificial Intelligence, AI digital marketing.

It’s not surprising that artificial intelligence leads in every industry it touches. Currently, AI digital marketing campaigns are taking over and revolutionizing the online marketing space. Thus, you’ve already likely purchased a product or service that you found due to AI-powered digital marketing.

Artificial intelligence (AI) enables digital marketers to maneuver the vast online space and build connections with potential buyers. That said, below are ways in which AI is revolutionizing digital marketing.

1. Ultra-Personalized Campaigns

Artificial intelligence can help digital marketers create personalized marketing campaigns for leads, prospects, and customers. Nowadays, nearly all digital marketing techniques require a lot of personalization. While there are tools that segment your audience based on age, gender, browsing patterns, and interests, they may not provide enough information for a personalization campaign.

Currently, it is common for a specific target audience to view different marketing messages, headlines, and photos from another group. However, machine learning and AI goes further into making your marketing campaigns ultra-personal. AI allows marketers to segment their audience into even smaller groups.

For instance, instead of targeting 1000 people, you can create a small niche audience, say of 50 or fewer people. These marketing messages can even contain references to previous products they purchased. Fortunately, such personalization can be applied to various marketing channels, including Facebook, Twitter, and Email marketing.

2. Rise of predictive marketing

The increasing adoption of AI in digital marketing is leading to an increase in predictive marketing. As the name suggests, predictive marketing is where marketers determine the most appropriate marketing strategy for specific situations. Predictive marketing begins with AI tools analyzing data and suggesting marketing actions with the highest probability of success.

While predictive marketing isn’t a new practice in the marketing space, artificial intelligence has made it manageable and accessible. Data extraction, analysis, and other tasks that previously took weeks or months can be done within minutes. Businesses that use predictive marketing to guide their marketing campaigns can often witness better results.

Businesses can use predictive marketing to predict;

  • Customer purchase behavior.
  • When customers will likely make purchases.
  • How they will spend – based on previous purchase behavior.

Having such customer insights is very beneficial for businesses. Therefore, businesses that curate their marketing strategies according to this data can see improvements in engagement, an increase in revenue, better leads, and better allocation of marketing budget.

3. Dynamic Product/Service Pricing

Most businesses use dynamic pricing as a strategy to create a buzz in their niche. A good example is how Uber revolutionized transport costs through dynamic pricing. Essentially, with dynamic pricing, the cost of products or services is flexible. Therefore, the price of products or services can change due to several factors, such as;

  • Changes in demand.
  • Peak usage times.
  • Type of customers targeted.
  • Changes in marketing conditions.

Unfortunately, businesses can’t find out about these changes in real-time. However, this is where AI comes in. Currently, airlines are the main beneficiary of AI-influenced dynamic pricing. Retailers can also incorporate machine learning technologies to influence product prices and generate profits.
At the bottom line, dynamic pricing enables businesses to set perfect prices for their customers according to the prevailing circumstances. Unlike before, AI makes this process easier, as it simplifies the gathering of customer data and any other information that influences pricing algorithms.

The Bottom Line

AI will undoubtedly influence significant changes in the digital marketing realm. Supporting this are some AI facts to note;

  • More than 80% of tech leaders and businesses agree that artificial intelligence boosts productivity by 40%.
  • 97% of smartphone users use AI-powered voice assistants.
  • 61% of digital marketers consider AI an essential element of their data strategy.
  • Netflix saved over $1 billion by leveraging machine learning to provide personalized movie recommendations.

Therefore, as AI continues becoming accessible, digital marketers should use it to analyze data, predict customer/market trends, and refine their marketing strategies.

Do you want to discuss ideas further? Contact our team today!

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