Artificial intelligence is going to have an incredible impact on the digital marketing industry in the near future. There’s no doubt that AI and machine learning will disrupt the digital marketing sector in more ways than one.
Technology is developing at a groundbreaking pace and over the last 10 years we’ve seen huge leaps in the technology we use everyday.
In the last few years we’ve seen impressive tech hitting the mainstream. Just take a look at the advancements in 2017 alone – self-driving cars have taken to the roads, augmented reality has been added to the biggest social apps (Snapchat, Instagram and Facebook Messenger), and IKEA has launched affordable domestic solar panelling.
AI has been a trending topic for a while now – it’s clear that machine learning and artificial intelligence (AI) are going to make a bit of a splash in the mainstream.
In the homes of millions of people worldwide there are Amazon Alexa devices and Netflix subscriptions. AI isn’t just a abstract idea anymore, it’s already being used everyday by millions of consumers. Netflix uses AI & Machine learning to make sure users around the world get the best viewing experience, and Alexa can do pretty much anything for you. Whether it’s your smartphone, your car, your bank, or your house – you’re using artificial intelligence on a daily basis.
Digital Marketing is a perfect sector to bring AI into the fold because there’s so much data involved, and working with data is what AI does best. As AI develops and advances it will be able to perform any task which requires data.
AI powered computers will be able to finish tasks – like customer segmentation and analysis, campaign automation and reporting and A/B testing – faster and more efficiently than humans.
The question is not ‘if’ but rather ‘how’ will AI reshape the digital marketing industry. Below are our top three predictions for how marketers will be working alongside AI in the near future.
We will see the rise of predictive marketing, this will enable digital marketers to make simpler and easier decisions.
Predictive marketing is a technique which determines the best marketing strategies to use in a given situation. This is accomplished by the AI assistant examining data analytics to find out the marketing strategies and actions which will have the highest probability of succeeding.
Predictive marketing isn’t a brand new practice, but with artificial intelligence applied predictive marketing is going to be more accessible and manageable. Tasks which formerly took weeks or months of data extraction and analysis by humans, will take a fraction of the time when run by AI.
Predictive marketing is going to be an incredible tool for marketers. A recent Everstring report found that 71% of marketers are interested in using AI for personalization and 68% of marketers believe that predictive techniques will be critical to digital marketing.
Companies who use predictive marketing to make data-driven decisions will no doubt have better results.
This data-driven process will help companies to make data-based predictions about:
- How customers will make purchases
- When they will make purchases
- How much they will spend based on their previous behaviors.
Having such insight into consumers and their behaviors has many benefits. Marketers will see improved customer engagement, effective use of marketing budgets, increased revenue, improved lead scoring, and more sophisticated segmentation of data.
Using AI-based predictive tools will allow you to create campaigns and actions which are overall better targeted to your customers.
AI is going to help you create even more personalized campaigns and ads for customers and leads.
Current digital marketing techniques already include massive amounts of personalization.
We already have the tools and technology to differentiate between gender, age, interests, previous browsing behavior and much more. For example, its current practice for one target group to see different headlines and photos than another target group. But, personalization in digital marketing has only just begun.
With AI and machine learning you’ll be able to be ultra-personal in your marketing campaigns.
When you use AI tools with personalization you can segment your audience into even smaller target groups. Instead of targeting an audience of 1000 people, you’ll easily be able to create even smaller niche audiences of 10 people or even a single person.
Create ultra-personal experiences for people interested in your business. Ultra-personalization will be used on multiple channels from Facebook to Email and everything in between, and no doubt it will result in greater conversion rates.
Dynamic Pricing is a strategy which can see your business make waves in industry. Just look at how Uber used dynamic pricing to disrupt the transport industry, all in just a few short years.
Dynamic pricing means that the the price of a product or service is flexible and not firmly set. Instead, the price of a product changes based on differing circumstances, such as:
- Increase in demand
- Peak user times
- Demographic and type of customer being targeted
- Changing and developing marketing conditions
Dynamic Pricing is one of the greatest and most innovative ways to use AI.
Airlines are a common example of the type of business using dynamic pricing strategies, but it can also be used with products. Retailers using machine learning to influence pricing have the opportunity to reap huge benefits, as we’ve seen with online retail giants like Amazon.
Dynamic pricing enables you to find the perfect price for each of your shoppers according to circumstances. AI will make this process easier than ever before by gathering shoppers’ information and data to inform your pricing algorithms. Another advantage of using dynamic pricing in your digital marketing strategy is that it allows you to find the optimal price which is most likely to maximize sales, conversion and boost margins.
There are several different models to consider with the dynamic pricing model. We suggest you take a look at this in-depth resource to see how you can apply it to your business.
With a few years to go until we see a full AI integration of these tasks, you and your team have plenty of time to upgrade your skills and embrace the future. These three ideas are a great direction to start on your journey to implement machine learning into your digital marketing strategy.
Nicolas Finet is the Co-founder of sort-list.co.uk. Follow him on Twitter @nifinet!