The transformations in marketing and advertising that have happened for the past decade are unprecedented. In the era of TV and newspaper ads, potential customers stayed behind TVs, making it impossible for brands to receive data on their feedback and attitude towards ads and the brands that created them. Marketing teams were working days and nights trying to paint a picture of a target customer and predict how they would behave towards products. Due to the lack of information about customers’ profiles, marketers had to rely on their own assumptions, outlook, and personal experience.
However, what was a standard practice a decade ago is not working for marketing campaigns anymore since the lack of data on potential customers leads to poor results. Therefore, advancing cutting-edge technologies such as artificial intelligence have transformed marketing and provided access to capabilities that could not be imagined.
Let’s explore the benefits and opportunities artificial intelligence provides businesses.
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Personalization and AI-powered Customer Targeting
While the lack of data in the age of TV and newspaper ads was a challenge for marketers, the abundance of customer data that was brought by the advancement of technologies also caused particular problems.
Now, when customers can interact with ads on their devices, shop online and directly interact with businesses, there is a vast amount of information available about potential clients including behavior, demographics, age, product preferences, time spent on ads and so on. The amount of information is so vast that it leads to a question – Is it even possible for a human to process it? The answer is pretty simple: it’s not. This is why artificial intelligence has become an irreplaceable technology that can be used for marketing success.
Benefits of AI for marketing
Artificial intelligence’s main benefit is that its algorithms can analyze data points, identify patterns and build detailed customer profiles. This allows marketers to segment their audience into distinct groups with shared characteristics and tailor their marketing messages accordingly.
The effectiveness of personalization is undeniable. According to the report by McKinsey, over three-quarters of consumers (76 percent) said that receiving personalized communications was a key factor in prompting their consideration of a brand, and 78 percent said such content made them more likely to repurchase.
While the phrase ‘artificial intelligence’ is still associated with something from science fiction by many people, these technologies have already taken place among us and help improve our customer experience. A prime example of AI-driven personalization comes from the music streaming giant Spotify, which uses artificial intelligence algorithms to analyze user listening habits and create personalized playlists. These playlists, like “Discover Weekly” and “Release Radar,” recommend new music based on users’ past listening history and the music choices of similar users. This approach provides people with a high-quality experience and makes them more loyal to the brand.
AI as a creative partner
Imagine spending hours and hours of work brainstorming ideas for the next ad campaign content, studying social media trends, looking through endless information about customers’ preference just to create one video and hope it will attract the attention of potential customers. It sounds like a pretty overwhelming task, doesn’t it?
Now imagine typing a few lines to an marketing assistant powered by artificial intelligence and receiving dozens of images, videos and content ideas just in a matter of seconds. Not bad, right?
With artificial intelligence technologies not only content creation, but even product creation took a new turn.
Hyundai and an AI-driven product
In the past, Hyundai aimed its marketing for a new car at active, nature-loving millennials who might live outside the city. However, after using an artificial intelligence – powered advanced social media insights tool, Hyundai discovered something surprising. The millennial group they imagined wasn’t actually behaving the way they expected based on typical stereotypes.
Thanks to the insights from its artificial intelligence tool, Hyundai adjusted its target audience. Instead of focusing on outdoor enthusiasts, it shifted its marketing to appeal more to “urban dwellers.” This new target audience better matched the reality of who was actually interested in the car based on the data.
The field of marketing has changed significantly due to artificial intelligence. Thanks to the data that these technologies can collect about customers, marketers are no longer working blindly, relying solely on intuition and guesswork. The ability of artificial intelligence to analyze massive amounts of data has made it possible to personalize communication with customers to a level that wasn’t possible before.
This personalization is important because it resonates with each client on an individual level. Advertising is no longer about pushing a product and telling customers that they need this product. Artificial intelligence allows you to build on customers’ needs and offer them exactly what they need. Just imagine how convenient it is to receive product recommendations that perfectly match your specific interests and needs. This level of personalization makes customers feel that the brand cares about them and understands exactly what they need.
However, the benefits of artificial intelligence go far beyond personalization. It is a tireless workhorse, automating repetitive tasks like data analysis, campaign reports, and scheduling social media posts. This allows marketers to save valuable time that can be spent more efficiently, for example, on strategic planning or further campaigns. Additionally, insights powered by artificial intelligence support data-driven decision-making, ensuring that marketing campaigns are carefully aligned with customer preferences and market trends.
