2024 is a new year which, like its predecessors, will surely see the emergence of newer and more innovative marketing trends, particularly in the technological field. With the rise of instant communication and changing consumer behavior, brands will continue to gradually adopt technological tools to stay ahead of their markets.
The rise of AI has disrupted many industries. 2023 has undeniably been a dominant year for AI as it has become a mainstream phenomenon. In performance marketing, it has established itself as an integral technology that is reshaping the way marketers approach their campaigns. Marketers are increasingly seen as using AI as a powerful tool to meet their needs in content planning, research and beyond. AI has not only evolved but also been recognized by marketers for its potential to drive high results.
AI in performance marketing… a power play!
The global AI marketing market, valued at $5 billion in 2017, is expected to reach $40.09 billion by 2025.
The added value of AI is increasingly recognized by marketers. 68% of marketers said they have a fully defined AI strategy in 2022, an astonishing 134% increase from 2019 (Source: Eighth Edition of Salesforce’s State of Marketing Report). 61.4% of marketers reported using AI in their marketing activities. In fact, 44.4% have used AI for content production. Predictive analytics was the most popular category of AI impacting marketing (Source-Ascend2). Overall, 72% of marketers credited AI with improving their marketing campaigns.
From a futuristic perspective, 54.5% of marketers believe AI will significantly improve their marketing efforts (Source: Influencer Marketing Hub survey)
It is undeniable that the relevance and use of AI in performance marketing will be strengthened this year. The AI and performance marketing couple is here to stay and the impact of this combination is still only the tip of the iceberg!
Let’s understand why AI-powered insights and data analytics should be part of every brand’s performance marketing efforts in 2024.
Among the many benefits of AI, the one that stands out is its ability to analyze large volumes of data and identify patterns that, in most cases, are impossible to detect manually through human efforts. By leveraging machine learning algorithms to study data from multiple sources, ranging from social media, search engines and e-commerce platforms, the analytics provided by AI are already guiding marketers towards taking informed campaign decisions. For example, advanced AI-powered attribution models provide important insights to identify marketing channels and campaigns driving maximum conversions, impacting marketers’ effective budget allocation. Such insights into understanding the customer journey spanning multiple touchpoints are invaluable.
The current environment is dynamic and AI has a strong ability to predict trends, based on historical data. For example, by anticipating customer needs, businesses can act proactively and market the desired product to the right audience in an appropriate time frame. Access to such predictive analysis can be a game-changer for many brands to stay ahead with better ROI on marketing efforts.
Indian brands are turning to personalized offers and communications to engage with savvy consumers. AI’s ability to analyze customer data (browsing patterns, purchase history, and social media interactions) guides marketers in the ideation and creation process to intelligently target a specific audience. They are now able to deploy personalized marketing campaigns (tailored recommendations and targeted advertisements) aligned with the needs and interests of each customer. Netflix uses AI to recommend movies and TV shows to its users (its algorithm takes into account a user’s viewing history and ratings, etc.), Amazon uses AI to personalize its movie recommendations. products (based on a user’s purchasing and browsing history, etc.) and Facebook uses AI to target its ads (based on a user’s interests and demographics, etc.) – the examples are numerous.
A high level of personalization plays a crucial role in improving customer engagement and loyalty, magnifying the overall customer experience, and ultimately driving sales and business growth.
Time is money and marketers are constantly looking for ways to deliver the best possible results for their brands. AI as a dynamic tool allows marketers to optimize their campaigns in real time. They are now able to track key metrics: click-through rate, conversion rate and/or engagement rate, which helps them identify which campaigns are performing well and which ones need further refinement. AI’s ability to decipher market conditions, demand, competitor pricing, and other key factors helps brands adjust their pricing strategies and maximize revenue to stay competitive.
The current need is for marketers to make better data-driven decisions. By using AI to automate A/B testing processes, they can identify the most effective strategies by systematically testing adaptations to their marketing campaigns.
AI is gradually automating routine operational activities including data entry, reporting and analysis, allowing marketers to focus on more strategic initiatives such as campaign planning and optimization.
It’s time for businesses to redefine their approach to performance marketing.
Although the evolution of AI in terms of capabilities and use in businesses will increase in 2024 and beyond, one thing is certain: its relevance in performance marketing can no longer be ignored. What marketers should do is keep up to date with the latest AI trends in their industry. Ultimately, they need to be prepared to deal with any scenario that might come their way. At the same time, they must remember that the success of AI as a tool relies on how best to use it to achieve their marketing goals.
Written by – Yogeeta Chainani, Co-Founder and CEO, Swaarm
