Written by Avi Kumar, the commercial director of coto
There is no doubt that artificial intelligence is poised to revolutionize operations, businesses and even industries, laying the foundation for a more productive and efficient world. And now AI is poised to rewrite the way we reach, engage and communicate with customers in today’s ever-changing world of digital marketing.
Developing a successful digital marketing campaign requires a combination of both artistic and scientific thinking. In order to achieve tangible results, it is important for marketers to collaborate and find the perfect balance between creativity and science in their marketing strategy. While creative marketing aims to attract consumers’ attention, scientific marketing provides measurable and trackable results. In 2024, the science behind modern marketing lies in the integration of new age technologies such as automation and AI, to stay abreast of upcoming trends and evolving competitors in the marketing industry.
While new strategies and tools are constantly being introduced into the digital marketing space, none have yet had the same impact as artificial intelligence. Reports suggest that a staggering 61.4% of marketers have already integrated AI into their marketing operations, and 44.4% of them are leveraging its capabilities for content creation. Even more surprising, 19.2% of marketers have already invested more than 40% of their marketing budget towards AI-powered campaigns. The global market income The share of AI in marketing is expected to increase from $27.37 billion in 2023 to $107.5 billion in 2028. As AI advances, we can expect to see more innovative applications emerge. However, rather than waiting for technology to evolve, it’s important for marketers to start considering how they can use AI to improve their operations.
Let’s decode the impact of AI on digital marketing and how it influences marketers’ strategies.
Breaking the AI bubble in marketing
As AI is constantly evolving, there is growing excitement and concern around the world. While the debate rages around replacing humans with AI, it is clear that the technology is not here to take over jobs, but can be harnessed as an effective tool to increase productivity. AI can be leveraged as a learning and research tool with the ability to think, learn and self-correct. However, it lacks the creativity to generate new and unique ideas that can bring new changes to the world. Its applications are therefore also limited. In marketing, current applications of AI range from data collection, analysis and additional observations of audience or economic trends that can impact marketing efforts.
Going forward, marketers need to fully understand the capabilities and limitations of AI. Firstly, AI is not infallible, it operates based on the data and input received, so it can make mistakes, especially when dealing with unstructured or ambiguous data. Second, AI can help us develop strategies and campaigns, but it lacks the true creativity and originality needed to get the job done. If AI marketing tools are not powered by high-quality, accurate, and up-to-date data, marketers will tend to make inaccurate decisions that do not reflect what their consumers want, making their unsuccessful marketing strategy.
Additionally, AI marketing tools cannot decide on their own what actions to take to achieve certain marketing goals. Current algorithms need to be trained and subjected to different situations for different products and services in order to learn and design the best possible strategies and decisions.
Marketers are on the winning side of the AI revolution
By integrating AI tools, marketers can personalize content based on customer interests, behavior, demographics, and preferences. This improves customer experience and helps businesses create more targeted and effective marketing campaigns that increase conversion.
Here are some ways AI tools help marketers win:
- AI can be used to solve questions that previously required human intervention, such as forecasting customer demand or product promotions.
- AI-powered tools automate the process of creating compelling headlines and optimizing content for better metrics like email open rates and social media shares.
- By analyzing big data, AI helps marketers understand each customer on a more personal and deeper level.
- By predicting past interactions and determining patterns, AI helps marketers predict future trends and make decisions.
AI to change the game
Customer needs and demands change over time, and marketers must stay on top of these changes to achieve maximum benefits. By training AI systems specifically for marketing activities, AI algorithms are able to identify trends and offer reliable solutions to consumer demands. For example, consumers like to see ads that are relevant to them and address their concerns. Marketers with advanced AI tools can identify and reach the right audience at the right time and thus increase the chances of conversion.
When combined with AI ML (Machine Learning) tools, they help distinguish between real buyers by analyzing exploratory behavior and consumer patterns and retarget potential leads with a higher chance of converting them.
How AI can improve customer experience
AI and customer experience have become deeply intertwined in the modern business environment. As the number of AI-based tools continues to increase, marketers are exploring a variety of exciting new use cases for AI and machine learning technologies. With the right AI tools, organizations can collect crucial information including purchase history, browsing habits, and purchasing trends based on different age groups and geographies, enabling organizations to focus on areas and age groups with the most potential.
Using AI in marketing can also improve Go-To-Market (GTM) strategy and performance, giving marketers the edge they need to win first place in the competitive arena. One of the benefits of AI is its ability to continually improve products based on feedback. This ensures that GTM strategies are not static and can continue to evolve to meet dynamic market needs. Instead of manually tracking your competitors, you should deploy AI to constantly monitor your competitors, analyze their GTM strategies, and develop counter-strategies accordingly.
It is crucial to use AI in marketing responsibly
By understanding the importance of responsible use of AI in marketing and adopting similar principles in our strategies, marketers can create a more inclusive and trusted digital environment for businesses and consumers. One of the main concerns related to the responsible use of AI is the ethical use of data privacy and security. As AI systems collect large amounts of personal information about individual customers, it is the primary responsibility as a marketer to handle this data with care and ensure that it remains protected from any misuse or unauthorized access.
Even though AI can access millions of customers at the same time, it is unable to translate a feeling of human connection with customers. While artificial intelligence (AI) can deliver personalized experiences at scale and speed up procedures, true human interaction cannot be underestimated. Today, marketers should think about maintaining a balance between using automated systems and preserving real-world connections while developing marketing strategies for their customers.
Go forward :
To use AI in marketing responsibly and ethically, it is crucial to remain transparent with consumers. When using AI algorithms to recommend or personalize information, it is essential to deliver it correctly to the customer or consumer. By giving consumers access to this information up front, marketers can gain credibility and give them the power to make smart decisions.
