How AI is poised to power marketers’ digital transformation

The Current State of AI

With the rapidly evolving AI landscape, organizations around the world are implementing new AI technologies and developing AI products that are poised to dramatically transform their businesses and give them an edge over their competitors. In fact, according to a recent study, it is estimated that next-generation AI could contribute up to $4.4 trillion to annual global productivity. McKinsey Report.

As we close out 2024 and move into 2025, the focus will be on how to build consumer trust in AI as it continues to become more widespread and what type of regulation is needed at the federal level. According to a survey conducted by Prosper Insight & Analytics1 in 3 respondents (36.9%) believe that recent developments in AI require human oversight and 1 in 4 believe that recent developments in AI should be regulated by the government.

The rise of autonomous marketing

One of the biggest changes in the marketing industry in particular is the rise of autonomous marketing, which leverages AI to transform the way traditional marketing has been done. Deloitte describes autonomous marketing as the ability to leverage “predictive capabilities to personalize customer relationships in real time with content, recommendations, fulfillment processes, and even purchase tracking that anticipate customer needs.”

Self-marketing represents a significant shift from traditional methods. For example, Constellationa one-of-a-kind SaaS platform, leverages AI in addition to its proprietary data to provide highly regulated and complex industries like pharmaceuticals with the insights and content they need to fuel their business and scale their advertising content. They use AI to analyze large amounts of data to deliver highly personalized content and experiences to each customer, leading to increased engagement and conversion rates. This not only reduces the need for manual work, but also results in significant cost savings and higher ROI, which can be a game-changer for marketers.

How Marketers Can Embrace AI to Personalize Customer Experiences and Drive Impact

To stay competitive, marketers can adopt AI for different use cases and integrate advanced data analytics and social listening into their strategies. For example, by gaining a deeper understanding of customer behavior and having a holistic view of customer data as a whole, businesses can improve the customer journey and experience and make more informed decisions. Chatbots and message automation have been widely used with great success for years.

Monitoring online conversations about brands, industries, and competitors is also essential to staying ahead of the curve. This type of information helps marketers adapt their strategies and respond to new trends. Regularly tracking key performance indicators (KPIs) and using data-driven insights to refine strategies ensures continuous improvement and better campaign results.

Constellation’s solution exemplifies how advanced data analytics can transform marketing strategies. For example, by deploying Constellation’s software, Michelle Pfeiffer’s fragrance brand Henry Rose saw a 32.8% increase in return on ad spend (ROAS). In such a crowded market, it can be difficult to stand out as a leading fragrance brand on TikTok. Henry Rose partnered with Constellation to help their campaigns optimize performance, combining creative assets with TikTok tools to effectively communicate their brand message. The collaboration resulted in a 15.4% decrease in cost per action and a 26.6% increase in conversion rate. In total, Henry Rose was able to generate over 600 conversions and 1.9 million impressions.

Benefits of AI in Marketing Organization

Using AI tools in marketing improves productivity in ways that would otherwise be difficult to achieve with traditional methods. Marketers gain a more accurate and holistic view of customer data to inform decision-making. Automated data analysis provides accurate insights quickly, saving time and providing valuable insights. Predictive analytics allows marketers to predict customer behavior and proactively adjust strategies, improving conversion.

They can also leverage this information to create personalized UX experiences tailored to customer behaviors and reduce friction. According to a survey by Prosper Insight & Analytics1 in 4 respondents (26%) would prefer to communicate with AI if they needed help with their online purchases. Prosper Insight & Analytics Survey This number is only expected to increase. Social media monitoring tools and online platforms provide real-time feedback on social sentiment, helping marketers troubleshoot issues and capitalize on positive trends. Businesses can also monitor emerging negative trends that could impact their performance. This capability is essential to staying competitive in an ever-changing marketplace.

The opportunity

As the technology continues to develop, businesses that integrate AI-powered tools into their marketing strategies are likely to see improved customer engagement and ROI. As noted above, 1 in 4 respondents (26%) would prefer to communicate with AI if they need help making an online purchase, and this number is only expected to increase as AI adoption continues.

According to Diana Lee, Founder and CEO of Constellation, businesses can only remain innovative and competitive in today’s evolving digital world by combining cutting-edge technology with human creativity.