AI Marketing: How To Create an Effective Strategy

By Indeed Editorial Team

Updated March 24, 2022 | Published May 11, 2021

Updated March 24, 2022

Published May 11, 2021

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

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If you're looking for ideas for how you can streamline your company's marketing efforts and increase efficiencies, you may want to consider artificial intelligence (AI) marketing. Using AI technologies, companies are able to personalize campaigns and improve targeting to maximize return on investment (ROI) for campaigns. Learning about AI marketing and understanding the many ways you can use it can help you harness its power for your own business.

In this article, we define AI marketing, highlight some of the advantages it can offer and discuss how companies are using it to improve the performance of their marketing efforts.

What is AI marketing?

AI marketing uses artificial intelligence to analyze customer data in order to anticipate what a customer is going to do in the future. These customer insights allow organizations to better customize their content, optimize spending and improve customer service.

Related: Traditional Marketing vs. Digital Marketing: Similarities and Differences

How is AI marketing used?

Companies often utilize AI marketing in areas of their business where they want to gain maximum efficiency. Here are a few specific ways it can be used:

Media buying

Media buying refers to the process that marketers follow to identify and purchase advertising space where they can target their ideal customers. Using AI, marketers can test more advertising platforms and optimize campaigns to reach the greatest number of people in their target market. Marketers can use algorithms to identify the ad messaging that most resonates with an audience, the target audience that converts the most and the best price for bids.

Content generation

AI machines can create content that follows simple formats and rules, such as profit and loss summaries, sports event recaps and hotel descriptions. Companies often use AI tools to personalize reports, curate social media content and generate messages for email marketing. By using artificial intelligence, marketers can rely on algorithms to monitor an email subscriber's browsing habits and website experience in order to understand how that person interacts with the content. Marketers can then rely on that algorithm to identify the content that's of greatest interest to individual subscribers and generate personalized emails.

In addition, many businesses are using content-creation chatbots to support their customer service team. These AI machines can detect patterns and predict the causes of issues for users. Businesses can also customize them to create the best possible experience for users.

Related: 18 Jobs in AI (With Average Salary and Job Duties)

Data analysis

AI tools make it easy for companies to quickly evaluate data and match it to the customers' behavioral patterns. With the help of algorithms, markets can create buyer personas based upon many data points, including past purchasing behaviors, website interactions, psychographic information and past communication with the business. Using AI marketing, businesses can rapidly identify the different customer segments that should be included in each campaign, quickly identify the products that individual customers are most likely to purchase and even avoid promoting products to shoppers who are likely to return them.

Automated decision making

Using AI technologies, marketers can automate decisions based on data analysis, economic trends and other observations machines make about a specific audience. For example, AI technology can personalize messages to email subscribers based upon their customer profiles and data without any intervention from staff members. Ultimately, this can lead to additional income for the business—without having to rely on the business' marketing team, they are left to focus on other revenue-generating activities.

Related: Data Analysis: Purpose and Techniques

Advantages of AI marketing

Here are five primary benefits of AI marketing:

1. Enhanced personalization for customers

AI technology allows marketing teams to use data collected about customers to predict what steps a new customer could take. It also makes it easy to personalize campaigns and improve targeting of social media advertising. By increasing the level of personalization and improving targeting at each stage in the customer life cycle, businesses can streamline lead generation and ultimately increase profitability.

2. Lower marketing costs

Using AI, marketing teams can improve the performance of advertising campaigns and achieve a better ROI. With automated AI, marketing teams can reduce the time that they spend on many marketing tasks, which leads to lower marketing costs.

3. Improved social media content delivery

By incorporating AI technology into your social media strategy, you can refine your approach to content delivery in order to enhance your results. AI tools can look at far more data points than is possible for a human, allowing it to identify and target potential customers effectively.

Related: A Definitive Guide to Smart Targeting and Its Benefits

4. Time saved with content creation and distribution

Businesses can use AI tools to streamline content creation and distribute it automatically to leads and customers. AI machines can track your social media posts and use it to learn your brand's voice. It can then create content that sounds similar to the content your company posts manually and monitor the results of those posts to better understand what types of posts resonate most with your audience.

Using AI technology, you can quickly identify the content that performs the best, develop a plan for future content creation and delivery, determine which pieces of content should be repurposed and distribute it at the optimum times and on the right platforms to reach the maximum number of people.

5. Better customer service

Companies can use AI technology to reduce the workload of its customer service team, using chatbots to manage the most common questions customers ask and provide immediate replies. A marketing team can customize a chatbot to have a programmed response to specific frequently asked questions and, if the interaction becomes too complex, direct the conversation to a member of the customer service team. By answering the most ordinary questions, the chatbot makes it possible for customer service representatives to spend more time on conversations that require a personalized response.

Related: Machine Learning vs. Deep Learning: What's the Difference?

Potential disadvantages of AI marketing

Despite the overwhelming advantages that AI provides marketing initiatives, it is a technology still in the early phase of adoption and rollout. There undoubtedly will be some obstacles to overcome as AI marketing develops and is widely implemented, such as:

  • Privacy concerns

  • Quality of data collected

  • Amount of time to “train” the tools

  • Establishment of best practices

  • Industry disruption

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