How to Use Artificial Intelligence in Digital Marketing 2023 - A Complete Guide

Have you ever tried to decode when you log into your social media account and the ads on your mobile screen correspond to your interests and recent activity? Let us make it simpler. These ads are the outcome of the algorithm and sophisticated tools used by Artificial Intelligence which is deployed by social media platforms.

The algorithm compares your interests, likes, demographics, online searches, places you have traveled, videos you have watched, and things you have purchased. The ad you see on your feed is a culmination of an AI-driven algorithm.

Artificial Intelligence which is popularly known as AI, is a combination of technologies and algorithms designed to make the machine smart. Machine learning is the primary subset of AI. It is instrumental in making predictions of future outcomes based on historical data. The use of artificial intelligence in digital marketing spans industries and marketing functions.

Artificial Intelligence has become an integral part of digital marketing strategy and it holds an undeniable significance in today’s digitally driven marketplace. Digital Marketing, over the years, has become data-centric. Marketing analytics based on data models has extensive applications in the digital marketing domain.

Where is AI used in Digital Marketing?

AI is primarily being used in the below-mentioned three areas of digital marketing.

Chatbot

AI has taken significant steps in advancing conversational marketing in the form of Chatbots. A chatbot is an AI-powered application that performs human-like conversations. Chatbot basically automates gathering data and sharing information about the products or services with the user. The advanced chatbots integrate Machine Learning with AI and provide support 24X7.

More advanced research is being conducted to further refine the answers given by chatbots to the users. Chatbots are being widely used by organizations as this helps to reduce manpower and optimize resources.

Social Media Advertising

Social media platforms like Facebook and Instagram examine user information based on interests and personalize the ads and content which are displayed on the feed.

Apart from Social Media advertising, streaming platforms like Netflix and Amazon Prime have also implemented AI-driven technology to share recommendations with viewers. This form of advertising has seen steady growth since 2015. Almost all the platforms have invested heavily in AI technology.

Marketers feel this is the most powerful medium available to increase brand awareness and derive the benefits of targeted advertising based on demography and customer profile.

Predictive Analytics

Based on the marketing data available covering various customer touchpoints, marketers have plenty of resources available to analyze customer behavior. The application of big data application has further improved the technique of Predictive Analytics.

With big data available, companies can now foresee future results and adopt a dynamic approach when it comes to marketing strategies. Insights from marketing data help marketers to assess the efficacy of brands and position the products according to market conditions.

One of the major advantages of Predictive Analytics is that it helps companies to effectively manage their production and resource planning. Demand and Supply prediction is directly linked to sales and marketing planning.

Role of Artificial Intelligence in Digital Marketing

AI has already been playing a remarkable role in the areas of Chatbots, Predictive Analytics, and ad optimization. With changing customer preferences and the availability of multiple products and services, it has become imperative to break customers into smaller segmentations and target them more objectively.

AI with its Machine Learning capabilities can transform customer touchpoint data into meaningful insights. It can empower digital marketing service providers to optimize ad spending and direct the resources in a productive way. Six areas, where AI can play a major role, are:

Impact of AI on Online Marketing

AI has been projected as the next industrial revolution. It is ushering in a new era filled with technological innovation and deep data analytics. The impact AI is having on digital marketing or online marketing place is extremely powerful. It is altering the way marketing has been functioning.

AI already has a profound impact on social media advertising, customer-oriented conversational marketing, and Predictive Analytics. Below are a few more areas that will see the greater application and impact of AI in Digital Marketing:

Future of AI in Digital Marketing

The future of artificial intelligence in digital marketing holds great potential. It will help businesses to accomplish their marketing goals. The beauty of digital marketing lies in giving personalized experiences to customers.

All the customer touchpoints like website interactions, search engines, and email campaigns will be integrated with AI to offer a customized and personalized experience.

The dynamics of marketing have completely changed. We live in a world where digital marketing efforts are more important than traditional marketing strategies. Most of our customers are now online. Technologies are rapidly changing and becoming more advanced. AI, from its nascent stage, has progressed into a powerful tool to achieve marketing goals.

Predictive analytics and search engine optimization will continue to drive digital marketing growth powered by AI. Machine Learning will continue to evolve led by superior computational capacities, model building, and new data processing technologies.

Algorithms are becoming more advanced. This will have a growing impact on businesses driven by digital marketing. Predictions in customer behavior will be more precise. Automation in marketing activities will be more pervasive with human-like intelligence. Voice and visual searches will be more accurate.

Final Words

Artificial Intelligence is rapidly advancing and its usability in the digital marketing space has entered all industries. The benefits of digital marketing in business operations are endless. AI is a facilitator which eases the process. Al tools are now widely available in the market and most organizations have started using them.

No doubt, it is an integral part of progressive organizations and helps perform the most difficult of marketing tasks. In order to meet the growing customer expectations and penetrate the market deeply, AI is the way forward. Marketing without the application of AI will be deemed outdated and obsolete.