What is AI marketing?

Want to increase your operational efficiency? Are you committed to automating your marketing efforts to do more, better, and in less time?Learn about AI marketing, which will help you achieve these goals, plus better understand your audience, gain more relevant data, and push your company’s marketing in the direction of modern technology and intense growth. It’s like, get on the path of artificial intelligence in marketing?

It’s like, you’re getting on the path of artificial intelligence in marketing.

AI marketing – what is it?

Have you not yet joined the discussion about ChatGPT and artificial intelligence in content marketing? That means you…ve missed an important industry event. Remember, however, that AI marketing is more than a tool from OpenAI. In practice, by AI marketing we mean the use of artificial intelligence to optimize and automate marketing activities. AI marketing is a variety of tools and techniques that will allow you to better analyze data, predict trends, anticipate user expectations, personalize communications and make more effective business and marketing decisions.

AI marketing – application cases

AI marketing has a wide range of applications, andcontent marketing is the most well-known, but not the only area where you can improve your performance with artificial intelligence. Other use cases for AI in marketing efforts include:

• Customer segmentation – AI can analyze demographic, behavioural and psychographic data to segment customers accurately. This enables the creation of more personalized marketing campaigns that better meet the needs of specific groups.
• Personalization of content—With AI, companies can tailor marketing content (e.g., emails, ads, offers) to individual customer preferences. Personalization increases customer engagement and improves conversion rates.
• Automation of advertising campaigns – AI can automatically manage advertising campaigns, optimize budgets, and target them in real-time. Tools such as Google Ads and Facebook Ads use AI to maximize ROI from ad campaigns.
• Customer service – AI-based chatbots and virtual assistants can provide instant customer service, answer questions, solve problems, and guide customers through the buying process.
• Sentiment analysis – AI analyzes social media content, reviews and comments to understand how customers perceive brands, products and services. Sentiment analysis helps companies respond to customer feedback and improve their products and marketing strategies.
• Sales and demand forecasting—AI can analyze historical and current data to predict future sales and demand trends. This allows companies to better plan production, manage inventory, and adjust marketing strategies. Google Analytics 4, for example, already uses this feature.
• Product recommendations—Based on analyzing customers’ shopping behavior, AI can suggest products that may interest them. Product recommendations are used in e-commerce, among other things, to increase the value of the shopping cart.
• Price Optimization – AI can analyze market and competitive data to dynamically adjust prices of products and services. Optimizing price lists helps companies maximize profits and compete in the market.
• Creating content – AI can generate marketing content, such as articles, blog posts, product descriptions or ads. Content generation tools, such as GPT-3, help marketers create compelling and engaging content.
• Analysis and reporting – AI automates the process of collecting and analyzing data from marketing campaigns, producing detailed reports and analyses. This allows marketers to make faster decisions and optimize marketing strategies.
• Natural Language Processing (NLP) – creating a human-like language for content creation, customer service bots, personalized experiences and more.

AI in marketing – challenges and threats

Although the application of AI in marketing brings many benefits, it cannot be viewed in the category of superlatives alone. Artificial intelligence is not perfect and also has its drawbacks, and it also comes with many challenges that you have to face as an entrepreneur. What can be a problem in marketing with AI?

• Training time and data quality – AI marketing tools do not automatically know what actions to take to achieve marketing goals. They require time and training, just like humans, to learn about organizational goals, customer preferences and historical trends, understand the overall context and gain expertise. This learning process also requires data quality assurance. Suppose your AI marketing tools are not trained to use high-quality data that is accurate, timely and representative. If that’s the case, you’ll end up with inaccurate data decisions that don’t fully reflect consumer desires, so even the most brilliant AI marketing tool may turn out to be little more than a worthless toy.
• Privacy—Consumers and regulators criticize how organizations use their data. Digital marketing teams need to use consumer data ethically and in accordance with standards such as the RODO when implementing an AI-based marketing strategy; otherwise, they risk heavy fines and reputational damage. Suppose your AI marketing tools are not specifically programmed to adhere to specific legal guidelines. In that case, they may go beyond what is considered acceptable regarding using consumer data to personalize marketing.
• Costs of implementing AI in marketing strategy – implementing AI technology involves high upfront costs, including the purchase of appropriate hardware, software and staff training. Moreover, a company’s existing systems must be integrated with new AI tools, which can require significant programming and IT infrastructure adaptation. For smaller companies, this can be a significant barrier. AI technology is evolving rapidly, and regular investment in the latest tools and technologies may be required to remain competitive. In addition, AI systems can age quickly, and replacing them with new technologies involves further costs.
• Dependence on technology—The use of AI to automate many aspects of marketing can diminish human creativity and intuition in decision-making. As a result, over-reliance on AI algorithms may limit the ability to quickly adapt strategies in response to changing market conditions.
• Undue reliance on AI without human knowledge – the development of artificial intelligence in marketing has raised concerns about over-reliance on AI without human knowledge. Artificial intelligence can automate marketing processes and offer useful information, but it lacks the human touch and emotional intelligence. Human knowledge is crucial in marketing AI because it allows it to understand and interpret complex consumer behaviour, emotions and preferences. Without human involvement, there is a risk of overlooking important nuances and contexts that artificial intelligence may not understand. Therefore, it is important to balance the capabilities of artificial intelligence and human knowledge to achieve effective marketing strategies that connect with target audiences.

How to use AI in marketing? Practical tips

64% of marketing professionals say they use AI in marketing in some area If your brand isn’t doing it yet, it’s a sign that…s time to start. How to implement artificial intelligence technologies in your marketing strategy to stay consistent and creative?

Creating content with AI

The first way to use AI in marketing that comes immediately to mind – is to create content. One of the most common functions of AI is the understanding and processing of natural language, which allows AI tools such as ChatGPT, Copilot and Gemini to create human-like content. Creating textual content, however, is not all –you can also use AI functions to process video or generate graphics. AI support is already offered by Canva, for example, and OpenAI has created the DALL-E tool, available with a paid subscription to ChatGPT. The disadvantage of these is the high repetitiveness – graphics often look identical and have the same style.

Example of graphics generated by the DALL-E tool

AI and data analytics

Do you have difficulty understanding large data sets? Most marketing tools provide analytics, but professionals need to export and combine data on their own, like puzzle pieces, to get a more complete picture. Artificial intelligence can collect and review large amounts of data from multiple marketing platforms and summarize findings. This will help you save time when planning strategies and developing marketing assets for your campaigns. Among other things, you will use artificial intelligence to analyze sentiment, forecast sales, demand and supply, optimize inventory management, or analyze historical sales data.

Saving time with marketing AI

It’s not a typical marketing task, but implementing artificial intelligence will save you a lot of time, especially on repetitive and administrative tasks. Scheduling meetings, creating content summaries, and responding to feedback. You can speed up all these tasks significantly with AI tools. The result? You can allocate your time to more creative tasks that require creative human involvement.

Personalization of content thanks to artificial intelligence

71% of users say that using AI allows them to personalize the user experience. Personalization makes it possible to tailor a marketing message based on the individual characteristics of the recipient = for example, their behaviour on the site, age, and gender. Example? Product recommendations on Zalando that consider previously browsed products or cart abandonment reminder messages that include a photo of a product previously added to the cart. Netflix also uses these technologies to suggest new movies and series based on a user’s previously viewed content and ratings.

Example of personalization in an email message

AI in PPC campaigns

If you’ve ever used the Google Ads auction system, you’ve already encountered artificial intelligence in online marketing. Advertising platforms such as Google Ads, LinkedIn Ads, TikTok Ads and Facebook Ads use artificial intelligence to select the most effective destinations for ads to reach target audiences and maximize ROI. An example of the use of AI in advertising is the relatively new ad format – Performance Max – available in Google Ads. Other examples of the use of artificial intelligence in PPC ads include:

• dynamic rate adjustment – AI algorithms analyze historical and current data to adjust rates based on conversion probability, time of day, user location and other factors,
• Audience targeting – AI analyzes demographic, behavioural and psychographic data to create detailed audience segments for more effective ad targeting. As a result, AI algorithms predict which audiences are most likely to click on an ad and make a purchase, allowing better use of advertising budgets
• and creating ad content – AI tools such as AdEspresso and Campaign Assistant help generate ad content with ease,
• remarketing – AI creates and displays ads tailored to users’ previous behaviour on the website, increasing the chances of conversion. Algorithms can automatically tailor ad content to individual users, showing them products they have previously browsed or added to their shopping carts.

Chatbots are an example of AI in marketing

One of the applications of artificial intelligence in marketing we have seen over the years is chatbots. Chatbots created using natural language processing (NLP) can answer frequently asked questions, solicit potential customers, schedule demonstration calls, and more. A chatbot can personalize the customer journey at the consumption stage of marketing content and answer customer questions. What else makes it worth implementing AI chatbots?

• guarantees 24/7 support availability, providing immediate answers to product questions, order status, return policy, etc.
• Chatbots can collect information from site visitors in an interactive way by asking questions and recording answers in the CRM system. Based on the answers, chatbots can re-qualify leads – evaluate their quality and pass them to the sales team only if they meet certain criteria, making the sales process more efficient,
• chatbots can suggest complementary or higher-end products based on current purchases, increasing the value of the shopping cart,
• In an online store, you can use chatbots to inform customers about new promotions and special offers. Activities can include sending personalized messages about promotions based on purchase history or engaging customers in interactive marketing campaigns, such as through quizzes, games or contests,
• Use chatbots to collect feedback – after an interaction or purchase, chatbots can ask customers to complete a short survey or rate the service/product,
• AI can also support the operation of loyalty programs -the chatbot will inform customers about the current status of loyalty points, available rewards and new promotions within the loyalty program.

Summary

AI marketing is an innovative approach to marketing efforts that integrates artificial intelligence to optimize and personalize communication strategies. Using advanced data analytics and machine learning algorithms, these technologies enable companies to more effectively reach customers, understand their needs and tailor their offerings in ways not possible through traditional methods. The development of AI marketing is helping not only to make campaigns more effective but also to create a more engaging and satisfying experience for consumers. As AI advances, we can expect its application in marketing to continue to evolve, opening new horizons for innovation and efficiency.