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The Role of Artificial Intelligence in Digital Marketing Strategies

Posted on September 8, 2023 by Michael White

the role of artificial intelligence in digital marketing

Artificial Intelligence (AI), has ushered in a new—and potentially frightening—era of possibilities. The internet is buzzing with excitement over detailed narratives crafted by ChatGPT, impressive digital art assembled by DALL-E, and increasingly accurate text search predictions offered through Google and Bing.

It’s an unknown future we’re moving towards. But in truth, these consuming-facing applications are just the tip of the iceberg in terms of what AI can do. Below, we’ll be diving into the rise of AI in digital marketing and how businesses can leverage these tools to improve marketing and deliver better customer insights.

The Current State of AI in Digital Marketing

As most know by this point, AI provides a simulation of human intelligence by leveraging algorithms and data to create desired outputs based on user input. In the context of digital marketing, AI serves as a versatile toolset, augmenting various aspects of campaigns, SEO management, and strategies to both reduce effort and generate better results.

For example, platforms like HubSpot have long since integrated AI-based tools for email marketing generation, lead capture, lead scoring and marketing analytics. All these tools are available within HubSpot’s inbound marketing platform and are accessible to businesses of nearly any size. Beyond that, we’re seeing AI take hold in a variety of other marketing fronts, such as content personalization across marketing channels, social media management, and workflow automation.

The applications of AI are growing by the day, and the benefits aren’t limited to marketing. We’re seeing AI and machine learning provide predictive insights across a variety of industries, including some cutting-edge fields like autonomous vehicle testing and digital medical diagnosis. In other words, AI is here to stay, and companies need to understand its role as a core business process.

How to enhance customer engagement

Enhance Customer Engagement through Personalization

One of the hallmark contributions of AI for digital marketing is the ability to deliver tailored experiences. By analyzing user behavior and preferences, AI systems let marketers dynamically customize content, recommendations, and a variety of other personalization tools to speak more directly to customers.

The value of this type of personalization is well-established. Studies show that 71% of customers expect personalization, and it’s noted that companies that grow faster drive 40% more of their revenue from personalization compared with their slower counterparts.

The problem isn’t that marketers aren’t aware of this. They simply lack the time. With enterprises growing bigger and broader marketing campaigns that reach global audiences, it’s more challenging to maintain the type of laser-focused content personalization that customers expect. AI changes the game here by providing a workhorse engine of algorithms and analytics that handle most of the hard work. Whether a business is using Mailchimp for personalized email content or e-commerce tools in Shopify to personalize recommendations, AI can be applied in increasingly novel ways across the marketing stack.

ai in digital marketing

Empower Data-Driven Decision-Making

Another core aspect of AI is in its capacity to navigate extensive datasets and extract actionable insights. This empowers marketers to optimize various facets of their campaigns, from refining targeting and segmentation to optimizing ad placements.

By embracing data-driven decision-making, organizations can allocate resources strategically and realize higher returns on investment. AI tools included in common enterprise resource planning (ERP) and customer relationship management (CRM) systems aggregate data from various sources, including websites, social media, databases, and third-party platforms, into a centralized repository. This unified data provides a comprehensive view of customer interactions and behaviors, which is then analyzed via algorithmic tools and presented in clear reports.

There are benefits here in both short- and long-term marketing applications. AI can process data in real-time, enabling marketers to respond swiftly to changing market conditions or quickly deploy solutions for a support query. These real-time insights help manage the customer experience while allowing the flexibility to adjust ad spend, content strategies, and promotions on the fly.

In the long-term, AI tools help enterprises monitor competitors' activities and track market trends. AI-driven attribution models can attribute conversions to specific marketing channels, campaigns, and touchpoints, enabling marketers to allocate budgets more effectively and optimize ROI.

AI and digital marketing

Ethical Considerations in AI Digital Marketing

As we harness AI's potential in marketing, ethical considerations should remain at the forefront. This is particularly true as marketers attempt to strike a balance between personalization and intrusion. Marketers must ensure that any use of AI tools doesn’t interfere with their established data privacy goals:

  • Upholding user privacy
  • Securing explicit consent
  • Maintaining transparency in data utilization

But ethics in AI marketing isn’t just a matter of compliance; it's a fundamental aspect that shapes the future of customer engagement and the relationship between businesses and consumers. Unethical practices, such as data misuse or invasive targeting, can erode trust and lead to customer backlash, tarnishing a brand's reputation in the process. Therefore, ethical AI ensures that marketing strategies respect individual privacy, promote fairness, and prioritize consent.

Using AI for marketing strategy

Integrate AI into Your Marketing Strategy

AI digital marketing is more accessible to enterprises than it has ever been before, but its integration requires the same systematic approach as any other marketing tool. Start by outlining clear objectives for the tool in question. Are you hoping to streamline the amount of time you spend generating content? Or assessing new ways of optimizing your ad spend? Identify the data touchpoints critical to achieving these objectives and invest in AI solutions congruent with your goals. 

However, as you begin your planning, remember that AI is merely a tool for efficiency. Humans are still able to create and conceptualize solutions unknown to AI, which is generally limited by its programming. But as time goes on, enterprises that learn how to utilize and co-exist with AI will be in a far better position to capitalize on opportunities than those who don't.

Work with The Creative Momentum and see just how easy it is to integrate AI tools that support your marketing goals. Contact us to get started.

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