Artificial Intelligence Marketing

Artificial Intelligence in Marketing - An Uprising Trend

Editor’s Pick Published on 04 Jan 2021

What is Artificial Intelligence? Most of us have already heard about the term “AI” either in Hollywood movies or in the speeches of Bill Gates, Elon Musk, etc.

But is AI a luxury, something that only a few big brands can use, or is it something that will replace human jobs and take over the world??

The hype around AI has produced many myths. Still, brands and organizations incorporate AI in their business and marketing strategies to gain business benefits such as cost reductions and operations improvement. 

By definition, Artificial intelligence marketing (AI Marketing) collects customer data. It applies AI concepts like machine learning to analyze your customer’s behavior and predict their next move and improve the customer experience. 

In the last decade, there has been an uprising of AI marketing, and many organizations want to take advantage of this trend to build their brand marketing strategies.

With AI technology, marketers can point out the microtrends and even predict trends. Brands can reduce digital marketing waste by making strategic decisions about allocating the budgets and whom to target.

This optimization of strategic and financial effort also helps brands create a “personalized customer experience” at a low cost. Artificial intelligence technologies consist of algorithms that analyze customer behavior allowing for real-time optimizations, increasing the likelihood of conversion.

With the help of AI, brands gain the ability to gather this audience data to target more precisely, either from 1st party (their own) or from a 3rd party data provider.

AI in marketing

Source - Freepik 

Will AI only replace mundane jobs??

AI helps businesses to make more accurate decisions via predictions, classifications, and clustering of a large amount of data.

These abilities have enabled AI-based solutions to seep into work environments to replace not only the repetitive and time-consuming tasks but also augment those tasks that are more complex for human skills.

Starbucks is one example of a brand that uses predictive analysis and can increase its organic revenue through its loyalty card and mobile app by collecting and analyzing customer data. Starbucks uses predictive analytics and AI to process this data and engage customers with personalized marketing messages to increase their average order value.

Brands use AI to build more effective marketing strategies, improve customer interactions, and optimize the process of attraction, nurture, and conversion. Earlier, you had to search for a brand or a product by its name or title exactly. Today’s “search” is much smarter and helpful, which not only assists you to find information on Google, but it also helps you find the right products on Amazon or the straight movies on Netflix, and much more.

AI is also used in recommendation engines (like Amazon, Spotify, etc.) and SEM advertising on channels like Google (AdWords), Facebook, and Twitter. Companies like PredictiveBid and Israel-based Albert have determined to put a heavy focus on programmatic advertising specifically.

AI is also used in prediction and forecasting, content generation, image recognition, customer segmentation, and various other fields. The advancement in AI technology and its accessibility has leveled the digital marketing field. In the nascent stage or mature stage, brands can use AI to increase their marketing potential.

Recently, a Korean beauty startup Lululab introduced its AI mixed reality-powered beauty store in Dubai Mall. The unmanned virtual store helps consumers with personalized skincare recommendations via the LUMINI kiosk.

Tally, incorporated by Carrefour at Mall of the Emirates, is an automated kiosk capable of scanning the shelves and providing real-time discrepancy issues such as misplaced, unmarked, or missing products.


AI marketing

Example - 

Taking a step ahead, Mondelez India has created the most generous ad” by reaching out to more than 1800 local retailers, across 260+ pin codes, whose businesses are promoted locally through the latest Cadbury Celebrations advertisement. The ad used technology and AI to create India’s first hyper-personalized ad. These stores were featured against the product category for unique pin codes in Mumbai, Delhi, Pune, Indore, Ahmedabad, and Lucknow.

Does your business need an AI strategy?

Every brand and organization should consider the importance and potential impact of AI on its strategy and investigate and invest in this technology to analyze and solve its business and marketing problems.

In many ways, exploiting AI technology will be the next phase of business and marketing solution and could place enterprises at a competitive disadvantage in the market place.

Suggested Read Augmenting User Experience Through AR

In 2020, according to Statista, the AI market in the Middle East and Africa is estimated to be worth around 257 million U.S. dollars, and it is expected to increase to approximately 1414 million U.S. dollars by 2025.

With AI becoming the backbone for mobile marketing, countries like UAE and Saudi Arabia are already at the forefront of adopting AI into their ecosystem.

As marketers gain deeper insights into consumer behavior, they have more opportunities to make each interaction more optimized and valuable.

Increased user retention and personal engagement are how AI will empower marketing in the Middle East in the next decade.


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