How Is AI Changing The Face Of Digital Marketing

Alok Pandey Feb 03, 2023

Who thought the emergence of Artificial Intelligence would make the survival of humans convenient? From booking a cab to taking a test drive of the car via artificially-driven techniques, from automated shopping to trying apparel and accessories on avatars, the solutions of AI are just remarkable and commendable. These are just some of the examples of artificial intelligence but the acceptable truth is that it is not only taking the industry by storm but is also revolutionising the digital world which is impressing brands.

Nowadays, every brand is up ticking itself to have the lion's share of outcomes and returns behind the investment spending in marketing activities. And, this could be accredited to AI which has given a radical push to brands to adopt it and make the most out of it for effective campaign performance. This is why, I also believe that, in today’s digital ecosystem, AI is a powerhouse and the stronger pillar that is driving online businesses, resulting in the trajectory of ROI. This is because it is efficiently solving the problems of advertisers in tapping into the right yet converting target audience and improvising marketers’ decision-making strategies.

How AI is attracting brands and maturing their online presence?

The ASI (Artificially Super Intelligent) solutions help marketers with a better understanding of the business lifecycle with clarity on loopholes and opportunities to make wiser investments. This gets done by undergoing the stages of Problem Scoping⇒Data Analysis⇒Data Uniformity⇒Modelling⇒Evaluation with the help of Machine Learning and Big Data Analytics. These practices enhance the user experience which is why, in India, AI is expected to show an annual growth rate (CAGR 2023-2027) of 6.52 per cent, resulting in a market volume of USD 915.50 million by 2027.

The development of the AI ecosystem is continuously edging the marketing practices with quantifiable results in the past few years. Therefore, the global AI software market is expected to reach nearly 126 billion U.S. dollars by 2025, opening a broader array of scalable business opportunities and futuristic growth.

Owing to AI’s sought-after practices, brands are diving deeper into this space; here’s how:

Personalised Product Recommendations: AI helps marketers in analysing the users’ past actions, history and behavior with the brands and how frequently they interact with the showcased campaign. Based on the understanding of users’ metrics, marketers can recommend automated and personalised products/offerings to the netizens, matching their interests and requirements. In 2022, the Statista Global Consumer Survey was conducted in India wherein, 56 per cent of respondents said that their motivation towards online brands is product recommendation. Hence, understanding the users at granularity while monitoring what content they would like to consume often results in adding more value to the user experience with better retention rates.

Brand Hygiene: What could be better for an advertiser to identify the right-performing channels that are wiser and worth investing in? The answer is AI which takes digital advertising at par. Marketing campaigns with a blend of AI broaden the brand reach since it delivers the right message to the targeted audience on specific inventories at the right time. This helps advertisers to build synergies between brands and consumers by only delivering the message to the users that they would like to consume which further optimises the campaign and reduces the unwanted advertising budget.

IoT: Users being mobile-fist and friendly are savvy netizens that use IoT which is an opportunity for marketers to tap and acquire them. In 2023, the revenue in India’s IoT market is expected to reach USD 1,102.00 million which is also expected to show an annual growth rate (CAGR 2023-2027) of 8.50 per cent, resulting in a market volume of USD 1,527.00 million by 2027. This is because IoT enables advertisers to better optimise their campaigns, coupled with AI, ML and automation. It helps in identifying the things embedded with sensors that further guides marketers to predict the users’ upcoming actions inside an app.

AI empowers campaign performance due to its predictive analytics that enables marketers to segregate the audience based on their similar sharing characteristics and interests from different locations and inventories. When cohorts get served with content that fits their checklist and requirements, they better respond to it which drives quality measurable results and marketers can make informed business decisions.