Outsourcing Artificial Intelligence Is The Key To Unlock Unprecedented Efficiencies
As the recessionary fiscal environment casts a shadow of economic uncertainty, innovation could be critical for maintaining a competitive edge. In this context, outsourcing artificial intelligence (AI) has emerged as a game-changing solution, particularly for influencer marketing campaigns. In fact, in 2020, the global outsourced AI market size was valued at $1.52 billion and is projected to reach $11.56 billion by 2028, growing at a CAGR of 29.1% from 2021 to 2028, according to Grand View Research.
Businesses can unlock unprecedented efficiencies by harnessing the power of external AI expertise. For brands, outsourced AI refers to employing third-party AI solutions or partnering with AI service providers to augment their marketing efforts. It allows brands to access cutting-edge AI technologies and expertise without the need for extensive in-house resources or infrastructure.
The Pioneers
Brands like Netflix and Amazon are notable pioneers in utilising AI in marketing. Netflix’s recommendation engine suggests personalised content to users, while Amazon offers tailored product recommendations based on user behaviour and purchase history. These AI-driven approaches have enhanced user experience, increased customer satisfaction, and consequently improved sales for both companies.
Rise of Outsourced AI
The success stories of Netflix and Amazon prompted other brands to take notice and explore AI-driven strategies. Outsourcing AI-related tasks to specialised service providers such as Google Cloud AI, IBM Watson Advertising, and Amazon Advertising AI Solution quickly became the norm.
Outsourcing marketing campaigns has made AI implementation faster and tremendously helped organisations without in-house AI capabilities. By partnering with external AI experts, brands are able to tap into their knowledge and skills, allowing their internal teams to focus on essential marketing tasks.
What’s driving this trend?
The increasing demand for a cost-effective method to access advanced data analytics, hyper-personalisation, and automation of marketing initiatives are primary drivers of this change.
1. Data Analytics and Insights
According to a study by Forbes, 60% of organisations reported improved campaign performance and customer engagement after implementing AI analytics solutions.
Indeed, a data-driven approach allows marketers to optimise their campaigns, refine targeting strategies, and deliver hyper-personalised content that is sure to resonate with their target group. The hypothesis is a homegrown startup helping brands optimise their marketing investments with a data-driven all-in-one influencer marketing platform with direct creator access and comprehensive analytics, empowering marketers with seamless creator discovery, in-depth performance insights, and direct engagement.
2. Predictive Analysis
Predictive analysis can assist marketers in accurately forecasting future trends, demand, and customer behaviour. And AI algorithms can provide insights into future sales projections and marketing opportunities. This enables brands to make informed decisions regarding budget allocation, resource planning, and campaign strategies. As a matter of fact, a study by McKinsey & Company revealed that organisations using AI for predictive analytics achieved a 10% average increase in sales and a 20% average reduction in inventory costs.
Take, for example, how outsourced AI helped Tata Motors optimise its marketing campaigns by personalising content, targeting specific customer segments, and predicting consumer preferences. By utilising AI-driven predictive analytics, Tata Motors was able to identify potential customers who were more likely to be interested in their products and tailor their marketing messages accordingly.
3. Content Personalisation
Outsourced AI solutions also assist brands in generating personalised and engaging content at scale. AI-powered content creation tools analyse customer data, identify trends, and generate targeted content tailored to individual preferences.
For instance, in 2011, Coca-Cola’s “Share a Coke” campaign in Australia printed names on bottles, creating anticipation and motivating purchases. Similarly, Cadbury’s “Joy Deliveries” campaign allowed personalised chocolate bars as gifts, positioning Cadbury as the perfect choice. These campaigns exemplify the power of personalised content in driving engagement.
4. Leveraging AI and Real-Time Bidding
By outsourcing their ad campaign management to AI-powered firms like InMobi or Affle, businesses have benefited greatly by automating real-time bidding for better ad performance.
The combination of automated ad campaigns and real-time bidding enables businesses to optimise their ad strategies, target the right audience, and allocate their budgets effectively, leading to improved ROI and better ad performance.
For instance, when Quiz Clothing wanted to improve its online sales and increase its return on ad spend, it implemented Smart Bidding, an AI-powered automated bidding strategy. With this, Quiz Clothing was able to automate and optimise its bidding strategy across various Google Ads campaigns. As a result, it achieved a significant increase in conversion rates and online sales, leading to a 32% uplift in return on ad spend.
How is the future looking?
In a word, promising. The future of outsourced AI in MarTech campaigns looks definitely bright. From here on, AI-powered automation will become more sophisticated, enabling marketers to automate repetitive tasks, personalise content at scale, and streamline customer journeys. Furthermore, AI algorithms will continue improving predictive analytics capabilities, which will allow marketers to anticipate customer behaviour, identify trends, and make data-driven decisions. And coming to customer experience, AI will be leveraged to deliver highly personalised and contextualised customer experiences across various touch points, leading to improved engagement, conversion rates, and customer satisfaction.
Apart from this, NLP-based (Natural Language Processing) AI systems will facilitate a better understanding of customer sentiments, enabling marketers to tailor their messaging and communication strategies accordingly.
All in all, by leveraging outsourced AI in MarTech campaigns, businesses can unlock new levels of efficiency, personalisation, and customer engagement, leading to improved marketing performance and business growth.
(Himani Agrawal is the Senior Vice President of Product & Analytics at Hypothesis)
