Impact of Artificial Intelligence on Digital Marketing
What is Artificial Intelligence?
Artificial intelligence is the creation of intelligence machines which are capable of think and react like humans. John McCarthy coined the term “Artificial Intelligence” and McCarthy was one of the founders of the discipline of artificial intelligence. Artificial Intelligence can perform tasks more accurately.
It has been said that Artificial Intelligence will create the fourth Industrial Revolution.
84% of marketing organizations are implementing AI and machine learning in 2018 (source : Forbes)
Let us now understand the types of artificial intelligence.
3 Types of artificial intelligence
In this article, we are exploring the impact of Artificial Intelligence on digital marketing. Artificial Intelligence has impacted Digital marketing in many ways, here are some effects that Digital Marketing is going to face in coming years.
The chatbots are computer programs developed for interacting with online customers and they also complete order for them. Chatbots can be integrated in websites and social media pages. Chatbots boost engagement, they can help customers 24/7 and they can handle several customers simultaneously. Importantly, Chatbots can respond immediately to customers queries through chat interaction. Many online businesses already implement chatbots to provide better customer support. The beauty is that, In many cases the customers do not realize that they actually interacting with machine.
2. Semantic search
Semantic search helps users significantly to find answers for their search much faster. Semantic search is a data searching technique that understands user’s intent and contextual meaning of a search query rather than keywords. AI can do this by understanding the meaning of search phrases. It involves finding relationship between words and phrases in the search query. Machine learning technique helps search engines to understand what information user might need based on their search history and user persona. With the help of machine learning, the search quality will increase constantly.
It consider some factors like,
The Evolution of semantic search
Tips to optimize your site for semantic search
3. Content Creation and curation
Content creation AI called Wordsmith that produced 1.5 billion pieces of content in 2016. Wordsmith is a natural language generation platform that transforms your data into readable narrative. Wordsmith creates financial reports for the associated press.
Artificial Intelligence can write data focused contents such as sport stories, stock updates and financial reports. According to Gartner, by 2018, 20% of business content will be authored by machines. AI is capable of producing 2000 articles per second. Also, Content creation with Artificial Intelligence will be more effective.
Content curation is the process of gathering, organizing information relevant to the particular topic. Content curation is form of Artificial Intelligence. A best example for content curation is e-commerce websites like Amazon. They recommend similar products based on what you have previously looked or purchased.
According to Mckinsey, 35% of Amazon’s (e-commerce site) revenue is generated by its recommendation engine.
4. Ad targeting
Ads are essential for brand promotion and AI can generate and promote online Ads. It can generate or improve Ads content based on user’s interest, preferences, likes and dislikes.
Google Ad platforms already use artificial intelligence and machine learning for target the audience. AI can deliver Ads to users based on their search history, previous purchase, demographics, interests etc and finally AI can display right Ads to right audience at right time. This will give better ROI to advertisers.
According to eMarketer, by 2019, 84% of digital display Ads in US will be programmatic.
5. Predictive marketing
Predictive marketing is forecasting marketing success and AI can help marketers to predict future business accurately. Predictive analytics refers to use data mining, machine learning and artificial intelligence to analyze the historic data to predict the future trends.
When user’s browses on the internet every time AI collects the information related to user’s online behavior and analyze that data. This data reveals a lot of information like buying frequency and brand preferences of user. Artificial Intelligence has the ability to understand the needs and preferences of the consumer with the data it has already analyzed. By segmenting audience, AI helps companies to understand what their customers want. It helps to predict the purchasing behavior of your target customer.
Predictive analytics helps companies to manage their production plan, and it is based on the demand and supply prediction.
According to narrative science, 44% of executives believe that AI’s most important benefit is decision making.
6. Voice search
According to recent study, it is estimated that 50% of all searches will be voice search by 2020. Apple and Google developed their personal assistants known as Siri and Google assistant.
Voice search is easier and quicker way to search information. Voice search will change future SEO strategies so it is necessary for marketers to optimize their content with voice friendly long tail keywords. Optimize your site for local search it is very important because the user’s say words like “near me” in voice search. Create web pages that provide direct answers to the questions because Voice search always looking for WH questions.
7. Target right audience
Targeting right audience is very important in online business. Google analytics powered by Artificial intelligence can segment the audience depends on location, demographics like age, gender, education, income, profession etc and psychographics like interest, preferences, attitudes etc. It helps to decide which target audience is best for your product or service.
Artificial intelligence analyzes millions of data line item on a single user profile, that will help digital marketers to market the products to the various customer segments effectively.
8. A/B testing
A/B testing also known as split testing or bucket testing. According to Techopedia, A/B testing is an online marketing tactics comparing two versions of web pages to identify, which one is preferred by consumers. In other word which version of your web page generates more conversions or leads.
Artificial intelligence based tools, test a bunch of hypothesis at a time and improve results much quicker and more efficiently than humans. Also, AI is used to increase the effectiveness of Conversion rate.
Sentient Ascend platform allows you to test thousands of hypotheses simultaneously. It helps to find the top performing variations faster.
9. Lead scoring
Lead scoring is a methodology for ranking leads based on customer behavior relating to their interest in product or service and their current place in their buying cycle. It helps to identify who is likely to engage or buy. No one wants to lose time with unqualified leads and it helps to focus on qualified leads. Companies can score leads by using terms like hot, warm, and cold
Artificial intelligence can automatically prioritize real hot leads and it helps to improve sales productivity and proactively.
10. Web development
AI helps to design a websites easier, faster and with a few clicks. Application like Grid, that use artificial intelligence named Molly design a website within minutes based on informations provided by users like images, page layout, text, calls-to-action, etc.
The speed, that the Artificial intelligence is being implemented across industries will surely trigger revolution that the way businesses had been done so far. Artificial intelligence drives the opportunities of achieving things with a higher degree of accuracy and faster. AI helps financial and banking industries greatly in terms of managing data, retrieving information, large volume of computation and cost effective. With the help of Artificial intelligence, marketers can make data driven decisions for better campaign results. In additional, they can leverage the prediction efficiency of AI to easily identify their potential customers, purchasing behavior to achieve higher sales and customer satisfaction.
- Max Tegmark, President of the Future of Life Institute