AI in Marketing – Benefits, Use Cases, and Examples

Have you ever compared Artificial Intelligence to the invention of the wheel? It’s not just a metaphor; it’s a reality. Just as the wheel transformed mobility, AI is changing countless aspects of our daily lives, even for those seemingly distant from technology. Companies might use AI in marketing to refine customer experiences and optimize operations.

Guess what?

In 2024, the AI market, especially the part that deals with creating stuff like text or images, is expected to be worth a whopping $66.2 billion. And get this – it’s supposed to grow by 21% every year, reaching an incredible $207 billion by 2030.

More than half of marketers are harnessing the power of AI for content creation, leading to increased customer engagement and cost savings.

The latest trends in AI include creating highly personalized experiences, improving ad targeting, and developing smarter chatbots. However, the journey isn’t without challenges. Ensuring ethical AI use, maintaining high data quality, and upholding stringent security standards are some of the hurdles to overcome.

Even with these challenges, AI in marketing is changing really fast, and there’s lots to look forward to. Marketers are using AI more and more to really understand and connect with customers at every step. So, the future of AI in marketing looks pretty exciting!

Keep reading to discover the brilliance of AI in marketing, as this blog will address all your queries about its use cases, benefits and examples.

Understanding AI in Marketing

What is AI?

AI, or Artificial Intelligence, is like teaching computers to do smart things that humans usually do, such as thinking, making choices, or solving problems. It’s sort of like training a computer to learn from its experiences.

What is AI marketing?

AI marketing is when we use computer smarts, like collecting data, using data to make decisions, understanding language, and learning from information, to figure out what customers want and make marketing decisions better. It’s kind of like having a smart helper that helps us know our customers and make better marketing plans.

How do marketers use AI?

Marketers use AI in lots of ways. They use it to make things personal for customers, look at big amounts of data, and do tasks that repeat a lot.

For example, AI can change how a customer sees things online based on what they do or if they’ve filled out a form for your company. It can also check out a user online and give them a more personal experience with things like web pages, social media posts, and emails.

Types of Marketing AI Technologies

There are four main types of AI tech used in marketing:

1. Reactive Machines: These AI systems react to different prompts without using memory or understanding the context. Think of AI chatbots.

2. Limited Memory: This type of AI learns from a bit of data but doesn’t remember things for a long time.

3. Theory of Mind: This is a fancy AI that understands thoughts and feelings affecting human behaviour.

4. Self-Aware: This is the most advanced AI, which knows its own state and can predict the feelings of others.

Use Cases of AI in Marketing

Here is how AI is helping marketers and marketing:

1. Audience Targeting: AI helps marketers find the right people for their ads by looking at how people act online.

2. Lead Generation: AI looks at patterns in data to guess who might become a customer. This helps find potential customers more quickly and easily.

3. Personalization: AI helps make ads personal by showing things that each person is interested in. This makes people more likely to pay attention to the ads and buy something.

4. Deep Understanding of Customers: AI looks at lots of information about customers to really understand what they like and how they behave. This helps in making better marketing plans.

5. Behavioural Analysis: AI tracks and studies how customers behave. This helps in understanding what motivates customers, what they need, and how they interact with a brand.

6. Competitor Insights: AI tools look at what other companies are doing. This helps marketers understand what works for competitors and how they can do better.

7. PPC Advertising: AI helps in placing ads online in a way that is cost saving. This makes sure that ads reach the right people and the company gets more value for their money.

8. SEO: AI helps in making websites show up more often in online searches. This brings more people to the website, increasing the chances of them buying something.

9. Social Media Listening: AI keeps an eye on social media to see what people are saying about a brand. This helps in quickly adjusting marketing plans based on customer feedback.

10. Email Marketing: AI personalizes emails and decides the best time to send them. This makes more people open and read the emails, increasing the chances of them buying something.

11. Predictive Marketing: AI uses data to guess what customers might do in the future. This helps in planning marketing strategies that work better.

12. Chatbots: AI-powered chatbots answer customer questions instantly. This makes customers happy and saves time for humans to do more complicated tasks.

13. Customer Support: AI helps in answering common customer questions automatically. It keeps learning and getting better at helping customers over time.

14. Content Generation: AI creates marketing content like blog posts and social media updates based on what people like. This helps in keeping customers interested.

15. Intelligent Website Audits: AI checks websites to find areas that need improvement. This includes things like making the website show up better in searches or improving how it looks.

Additional Use Cases of AI Beyond Marketing

• Market Analysis: AI looks at trends in the market to help businesses plan for the future.
• Augmented Assistance: AI helps people do tasks better, like analysing data or answering questions.
• Product Design: AI assists in designing products that people will like based on what’s popular.
• Sales Forecasting: AI predicts how much a company might sell in the future. This helps businesses plan ahead.

Examples of AI in Marketing

AI isn’t just a fancy term in marketing anymore. It’s changing the way companies interact with customers and improve their campaigns. Here are some simple examples of how companies are using AI to get better results in their marketing efforts:

1. Netflix: AI Helps Pick What You Watch Next

How it works: AI looks at a lot of data about what users like, what they’ve watched before, and other things to suggest shows and movies they might like.

Result: Thanks to these personalized suggestions, 75% of what users watch on Netflix comes from these recommendations. This keeps users watching and makes them less likely to cancel their subscription.

2. Nike: Ads That Connect with You Emotionally

How it works: AI looks at what people are saying on social media, news articles, and other online stuff to understand what people feel and like. This info helps make ads that really connect with people.

Result: Nike’s AI ads create strong emotional bonds with viewers, which makes people love the brand more and engage with it more.

3. Sephora: Beauty Advisor Chatbot

How it works: AI chatbots give personalized product suggestions, answer questions, and show tutorials based on what the user likes and has bought before.

Result: Sephora’s chatbot, called “Sephora Assistant,” makes shopping easier, makes customers happier, and increases online sales.

4. Unilever: Finding New Trends with AI

How it works: AI looks at what people are saying on social media to find new trends and what customers like about Unilever’s products.

Result: Understanding what customers feel helped Unilever make new products like Ben & Jerry’s ice cream that tastes like cereal, which was a big hit.

5. Adidas: Better Ad Campaigns with AI

How it works: AI looks at data about how ads are doing and who’s seeing them to change bids for the best campaign results.

Result: Adidas’ AI helps reach more people and engage them while spending less on ads, which leads to big savings and more people buying stuff.

Benefits of AI in Marketing

Artificial Intelligence (AI) has revolutionized the field of marketing by providing numerous benefits. Here are some key advantages:

1. Personalization: AI can help create more personalized content. In fact, 49% of marketers believe that AI’s biggest benefit is its ability to create more personalized content. AI can learn customer preferences, quickly pick up on changes in consumer behaviour, and offer them relevant recommendations.

2. Efficiency: AI can help make marketing processes more efficient. It can predict customer spending patterns, perform market research, and assist customers in real time when live agents are unavailable.

3. Cost Reduction: Over half of the companies (54%) report cost reductions and operational efficiencies when implementing AI in IT, business, or network operations.

4. Improved Decision-Making: Implementing AI in marketing processes can help you make better decisions.

5. Increased Brand Awareness: AI can help increase your brand awareness.

6. Enhanced Performance: Nearly 6 in 10 marketers who use generative AI for writing content have observed enhanced performance as the primary advantage.

Now, let’s look at some statistics that support these benefits:

• The market for AI in marketing was estimated to be 15.84 billion US dollars in 2022, with a projected increase to 47.32 billion by 2025.
• 71% of marketers believe AI could help them personalize their marketing campaigns.
• According to a recent survey of 250 digital marketers in retail, experienced marketers only chose the highest-performing digital marketing messaging 30% of the time.
• The Persado Motivation AI Platform leverages over 1.5 billion customer interactions from 150 million US customers to deliver digital marketing messages that motivate customers to engage and act.
• $107 billion is the global market revenue forecast for AI in marketing in 2028.
• $1.25 billion is the worldwide chatbot market’s forecast size by 2025.
• 90% of marketers in 35 countries used AI tools to automate customer interactions.

In Summary

Artificial Intelligence (AI) is already changing the marketing world a lot, and it’s going to keep growing.

AI brings lots of benefits, like making things more personalized, efficient, and cheaper, while also helping with better decision-making.

Looking forward, the future of AI in marketing looks promising. As technology keeps getting better, AI will become even more important for marketing plans.

It’ll help with targeting the right people, making customer experiences better, and coming up with new and creative marketing ideas that we might not even know about yet.

So, if you’re in marketing and haven’t tried using AI yet, now is a great time to start.