Before diving into today’s topic, let us first understand the meaning or definition of Artificial Intelligence (AI). According to Investopedia, “Artificial intelligence (AI) refers to the simulation of human intelligence in machines that are programmed to think like humans and mimic their actions.
The term may also be applied to any machine that exhibits traits associated with a human mind such as learning and problem-solving.” In simple terms, Artificial Intelligence is the ability that enables the computer to do tasks that are done with human intelligence, tasks like problem-solving.
In a survey conducted by MemSQL, “out of 1600 marketing professionals, 61% of them considered machine learning and artificial intelligence as crucial data initiatives.”
Another survey was conducted by Salesforce showed that “84% of marketers have already adopted artificial intelligence (AI) — up from 29% in the preceding year.” Let us now understand the importance of Artificial Intelligence (AI) in the digital marketing sector:
Improves the user’s experience through Artificial Intelligence (AI)
The main function of any kind of marketing technique is customers’ satisfaction. In online marketing or digital marketing, customers’ satisfaction is judged by the experience that he is having while visiting their website.
User experience constitutes the highest percentage in customer satisfaction, and Artificial Intelligence (AI) helps in increasing user experience drastically. These online websites use AI-generated data to understand consumer behavior.
It helps the company to understand their taste and preferences and show the content which is relevant to the targeted customer so that he is induced to buy a product.
For example, Amazon uses its AI-generated data to show the user items which they are interested in buying and the user ends up buying the product. This not only results in profit for the company but also enhances user experience leading to customer or user satisfaction which is the main motive of marketing any product or services.
This concept of using the user’s personal data for enhancing their experience is called “third-party cookies.” Third-party cookies are the data that these online marketing platforms use to induce the customer to make a purchase.
This is an important tool for all digital marketing platforms. However, Google announced recently that it is banning all websites from using third-party cookies. Google is eliminating this concept by the year 2022. A lot of digital marketing experts are quite shaken up by this news.
Sir Martin Sorrell, who is an Executive Chairman & the Founder of the S4 Capital:
“CMOs should take note that this reiterates, once again, the importance of first-party data and how consumer trust and privacy are moving to the forefront of marketing.
In the coming years, digital consumer relationships will be earned by customer experience and value exchange. With Google Chrome removing support for third-party cookies by 2022, the time for marketers to start investing in the future is now.
S4Capital is guided by our belief that first-party data is the Holy Grail – and already has its sights on the critical next phase for marketers, where digital identity is in the hands of the brands themselves. In 2020, we merged with leading cookieless measurement company Bright blue and readied brands like Mondelēz to leverage first-party consumer data to plan, personalize, and optimize their digital media and content.
As one of our most respected clients said – Google’s decision reinforces again the importance of first-party data and that we are entering into a world of at least 25 big walled gardens. It’s a natural evolution of the privacy debate.”
This is something that will change the entire game for all digital marketing websites, and further will make things difficult for all digital marketing websites all across the globe, but this all in the future.
Predicts the potential user’s preferences
AI (Artificial Intelligence), can not only understand past customers’ tastes and preferences but also predicts future customers’ preferences as well by using third-party data and utilizes that information for the benefit of both parties.
The new algorithms state that: “the accuracy of data is anticipated to get more efficient.
Predicting the ROI and determining sales forecasting will be inevitable, and it becomes a lot more convenient for digital marketers in the future through these innovations.”
Artificial Intelligence (AI) and Digital Advertising
Artificial Intelligence (AI) has helped with digital advertising a lot of times. Artificial Intelligence (AI) predicts an individual’s behavioral pattern, taste, and preferences and shows them advertisements according to their preferences.
This technique is used on platforms like Facebook, Instagram, YouTube, and Google, this also enhances the users’ experience.
According to E-Marketer is a digital marketing website, “digital ads spend worldwide was estimated to be $273.29 billion in 2018 and this is expected to increase further.
With AI technology, marketers can spot micro trends and even predict trends. They can then make strategic decisions about where they allocate their budgets and who they target. As a result, brands can reduce digital advertising waste and ensure that their expenditure delivers the best possible results.”
Artificial Intelligence or popularly known as AI, is gaining its popularity with each passing day and is making the work of various digital marketing websites a lot easier and less time consuming, more time effective.
It helps these marketers to deliver the best user experience for the individual that are surfing their websites on a daily basis. Because at the end of the day Consumer Satisfaction will always be the key for any kind of marketing technique be it online or offline.