Why companies are using AI in Digital Marketing

It is not something new for artificial intelligence to take over the planet and eliminate human labor. However, with the release of ground-breaking tools like ChatGPT, the buzz has increased significantly.

Will AI replace us or will it assist us?   

No matter what company or profession they are a part of, the above question has consumed everyone. But compared to most other professions, digital marketing is perhaps where AI will have the biggest impact.

According to Salesforce, the percentage of marketers using AI scaled from 29% in 2018 to 84% in 2020, a 55% rise.

According to Influencer Marketing Hub’s AI Marketing Benchmark Report 2023, more than 60% of marketers employ artificial intelligence in some form.    

These statistics are proof that Artificial intelligence (AI) is revolutionizing digital marketing. It can challenge the way that marketers approach, think about, plan, and implement their marketing goals.

Keep reading to understand what AI in digital marketing is and what benefits it can reap for companies.

What is AI in Digital Marketing?

Artificial intelligence (AI) in digital marketing is a technique that makes use of data and machine learning. It enables the creation of campaigns that contribute to the more efficient achievement of brand objectives. The majority of marketers leverage AI for data science, real-time campaign analysis, and market research.

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Why Do Companies Use AI in Digital Marketing?

Now that you know what artificial intelligence is, let’s discuss its benefits for digital marketing companies. This is not an exhaustive list. New developments are being made daily to enhance brands’ consumer interactions, provide better product recommendations, assist with content generation, and other objectives.  

However, these are the six benefits that a digital marketing company can get by using AI in its marketing strategy.

1. Smart Classification of Leads and Prospects

Not every person who visits a website will become a customer. A website’s traffic is usually dominated by visitors who never buy anything or subscribe to the newsletter. To be fair, no brand can guarantee that each lead will convert. Many people use the internet only to browse, weigh their options, or because they are still unsure of what they are looking for.

Nevertheless, there are ways to boost the conversion rate by categorizing your leads and prospects. You will frequently receive low-quality leads on your sites if your content marketing strategy is subpar or your audience is wrong. 

You might need to tweak your CTAs or choose a new social media network to advertise your company. In both cases, artificial intelligence (AI) can assist you in audience segmentation and learning who and how to target. By doing this, you can enhance your content, focus on the right target audience, and effectively market your business.

For example, say a visitor fills out the request for a free marketing audit form. The AI system collects and analyzes the data provided by the visitor. It can include their name, company name, industry, current marketing strategies, and their marketing budget.

Based on this data, the AI system assigns a lead score to the prospect. For instance, if the visitor’s company belongs to a high-priority industry and has a substantial marketing budget, they would receive a higher lead score.

Once the lead score is determined, the AI system then places the prospect into the relevant segment. The company can have predefined segments like “Hot Leads,” “Warm Leads,” and “Cold Leads.”

2. Intelligent Ad Targeting

AI has revolutionized digital advertising by allowing businesses to more precisely target their adverts. Large amounts of user data can be analyzed by AI algorithms to spot trends, preferences, and behaviors. This allows businesses to deliver extremely relevant and targeted adverts.  

For instance, imagine a B2B software provider, promoting their latest project management tool to businesses. By using AI-powered ad targeting, they analyze user data and identify companies that frequently search for project management solutions or visit project management-related websites.  

With this information, the company can display targeted ads specifically to those businesses, showcasing the features and benefits of their project management tool. 

This way, companies may maximize their advertising budgets, give their audience a more tailored ad experience by utilizing AI in ad targeting and improve conversions.

3. Streamlining Processes With Content Generation and Curation

Businesses are now able to take advantage of the considerable advancements AI technology has made in content development and curation. By streamlining their content creation processes and delivering compelling content at scale, they can effectively leverage the potential of AI in digital marketing.

So picture yourself as a content marketer in a B2B company in charge of coming up with posts on social media. AI-powered systems may examine the content already published under your brand, spot trends, and provide ideas for fresh pieces.

AI algorithms may also collect pertinent content from a variety of sources and suggest it for sharing. This can save you the time and effort of manually locating and curating content.

4. Personalization for Tailor-Made Experiences 

The ability of AI in digital marketing to provide clients with highly personalized experiences is one of its most important advantages. Huge volumes of data, including browsing habits, past purchases, and demographic data, can be analyzed by AI algorithms to produce insightful findings about individual preferences.  

Imagine, a B2B digital marketing company has a website offering solutions to different niches. The company can use AI-driven personalization to analyze their visitors’ interactions. For example, when a visitor from the healthcare industry arrives and views the healthcare section, the website dynamically displays case studies and success stories related to healthcare clients. 

This customized experience can raise engagement, increase customer happiness, and boost conversion rates.

5. Efficient Customer Support

Chatbots are one means by which AI can enhance the consumer experience. Natural Language Processing (NLP) is used by chatbots to converse with clients and offer them individualized guidance and solutions. Businesses may offer 24/7 customer support via chatbots, increasing client retention and happiness.

For instance, a B2B technology company can implement an AI chatbot on their website to provide instant technical support to their business clients. When a client encounters an issue with their software product, they can simply start a chat with the AI bot.

The AI chatbot can troubleshoot common technical issues, provide step-by-step guidance, and even offer links to relevant knowledge base articles.

Answering their questions and giving them the required information without making them wait for a human agent, can enhance customer engagement and retention.

6. More Rapid Decision-Making and Improved ROI

With AI by your side, you no longer have to wait until a campaign is complete to make decisions. With the help of machine learning and AI, you can use real-time data to make better judgments. Because AI provides all the information you need to make decisions, you no longer need to comb through sheets of data.

Additionally, it implies that businesses could speed up the manual information processing procedure. As a result, digital marketing companies were able to develop more effective campaigns faster and provide a higher ROI at a lower cost.

Conclusion

In the world of digital marketing, artificial intelligence (AI) has emerged as a game-changer. It is revolutionizing how businesses analyze data, personalize experiences, and optimize campaigns.  

As a digital marketing agency in Chennai, India, we have experienced this first-hand. We have leveraged these AI tools to transform our clients’ businesses.

Let’s talk about AI in digital marketing so you can also harness the power of this technology for your own marketing endeavors. Talk to our team now.