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AI Marketing is Here—How are Brands Leveraging It?

A little complicated and always evolving, the practical applications of artificial intelligence (AI) can be difficult to envisage sometimes. However, for marketers, AI allows them to facilitate and improve their strategies in unbelievable ways. Many successful brands have already begun using AI and reaping its benefits. Targeted at customers, AI is helping brands to personalise products and services like never before, creating better customer retention, brand relevance and engagement, which is bringing in even more revenue. And according to Statista, the global AI market is estimated to generate 433 billion USD in sales in 2022!

So, why and how are brands using AI digital marketing?

What is AI Marketing?

AI offers more than automation or digital tools. It imitates the human mind to make decisions and function. As a result, it can help marketing teams devise effective marketing strategies that can build customer loyalty and generate profits. 

Even though AI is not the same as human intelligence, it can grow and think like humans, and perhaps, it will surpass it in the future. Slowly but steadily, AI is constantly occupying bigger roles in people’s lives. Especially in the way companies are communicating with their customers. They are leveraging AI tools and methods such as algorithms, machine learning and data models to produce customer insights that marketers can apply to personalise the customer journey, optimise spending and customise content. 

So, how are companies using AI in their marketing?

Case Studies

Netflix

Netflix has been using AI to power content recommendations for years. They have used almost 77,000 altgenres or multiple methods to gauge what shows or movies they should recommend to each of its viewers. Smart AI algorithms were used to personalise recommendations, which increased customer satisfaction and retention. The idea behind using AI for auto-generating recommendations was to ensure users stay on the platform and “binge-watch” more often. 

Besides personalisation, Netflix is also applying AI to create thumbnails and improve streaming quality.

Amazon

Along with Netflix, Amazon was a pioneer in applying machine learning to offer personalised recommendations. In 2019, Amazon announced Amazon Personalize, which provides Amazon Web Services customers with the same machine learning technology that is applied on their e-commerce website. 

The Amazon team has enhanced its functionality since the initial rollout and now it can deliver up to 50% better recommendations across a range of fast-moving products, including movies, music, books and more. Currently, Yamaha, Subway and Domino’s are among some of the companies using Personalize to highlight in-store catalogues, individualized combinations and so on.

Starbucks

According to research, companies that identify customer needs through predictive analytics can boost their organic revenue by 21% every year compared to an average of 12% without predictive analytics. 

Starbucks is the best example among several brands applying predictive analytics to improve customer experience. With their mobile app and loyalty card, they are collecting and analysing customer data to create personalised offers since 2016.

Starbucks has created quite the app experience since then. It records purchase details, including where and when they are made. They use predictive analytics to process this data and create personalised marketing messages for their customers such as suggestions when a user is close to a local store and special offers to supplement the customer’s average order value.

Unilever

Unilever uses AI data centres around the world to synthesise insights from a variety of sources, including CRM, social listening and conventional marketing research. Applying this technology, they have discovered a link between breakfast and ice cream. Consequently, they took this insight and created a range of cereal-flavoured ice creams for the Ben & Jerry’s brand.

What is Next for AI Marketing?

Personalisation, chatbots—AI is more prevalent in the digital marketing domain now, working in the background. It is creating content, personalising websites, predicting behaviour and more. Marketers are quickly realising the benefits of the technology.

Beyond identifying target audiences and analysing their behaviour, AI is the secret hero of digital marketing strategies, particularly when creating real-time personalised content and assistance to drive more revenue. More investment can be heavily anticipated in AI marketing in the next few years.

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