AI Marketing Overview for Businesses in 2023

What is AI Marketing?

AI marketing leverages artificial intelligence to help streamline your marketing plan to reach your goals and enhance customer experience.

Many big-name companies already use AI in their products. Services like Netflix, Amazon, and Google use AI technology to predict customers’ behaviors. It helps them provide a better experience for their audience because they recommend products or services that fit that consumer best.

A big part of AI marketing is leveraging customer data. This process helps you anticipate your customer’s next move and provide a better experience for your audience, which boost your website’s performance.

Even though AI technology is robotic, it understands the world as humans do. This technology can predict how your customers will behave and identify concepts and themes in data. This helps you create a better marketing plan that is tailored to your customers.

So in today’s digital landscape, understanding what AI marketing is holds significant importance.

Why should I use AI marketing?

AI marketing is a valuable way for you to enhance your marketing campaign. Once you know what AI is in digital marketing, you’ll be eager to harness the numerous benefits. Below are a few reasons why businesses use AI marketing:

1. It gives you a competitive advantage

AI marketing helps you stay a step ahead of your competition. It can read data sets quicker and more efficiently than a human. You can make immediate changes that allow your campaign to run better.

This technology helps you identify key areas to focus on and problem areas. You can see what parts of your campaign need adjusting so you can better reach and convert your audience.

When you improve your campaign, you can perform better than your competitors who aren’t using AI marketing. They will take longer to identify problems, which gives you a competitive advantage over them. AI marketing is a great way to get ahead of your competition.

2. You can create better ads

When you run an advertising campaign, you use supplemental tools to choose the right keywords and other information for your campaign. You try to make an ad that will appeal to your audience and get them to convert.

So, what happens when that ad doesn’t work?

You may go back to the drawing board and try to think of a new ad, but AI marketing can help you streamline that process. AI marketing allows you to create ads with better keywords that appeal to your audience. This technology absorbs more data, which it then uses to formulate better solutions to fix your ads.

You can also use AI algorithms to analyze ad performance data — click-through and conversion rates — to identify effective ads and make data-driven advertising decisions. The bottom line is that knowing what AI marketingis and learning how to use it will improve your ads to generate better results. It will help you refine your ads to create a better experience for your audience.

Read: What Is AI Analytics?

3. You will produce better content

Content is a great way for your business to obtain valuable leads. When you use AI marketing, you increase your business’s opportunity to reach these leads. AI marketing helps you create a more individualistic experience for your customers.

Since AI marketing looks at individual people and their experiences, using it in your marketing plan is a great way to understand your audience better. It helps you produce content that will enhance more individuals’ experience with your business.

AI marketing will help you identify potential clients or customers, so you can produce relevant content. You’ll get more out of your content and produce content that works for your audience once you’ve learned what AI marketing is.

Pros and cons of AI marketing

Before you jump into AI marketing for businesses, it’s crucial to know every pro and con. Here are the top three pros and cons of AI marketing to help you weigh your options:

Let’s look at each one below!

Pro #1: AI helps save time

The first pro of AI marketing is that it saves you time. You can use AI to automate many tasks, from writing and scheduling emails to collecting and sorting customer data.

Say that you want to send an email campaign to certain groups in your list. First, you have to sort through what users would benefit from the message. Then you must draft, manually add all the addresses, and send it. That process takes plenty of time and leaves room for error.

With AI, you can streamline the menial marketing tasks and make more room for larger projects.

Pro #2: AI can improve return on investment (ROI)

AI can reduce resources and help you get better results from your investment. Even if you choose simple AI tools for your marketing plan, they can still help reduce marketing costs and give you a better ROI.

AI makes it easy to create, track, and launch marketing plans with fewer resources needed. However, even though you streamlined the system, you can still earn more back from conversions and sales. With AI, you get more bang for your buck.

Pro #3: AI aids with user experience (UX)

When you market your business, it’s all about the audience’s experience. If you have an unhappy customer, you will miss out on sales and hurt your reputation, too. With AI marketing, you will improve the customer experience to promote conversions on your site.

AI marketing focuses on improving your campaign for the customer. It takes data from your campaign, processes it, and helps you create a better campaign that appeals to more people in your audience. You can use the data you collect to make changes much more easily.

The whole basis behind AI marketing is to improve your audience’s experience with your business so they will convert. A positive user experience will lead to more conversions for your business.

Con #1: AI has a learning curve

Though the pros of AI marketing are nice, there are some cons to consider — the first being the learning curve.

AI is still a growing industry with plenty of nuance and learning. As we understand and develop the technology, it will be easier and easier to use. However, there is a lot to learn, especially when adding it to your marketing plan.

From integrating the technology to tracking results, AI differs from regular marketing. If you don’t have an in-house tech team with a background in this field, setting up and running an AI marketing campaign can be even harder.

Con #2: AI lacks the human element

AI content and plans still need human eyes, regardless of how advanced technology gets. You can’t solely rely on AI for content or campaigns — they might look good as code but not as human-focused plans.

Think of AI-generated content. No matter how hard these algorithms try, sometimes they can’t nail how a human speaks or thinks. The words might come out too formal, or they might be grammatically correct but not applicable to your tone.

If you adopt AI in marketing, you still need people to add the human element to your materials. This con means shifting the workload to monitoring the AI technology, which can be more tedious.

Con #3: AI is hard to justify

Often, AI improves factors that are hard to measure, like customer experience or brand awareness. While these benefits can eventually lead to more revenue, it can be challenging to justify the cost of this investment. You want concrete evidence of how these tools will improve your company.

Examples of companies using AI

So, how do companies use AI marketing? Let’s look at three examples from real companies using AI for their marketing approach:

1. Netflix

Netflix uses AI marketing to provide suggestions for users as they browse content. The algorithm stores user data to send suggestions to users automatically based on their watch history:

They also use AI to create images, thumbnails, and artwork that will appeal to users individually. Instead of manually sorting through data and pushing different content to various groups, AI does all the sorting and selecting for them.

2. Starbucks

Another example of AI in marketing campaigns is Starbucks, which jumped on the trend early back in 2016. They use mobile app and loyalty card data to collect and analyze customer patterns and behaviors to send them personalized recommendations.

For example, say a customer orders a lot of iced drinks or shops at a certain time of day. Then, the app will send personalized marketing messages whenever the user gets close to a store or it gets close to their typical order time.

This process saves the company time while popping reminders to their customers to place an order or pick up a coffee on the way home from work.

3. Nike

Nike is our last example of how companies use AI marketing. They use customer data from previous purchases and browsing history to create personalized ads and recommendations for users.

They also use the customize program to gather data on customer preferences:

For example, things like color, shoe size, and clothing preferences can help the algorithm understand what each user wants.

Also, Nike uses their AI technology to process customer reviews and make improvements where possible.

Our digital marketing campaigns impact the metrics that improve your bottom line.

See More Results

WebFX has driven the following results for clients:

$3 billion

In client revenue

7.8 million

Leads for our clients

5.2 million

Client phone calls

Build a smarter digital marketing plan with WebFX

Artificial intelligence is a great opportunity for your business to create a better digital marketing campaign. It will help you provide a better experience for your audience and allow your team to focus on other tasks. At WebFX, we know how to use artificial intelligence marketing to help you enhance your online marketing strategy.

Our team of 500 experts have more than 25 years of experience creating digital marketing plans. We know how to incorporate artificial intelligence marketing into your digital plan to help you create a more effective campaign.

As a full-service digital marketing company, we integrate artificial intelligence into numerous digital marketing methods. To date, we’ve driven over $3 billion in sales and over 7.8 million leads for our clients. If you want to reap these benefits, contact us online or call us today at 888-601-5359!