AI can be of immense help in marketing as the technology can enhance and complement the existing strategy. Several AI technologies – including generative AI can be used in marketing.
Among others, AI can be used in marketing functions like data analytics, content generation and personalization, automated marketing campaigns, and chatbots, as well as help in buying the most appropriate media platforms for ad campaigns.
What Kinds of AI Technology Are Used in Marketing?
According to McKinsey “Artificial intelligence is a machine’s ability to perform the cognitive functions we usually associate with human minds.”
Sam Altman, who is the CEO of ChatGPT’s parent company OpenAI believes that the company would eventually reach “artificial general intelligence” – which means an AI model intellectually better than humans and with ability to improve itself.”
As the AI models continue to improve,denmark telemarketing database their utility in marketing would also continue to rise. Various AI technologies including generative AI, semantic search, machine learning (ML), and natural language processing (NLP) can be used in marketing.
marketing revenues in AI
Source: Statista
According to Statista, the total market for AI in marketing was $15.84 billion in 2021 which is expected to rise to $107.5 billion by 2028.
Natural Language Processing
NLPs help companies track real-time data which helps them respond to customer feedback and requirements quickly.
It goes without saying that this would help improve the overall customer experience and eventually lead to better customer retention.
NLP is used in several other marketing functions, and when used with AI it can help write better product descriptions as well as blog posts.
It can also be used for personalized content. For instance, companies can use mobile voice analytics to identify the user’s tone and them with the information.
For example, if it identifies that the user is looking for some urgent information, it can provide short content, conversely, a user who is supposedly looking for detailed information can be provided longer and more comprehensive content.
Semantic Search
Semantic search helps apply the semantics (meaning) of words and find the right content. Unlike the usual keyword matching it helps find what the searcher really wants or in other words, identify the intent without depending on the keyword.
According to Sprout Social, “This eliminates chances of duplicates in text mining, especially where sentiment analysis is concerned, for an accurate measure of customer experience or brand performance.”
Semantic search algorithms are crucial for NLP as they help identify the user’s intent and contextual meaning behind a query – which eventually leads to more relevant results.
Artificial intelligence (#AI) and machine learning (ML) continue to push the boundaries of what is possible in marketing and sales.
Now, generative AI promises to disrupt the way B2B and B2C players think about customer experience, and growth. Learn more: https://t.co/ERpxOoAwm4 pic.twitter.com/UQf9WE5geu
— McKinsey & Company (@McKinsey) August 4, 2023
Machine Learning
ML is another tool through which AI is helping the marketing function. ML is used to analyze and predict consumer behavior and the data can then be applied to personalize the advertising campaign.
It can also be used to improve pricing strategies and make informed decisions based on data. Using ML in marketing can help reduce costs through automation. This is another benefit of using AI in marketing, as it allows marketing professionals to save time that can be focused on value-adding projects.
ML can also help in customer segmentation which can help in devising personalized marketing campaigns.
Generative AI
Generative AI is already being used in marketing, and its usage is likely to grow in the next few years. When used properly, it has shown to make marketers significantly more efficient while maintaining similar quality levels. An April 2023 survey by the Boston Consulting Group (BCG), which surveyed over 200 chief marketing officers (CMOs) across various sectors in eight countries in North America, Europe, and Asia, found that 70% of companies are currently using generative AI, while 19% are in the testing phase.
generative AI in marketing BCG survey
Source: BCG
Three main areas where CMOs are using generative AI are:
Personalization: 67% of the respondents said that they use generative AI for personalization. The BCG said, “The goals and benefits of these efforts range from better engagement to improved conversion rates to increased customer loyalty.”
Content creation: 49% of respondents said that they use generative AI