By 2035, AI will increase overall profitability by 38% and generate $14 trillion of additional revenue for global businesses!
The top-performing companies are already first in line, being twice as likely to use AI in marketing, while other companies are starting to explore its potentials.
In this article, we define AI marketing and its main components, discuss its benefits to businesses and share 7 specific ways to better integrate AI in your marketing efforts.
Table of Contents
What Is AI Marketing?
AI marketing is a form of marketing that uses artificial intelligence technology like data analysis, natural language processing and machine learning to analyze target audiences and economic trends that impact advertising decisions.
Using customer data, AI tools learn how to communicate with your clients and provide tailored messaging at the right time to improve the marketing campaign’s efficiency.
Artificial intelligence in marketing is particularly useful in campaigns that require speedy decision-making and quick results.
Some examples and use cases of AI marketing solutions include:
- Using natural language processing to enhance chatbots to capture leads
- Real-time content generation and personalization
- Media buying
- Analysis of customers’ behavior and their relationship with a brand through machine learning
How to Use AI in Marketing in 2023
There are numerous artificial intelligence companies that incorporate AI into their marketing strategies.
Below are the ones that yield the best results and the most commonly used by top-tier companies that boast a great success rate with their campaigns.
1. Identify Messaging That Resonates With Your Audience
Not all of your customers will respond the same way to your messages. Content with a high emotional appeal may resonate with some, while others may find a professional tone more appealing.
Personalized messaging based on the user’s profile and customer journey drives best the results and in real-time, making it among two of the most common ways marketers use AI.
With AI, you can monitor which messaging proved to be the most successful with your customers. It allows you to create more complete user personas and provide highly customized messages to these users.
For example, Spotify uses AI algorithms that analyze user behavior to understand the types of music they listen to the most. They then create personalized playlists and music suggestions that even use specific album covers that match the user’s interests.
Using AI and machine learning to gather valuable customer data and improve your messaging may likely result in increased conversion rates and a better overall user experience.
2. Bid On Programmatic Media Buys
Marketing specialists that decide where and when to place ads are not quick and agile enough to adjust their strategies to the latest information in real-time.
AI-based programmatic advertising mitigates this challenge by bidding on the most relevant ad space for targeting your users in real-time. AI uses data like user’s location, interests, buying intent, purchase history and others to inform this ad bid, allowing you to target the correct audience at the right time, for the best price.
Simply put, programmatic ad buying improves marketing flexibility to meet your customers’ changing needs and habits.
3. Create Conversational Experiences With Chatbots
Owing to another artificial intelligence staple — natural language processing (NLP), live chatbots are replacing or supplementing human support agents to provide round-the-clock customer service.
Users that want to ask basic questions about a brand and its services can turn to chatbots that provide instant answers. Chatbots also deliver highly personalized answers based on past questions and historical data about each user.
This enables support agents to focus on more complex queries and elaborate communication with other clients that require human assistance.
Chatbots are becoming a norm more than an exception: in 2020, 80% or marketers already had chatbots as part of their customer experience strategy.
4. Make Your Personalization Extra Granular
Modern users expect a very high level of personalization in their interactions with brands. For that reason, your users’ pain points, location, interests, buying intent and other data points should inform your marketing copy.
With artificial intelligence in marketing, you can go above and beyond this standard set of demographic data to learn more about your users on a very personal level. The end result is a highly curated brand experience formed around your customer’s unique personality.
For example, similar to but also going beyond the Spotify playlists example above, Netflix displays different artwork of the same show to different users. Their hyper-personalization works so that one person will see the show artwork that depicts the main actor that the user often watches in different shows, and another will show an image that captures the feel and atmosphere of movie genres they typically watch.
Another facet of this highly individualized user experience is atomic content with a customized offer and relevant content based on the user’s unique preferences.
5. Use Dynamic Pricing For Better Competitiveness
AI-enabled dynamic pricing can make your business more competitive by recommending optimal product prices in real-time. Artificial intelligence system estimates a massive amount of competitor data, allowing you to modify your prices according to existing demand for certain products.
This strategy, particularly efficient for small and retail brands, can help you increase your sales and outperform your competitors.
6. Automate To Boost Marketing Operations Efficiency
Artificial intelligence can automate the sorting of marketing data, answering basic user queries and other strategic processes in order to grow their efficiency, providing more time for marketing personnel to conduct analytical and strategic work.
7. Use Predictive Marketing Analytics
Artificial intelligence has significantly accelerated the process of extracting user data – but with so much user data, it has become difficult for marketers to derive valuable insights from it.
Predictive analysis uses algorithms, machine learning and datasets to forecast future user behavior. This helps marketers “predict” what types of services or products the users will look for in the future and when.
With this knowledge, market teams can target their end-users and steer their campaigns with much more accuracy. The most well-known example of predictive analysis is the “suggested products” section on eCommerce websites like Amazon. They suggest products a user is likely to be interested in based on their past purchases and searches.
The Main Components of AI In Marketing
These are the three main components of artificial intelligence in marketing that accelerate the time-consuming and expensive process of data collection and process repetition:
- Big Data and Analytics: Derived from various digital channels from social media to email that provide a better look at a company’s marketing efforts and lets marketers develop and implement relevant tactics.
- Machine Learning: Computer and chip-based algorithms analyze big data information to gradually improve processes. Machine learning programs and devices analyze this information to make decisions based on actions that proved effective in the past.
- AI Platform Solutions: Provide marketers and salespeople with a tool for managing expansive amounts of collected data. These solutions may obtain useful marketing info about target audiences to help businesses make tangible, data-driven decisions about the best ways to reach and communicate with the target audience.
4 Benefits of Artificial Intelligence Marketing
Artificial intelligence has many uses in marketing and each produces different benefits, from better customer satisfaction to a boost in revenue.
Here are the most common benefits that overlap across different AI marketing use cases:
- Increase in campaign ROI:Artificial intelligence can derive valuable insights from different datasets, making it possible for marketers to optimize their marketing campaigns in real-time. Thanks to the quick processing of massive data, AI platforms are capable of making fast decisions and suggesting where to distribute a budget across different marketing channels. They also identify ad campaigns that engage your customers the most, allowing you to get more positive results out of your future campaigns.
- Amplified marketing analysis: AI-powered marketing analytics tool dashboards provide granular insight into campaign metrics, making it easier for you to tie data to specific campaigns. Thanks to this technology, you can obtain a clearer idea of what campaigns are working better than others so you can replicate them and allocate funds to them.
- Faster decision-making: Artificial intelligence is able to conduct data analysis much faster than humans. By using historical insights obtained with machine learning, it can come to quick and accurate conclusions based on campaign and customer info. This gives you time to focus on strategies that can enhance your AI-powered marketing campaigns, instead of waiting for the campaign to end and for data to be amassed in order to make decisions.
- Improved personalization and customer relations: Personalizing your marketing messages according to the needs of different customer segments and delivering them at the appropriate time in their user journey is also possible thanks to AI. This technology also identifies at-risk customers who may be moving away from your brand so you can target them with messages that will entice them to reengage with you.
AI Marketing FAQs
What are some examples of AI in marketing today?
Some common examples of AI for marketing today include:
- Automated email campaigns
- Machine learning applications for targeting ads more accurately
- Natural language processing to better understand customer sentiment
- Predictive analytics to inform product development decisions
- Chatbots to provide real-time customer service 
Many businesses use AI to create consumer personas and optimize content delivery based on user preferences. Plus, you can automate daily tasks with AI, such as collecting customer data and measuring performance metrics. 
What is an AI marketing tool?
An AI marketing tool is a computer-driven system that leverages AI technology to improve and automate various aspects of the marketing process. These tools are designed to help marketers streamline their workflows, optimize their campaigns and enhance the overall customer experience.
Is investing in AI marketing good?
Yes, investing in AI marketing solutions is a worthy investment as it can automate tedious manual processes, generate higher ROI, reduce costs, uncover detailed customer insights and much more. All this helps businesses reach their operational goals faster, without breaking the bank. 
AI Marketing Takeaways
Artificial intelligence in marketing accelerates the collection of user data, boosts personalization of messaging and enhances market analysis, resulting to process efficiency, more accurate targeting, as well as greater ROI.
AI in marketing can be used to:
- Find messaging that resonates the most with your customers
- Decide where and when to place ads for maximum efficiency
- Create conversational chatbot experiences
- Make granular personalization
- Create dynamic, more competitive pricing
- Improve operations efficiency
- Leverage predictive analysis
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