Recently updated on May 30th, 2024 at 11:56 am
The impact of artificial intelligence in digital marketing is profound and far-reaching; it has revolutionised how marketers do their work. As it continues to evolve and become more sophisticated, its influence on the digital marketing landscape will only continue to grow. Join us as we review the effectiveness of AI-driven marketing campaigns.
Prioritising Customer Preferences
Advancements in technology have brought about new norms in consumer behaviour and the accelerated pace at which these behaviours change requires responsive, reliable, and accurate systems. This is where AI steps in.
Artificial Intelligence (AI) in digital marketing refers to using advanced algorithms and machine learning techniques to automate and optimise various marketing processes and tasks.
AI-powered tools and technologies enable marketers to analyse vast amounts of data, identify patterns and trends, and make data-driven decisions in real-time. By leveraging AI, marketers can personalise customer experiences, optimise ad targeting and content delivery, predict consumer behaviour, and automate repetitive tasks such as email marketing, social media management, and campaign optimization.
How does AI refine Ad campaigns?
“Quality beats quantity” – the same holds for ad campaigns.
AI algorithms work on a 24-hour basis to gather information and house vast amounts of consumer data that feed relevant and useful insights to digital marketing campaigns. This, in turn, enables marketers to deliver more targeted, relevant, and personalised advertisements to their audiences.
Two aspects where AI technology proves particularly effective are bidding and targeting:
Bidding
Bidding refers to the process of setting the maximum amount an advertiser is willing to pay for a specific action (clicks, impressions, or conversions) on an advertising platform.
AI-powered automated bidding strategies use machine learning algorithms to analyse vast amounts of data in real time, including user behaviour, demographics, device type, time of day, and conversion likelihood.
Based on this data, AI algorithms automatically adjust bid amounts to maximise the likelihood of achieving the campaign objectives.
Targeting
Targeting refers to selecting specific audiences or demographic segments to whom ads will be shown.
A few commonly known ways that AI assists in targeting are:
- Dynamic Remarketing: Using machine learning algorithms, AI analyses user behaviour and preferences to dynamically select and display relevant products or services in ads, increasing the likelihood of conversion.
- Lookalike Audiences: By analysing data from existing customer lists, AI algorithms identify patterns and similarities among users and create audience segments that are likely to be interested in the brand’s offerings. While a recent update to LinkedIn Ads discontinued lookalike audiences in favour of ‘Predictive Audiences’, the feature is still available on platforms like Google and Meta.
- Custom Audiences: AI uses algorithms to analyse data and create audience segments based on specific criteria such as demographics, interests, behaviours, or interactions with a brand’s website or app.
The benefits of using AI in marketing campaigns are evident in how they:
- enable advertisers to optimise ad performance
- improve targeting accuracy
- achieve results more efficiently.
The Art of Collaboration
The relationship between marketers and AI should be mutually beneficial if it is to produce positive results. Marketers need expertise to harness the power of AI; conversely, AI enhances marketers’ capabilities.
With Artificial Intelligence software embedded in digital marketing campaigns, tools, and software, you increase the likelihood of achieving campaign objectives – resulting in increased returns on investment.
Get in touch with us to kickstart your digital marketing.
