Most people believe that machine learning and Artificial Intelligence (AI) won’t make a big impact over the course of their lives – but they couldn’t be more wrong. The global cognitive computing market is already gigantic and it’s expected to surpass $12 billion next year.
Machine learning affects almost every industry on the global scale and marketing did not stay aside. On the contrary, digital marketing was one of the first to embrace AI as its new business model and it will keep evolving in the years to come. In this article, we will show you how machine learning will change the marketing reality.
What is machine learning?
Before with proceed, we must define the key phrase here. Machine learning represents an application of AI that provides systems the ability to automatically learn and improve from experience without being explicitly programmed. In other words, it’s a new form of intelligence that can quickly analyze huge volumes of data, getting smarter with each problem solved.
For instance, machine learning enables Google to constantly change search engine algorithm. It keeps evolving and adding new elements into calculation – from keyword preferences and content quality, over user engagement and references, all the way to many other more or less important factors.
Transportation company Uber also uses machine learning to improve customer service, reduce waiting times, and immediately assess the price of every ride. There are countless ways to exploit the new technology and we will show you how it’s done in marketing.
Building a buyer profile has always been the starting point for each business. Companies used to analyze age, gender, location, education level, and a number of other traits. An example of this type of company is Salesforce who introduces businesses to lead generation. While this is still important, it is not sufficient to earn you a lot of purchasers these days. You have to go beyond customer generalizations and adapt marketing activities so as to match the preferences of small groups or even individual users.
Machine learning enables such micro-segmentation of the audience, targeting people according to their online behavior. That way, you get to offer each client exactly what he or she wanted to see, reducing the volumes of the so-called marketing waste.
This is how Netflix saved $1 billion last year – they capitalized on the machine learning algorithm which recommends personalized TV shows and movies to subscribers. It’s a win-win situation both for the users and the company. The former can watch movies they love, while the latter gain more profit as the result.
Real time advertising
The faster you are, the more productive you become. If you can provide potential buyers with real time offers, you can be the first one to catch them and generate the highest profit. AI makes it possible because it exploits user-induced data to create customized ads.
Have you ever checked car rental options, hotels or flights on pages like Trivago or Booking? If yes, you’ve probably noticed how their ads related to your own inquiries appear on other sites or social networks almost instantly.
Well, this is nothing more than AI doing its job. Consumers leave digital footprints all around the Internet and machine learning algorithms are able to make use of those traces. As the result, marketers get real time advertising.
Automated customer service
Can you imagine customer service being available and operational 24/7 throughout the whole year? This is not an elusive goal anymore as machine learning has the potential to handle customer relations around the clock. The simplest way to do it is by introducing chatbots to the customer service unit.
According to the research, almost half of consumers would rather connect with a company via live chat than any other mean of contact. For the time being, chatbots can discuss the majority of basic issues with curious or dissatisfied clients. But they keep evolving and getting smarter in the process, so you’ll be able to rely on chatbots 100% very soon.
Content creation has traditionally been perceived as the job of human beings because it takes a lot of imagination, creativity, and delicacy. This is still the case but it doesn’t mean that machine learning cannot improve this segment of marketing as well. On the contrary, it can give content creators valuable insights into the preferences of target audiences.
First of all, AI can analyze the existing content and the way it resonates with consumers. After that, algorithms will calculate and reveal the most effective pieces of content, showing the direction in which you ought to go. Machine learning will also give marketers instructions about the style, tone of voice, and many other details to make the content creation process easier and more precise.
According to numerous reports, machine learning shows the incredible potential of cost-cutting benefits. With fully operational chatbots working 24/7, you just don’t need so many customer service agents anymore, which is often one of the biggest items in the annual budget.
AI allows you to design and launch micro-segmented email campaigns automatically, saving you both time and money in this field. It will hardly ever miss the target when it comes to paid advertising, so you also benefit from reducing marketing waste. An entire communication between the brand and its consumers becomes more or less direct and automated, which means you’ll get more funds to focus on content creation.
In the abundance of media outlets all around the globe, it is getting more difficult to determine which one can do the most for your products or services. Thanks to machine learning algorithms, it is now possible to measure the effects of each campaign and find the most appropriate solution for your brand.
AI conducts an in-depth analysis of lead generations, subscription rates, viewership, timing, and a wide variety of other factors to decide which outlet can work for you. It also conducts post-campaign evaluations to measure its effects and ROI, which has always been the weak spot for the majority of marketing managers.
Creating marketing strategies
With all the machine learning benefits we mentioned here, it is reasonable to assume that now it will become easier to design a fruitful marketing strategy. Based on thorough analysis of previous activities, AI can give you valuable instructions on how to prepare for the future marketing activities.
It will show you the optimal ratio of investments in different channels of communication – social media, paid advertising, blog posts, multimedia content, email campaigns, etc. AI detects weaknesses and wrong moves you made before, allowing you to make necessary corrections. Therefore, the new way of creating marketing strategies will be better and more accurate.
Detect marketing trends
Modern businesses demand immediate action and instant results but you still need to think ahead in order to stay competitive long-term. Machine learning enables marketers to detect customers’ behavioral patterns and bring data-driven predictions accordingly. Noticing trends before your direct competitors will help you to stay one step ahead of everyone and make state-of-the-art marketing moves. With this sort of business advantage, you won’t have the worry about the financial results of your company.
AI is revolutionizing the business as we know it, especially digital marketing operations. Machine learning allows you to improve marketing activities and make them more efficient in the long run. In this article, we explained how machine learning will change the marketing reality in the years to come. Keep our suggestions in mind and try to embrace them as part of your marketing strategy – we are sure it will make your business more productive and more profitable.
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Also published on Medium.