What Is AI In Marketing? – Definitive Guide For 2023

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What is AI in Marketing?

AI In Marketing

In simple terms, AI Marketing is the process of collecting, processing and analyzing marketing data to make automated informed decisions that will impact marketing efforts. AI is a powerful tool that can reduce efforts and save money and time, as it is commonly used in time-sensitive situations.

AI Marketing is already the next big thing, as most professional marketing professionals, and our marketing team at Brandria, already utilize AI in many areas that can cut repetitiveness and give marketers and all people incorporated in this cycle to unleash their creative potential and focus it more in their marketing strategies.

You may ask, how can this translate into the real world? Now, let’s jump to the Benefits of AI in Marketing

Benefits of AI Marketing

Moving forward, integrating artificial intelligence is not going to stop anytime soon, as it’s more cost-efficient and faster than human execution. This trend will continue until all repetitive and rule-based tasks are eliminated, allowing humans to utilize their full creative potential.

The benefits of using AI in Digital Marketing:

  • Automation of repetitive tasks. AI excels at high-volume, routine tasks like data processing, ad placement, customer service queries, etc., freeing up marketers’ time and mental energy.
  • More effective personalization. AI can analyze data at scale to deeply segment audiences and tailor messaging and product recommendations to each individual. A more personalized customer experience drives engagement and increases conversion.
  • Improved campaign optimization. AI can rapidly test content variations, subject lines, sending times, ad targeting, and more to optimize campaign performance on the fly. This facilitates constant improvement.
  • Generating new insights. By detecting patterns in large datasets, AI can reveal valuable insights about customers and markets that humans could easily miss.
  • 24/7 availability. Chatbots and other AI tools can engage with customers at any time of day without human effort. This increases touchpoints and satisfaction.

AI will augment human marketers gradually over time. Still, marketing AI represents a massive opportunity for companies willing to take the long view and commit. 

Technology can change how companies understand, engage, and transact with customers.

It’ll be essential to start with pragmatic use cases that solve specific pain points, think broadly about how AI can transform processes rather than enhance them, and keep the customer experience at the center. Marketing AI can usher in the next evolution of marketing with a strategic vision and a stepped approach.

Modern Marketing in Action

Let’s save you some time and give you the short answer. No, AI marketing is never replacing the human hint of marketing, and neither will it remove the creativity marketers and customers strive to observe when it comes to digital content.

However, AI marketing is set to humanize the digital marketing space once and for all, removing all repetitive and useless tasks marketers have struggled with over the past two decades. 

An ironic twist is that the presence of AI will improve and humanize marketing and make it more creative, personal, and engaging for an increasingly hard-to-please customer base all over the world in many fields.

Marketing Is Understanding The Customers’ Needs

Marketing is understanding customer needs and matching them with products to buy. As a marketer, your job heavily relies on data and analytics. As the age of digitalization and data closes up to us, we implement new tools and technologies to assist us in collecting data in more efficient and ethical ways, and get better insights to help market your brand more efficiently.

These repetitive, rule-based tasks are exhausting and take much of a marketer’s time and effort. These analytics and statistics take up much of a marketer’s time and limit the creative process a digital marketer should optimize for.

Marketers can automate these repetitive tasks by integrating recent AI tools like ChatGPT, Bard, or Claude AI to save money, effort, and time. 

Generative AI and Chatbots In Marketing

Generative AI and Chatbots In Marketing

Chatbots communicate with customers and potential prospects to understand their current needs and assess their future position and needs. The most substantial quality of AI is its ability to analyze tremendous amounts of data in no time, understand customers’ needs, and analyze their behaviors with more in-depth insights than any research done by a marketer. It can help marketing professionals with processes like content production, ad creation, visual creation, and more.

Integrating AI into day-to-day operations can eliminate the bureaucratic and repetitive processes of marketing and free marketers from tasks that take up unnecessary creative space. 

AI is strong but can never take on humans’ unique creative abilities, such as emotional intelligence, empathy, storytelling, and imagination. These elements will be essential to marketing until the end of time to create a successful and meaningful connection with customers and prospects.

Further Reading : ChatGPT for marketing.

AI Marketing Statistics For 2023 & Expected Growth

Learning the basics of artificial intelligence and machine learning is an essential skill in 2023, even if you’re not in a technical role, as machine learning is taking over the most repetitive and analytical tasks across all industries.

The growth of AI Marketing in recent years has been staggering, with many trends surfacing, marketers should all use some form of AI in their digital marketing strategy. It is worth noting that the artificial intelligence market was value at almost $137 billion by the end of 2022, and its growth is expected to exceed exponentially in the next few years.

Here are some studies and statistics that back up this claim, all reviewed by our marketing specialists at Brandria:

  • A study by Grand View Research has shown that the AI market is projected to expand at a compound annual growth rate of 37.3% between 2023 and 2030, as it’s supposed to reach a staggering evaluation of $1,1811.8 billion at the end of this period.
  • Research by Omdia confirms that the annual revenue of the AI software market is currently exceeding the $50 billion mark.
  • According to SimilarWeb, most of ChatGPT traffic is driven from YouTube, followed by WhatsApp, and Facebook. 
  • A survey by NBER.org has shown that AI marketing tools supported workers’ productivity by an outstanding 14% in one of the tech firms that was surveyed. This research is the first major real-world application of generative AI in the workplace, measuring the productivity of over 5,000 customer support agents.
  • According to a report by the marketing experts in HubSpot, 61% of marketers used AI to generate higher quality leads, in much easier ways.
  • A research conducted by Salesforce has shown that over 60% of marketers say that Generative AI will transform their roles, with some conservation about accuracy. The research has also shown that more than 51% of marketers use generative AI, with an additional 22% of people planning to use it in the soon future. 

Among other statistics over the years for AI usage in digital marketing, the future of AI Marketing is very promising, enabling all marketers to maximize their creativity and ability to create a solid marketing strategy, conduct a thorough research, and a killer content campaign.

But let’s rollback for a second. Before implementing AI in your marketing strategy, you need to know how AI is used in marketing.

How is AI used in Marketing?

The main power of artificial intelligence is the ability to process and analyze data in an instant. Using its power, AI is constantly collecting data, learning about customer behavior and patterns, and analyzing these pieces of information to help your business achieve its marketing goals.

How Marketers Us AI In Marketing?

AI Marketing will enable you to focus more on marketing creativity and strategy.

Let us examine some significant ways AI will impact marketing roles in 2023:

Content Marketing and Generation

AI tools can help you write blogs, social media posts, emails, and more. This gives content teams a head start, but human oversight for fact-checking, editing, and brand tone is still essential.

AI also optimizes content for SEO through keyword research and analysis and provides data-driven recommendations to improve search rankings.

However, high-quality content that resonates emotionally still requires human creativity. AI is an assistive tool, not a replacement.

Email and Campaign Marketing

The days of trackers and spam emails are over! Artificial intelligence powers personalization at scale, tailoring messages for each subscriber.

Additionally, it optimizes timing, subject lines, and sender details.

For campaign management, AI continuously tests variations of copy, layouts, calls-to-action, and more to boost performance. It also attributes response rates to these optimizations.

But humans craft the foundational campaign messaging and creative approach based on brand strategy and audience insights.

Advertising and Media Buying

With AI, media buying gets automated across search, social, display, and more. Depending on budgets and goals, it bids in real-time to optimize ad placements.

But humans still make strategic decisions about ad creativity, audiences, messaging, and campaign objectives. AI enables efficient execution and optimization.

Market Research and Analytics

AI parses data to uncover insights about customers and markets. It identifies trends, sentiments, correlations, and predictive patterns at scale.

This supplements traditional research and feed strategy. But humans still interpret findings, connect insights to creative ideas, and make judgment calls. AI helps analyze.

Customer Service and CRM

AI chatbots handle high volumes of routine customer queries, while routing complex issues to human agents. Integrated with CRM data, AI recommends next-best actions, surfaces relevant information, and alerts agents to escalate urgent cases. It makes human representatives more knowledgeable and efficient.

AI takes on time-intensive, analytical, and repetitive marketing tasks. This enables marketers to focus on high-level strategy, impactful creativity, and building meaningful customer connections.

Let’s take a look at how artificial intelligence is implemented in digital marketing.

AI in Marketing Implementations

As the uses of AI in marketing varies, the uses of AI in marketing is implemented in different ways. These uses provide different benefits as they’re constantly updating, and basically are the base of AI.

Machine Learning (ML) In Marketing

Machine learning or ML for short is the basis of artificial intelligence, as the whole idea of AI is to analyze patterns and evaluate data. Machine learning is utilized in different marketing strategies and activities, as it’s used to analyze and predict customers’ behavior, give advice about how to personalize marketing and content campaigns, and to detect patterns in data sets.

Utilizing machine learning by using AI in marketing helps improve many aspects of your marketing strategy, as it’s guaranteed to increase your marketing return on investment (ROI) and make informed data-driven decisions for your marketing strategy.

Natural Language Processing (NLP) In Marketing

AI chatbots like ChatGPT, Claude, Bard, and many more are based on the technology that gives machines and computers the ability to interpret, manipulate, and comprehend human language, while creating almost human-like language.
This model of technology can be used in digital marketing to generate content that encompasses almost every tone of voice and style possible. 

You can create all types of content using NLP in marketing. This will help you increase your organic traffic without having to hire human talent.

Large Language Models (LLMs) In Marketing

Large language models (LLMs) have the potential to impact marketing content generation. Sophisticated systems like GPT-4 can generate natural language text tailored to specific customers. Their advanced comprehension and language generation capacities allow LLMs to produce personalized product descriptions, social media posts, emails, advertisements, and other marketing content.

For brands, LLMs present an opportunity to engage audiences through highly relevant, customized messaging at scale. These systems can analyze consumer data and context to craft copy that speaks directly to individual customers. Their versatility also enables them to handle a wide range of content, from long-form blog posts to social captions.

Despite all these technologies used in Generative AI in Marketing, there are still some drawbacks to AI in Marketing. We dive straight right into them!

Challenges of AI in Marketing

As AI grows in popularity day after day, it faces growing issues, as the sheer size and data it uses are too massive to operate smoothly without challenges.

Our specialists at Brandria have compiled a list of potential challenges that will face business owners and marketers in the near future when it comes to implementing AI in their marketing strategies. It includes the following:

  • Narrow and limited capabilities: Despite the considerable hype, AI today excels only at narrow, routine tasks. It cannot strategize or manage complex processes like creating a marketing strategy from scratch or engaging and compelling content. Humans still lead with creativity and empathy.
  • Poor data quality: If the data used to train AI models are incomplete, biased, or inaccurate, the insights and outputs will be as well. Depending on today’s AI is still a risk for marketers, as its data are not up-to-date and have lower accuracy.
  • Lack of transparency: The inner workings of AI can be a black box. Marketers may only trust or use AI if the logic behind a decision or recommendation is clear.
  • Difficulty integrating: Linking AI across diverse platforms like CRM, e-commerce, and retailers is technically challenging, limiting use cases.
  • Customer distrust: Consumers may distrust extensive data collection and perceived privacy invasions. 
  • Security risks: While powerful, AI systems can be vulnerable to cyberattacks and manipulation. 
  • Ethical and Privacy Concerns:  AI could lead to biased, unsafe, or unfair outcomes if not developed with care. Marketing AI requires ethical oversight.
  • Legal Consideration for AI regulations: As AI grows in popularity, it grows more noticeable to more regulations and laws to conserve the safety of its users. While this may be a challenge for the process of AI marketing, it will ensure a fair and safe use of AI in marketing.

Despite these challenges, the future of AI in marketing is promising. The deliverable of AI in marketing are already breaking the sets of expectations that were put in place months ago. 

Overall, the benefits outweigh the challenges that AI is going through at the current time, and it’s only a matter of time until it go through these challenges victorious.

Moving forward, there are some positives and some negatives in the future of artificial intelligence. Let’s dissect piece by piece how the future of AI marketing will be.

What is the Future of AI in Marketing?

As of today, most AI usage in marketing is still limited, including written content generation, low-quality designs and video edits, and overall good data analysis. AI is still nowhere near the point of taking on the torch of human creativity, the only safe usage of it as of today is to gather and analyze data about buyers’ journeys. 

And even in this field, it still needs humans to overlook its accuracy. As of now, a decent amount of the data AI provides is not always accurate.

Frequently Asked Questions

Below are some of the most common frequently asked questions for AI In Marketing.

How AI Helps Marketing?

AI is a secret weapon for marketers. It analyzes oceans of data to uncover customer insights and new opportunities.

AI powers tools that create personalized content at scale, optimize campaigns, and predict future trends—all to help marketers work smarter, not harder. With AI’s help, brands can hyper-target and engage consumers like never before.

Is Investing In AI Marketing A Good Thing?

Absolutely! AI marketing tools drive quantifiable results when implemented thoughtfully. Brands that lean on AI see increased campaign performance, higher ROIs, and happier customers. 

As AI capabilities grow more advanced, investing now means staying ahead of the curve. Forward-thinking brands who embrace AI will have a competitive advantage in reaching and resonating with modern consumers.

How Marketers Can Take AI On Their Side?

Success with AI requires the human touch. Marketers should view AI as an asset that can elevate campaigns when combined with their creativity and strategic vision. Focus AI on repetitive tasks to free up time and energy for higher-level strategy. 

Continue A/B testing content to find the right balance between automation and customization. Keep exploring new applications for AI that align with overarching goals. With the right approach, AI will amplify marketing efforts.

Will AI Replace Marketers?

Not so fast! AI excels at automating certain tasks, but it can’t completely replicate the emotional intelligence and creative thinking of humans. Consumers still crave that personal touch. 

AI is here to work alongside marketers, not oust them. The best marketing strategy combines data-driven AI tools with human oversight and strategic vision. Together, AI automation and marketers’ irreplaceable skills can achieve results once thought impossible.

What Is An AI Marketing Tool?

AI marketing tools use artificial intelligence to automate and enhance digital marketing activities. For example, AI content creators can generate customized social media posts, emails, ad copy, and more. Other tools apply AI to predict customer lifetime value, optimize campaigns, personalize messaging, and other applications. 

These tools analyze consumer behaviors and marketing performance data to gain strategic insights unavailable through manual methods alone. AI marketing tools help brands efficiently engage consumers with the right message at the right time.