The advancement of technology in the millennial era has caused some fluidity in the commerce sector. The world of business is continually changing. The introduction of artificial intelligence (AI), which are machines that can be used to read the human mind and produce a predictable social action, has created a divide among entrepreneurs. It then becomes necessary to explore the role or impact of artificial intelligence on digital marketing.
There have been quite some controversies about the use of artificial intelligence. Some believe it’s a treat to human performance. However, others have relied on the use of artificial intelligence to increase efficiency and augment productivity as the basis of their argument. However, research by PEGA has shown that about 77% of consumers use AI-powered devices or services contrary to 33%,
Personalization of Users Experience
Consumers are a significant force that drives the market. Consumers drive the buying and selling patterns. Hence it is pivotal to understand consumer’s behavior. The consumer’s behavior comprises intent, previous online searches, and purchasing patterns, all of which may be unique to each consumer. The introduction of Artificial Intelligence has made it possible to capture each consumer’s behavior to create a smooth browsing experience and achieve a high conversion optimization rate when running different social media packages and promotions like bonanza, promo, and tariff.
Also, the introduction of chatbot has further created a sense of personalization for consumers. Chatbot is a computer program designed specifically to boost consumer interaction. The chatbot is available 24/7, respond swiftly to numerous requests and queries from consumers simultaneously without getting tired or angry. More remarkable is the fact that the responses are not only timely, but they are also accurate and fit for conversation.
Easy Search and Result
Artificial intelligence, through the help of semantic search, has been quite helpful when searching for information on the net. Previous search engines base their search power on the use of keywords and LSI, although this is good, artificial intelligence has taken a step further by incorporating why people search for information into the personalized result they get.
Semantic search is an information searching technique based on contextual meanings of words as well as the intent of the searcher. This is done by analyzing factors such as search history, stored data, variations of spelling, time of the search, seasonal trends, concept matching amidst others. The implication of this search method is that end users get a better result of their search in terms of content faster because the search engine now relates the contextual meaning of words.
Also, the semantic search has made it possible to identify and analyze images to boost security, especially in a financial institution like banks. Faces of models can be searched, compared, and analyses faster.
Placement of Targeted Ads
Every consumer has a unique behavior relating to their purchasing pattern, intent, as well as previous searches. This information is stored whenever consumers surf the internet. With the programmed artificial algorithm, entrepreneurs can leverage the stored data for web marketing by directing their ads to a specific audience using criteria such as demographics, purchasing power, interest, age, and sex.
Ads play an essential role in driving the business vision. Understanding the market structure of ads placement is critical to the conversion rate generated. Although there are several web marketing strategies coupled with social media packages to increase conversion rate, incorporating the web marketing strategies with AI would bring a higher result. eMarketer projected that by 2019, about 84% of the US displayed ads would be programmatic. The result is a win-win situation between entrepreneurs and consumers. Consumers spend less time searching for their interest since it has been directed to them, while entrepreneurs also enjoy a higher conversion rate.
Increase Return on Investment (ROI)
Billions of transactions are made daily between consumers. Most of these transactions follow a predictable trend. The accuracy of this prediction plays a significant role in how much return on investment an entrepreneur gets. To assist in maximizing ROI, artificial intelligence makes use of the A/B testing technique as well as lead scoring.
A/B testing is a technique used in which two or more websites are compared in order to determine the consumer behavior on the websites in comparison to another. With the result in hand, consumers can get a faster, better content because of their predictable behavior. Also, the A/B testing technique aids the improvement of website marketing across all website designs for various goods and services compared.
Taking a step further, it is possible to predict consumer’s behavior, but the ROI increases sporadically when the ads are directed towards the consumer with higher purchasing power. This is the power of the lead score. Consumer’s behavior as regards purchasing power or pattern is designated with terms such as hot, warm, or cold with respect to their likelihood of buying the advertised product.
Content curation is a process whereby information is gathered, organized, and made fit for a particular search or topic. It is often used for website marketing to promote ease of searching for products or services rendered. A notable user of content curation is big e-commerce websites like Amazon, eBay, Walmart. According to Gartner, about 20% of business content to be produced in 2020 would be done by artificial intelligence-powered devices or machines. Also, it is estimated that these machines would be able to provide about 2000 articles per second, implying that content curation would become faster and more accurate. However, content curators do not need to panic. The technology is not yet at an advanced stage. With AI integrated content curation power, entrepreneurs would not only be able to send targeted ads to their audience accurately but will also be able to capture their attention hence increasing the chance to have a higher conversion rate.
Digital marketing is experiencing rapid change, and this change is highly influenced by advancements in technology. Artificial intelligence is full of potentials, many of which have not been fully utilized, while there are several others yet to be unfolded. The corporation of artificial intelligence with digital marketing would create a win-win situation for both entrepreneurs and consumers.