The Impact of AI on Digital Marketing Campaigns and the Latest AI Technologies Shaping ROI and Campaign Optimisation in the Industry

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Subham Kumar

May 3, 2024 — 5 min read

Prateek Sethi, Founder, Trip Creative Agency - The impact of AI on digital marketing campaigns

This article has been contributed by Prateek Sethi, Founder, Trip Creative Agency.

The dawn of the 21st century significantly changed people's personal and professional lives. Among other shifts, new-age technologies have gained considerable traction by altering the dynamics for the better. As a result, artificial intelligence (AI), formerly regarded as a futuristic concept, has established itself as a reality. This technology has revolutionised various industries, with digital marketing being no exception. Thus, this cutting-edge technology has become a necessity rather than a luxury over the years.

According to a joint analysis by NASSCOM and BCG, India's AI market is expected to reach $17 billion at a CAGR of 25–35% between 2024 and 2027. This expansion is attributed to various factors, including changing customer behaviour and increased enterprise technology spending, among others. In fact, everyone is familiar with the term artificial intelligence. It refers to the development of computer-generated programs and software capable of performing tasks that would require a human mind. These activities include learning, problem-solving, natural language comprehension, pattern recognition, visual information perception, depth perception and decision-making.

So, beyond being a buzzword, AI has certainly become a critical tool, reshaping the way companies approach marketing campaigns and bringing in new avenues for creative, personalised, and impactful marketing campaigns that resonate deeply with audiences.

Impact of AI on Digital Marketing Campaigns
AI Technologies: Transforming the Future of the Marketing Industry

Impact of AI on Digital Marketing Campaigns

From campaign creation to optimisation, AI's influence extends across the entire digital marketing spectrum.

Advanced profiling: Every business understands the need for profiling today. Without a thorough understanding of the target audience, marketers will not be able to develop tailored marketing strategies. Knowing the perfect client profile enables businesses to tailor messages and other information to their specific requirements and expectations. According to Deloitte research, simply putting the customer's name in their emails can increase open rates by 5.2%, while more tailored communications show a rise of 11%–55%. However, maintaining and calculating every piece of data is time-consuming. Thus, with the ability to analyze vast amounts of customer data, including demographics, online behaviour, and past interactions, AI emerged as a helping hand, executing complicated consumer segmentation activities in real time.
Personalise the campaign: A personalised campaign has become a thing of today. Because nobody wants to receive a dull and generic message; the difference between 'Hi there' and 'Hi XYZ' is tremendous; when anything talks personally, people automatically feel more significant and interested. This is where AI applies customer insights to adapt messaging, content, and offers to specific tastes. Consider receiving product recommendations that are exactly what you need or social media ads that are relevant to your interests. This level of personalisation increases customer engagement and brand loyalty, providing desired outcomes for everyone.
Predictive Marketing: What if firms could predict the future and anticipate client requirements before they arise? While AI cannot tell businesses which lottery number to choose, it assists in determining the best marketing plan for a given situation. It accomplishes this by analysing data and evaluating habits to predict what the customer wants and when they want to buy. Thus, AI systems use historical data and user behaviour to forecast future actions. This allows marketers to anticipate client demands and proactively provide relevant information and offers, resulting in higher conversions and revenues.

AI Technologies: Transforming the Future of the Marketing Industry

AI-powered chatbots: AI chatbots have become critical for modern customer service. With their round-the-clock availability, they serve as virtual representatives, providing prompt and efficient assistance to customers. They can handle a wide range of basic queries, from product information to order status. By taking care of routine tasks, chatbots free up human agents to tackle complex issues, thereby improving the overall efficiency of the team. Furthermore, this not only helps businesses save time and money but also enhances the customer experience, leading to increased customer satisfaction and commitment.
AI-powered fraud recognition: AI enables marketers to detect fraudulent actions in real-time. This not only prevents organisations from losing ad revenue due to theft, but it also ensures that campaign measurements are right. AI systems can examine vast amounts of data and spot any suspicious patterns, allowing marketers to respond swiftly and prevent any damage. This new technology has changed the way marketers promote and made the Internet advertising environment more secure.
AI-driven A/B testing: When it comes to testing marketing efforts, typical A/B testing can be time-consuming and tiresome. However, with the help of AI, this procedure can be automated and expedited. AI algorithms may analyse various campaign components, such as headlines, pictures, and landing pages, to determine which ones work better than others. Using this iterative technique, AI can continuously recommend campaign modifications and optimise ad spending for optimum impact. This allows firms to get superior results from their marketing efforts more efficiently and effectively.

Market Value of Artificial Intelligence (AI) in Marketing Worldwide from 2020 to 2028

It's a Win-Win for All!

There is no denying the fact that AI is revolutionising digital marketing by providing unrivalled data-driven insights and automation capabilities. Understanding the impact of AI and embracing strategic AI deployment enables businesses to design intelligent campaigns, forge stronger consumer connections, and achieve optimal results in the ever-changing marketing landscape. Thus, to stay ahead in the competitive world of digital marketing, businesses must embrace AI and use it to their advantage. Although nothing is going to replace the creative human controlling all this information and knowledge, for now.