Current studies of the McKinsey Global Institute and the MIT/Boston Consulting Group show that only around 20% of companies have been implementing AI technologies effectively. The potential of AI is still quite abstract, especially in marketing.
In this article we discuss the possibilities of AI and explain the five most important steps for advertisers to prepare for the influence and benefits of AI in marketing to fully exploit its potential.
WHY IS ARTIFICIAL INTELLIGENCE SO IMPORTANT?
Consumers want individual, personalized experiences when getting in touch with brands or products. Equally, advertisers want to achieve high revenue with their advertising measures. That’s where AI comes in: To ensure personalized experiences with thousands of customers at the same time, smart technologies are simply inevitable. With AI systems, customer interactions can be optimized in real-time across all digital channels. They examine all relevant consumer-related data. From these results, systems can learn and predict the most efficient next steps of how to target consumers. This is how processes can be improved considerably for consumers and advertisers alike.
1. DEFINING CLEAR BUSINESS GOALS
AI technologies are designed to find the best way for reaching specific goals. These goals, however, need to be identified and clearly defined, which is not often the case in many companies. Many marketers fail to adjust their organization effectively to achieve optimal business results. A clear focus on business goals is vital in a world run by Artificial Intelligence.
2. LINKING CUSTOMER DATA
For seamless customer communication across all channels, advertisers need a common understanding of the individual customer. Most previous systems are not designed to individually and personally address customers on every channel. Advertisers need to prepare now to see customers more as individuals. Fully developed customer data management can help to link customer data. Advertisers need to understand the entire customer journey. Which formats, platforms, channels and devices reach the right customers at the right time and place?
3. INTERLINKING MARTECH
A common understanding of customers across all used channels helps marketers to optimize their marketing measures on any channel at any time. And yet, nowadays most marketing channels are still managed by separate tools and platforms. MarTech platforms need to be interlinked and integrated in order to implement cross-channel marketing successfully and to control and optimize all channels dynamically.
4. CREATING NEW ORGANIZATIONAL PROCESSES
Many marketing teams have specialized employees focusing solely on certain areas of marketing, e.g. social media managers, display managers, SEA managers, etc. Content is often matched only partly across different channels and merely varies in terms of target groups. AI systems, however, allow goal-oriented content on individual user levels in each respective marketing channel. Advertisers should shift their focus from channel optimization to customer optimization. To do this, channel and data silos need to dissolve to be able to see and improve the marketing mix in its entirety.
5. CLOSING FEEDBACK LOOPS
AI systems can learn over time and optimize themselves, but they need feedback to develop further. A continuous collection of data from all customer interactions is therefore inevitable. Transaction data must be interlinked with marketing data on a user level so AI systems can further develop and improve continuously.