AI in Digital Marketing - Go to Guide for 2024

AI is undoubtedly the third ‘big shift’ after the internet and mobile revolutions. Like the other two,  AI has disrupted not just our personal lives but also a myriad of industries. One such industry is digital marketing. AI capabilities like automation, personalization, and analysis are at the forefront of many transformations in the digital marketing arena. In this comprehensive guide, we will understand how AI transforms digital marketing, including the key applications, benefits, and challenges you might encounter.

Understanding AI in Digital Marketing

Artificial Intelligence (AI) in digital marketing is the adoption of advanced algorithms and machine learning techniques to successfully strategize, execute, and optimize various elements of digital marketing. AI-based digital marketing tools can analyze large data sets, automate complex processes, and hyper-personalize customer interactions. As digital marketers, you gain deeper insights about customers, predict outcomes, and deliver more relevant content to them. Your business, on the other hand, experiences better marketing performance, efficiency, and cost savings.

At the core of AI in digital marketing, you will find advanced technologies like Machine Learning(ML), Natural Language Processing(NLP), and Large Language Models(LLM). While NLP helps the AI system better understand and respond to users intelligently, ML learns and improves interactions from experience. LLM can analyze big data and turn it into actionable insights, automated actions, and content.

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Key AI Applications in Digital Marketing for 2024

Here are some major digital marketing areas where AI is creating a positive impact -

1) Content creation

This is probably the most common application of AI in digital marketing. In fact, there is a high chance that you’ve already used an AI tool to generate email copies or come up with outlines for your upcoming blog. Tools like ChatGPT, Jasper, and Copy.ai are popular AI tools used for content creation. Here is Copy.ai in action:

A few of these tools can even generate highly personalized content tailored to your customer’s preferences and behaviors. They are smart enough to identify patterns and predict what type of content will resonate with particular audience segments. AI has enabled the creation of dynamic content that adapts in real time to user interactions. This ultimately enhances the engagement and conversion rates of your campaigns.

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2) Ad creative generation

We’re not talking about generating simple images for your ads here. We’re talking about creating full-fledged ads from scratch including appealing visuals, persuasive captions, and catchy CTAs. Eacel.ai is the best example of this application. It can generate ad creatives that are not only high-performing but also adhere to your brand guidelines.

Eacel leverages AI to analyze consumer behavior and preferences to create ads that are more likely to capture attention and drive conversions. The platform generates multiple ad variants, enabling you to test the creatives and identify the most effective one for your campaign. Ultimately, you save time and resources without compromising on the precision and impact of your digital advertising campaigns.

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3) Customer journey mapping

Before the advent of AI, companies relied on manual activities like gathering and analyzing customer feedback, direct observations, and deep market research to understand the expectations of customers and map out customer journeys. While these activities were effective, they demanded a substantial time and effort to complete.

Once they started using AI-based customer mapping tools like Salesforce Einstein and IBM Watson, the data analysis got automated to a great extent which helped in predicting future customer behaviors with better accuracy. They can even uncover patterns and trends that can elude human analysts. All this helped brands personalize the customer experience at scale. But the best part - these tools continuously update and refine customer mapping based on new data. All these enable you to enhance customer experience to a great extent.

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4) Predictive analytics

You’ve already seen in the previous application how AI can be used to predict customer behavior. Interestingly, AI can also be used to predict the outcomes of your campaigns. Tools like Google Analytics and Marketo do this by analyzing historical data, such as consumer engagement metrics, purchases, time-on-page, email opens, and more.

As marketers, you understand the predicted outcome of your campaigns in a better way so that you can course-correct them before there is significant damage. Long story short, AI helps in developing better, more dynamic campaigns that produce sales and boost ROI.

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5) Real-time bidding

Real-Time Bidding (RTB) refers to the practice of buying and selling ads in real-time on a per-impression basis. RTB is possible thanks to machine learning algorithms that analyze mountains of data and make instant and accurate bidding decisions. AI-based RTB tools typically determine optimal bids for each impression by considering factors like user behavior and demographics. Popular AI tools used for real-time bidding include Databricks and Adobe Experience Cloud.

As marketers, you are better equipped to place highly targeted bids, ensuring your ads are shown to the most relevant audience at the most opportune time. This minimizes wasted spend on low-value impressions and focuses resources on high-potential opportunities. Ultimately, you enjoy a better ROAS.

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Benefits of AI in Digital Marketing

Here are some benefits you can enjoy by infusing AI into your digital marketing strategies:

1) Increased ROI

There are several ways in which AI achieves this. For starters, it automates routine tasks such as content creation and ad creatives generation, freeing up time for your team to focus on more strategic initiatives. Secondly, AI tools predict campaign performance, enabling you to make swift adjustments and optimize your strategies. Additionally, AI tools can tailor marketing messages to suit individual customer preferences, increasing the likelihood of engagement and conversion. All of these ensure that each dollar you spend delivers maximum impact.

2) Improved customer engagement

This benefit is driven by AI’s ability to facilitate more personalized and timely interactions with your customers. AI-driven tools can predict customer actions by analyzing past behavior and preferences. The derived insights from this analysis ensure that your digital marketing efforts are always targeted and effective, leading to higher levels of customer satisfaction. Also, AI can identify customers at risk of churn and put them in an automated marketing campaign to get them to re-engage with your company.

3) Enhanced campaign performance

AI can analyze campaign data as it comes in and highlight what’s working and what isn’t in your campaigns. This enables you to make swift adjustments to your campaigns so that you can achieve better outcomes. Similarly, platforms like ChatGPT and Eacel ensure significant time savings by automating various time-consuming tasks. In fact, in a study, it was found that marketers save over three hours for every piece of content that they produce with AI. This frees up their time and focus on other activities that can enhance the success of their campaign. Remember, the ability to pivot and launch campaigns quickly is pure gold in this competitive business space.

4) Better scalability in digital marketing workflows.

AI can manage large volumes of data efficiently. As a result, it can take over end-to-end management of your marketing campaigns, from planning and execution to monitoring and reporting. This enables you to scale your digital marketing efforts without proportional increases in your team’s workload. You can even manage larger campaigns with relative ease when you have AI tools at your disposal. Also, AI aids in resource allocation by predicting which campaigns will require more resources and which will be more successful, enabling better planning when you intend to scale.

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Implementing AI in Your Digital Marketing Strategy

Here are the different steps involved in implementing AI in your digital marketing strategy:

Step 1: Define your goals

Before you start integrating AI into your digital marketing strategy, it is important to determine the goals or what you wish to aim for with this exercise.  After all, it is impossible to determine success without defining what success looks like in the first place.

Here are some common goals you can adopt:

• Enhance customer experience
• Increase conversion rates
• Improve targeting and segmentation
• Optimize marketing spend
• Boost the speed of content creation
• Improve the quality of customer insights

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Step 2: Assess your current capabilities

Evaluate your current MarTech stack and understand where AI can make the most impact. In other words, you need to analyze all your digital marketing tools and find opportunities for AI adoption.

Along with tools, evaluate the following aspects of your data:

• Quality: AI algorithms can make more precise predictions only when the data is accurate, complete, and reliable.
• Quantity: Only when there is a sufficient volume of data can AI algorithms be trained effectively to produce meaningful results.
• Accessibility: Even if you have high-quality, abundant data, it must be stored and organized in a way that AI systems can access and analyze it efficiently.

It is also important to evaluate if your staff has the necessary training and knowledge to execute AI-based digital marketing strategies. If they are not ready, you might have to invest in training them or create a new position to drive forward your AI initiatives.

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Step 3: Select the right AI marketing tools

Next, it’s time to build your AI digital marketing toolkit. This step is not easy as the market is already inundated with AI marketing tools. It becomes very important to choose the right tools that align with the following three aspects of your business:

• Business size: Small businesses may require more straightforward, user-friendly tools that offer essential functionalities without the need for extensive customization or technical expertise. In contrast, larger enterprises might benefit from advanced AI platforms that provide comprehensive features, scalability, and integration capabilities.
• Budget: Consider the total cost of ownership, including subscription fees, implementation costs, and potential hidden expenses such as training and maintenance. Selecting tools that fit within your budget while providing the necessary capabilities ensures that you can leverage AI effectively without overextending your financial resources.
• Goals: Different tools excel in various areas, such as customer engagement, content creation, data analysis, or campaign automation. Identify the specific objectives you aim to achieve with AI, whether it’s improving customer segmentation, enhancing personalization, optimizing ad spend, or increasing overall campaign performance. Tools that align closely with your goals will provide the most value and help you achieve measurable results.

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Step 4: Test the platforms

After selecting the right AI marketing tools, the next step is to test these platforms in real-world scenarios. To do this effectively, identify your top two to three areas of implementation where AI can make the most significant impact. It could include ad creatives generation, content creation, customer engagement, or data analysis. Launch the tools in these key areas.

It is also important to set a defined timeframe for your testing period. One to three months is ideal, but you can narrow down the value by evaluating the complexity of the implementation and the speed at which results can be observed.

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Step 5: Adopt a culture of continuous improvement

The dynamic nature of AI and digital marketing means that there are always new opportunities for optimization and growth. Embracing a mindset of continuous improvement ensures that your marketing efforts remain agile, effective, and ahead of the competition.

Encourage your team to regularly review and analyze the performance of AI-driven campaigns and strategies. Actively seek feedback from your marketing team and other stakeholders. Their on-the-ground insights and experiences can provide a different perspective on how AI tools are performing and where improvements can be made. By valuing and incorporating feedback, you create an environment where continuous learning and improvement are prioritized.

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Challenges and Considerations

Despite the benefits of AI in digital marketing, you might encounter certain challenges during the adoption. Here are they -

1) Data privacy concerns

With increasing regulations like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), you must be careful about how you collect, store, and use customer data. Mishandling data can lead to severe legal repercussions and loss of customer trust.

The best way to address this concern is by adopting tools that have strong data encryption techniques, access controls, and conduct regular security audits to protect data from breaches. You, on the other hand, must communicate clearly with customers about how their data will be used. Obtain explicit consent and provide easy options for customers to opt-out or control their data usage.

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2) Need for skilled personnel

The successful integration of AI with digital marketing requires skilled personnel who understand both tech and digital marketing. Unfortunately, there is always a shortage of such professionals, making it challenging for businesses to find and retain the right talent.

The best way to address this is by investing in ongoing education and training programs to upskill your existing marketing team. Encourage them to attend courses and workshops in AI, data analysis, and digital marketing strategies. You could also partner with consultants to bridge the skill gap.

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3) Initial setup costs

Implementing AI in digital marketing can involve significant initial setup costs, including purchasing software, integrating new tools with existing systems, and training personnel. These costs can be a barrier, especially for small businesses with limited budgets.

One way to solve this challenge is by adopting tools that offer a free plan or a free trial. If at all you need to adopt paid tools, then follow a phased approach to AI integration. Start with small, manageable tools that can demonstrate quick wins and justify further investment. Gradually scale up as you see positive results.

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Wrap Up

The demand for personalized customer experiences is growing rapidly. And that’s why we are pretty sure that AI is going to be deeply entrenched in most digital marketing strategies in the coming days. And if you want to stay ahead of the competition, there is no other way apart from embracing AI-based digital marketing tools. One such tool is Eacel, and you can start using it straight away to give your digital marketing initiatives an instant boost. Sign up to create an account now.

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Frequently Asked Questions

• Are there privacy concerns about using AI in digital marketing?

Yes, but it can be tackled by ensuring transparency in data management. You must protect consumer data privacy by obtaining proper consent for data usage and maintaining accountability for AI actions.

• Should I opt for a free or a paid AI digital marketing tool?

This totally depends on your budget and requirements. While free tools are great for basic functionalities, paid tools can be chosen if you have specific and advanced needs. Having said that, there are tools like Eacel that offer the best of both worlds. It is not only affordable but also offers some of the most advanced features in ad creative generation.

• What is customer journey mapping?

A customer journey map is the representation of the different stages your customers go through while they achieve their goals using your product or service. It includes every interaction they have with your business, right from the initial awareness stage through to the post-purchase experience. A well-designed customer journey map can guide your digital marketing initiatives in delivering personalized experiences that enhance customer satisfaction.

• What are the benefits of adopting AI-based digital marketing tools?

You can straightaway enjoy enhanced efficiency of your team as most of the activities are automated. They can instead focus on creating more engaging and targeted campaigns, ultimately improving click-through rates and conversion rates.

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