Artificial intelligence is an important part of many industries, including digital marketing. Now let’s see what it means by AI in digital marketing & how does it work.
Here you will find some examples of AI and its mechanism in Digital Marketing.
1. Product/content recommendations:
This is a kind of practice to predict the customer’s behavior in advance. Amazon uses “collaborative filtering” to enable recommendations for millions of customers using AI-powered recommendations. Netflix, Hotstar has also implemented a machine learning model that is designed to recommend content according to the viewer’s moods. The reason is customers have become used to a high level of personalized recommendations from service providers.
2. Data filtering & analysis:
Digital Marketing has become a more data-driven discipline. Data is more effectively used for improving customer experience, personalization, improved viewership and more. However, consolidating that huge volume of data and analyzing it to determine patterns, is difficult for human beings. This is where AI comes in. Its ability to analyze complex organizational data frees up humans to do the more intuitive creative work that they are able to.
3. Search Engines:
A-I has a profound impact on the way we search, and the quality of the search experience. Google first started innovating with AI research in 2015 with the introduction of RankBrain, its machine learning-based algorithm. Since then, many e-commerce websites (including Amazon) have followed in Google’s footsteps and incorporated AI into their search to help the customers in various ways.
4. Product categorization:
Some online retailers have discovered the extent to which machine learning can make the process of tagging and categorizing products more efficient. If a different language is used by the retailers to describe the same product like, “trainer”, “basketball shoe” and “sneaker” – the algorithm is able to understand that the products are the same and tag them accordingly.
5. Product pricing:
Demand-based price changes are nothing new. For example, hotel room rates depending on the season. However, with A-I entering the equation, prices can be determined and optimized to precisely a whole new level by considering a wide variety of data into account. The hotel brands can now refine their pricing system to help property owners determine the price that they should list their property considering different aspects.
6. Predictive analytics:
Predictive analytics is a revolutionary capability to extract information from data sets to predict future trends based on A-I because it was previously only possible to retroactively determine trends from data sets. Thanks to artificial intelligence, things that could once only be determined retroactively can now be reliably modeled, and decisions made based on those models.
Thus to conclude, AI has increased understanding of the nature of intelligence and provided an impressive array of application in multiple areas that helps everyone succeed in marketing.