Artificial Intelligence use in the world of business is all the rage right now. With tech giants spending up to $30B for R&D and acquisition of AI technology, the market for automated thinking and procedures will only continue to grow. And by 2035 at the latest, AI is predicted to generate additional revenue of up to $14 trillion. This exponential growth caused by technology is no exception to the marketing and branding scene.
AI’s Role in Marketing
AI is being used to help improve targeted marketing. Essentially, what the AI does is to pick up our digital footprints of the websites we visited, products we viewed and interests we searched up to help decide what ads to show us online. One might argue that this is mainly the case with advertisements by Google; however, the truth of the matter is, Google itself is the source of 94% of total organic traffic. From that, we can safely assume that the targeted ads presented will have quite a significant influence.
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But what exactly is AI’s role when it comes to differentiating products with its competitors? If anything, this type of targeted ads may prove harmful to a competitive market as similar types of advertising will most likely be shown to the same person numerous times. However, the use of AI is only bound by our imagination. A 2-dimensional use of AI like a tool may be its limits, but if we go beyond, you might be amazed at what AI can offer to help your brand stand out.
AI’s Uses in Highlighting Your Brand
In truth, many companies are already planning or implementing AI in many marketing procedures. However, the aspect of branding is an entirely different segment. While some companies may be using AI solely on a technicality, when you’re investing AI for branding, it is a whole other page to be turned.
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A/B testing is an initiative used in marketing, or rather to prepare for marketing, for a very long time now. The process of creating (at least) 2 similar advertising method and gaining data feedback of what’s working more for the intended results (be it in the form of brand awareness, visits, clicks, etc) is always valuable. However, with the addition an AI can provide, time investments on manual research and trial/error processes are cut down. This is due to the fact that AI has the capability to analyze every single entry of data and use it to shape the optimal initiative based on the given default options. This will save you from a world of more complicated calculations and computation with your own mind. Furthermore, this by itself can leave a more optimal mark within the digital advertising world when implemented correctly.
A more literal take on AI’s use is virtual assistants. AIs such as Apple’s Siri, Microsoft’s Cortana, and Amazon’s Alexa can at the time seem like a simple niche. However, these AIs serve not only as assistants made to care for your customers but can also be structured to reflect the personality and vibe the company wants to give. And this, in turn, can help fortify the brand’s familiarity within the minds of the consumers.
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Using formulas programmed into an AI, it is possible to apply more dynamic pricing to anything. Often times, the planning for a price change to products are more static. If it’s 50% off, then that is all it will be for the set duration regardless of other factors. An example of dynamic pricing is how online transportation prices go up when in high demand. This is determined by the amount of insight an application’s AI process to determine the optimal surge in pricing. But this may, in fact, be applicable to consumable products as well. And supply/demand isn’t the only factor that could be put in. Imagine the possibilities. Using algorithmic data advertising AI already possess, it can determine an optimal price for the potential customer based on things like:
- price of similar product (competition),
- purchase frequency of similar products,
- click rates in relevant websites
And this process of giving the optimal prices for a potential customer could be all your brand need for that extra click.