How is AI Supporting Performance Marketing?

Constant technological advancements, rapid internet adoption, and smartphone penetration have all made it critical for businesses to connect with their customers online. The digital presence has become a necessity for the brand's success as customers are relying on online research before considering a purchase or opting for a service. Also, slowly and gradually, conventional marketing methods are becoming less impactful; therefore, new-age methods are being used by marketers and advertisers to promote brands. Performance marketing is a new-fangled strategy that uses paid marketing channels and is becoming popular owing to its result-driven approach. It is now growing with the integration of AI, which is assisting brands in boosting the performance, gaining a competitive edge, and enhancing the ROI of digital marketing campaigns.

AI in performance marketing

Artificial intelligence (AI) in marketing is used to generate customer insights by leveraging data models, algorithms, and machine learning to optimise spending, customise content, and personalise the customer journey.

The reason why marketers prefer AI for digital marketing is its ability to allow rapid enhancement, accurate targeting of audiences, and an increase in conversion rates. Additionally, compared to conventional tools, AI-powered marketing tools are quicker, more effective, and more comprehensive, as they ease the optimisation process while allowing real-time adjustments. The benefit of AI is that it can predict future customer journeys by compiling omnichannel data from previous journeys, including online searches and purchase histories combined with in-store purchases and returns. This data allows marketers and customer service specialists to establish rich experiences for customers.

AI helps brands choose platforms and channels that their competitors do not use. It allows digital marketers to experiment for optimised targeting, which makes large-scale pay-per-click campaigns profitable. Now let us consider how AI can support performance marketing.

Better conversion optimization rate (CRO)

Because AI has access to a vast amount of data and can provide prospective customer insights in real-time with high accuracy, it can significantly increase CRO efficiency for any brand. It examines numerous user data points, such as demographics, location, the device they are using, and their interactions with brand’s website. The information gathered then can be used to show accurate content and draw attention to the best offers for potential customers. With intelligent personalisation, AI can assist brands in improving their customer experience. This behavioural personalisation also enables digital marketers to curate push notifications in order to deliver the right information at the right time.

Enhanced results from email marketing

Gone are the days when marketing used to create fresh emails for each customer with smart segmentation and schedule them weekly. As it is a daunting and time-consuming process, it had several errors and did not deliver the desired outcomes. AI can help curate personalised emails with content that is relatable to the prospective customer. It understands how email subscribers interact with the email content, and it can map their website usage and browsing data. With this information, algorithms can be devised and better strategies can be created. In general, AI uses data from previous interactions, wish lists, time spent on websites, and trending topics to create personalised emails that are interesting to each prospective customer.

Faster lead generation

AI can be used to gather customer insights, develop website content, and direct website chatbots, which makes AI a game-changing tool for performance marketers. Additionally, by maximising the use of the data at hand, artificial intelligence analyses incoming leads. The methodology uses lead generation bots to provide businesses with leads based on the queries users enter into search engines. The AI tools can perform repetitive tasks such as finding leads, qualifying them, and creating customer profiles, giving ample time for the marketing teams to focus on the outcomes and enhancing customer experience.

Lucrative ROI

AI assists marketers in better understanding consumers and enhancing the customer experience throughout the purchasing process. The marketers can develop a predictive customer analysis and design a customer journey that is more individualised and targeted, which significantly boosts the return on investment for each customer contact. Through AI, marketers can better understand their target audiences, segment them, and entice them into the sales funnel. Marketers can maximise ROI without wasting money by carefully examining customer insights and figuring out their buying needs.

All things considered

In the midst of the quick spread of cutting-edge technologies, AI has established itself as the top tool for performance marketing. Many industry leaders have been encouraged to advance in a more sophisticated and effective area of AI and are doing so to improve their results. As a result, every other brand will use the strategic insight from the underlying data as a compass in the coming years. Consumers today may not yet fully trust artificial intelligence to make the right choices, but as it becomes more prevalent and useful, they will probably grow accustomed to it. To get successful among the competition, marketers for companies should concentrate on strategic, consumer-driven applications of AI that benefit both brands and customers.

 The article is authored by Rithesh R, Co-Founder, Deepsense Digital