THE IMPACT OF ARTIFICIAL

INTELLIGENCE IN MARKETING
HOW BRANDS USE AI TO IMPROVE MARKETING CAMPAIGNS
WHAT IS HOW YOU COULD USE AI IN
YOUR WORK
THE IMPACT OF AI IN
MARKETING

AI IN
MARKETING?
AT A GLANCE

It is predicted that AI 3 of 4 companies that

will handle 85% of all have implemented AI

51% customer service

inquiries by 2020
achieved a 10% or more
boost in sales
SOURCE GARTNER: SOURCE: ADOBE

...of marketers use at PROS AND CONS OF USING

least some form of MACHINE LEARNING

artificial intelligence 30%

SOURCE: BUSINESS INSIDER

35%
By 2020, 30% of
companies will be using
AI in at least one of their
35% of customers sales processes
Experts think AI will would be happy to SOURCE: GARTNER
generate 2.3 million use a chatbot to
new employment resolve a complaint or
opportunities a problem
SOURCE: GARTNER
SOURCE: DRIFT

24 Businesses using AI to
power data-driven
75% of organisations insights in marketing will
The benefits that grow to $1.2 trillion
say using AI has
people expect the combined by 2020
helped drive customer
most from AI-powered
satisfaction by 10% SOURCE: FORRESTER
customer service are
SOURCE: ADOBE
the 24-hour service
and getting instant
support
SOURCE: DRIFT
P. 5-6 WHAT IS AI IN MARKETING?

P. 7-9 THE IMPACT OF AI IN MARKETING

P. 10-11 THE PROS AND CONS OF USING MACHINE LEARNING

TO IMPROVE MARKETING TECHNOLOGY

P. 12-17 HOW YOU COULD USE ARTIFICIAL INTELLIGENCE IN

YOUR WORK

P. 18-24 EXAMPLES OF MARKETING TEAMS USING DEEP

LEARNING AND AI TO BOOST GROWTH
Introduction

Can you imagine that the year on year adoption of AI in

marketing has reached 53% already?

According to the Business Insider’s report, called “AI in Marketing

2018,” 51% of marketers use at least some form of artificial
intelligence. And 27% plan to add it to their campaigns next year.

But as other sources suggest, many marketers still find AI

mysterious. Puzzling. And frightening.

Unfortunately, with that, they also struggle to realize the impact

using AI tools could have on their marketing initiatives. As a result,
they miss out on many opportunities to use data to deliver a
higher marketing ROI.

Luckily, that’s exactly what we’ll show you in this guide.

Keep on reading to understand what AI in marketing is. Learn how

artificial intelligence impacts digital marketing. And find out
whether you should feel threatened by machine learning and
intelligent artificial intelligence at all.

I hope you find this guide helpful. Please feel free to reach out to
us if you have any questions!

All the best,

Alexander Igelsböck
Co-Founder & CEO,
Adverity GmbH

4
What is AI in Marketing?
AI in marketing (also referred to as artificial intelligence marketing)
is a strategy of leveraging data and machine learning to deliver
campaigns that help achieve a brand’s goals more effectively.

Most marketers utilize AI in market research, data science, and real-time campaign analysis.

Although gaining prominence in recent years, various forms of artificial intelligence have existed in
marketing in the past. They allowed marketers to analyze more data a human mind could
comprehend, responding to the audience’s preferences better, and using natural language processing
to understand the target market.

Today, almost every marketing campaign relies on the data, at least to some degree.

Digital and retargeting advertising platforms use customer behavior to display relevant messages at
the right time. Other strategies use artificial intelligence to personalize marketing messages in real
time. Not to mention, act on the findings at an instant.

(Note: Keep on reading to discover various examples of how brands use AI to promote their
products.)

What’s more, many experts predict that soon, AI will transform marketing completely.

Gartner, for example, predicts that in just 2 years, chatbots will take over 85% of customer service
interactions. In comparison, artificial intelligence handles about 30% of it right now.

5
According to eMarketer, AI will mainly affect targeting, personalization, and programmatic
advertising.

At least, at first...

AREAS WHERE ARTIFICIAL INTELLIGENCE WILL

HAVE A SUBSTANTIAL EFFECT ACCORDING TO
MARKETING LEADERS WORLDWIDE
% OF RESPONDENTS (APRIL 2017)

DELIVERING THE RIGHT MESSAGE ON THE RIGHT CHANNEL AT THE RIGHT TIME 61%
DYNAMIC LANDING PAGES AND WEBSITES 61%
HYPERPERSONALIZATION OF CONTENT 61%
HYPERPERSONALIZED PRODUCT RECOMMENDATIONS 60%
PREDICTIVE JOURNEYS 60%
PROGRAMMATIC ADVERTISING AND MEDIA BUYING 60%
BUSINESS INSIGHTS ACROSS DATA AND SYSTEMS 59%
CAMPAIGN ANALYTICS 59%
DIGITAL ASSET MANAGEMENT 59%
HYPERPERSONALIZATION AT SCALE 59%
PRODUCTIVITY OF MARKETERS 59%
CUSTOMER SEGMENTATION/LOOKALIKE AUDIENCE MODELLING 58%
LEAD SCORING 57%
SENTIMENT ANALYSIS 56%

Note: over the next 5 years; responses of "substantial" or "transformative" effect

Source: Salesforce "Fourth Annual State of Marketing: insights and trends from 3,500 global marketing leaders," June 15, 2017

Finally, instead of eliminating jobs, experts predict that AI will generate 2.3 million new employment
opportunities.

Which brings us to this…

6
What Impact Would AI Have on Marketing in
the Future?
And what goes with it, should you be afraid of artificial
intelligence taking over your work?

Many marketers I speak about AI to feel at least a little concerned about the rise of machine learning
algorithms.

Many feel anxious about machines replacing their jobs, potentially. Others worry about AI-powered
systems spying and gathering data about their campaigns.

I’ve already shown you some evidence that not only jobs are safe with AI. It might even create more
demand for employees.

And when it comes to the omnipresence of AI, it seems unavoidable. We’ve been using AI almost
every day for quite some time, after all.

Think about it:

Google Maps analyzes anonymous data from smartphones. Every time you use it, the app
uses machine learning-powered insights to help you avoid traffic congestions.

Another of Google’s AI platforms, Rankbrain, interprets your search queries. It helps the
search engine understand your search intent. Rankbrain then uses those insights to deliver
you the right information.

Gmail uses machine learning to protect you from spam.

Credit card processors use artificial intelligence to detect fraud.

Various brands offer AI-powered platforms to help us with such mundane aspects of our
work lives as project management or time management.

Many business platforms use machine learning to deliver personalized content, offers, and
so much more to enrich your customer experience.

And AI-powered marketing analytics platforms let you analyze unbelievable amounts of data
to drive the marketing ROI further.

7
Yet, in spite of the above, little evidence suggests any negative impact of AI on
marketing, in general.

Plenty of evidence confirms the positive impact, though… Consider this:

84% of marketing companies have implemented or expanded their use of AI in 2018. (source)

Next year, 40% of digital transformation initiatives within organizations will include artificial
intelligence. (source)

By 2020, 30% of companies will be using AI in at least one of their sales processes (source)

Furthermore, AI helps drive meaningful results and an incredible ROI:

3 of 4 companies that have implemented AI achieved a 10% or more boost in sales. (source)

For 75% of organizations, using AI has helped drive customer satisfaction by 10% as well.
(source)

Finally, a report by Forrester revealed that, in just two years, businesses using AI to power
data-driven insights in marketing would grow to $1.2 trillion combined.

But, as eMarketer states in their report, “Artificial Intelligence For Marketers 2018”

Though market analysis by Grand View Research found that

AI applications related to advertising and media make up
the largest share (20%) of the global AI market, many of
these applications are still very nascent.

8
No disrespect to the work being done now, but when we look
at the possibility of artificial intelligence, we have so much
further to go and so many more advancements,
eMarketer, 2018

9
AI in Marketing: Pros and Cons

The Pros:
#1. Faster data analysis

With artificial intelligence, marketers can analyze complex data sets faster than a human.

But this increased speed doesn’t mean greater efficiency only. Or the ability to gather and act on
insights faster.

It also suggests that organizations could reduce the time associated with processing information
manually. As a result, they could launch more effective campaigns faster and deliver higher ROI at a
lower cost.

#2. More accurate insights

Using AI opens up the possibility to conduct a more in-depth analysis of the data. A machine-
learning algorithm could break down complex data sets, correlate them with other information and
deliver deeper insights.

For a marketer, the above means finally having the ability to utilize more insights when planning
campaigns. And also, being able to act much faster on those findings.

#3. Greater efficiency

For them to work, today’s marketing campaigns must be 100% relevant to the target audience.
Unfortunately, many marketers lack data and insights to launch an initiative capable of engaging
their intended audience.

With AI, they can acquire all the insight they need and increase the efficiency of their efforts.

10
The Cons:
#1. AI lacks creativity

In spite of many attempts, AI is still incapable of being creative. Machine learning algorithms can’t
act on the data in the same manner as a human would.

And what goes with it, their ability to create something based on those insights remains severely
limited.

That’s just one reason why AI-created content lacks the magic touch making a blog post, article or
even a Facebook Ad engaging.

Although, if you’re interested in seeing the results of machine-powered content creation, I recommend you
check out this Sci-Fi movie scripted entirely by an AI. Be prepared to laugh a lot.

11
How You Could Use the Artificial
Intelligence In Your Work - 3 Use Cases
As you may have gathered from this guide already, AI opens up
incredible opportunities for marketers.

But I admit, it can be hard to realize its full potential. Particularly, when you try to imagine how you
could use it in your work.

So, let me show you some of the ways to use artificial intelligence to enrich your work.

(Note: This section lists possible use cases for AI for in marketing. The next one, however, includes real-life
examples of companies using AI to boost their growth.)

Use Case #1. Better Customer Segmentation and Personalization

Today’s customers expect a personalized marketing experience. In fact, to even consider buying
from you, they want you to make them feel as if you knew them in person.

And the minimum prerequisite to meeting those expectations is delivering the right message to the
right customer. And at the right time, at that.

Which, as I’m sure you’ll agree is quite a challenge. That’s especially true, if you try doing it without
having a deep understanding of various customer segments your brand can serve.

That’s where AI comes in.

Artificial intelligence allows marketers to analyze their customer data in detail. Such insight helps
create precise customer segments. And also, map those to the entire customer journey.

But that’s just a start.

Such in-depth data analysis could also reveal each segment’s motivations, desires, and pain points.
Correlated with other data points, it could even help predict the customers’ next moves. For example,
it could help forecast each segment’s buying pattern throughout the year per product or service.

And with such information, marketers can launch campaigns designed to engage a specific
segment. And do so with a message tailored to those customers’ needs, and perfectly-timed.

12
Use Case #2. Improving the Depth of Marketing Data

For most marketers, the benefits of data-driven marketing remain limited by their ability to access,
and then, analyze the information.

The solution? Incorporate artificial intelligence to help process and correlate large data sets to
obtain deeper insights.

AI platforms can help marketers spot and understand anomalies in the market behavior or
campaign performance. In turn, they could act and tackle problems before they escalate.

Having a deeper understanding of the data could help predict future campaign performance as well.
It could even aid forecast the growth and set realistic, achievable expectations.

Use Case #3. Improving Customer Experience

According to Gartner, AI will handle 85% of all customer service inquiries by 2020.

And we can see the first signs of this already.

For example, chatbots have moved to the frontline of customer interactions. Without much
opposition from customers, at that.

AI will han
dle 85% of all
customer
service inq
by 2020 uiries

13
According to Drift, 35% of customers would be happy to use a chatbot to resolve a
complaint or a problem.

The same number would use it to get detailed answers or explanations. And 34% would use it to
connect with the right customer assistant.

PREDICTED USE CASES FOR CHATBOTS

WHAT DO YOU PREDICT YOU WOULD USE A CHATBOT FOR?

GETTING A QUICK ANSWER IN AN EMERGENCY 37%

RESOLVING A COMPLAINT OR PROBLEM 35%
GETTING DETAILED ANSWERS OR EXPLANATIONS 35%
FINDING A HUMAN CUSTOMER SERVICE ASSITANT 34%
MAKING A RESERVATION (E.G. RESTAURANT OR HOTEL) 33%
PAYING A BILL 29%
BUYING A BASIC ITEM 27%
GETTING IDEAS AND INSPIRATION FOR PURCHASES 22%

ADDING YOURSELF TO A MAILING LIST OR NEWS SERVICE 22%

COMMUNICATING WITH MULTIPLE BRANDS USING ONE PROGRAM 18%
(NONE OF THESE THINGS) 14%

BUYING AN EXPENSIVE ITEM 13%

SOURCE: [Link] 2018 STATE OF CHATBOTS REPORT

14
Finally, to most, the 24-hour service and getting instant support are the main benefits of AI-powered
customer service.

PREDICTED BENEFITS OF CHATBOTS

IF CHATBOTS WERE AVAILABLE (AND WORKING EFFECTIVELY) FOR THE ONLINE SERVICES
THAT YOU USE, WHICH OF THESE BENEFITS WOULD YOU EXPECT TO ENJOY?

24 HOUR SERVICE 64%

GETTING AN INSTANT RESPONSE 55%

ANSWERS TVO SIMPLE QUESTIONS 55%

EASY COMMUNICATION 51%

COMPLAINTS RESOLVED QUICKLY 43%

A GOOD CUSTOMER EXPERIENCE 43%

DETAILED / EXPERT ANSWERS 37%

ANSWERS TO COMPLEX QUESTIONS 35%

FRIENDLINESS AND APPROACHABILITY 32%

8% NONE OF THESE

SOURCE: [Link] 2018 STATE OF CHATBOTS REPORT

Then, there are voice assistants too.

16% of Americans already own a smart speaker like Amazon

16% 2022

Echo. And experts predict the voice search adoption to reach

55%
55% by 2022.

For most customers, voice search means being able to

conduct search and discover information in various
situations.

15
PRIMARY REASONS FOR USING VOICE PRIMARY SETTING FOR USING VOICE
ASSISTANTS USA, 2016 ASSISTANTS USA, 2016

USEFUL WHEN
HANDS/VISION 61%
OCCUPIED HOME 43%

FASTER
30%
RESULTS

DIFFICULTY TYPING CAR 36%

ON CERTAIN 24%
DEVICES

THEY'RE FUN 22%

/ COOL
ON THE GO 19%
TO AVOID
CONFUSING 12%
MENUS

WORK 3%
OTHER 1%

0% 20% 40% 60% 80% 0% 10% 20% 30% 40% 50%

SOURCE: [Link]

What’s important is that those platforms use artificial intelligence too. Chatbots are nothing but
computer programs that conduct conversations with customers. What’s more, they use patterns in
data to learn. And then, use that info to solve similar problems for customers.

HOW AN AI CHATBOT WORKS

Sentiment
Deep Learning Analytics

Predictive
PROCESSES OUTCOMES Analytics

Artificial
Intelligence (AI)

Machine Learning Natural Language

Processing

16
Artificial Intelligence has such incredible marketing
potential - the ability to crunch so much data can help
marketers and brands in a plethora of ways. One of the best
uses of AI in marketing is for hyper-personalisation. Artificial
Intelligence can help you interpret huge amounts of data in
a fraction of the time that it would take your team to do so
and most importantly, you can use all of this data to create
highly personalised marketing campaigns and content. In
fact, with powerful AI at your side, you will be able to make
sure that every decision you make is based on relevant data.

Lilach Bullock

17
How Brands Use AI in Marketing - Examples
of AI-powered Marketing Campaigns

#1. Dynamic Product Recommendations

By far, the most recognizable example of artificial intelligence in marketing is Amazon using AI to
recommend products for users.

Amazon’s AI analyzes a person’s past purchases and viewing history, and identifies products they
are the most likely to buy next.

#2. Dynamic Pricing

Car rental companies, hotels, and many other organizations use AI to monitor buying trends and
determine the most competitive pricing. By doing so, they can offer customers prices based on
external factors and their buying trends.

Similarly, many E-commerce stores use AI to monitor competitor prices as well as internal factors
(like costs, etc.) to adjust pricing to an optimum point of competitiveness.

5
Static Pricing Dynamic Pricing
(Single Price Point) (Multiple Price Points)
4

3
1

1
PROF IT
REVENUE REVENUE

SOURCE: [Link]

18
#3. Personalization

Spotify’s AI analyzes each user’s listening history to suggest other artists, records or playlists that
should match their taste in music.

And they use quite a sophisticated algorithm to do that.

You listen to and Spotify users

save songs create billions of
playlists

Spotify identifies similar

Develops your songs that appear on
"taste profile" those playlists

Spotify finds
songs that fit your
preferences, but
that you haven't
listened to

Discover
Weekly
1

2
3
4
5
6
7

SOURCE: [Link]

19
#4. Customer Service

More and more brands turn to AI to help reduce customer service costs too. Augmented messaging,
routing support inquiries to relevant agents, enhanced phone support are just some of the use cases
for AI in customer service.

Here’s an example of how AI helps with processing website inquiries:

What's your account number?

Bot starts the
conversation
7732468

I can help you with that. Would you like to

Bot hands add a new phone?
conversation
to humans
Yes please

Click here to view available models.

Human hands
it to bot for
routine processes

SOURCE: [Link]

20
#5. Email Marketing

One of the biggest challenges facing email marketers today is the customers’ demand for
personalization. It seems that buyers turn only to emails that speak to them directly. And they ignore
the rest.

For an email marketer, this means a need to increase the relevancy of any messages they send out.

And that’s where AI can help too. From analyzing customer behavior and interests to segmenting
them based on those findings, artificial intelligence helps marketers become more relevant to their
audience.

Some examples of the above include sending time optimization, dynamic email content with precise
product recommendations, tailored to a recipient, and much more.

21
#6. Content Marketing

AI helps marketers improve content too. From crafted the perfect subject line to the perfect ad copy,
lots of services are focussing on taking the pain out of copywriting.

Various tools can analyze the audience’s interests to identify better topic ideas. With others,
marketers can understand the audience’s intent. Based on that, they can identify factors that would
help their content succeed in the search results, for example.

SEMrush, for example, uses AI to research topics, and suggest different approaches that would help
engage the audience.

22
#7. Content Analysis and Improvement

Various AI-powered solutions allow writers and marketers to analyze and improve their content.

Grammarly, for example, finds grammar, spelling and styling errors. The tool also provides
recommendations for improving the content based on user-defined criteria.

23
#8. Marketing Performance Analysis

0 10

Final Thoughts

“In 10 years the majority of content will be generated by

software. In 20 years, humans will wonder why we wasted so
much time on content creation. I can’t see any other way
around this.”
 +43 1 8903155
office@[Link]

Mariahilfer Straße 41-43/Top B6,

1060 Wien
Austria

[Link] VIENNA LONDON FRANKFURT