Marketing is no longer limited to distributing flyers, using billboards, and relying on printed media. Instead, the way you promote your business has evolved significantly. Today, digital marketing has changed everything. However, brands still need a more advanced approach to reach customers and maximize marketing efforts.
This is where performance marketing fills the gap in today’s business world. It helps companies focus on measurable things and achieve their goals more efficiently. However, the question is, does the emergence of AI impact it?
If yes, then how can AI help you optimize performance marketing campaigns? That’s what we are going to discuss in this article. But before that, let’s start with some basics.
Performance Marketing (PM)—What Is It?
Digital marketing is huge, covering tons of different strategies and techniques. Performance marketing is just one part of it.
It’s a type of marketing through the internet that mainly focuses on actions. It involves paying only when a particular goal for the campaign is achieved. This goal may be getting clicks, driving engagement, and obtaining leads, conversions, or sales.
The standard metrics used to analyze whether a marketing campaign is going well or not involve:
- CPC (Cost Per Click) – What you pay every time someone clicks on your ad.
- CPM (Cost Per Impression) – The cost per 1,000 times your ad is seen.
- CPS (Cost Per Sale) – How much it costs to get a sale.
- CPL (Cost Per Lead) – The price of generating a potential customer.
- CPA (Cost Per Acquisition) – The total cost of acquiring a new customer.
How Can AI Assist In Optimizing PM Campaigns?
Artificial intelligence contributes to analyzing, managing, and optimizing performance marketing campaigns. Here is what exactly it helps with:
Targeting The Right Audience
You must target the right audience when you decide to pay for actions. However, identifying the right group of people requires in-depth analysis and segmentation. Marketers may make mistakes when choosing demographics during campaign setup.
This is where AI comes in handy. It can analyze consumer data to identify patterns and behaviors. All you need to do is provide it with a vast amount of user data and ask it to tell the ideal interests, age, gender, location, and profession to target.
This helps ensure that your ads reach the people most likely to take action, resulting in a better return on your investment.
Making Data-Driven Decisions
Marketers spend hours obtaining valuable insights from previous marketing data to make informed decisions in campaign setup. Sometimes, they must sift through multiple reports, documents, and dashboards to get the required data.
This wastes their time and energy and risks making wrong decisions due to a lack of access to the correct data. AI solves this problem. AI-powered marketing assistants like Vaizle AI make acquiring the needed data from existing databases incredibly easy.
For instance, it lets you chat with your marketing data in real time. This means you can get actionable insights by asking the AI chatbot a simple question.
Optimizing Ad Creatives
MarketingWeek states that 80% of marketers agree that the quality of ad creative is an essential factor for campaign success. Here, we are talking about the overall effectiveness of ad creative, not just the resolution or pixel quality.
But the question is, how can marketing professionals determine if a visual is perfect for their ad? They need real-time feedback from the users to make this estimation. However, AI simplifies this process by providing instant responses on how appealing an ad creative is.
AI algorithms can review the pictures from the perspectives of your audience and can give you the right suggestions about modifications. For instance, AI tools can recommend the proper placement for a call to action, main idea, or pain point.
Performing Sentiment Analysis
It’s a sad reality that not every marketing campaign drives good results. Sometimes, you get a worse response from your audience, which affects ROI significantly. However, getting less engagement opens the way to understanding what the people want.
AI can significantly assist sentimental analyses of public reviews, post comments, and testimonials. Deep neural networks can examine appreciative and negative reviews to determine how people perceive a brand, ad, or campaign.
With these insights, markets can better adjust their marketing settings to ensure that audiences love what they communicate. AI-driven campaigns are less likely to be criticized than those without analysis.
Analyzing Competitors’ Strategies
Observing your competitors’ actions can improve your campaigns. SproutSocial, a leading marketing platform, emphasizes that competitor analysis is essential for refining strategies.
Like in other areas, AI can help you proactively analyze your competition. It can automate gaining insights into other brands’ online presence. For instance, a dedicated AI model can consistently collect data like traffic and engagement rates.
With comprehensive information about competitors, performance marketers can identify areas where others are lacking. They can then fill the gap with their unique strategies and get better results from others.
Allocating The Campaign Budget Wisely
Excessive spending on campaigns that drive fewer results often occurs when marketers, especially those new to performance marketing, make a small mistake. This small mistake adds an extra burden on a business’s finances and leads to more expenses.
With powerful AI tools, adjusting the campaign budget for maximum results has become easy. Just provide the data of previous campaigns, such as ad spend, audience demographics, clicks, and other essential metrics, to AI tools and let them handle the game.
Based on the data you provided, AI algorithms suggest the best budget for your current campaigns. This enables businesses to maximize their performance marketing efforts and avoid budget waste.
Creating Optimized Ad Copies
Artificial intelligence has changed the way businesses create promotional content. According to Statista, a recent survey of marketers found that 42% of experts rely on AI to write content for marketing purposes daily or occasionally.
So, if the other professionals depend on AI, why not you? Utilize AI-powered writing assistants to create optimized ad copies for your performance marketing campaigns.
The best thing is that AI allows you to adjust your message’s wording, tone, style, structure, pattern, and appeal. This extensive personalization helps you connect with your audience emotionally, which drives maximum actions.
Choosing The Right Platforms
Performance marketing usually involves running cross-platform campaigns for higher conversions. However, choosing the right platforms for this purpose often confuses a marketer. In the presence of AI, you don’t need to worry about it.
Instead, you can use powerful AI chatbots like ChatGPT to suggest the best platforms for your marketing campaigns. To improve the tool’s suggestions, you can provide detailed documents detailing the performance of previous ad records.
Apart from that, you can tell AI what type of product you want to sell, your target audience, and what action you want to drive. Considering all these things, the AI models help you better decide which platform you should choose.
Retargeting Audience Effectively
Retargeting campaigns have a significant place in performance marketing. However, they are only run when an existing campaign goes well and drives desired results. This type of ad campaign highly depends on analyzing previously run ads.
For instance, if you have already run multiple campaigns on different social media channels, you can use their data to retarget the best audience. However, identifying the right group of people in a vast amount of datasets of former campaigns is not easy.
With AI, finding the ideal audience to target in retargeting campaigns is just a few minutes game. By profoundly examining the purchase behaviors of people in past campaigns, AI can suggest the right demographics and psychographics for the new ones.
Generating Media For Campaigns
Another way AI helps is by enabling you to create stunning media for your performance marketing campaigns. Generative AI has evolved enough to generate images, videos, and animations that support customer conversion. Many online tools use modern AI technology to generate high-quality and realistic visuals.
Additionally, AI is also being used creatively for tasks such as generating catchy team names using a team name generator and helping marketers or project teams come up with unique branding ideas for campaigns. This kind of automation lets you focus on core marketing strategies while leaving the creative brainstorming to AI-powered tools.
So, if you don’t want to hire a dedicated designer, video editor, or animator, using AI for content creation is an ideal option. The best thing is that you can optimize the visual according to your needs by adjusting the prompt. But remember, this is just a suggestion. You don’t need to stick solely to it. Instead, it’s better to combine the creativity of AI and humans to create media for ad campaigns.
Get Instant AI Insights for PPC Campaigns with Vaizle AI
Even with AI-driven marketing tools, knowing exactly what to optimize in your PPC campaigns can be overwhelming. That’s where Vaizle AI comes in.
Vaizle is an intelligent marketing analytics platform that provides real-time, actionable insights to help you optimize your PPC campaigns for better ROAS and higher conversions. Instead of manually analyzing dashboards and reports, you can simply connect your Ad account and ask questions in plain human language.
Want to know which ad set is draining your budget? Or which keywords are driving the most conversions? Vaizle AI gives you instant answers, so you can make data-backed decisions without wasting time.
Summing It Up
In short, artificial intelligence has many things to offer to performance marketers. From creating ad content to targeting the right audience, AI helps with many things. With AI, businesses can prevent spending too much on less result-driven ads and adjust their budget based on previous data.
It can also help you keep an eye on what your competitors are doing and what results they are getting. Most importantly, AI assists you in making decisions based on solid data, significantly contributing to your campaigns’ success. So, now that you know the significance of AI in performance marketing, don’t hesitate to rely on it.
