About the author: Shwetal Karade is a Product Leader at Meta (Facebook), based in London. Shwetal drives the development of innovative Artificial intelligence (AI) and Machine Learning (ML) solutions for Facebook and Instagram to enhance user experience. With 10+ years of experience in technology, management consulting and banking, Shwetal is a recognized leader in the technology industry. Shwetal has completed her education from prestigious institutes – BITS-Pilani and ISB (Indian School of Business).
The views expressed in the article are solely those of the author and do not represent the views of any companies the author is/has been associated with.
In the digital age, artificial intelligence (AI) has emerged as a crucial tool for advertisers seeking to optimize their online marketing campaigns. It not only enhances efficiency and accuracy but also revolutionizes how campaigns are crafted and delivered. This technology addresses multiple challenges within the advertising industry, helping brands to better connect with their target audiences.
The integration of AI into advertising is driven by the need for more precision and efficiency in campaign management. In an online environment crowded with information, reaching the right consumer with the right message at the right time is paramount. AI enables this by analyzing data at a scale and speed unattainable for human marketers, leading to smarter and more effective advertising strategies.
To better understand, let’s take a simple online buyer journey and understand advertiser pain points and how AI can address them.
| Buyer journey | Advertiser Pain Points | How can AI address these pain points? |
| Awareness Potential customers become aware of a brand or product |
● Difficulty in identifying and reaching the right audience efficiently.
● Ensuring content visibility among vast competition |
● Smart segmentation
● Optimal ad placement |
| Consideration Customers consider the brand or product as a potential purchase. |
● Engaging users who are not yet convinced or ready to buy
● Providing relevant information to aid purchase decisions |
● Behavioral Personalization
● Tailored messaging |
| Conversion The decision-making process that leads to a purchase. |
● High cart abandonment rates
● Inefficient conversion of leads to customers |
● Dynamic pricing / promotion |
| Loyalty Engagement aimed at turning a customer into a repeat buyer and brand advocate. |
● Difficulty in retaining customers and encouraging repeat business
● Identifying at-risk customers for churn |
● Tailored Communications
● Personalized Incentives |
The practical application of AI in enhancing online marketing campaigns can be best understood through real-world examples. These not only illustrate the potential of AI but also show how top companies are effectively using it to drive their marketing success.
LEGO uses AI-driven insights to identify emerging trends and interests among specific demographic groups across social media platforms. This information allows them to create targeted ads that resonate with potential customers, increasing brand awareness.
By targeting ads based on emerging interests detected by AI, LEGO ensures their content is relevant and engaging to the right audience, enhancing their reach and brand visibility efficiently.
IKEA uses AI in its IKEA Place app, which allows users to visualize how furniture would look in their home environment using augmented reality (AR). This tool helps customers consider their purchases by seeing the products in their own space before buying.
The AR app powered by AI significantly enhances the customer experience, making it easier for potential buyers to visualize and thus consider IKEA’s products as viable options, leading to increased intent to purchase.
Expedia employs AI to offer dynamic pricing and personalized travel recommendations based on user behavior, previous searches, and booking history. AI algorithms analyze data to predict the best offers that would likely convert interest into bookings.
By personalizing offers and using dynamic pricing strategies, Expedia increases conversion rates as customers are more likely to book when presented with deals that are tailored to their preferences and past behavior.
Starbucks uses its AI-driven mobile app to offer personalized incentives and product recommendations based on previous purchases and customer preferences. The app also tracks customer choices and preferences to tailor rewards and offers.
This personalized approach fosters customer loyalty, as users feel understood and valued. The tailored rewards program encourages repeat visits and increases overall customer retention and satisfaction.
As AI technology continues to evolve, its role in digital marketing will become increasingly critical, making it essential for advertisers to adopt and integrate AI strategies to remain competitive in the digital marketplace. By harnessing AI, advertisers can not only achieve better campaign results but also build stronger relationships with their customers, ultimately driving growth and success in the digital age. AI is not just a tool for automation but a strategic asset that can transform entire marketing paradigms, paving the way for innovations that resonate with consumers at every step of their journey.
