11th House marketing

The Benefits and Challenges of AI Marketing for South African Businesses

22 August 2023

Many companies – along with the marketing teams that support them – are rapidly embracing intelligent technology solutions to enhance operational efficiency and elevate the customer experience. These intelligent solutions often manifest in the form of Artificial Intelligence (AI) marketing platforms.

Through these platforms, marketers can gain a more nuanced and comprehensive understanding of their target audiences. The insights generated by AI drive conversions and simultaneously alleviate the workload for marketing teams.

In my previous blog, I delved into the future of marketers in the age of AI and whether we, as marketers, should be concerned. While some marketers are already utilising AI to create more custom campaigns, others remain sceptical about AI’s ability to match or surpass the results produced by human intervention. However, one thing remains certain: AI marketing is underway, and even if you choose not to adopt AI tools, it’s imperative to understand its implications.

So, what exactly does AI marketing entail?

Let’s explore the depths.

What is AI marketing?

AI revolves around programming computers to execute tasks that traditionally demand human involvement, such as speech recognition, decision-making, and even learning from experiences. Instead of being disconcerted by this concept, envision having an adorable robot ally within your computer, always ready to assist with any task at hand. Quite endearing, isn’t it?

AI finds frequent application in digital marketing endeavours where speed is of the essence. AI-powered marketing tools leverage data and customer profiles to discern optimal methods of communication, subsequently delivering tailored messages at precisely the right moment, all without the need for manual intervention. This synergy ensures maximum efficiency.

Many industries have adopted AI or are in the process, and it’s no different for marketing. So, what types of AI are available for marketers, and how are they used?

  •  Data Analysis: Collecting and sifting through large amounts of marketing data from various campaigns and programs that would otherwise have to be sorted manually.
  • Natural Language Processing (NLP): Creating human-like language for content creation, customer service bots, experience personalization, and more.
  • Media Buying: Predicting the most effective ad and media placements for a business to reach their target audience and maximise marketing strategy ROI.
  • Automated Decision-Making: AI marketing tools help a business decide which marketing or business growth strategy they should use based on past data or outside data inputs.
  • Content Generation: Writing both short and long pieces of content for a marketing strategy, such as video captions, email subject lines, web copy, blogs, and more.
  • Real-time Personalisation: Changing a customer’s experience with a marketing asset, such as a web page, social post, or email, to fit the customer’s past preferences and encourage a specific action.

Types of AI Marketing Solutions

It’s evident that artificial intelligence holds a pivotal role in fortifying marketers’ connections with consumers. The following components of AI marketing constitute today’s leading solutions that bridge the gap between the colossal amounts of customer data collected and the actionable next steps digital marketers can take in their future campaigns:

Machine Learning:

Machine learning, driven by artificial intelligence, involves computer algorithms capable of autonomously improving digital marketing campaigns through experience-based analysis. Devices harnessing machine learning assess new data within the context of historical data, allowing them to inform digital marketing campaigns based on past successes and failures.

Big Data and Analytics:

The advent of digital media ushered in an influx of “big data,” presenting digital marketers with opportunities to comprehend their efforts and accurately attribute value across channels. However, this abundance of data has led to data saturation, with marketers grappling to identify worthy datasets. AI marketing emerges as a solution, swiftly filtering and analysing data to unveil essential insights, thus guiding future digital marketing campaigns.

AI Marketing Platforms & Tools

Efficient AI-powered marketing solutions furnish digital marketers with centralised platforms for managing the mammoth data influx. These platforms glean valuable marketing intelligence from your target audience, empowering data-driven decisions regarding optimal engagement strategies. Frameworks like Bayesian Learning and Forgetting aid marketers in grasping a customer’s responsiveness to specific digital marketing efforts.

Challenges for AI Marketing

However, amidst the flourishing advancements, challenges abound. AI is reshaping the marketing landscape at a remarkable pace, yet it’s crucial to acknowledge the potential pitfalls accompanying this transformative shift in our work methodologies.

For instance, AI struggles to replicate marketers’ emotional intelligence. Customers still value the human touch, and a transition from one artificial interaction to another might be off-putting. It’s imperative that AI doesn’t supplant genuine interaction and connection with customers.

Similarly, AI lacks human creativity. While generative AI models generate an impressive volume of content, their innovation is limited to merging existing concepts into something that appears novel. Marketers can utilise these tools to expedite creative processes, but for truly remarkable results, nothing beats investing time in crafting original ideas.

Marketers and AI: A Powerful Alliance

AI’s rapid rise is reshaping marketing dynamics, but it’s important to note that AI isn’t poised to replace marketers. Instead, by synergising marketing acumen with AI’s capabilities, marketers can amplify their impact. Research indicates that marketers who embrace AI are more effective, saving time, addressing complex tasks, and yielding superior campaign results. 

Benefits of AI in Marketing

It’s important to begin with a thorough plan when leveraging AI in marketing campaigns and operations. This will ensure marketing teams minimise costly challenges and achieve the most value from their AI investment in the least amount of time. 

Before implementing any AI marketing tools, there are a few key factors for digital marketers to consider: 

  • Establish Goals:
    As with any marketing program, it is important that clear goals and marketing analytics are established for your AI marketing program from the outset. Start by identifying areas within campaigns or operations that could stand to be improved, such as segmentation. Then establish clear KPIs that will help illuminate how successful the AI-augmented marketing campaign has been – this is especially important for qualitative goals such as “improve customer experience.”
  • Data Privacy Standards:
    At the outset of your new marketing program, be sure that your AI marketing platform will not cross the line of acceptable data use in the name of data personalization. Be sure privacy standards are established and programmed into your AI marketing platforms as needed to maintain compliance and consumer trust.
  • Data Quantity and Sources:
    In order to get started with AI marketing, digital marketers typically need to have a vast amount of data at their disposal. This data will train the AI marketing tool in customer preferences, external trends, and other factors that will impact the success of AI-enabled marketing campaigns. This data can be taken from the organisation’s own CRM, previous marketing.
  • Acquire Data Science Talent:
    Many marketing teams lack employees with the necessary data science and AI expertise, making it difficult to work with vast amounts of data and deliver insights. To get AI marketing programs off the ground, organisations should work with third-party organisations that can assist in the collection and analysis of data to train their tools for optimal performance and facilitate ongoing maintenance.
  • Maintain Data Quality:
    As machine learning and AI marketing programs consume more data, they will learn how to make accurate, effective decisions. However, if the data being fed to your AI marketing program is not standardised and error-free, the insights will not be useful and can actually cause decisions that hurt your bottom line rather than help it. Prior to implementing any AI marketing programs, marketing teams must coordinate with data management teams and other lines of business to establish processes for data cleansing and data maintenance. When doing so, consider the seven essential data dimensions:
  • Timeliness 
  • Completeness
  • Consistency
  • Relevance
  • Transparency
  • Accuracy
  • Representativeness

Start your AI marketing journey today by exploring AI-powered tools and solutions that can transform your strategies.

Incorporating AI into Your Marketing Strategy

Embarking on an AI journey necessitates strategic planning to extract optimal value. Begin by evaluating how AI fits within your existing workflows. Dive into your audience’s journey, pinpoint pain points, and identify opportunities for AI to enhance the experience.

While it’s not a magical solution that can solve all your problems, AI can give your marketing efforts the boost you’re looking for. It won’t replace your entire marketing team, but it can automate tasks, improve conversion rates, and help you identify new opportunities to engage with your audience.

But before jumping in headfirst, here are some things to consider:

  1. Evaluate your existing processes:
    If you’re considering adopting an AI tool, first think about how it’ll fit into your current workflows. That means deep diving into your audience, understanding their journey and potential pain points, and identifying areas where AI can help you create a better experience.
    Let’s say you run an online Jewellery store. You could start by analysing some of your existing customer data to identify patterns and trends. What are the most popular jewellery items that are flying off your shelves? What are the most common reasons you get for returns? What are the most asked questions by your customers?

    This will help you identify how AI can best be used to improve customer experience, such as personalised jewellery recommendations, automated returns processing, and chatbots to answer customer inquiries.

  2. Think about your gaps or inefficiencies:
    What are some of the frustrations you have with the processes of your team? Think about this in terms of actual manual labour. Think about what things could be slowing you and your team down, and decide where and when to get AI to do some heavy lifting’. It’s all about streamlining your marketing processes.
  1. Implementing AI-Powered Tech:
    Integrating new technology demands time and effort. To maximise AI tools, ensure your team comprehends their efficient usage. For instance, if you’re introducing an AI-powered chatbot, rigorous training and integration are imperative for seamless customer interactions.

Benefits of Leveraging AI in Marketing

There are a myriad of use cases for incorporating AI marketing into your digital marketing programs, and each of these use cases yields different benefits. For example, AI marketing can be an asset in areas such as risk reduction, increased speed, greater customer satisfaction, increased revenue, and more. Benefits may be quantifiable or not quantifiable. 

There are a few overarching benefits that can be applied across AI marketing use cases:

  • Increased Campaign ROI:
    If leveraged correctly, marketers can use AI marketing to transform their entire marketing program by extracting the most valuable insights from their datasets and acting on them in real-time. AI platforms can make fast decisions on how to best allocate funds across media channels or analyse the most effective ad placements to more consistently engage customers, getting the most value out of campaigns.
  • Better Customer Relationships & Real-Time Personalization:
    AI marketing can help you deliver personalised messages to customers at appropriate points in the consumer lifecycle. It can also help digital marketers identify at-risk customers and target them with information that will get them to re-engage with the brand.
  • Enhanced Marketing Measurement:
    Many organisations have trouble keeping pace with all of the data digital marketing campaigns produce, making it difficult to tie success back to specific campaigns. Dashboards that leverage AI marketing allow for a more comprehensive view into what is working so that it can be replicated across channels and budgets allocated accordingly.
  • Make Decisions Faster:
    AI marketing is able to conduct tactical data analysis faster than its human counterparts and use machine learning to come to fast conclusions based on campaign and customer context. This gives team members time to focus on strategic initiatives that can then inform AI-enabled campaigns. With AI marketing, digital marketers no longer have to wait until the end of a campaign to make decisions, but can use real-time analytics to make better media choices.

Get in touch with us to learn more about how AI can revolutionise your marketing efforts.

The Future of AI Marketing

The horizon is promising for AI marketing. According to Grand View Research, the global AI market is projected to reach a staggering $1,811.8 billion by 2030, a significant surge from $136.6 billion in 2022.. 

Artificial intelligence, theory of mind, and self-aware machines all sound like things from a distant future. Still, the reality is AI is here now, and its impact across industries will likely grow in the years to come. While AI has pros and cons, it’s important marketers stay tuned in to its advancements and be open to using AI to streamline certain processes to keep up with competitors.

While AI offers immense potential, concerns about privacy and security persist. Establishing transparency in data collection practices and fortifying cybersecurity measures is vital to addressing these apprehensions.

Voice-enabled AI is on the cusp of revolutionising marketing. The increasing integration of speech recognition technologies, such as Siri and Google Home, demands that marketers incorporate voice-activated strategies to engage with consumers.

Furthermore, AI’s prowess in generating creative content continues to evolve. As AI accumulates data and hones its algorithms, we can anticipate an upsurge in remarkable content across various mediums, from copy to videos.

The Road Ahead

The future is brimming with potential as AI’s influence permeates various industries. While AI isn’t a panacea, its role in shaping marketing is undeniable. By remaining attuned to AI’s progress and embracing its efficiencies, marketers can thrive in a rapidly evolving landscape.

Privacy concerns and the adoption of voice-enabled AI are trends to watch, while AI’s capacity to generate creative content continues to evolve. As the AI landscape evolves, marketers must harness its potential to elevate their strategies and impact.

Conclusion

As the marketing landscape evolves, the integration of AI into strategies is proving to be a game-changer for businesses, including those in South Africa. AI’s power to enhance customer experiences, optimise campaigns, and provide actionable insights is undeniable. However, it’s crucial to approach this transformation with careful consideration of its benefits and challenges.

While AI’s growth is promising, marketers must remember that it’s not about replacing human expertise but amplifying it. The future of AI marketing holds immense potential, from voice-enabled strategies to creative content generation, all aimed at elevating engagement and driving results.

Embrace AI as your ally, and remember that a holistic approach is key. The right combination of human creativity, emotional intelligence, and AI-driven efficiency will shape the future of marketing in South Africa and beyond.

11thhouse.co.za

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