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Artificial Intelligence 20 min read

AI and Personalization: How Digital Marketers Can Use Artificial Intelligence to Deliver Customized Experiences

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Written by Sarah Edwards

Content Writer @ Galactic Fed

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Expert reviewed by Dallin Porter

Marketing Director @ Galactic Fed

Published 25 Apr 2023

In the heyday of thought-provoking (and often cheesy) sci-fi films, artificial intelligence (AI) was often portrayed as the ominous technology behind grandiose world domination schemes.

Fast forward to 2023 and just about everyone is excited about technologies like artificial intelligence and machine learning (ML). In particular, solutions like artificial intelligence digital marketing tools have businesses clamoring to get their hands on the latest AI tech. Oh, how the tides have turned. 

Today, artificial intelligence and machine learning solutions are positively impacting how we interact with technology, brands, and each other.

Business leaders worldwide have embraced AI and ML as the next big thing to help them better connect with consumers, maintain an edge over their competitors, and thrive amid ever-changing market conditions.

This widespread adoption of AI has led to meteoric growth, and experts project that the global artificial intelligence market will be worth nearly $2 trillion by 2030.

Eager to take part in the artificial intelligence digital marketing revolution? If so, join Galactic Fed as we take you on a journey into AI, customer experience personalization, and the future of digital marketing. 

What Is Artificial Intelligence?

Artificial intelligence is a complex field of computer science that can be difficult to boil down to a concise definition. In order to define the term with any kind of accuracy, we must explore the question of what artificial intelligence is using a broader, higher-level approach.

Generally speaking, artificial intelligence is the process of developing intelligent machines and computer programs that can “think.”

Here’s where things get muddy. Depending on who you ask, the ultimate goal of AI is either to develop systems that think like humans or to create solutions that think and act rationally.

As you can imagine, a solution that could think like a human could deliver serious value for your organization. Such a tool could enable you to automate manual work and make it possible to get more done without taking on a larger staff — and the often significant costs that come with it.

Conversely, a platform that always thinks and acts rationally is capable of helping you make data-driven decisions by looking at raw data. Leaving emotion out of the equation when making important business is important, as doing so eliminates biases and allows you to come to a conclusion based on quantifiable data.

On the other hand, appealing to your target audience requires creativity and a healthy understanding of their emotions, behaviors, and sensibilities.

In light of the potential shortfalls of AI tools, the technology is most effective when paired with a talented team. Your staff provides creativity and understanding of the human condition; the AI provides efficiency, automation capabilities, data analysis tools, and problem-solving functionality.

A "Creation of Adam" painting-inspire photo with a human arm holding finger with a robotic arm

What Is Digital Marketing Machine Learning?

Machine learning is a form of “smart” software that relies on algorithms to process historical data and predict future outcomes based on them. The more data an ML algorithm is fed, the better it becomes at making predictions. Machine learning falls under the umbrella of artificial intelligence, as it represents one type of AI.

The term “digital marketing machine learning” simply refers to machine learning technology designed specifically for digital marketing-related tasks.

For instance, a marketer can use ML tools to detect patterns in consumer behavior when they browse the company’s website. The ML solution may determine that users are more likely to click on links when positioned in a blog’s opening paragraph. 

When creating future content, marketers can ensure that they only include internal links at the beginning of blogs. This seemingly minor change will help them keep more readers on-site longer, increase click-through rates (CTR), and give the company additional opportunities to engage with audience members.  

The Nexus: Artificial Intelligence, Digital Marketing, Machine Learning 

According to Statista, the profitability of the artificial intelligence digital marketing niche will reach $107 billion by 2028. In 2022, it was valued at just over $20 billion. It’s clear that the ML and AI digital marketing space has exploded. But why AI, and why now?

Several factors have contributed to the lightning-fast adoption of artificial intelligence digital marketing tools. One of the most influential is the looming ban on third-party cookies. 

Google’s January 2020 announcement that it was phasing out support of third-party cookies sent business leaders into a frenzy. When the company pushed the date back to the end of 2024, marketers and stakeholders breathed a collective sigh of relief. But this most recent adjustment has only prolonged the inevitable. 

AI and ML digital marketing tools can help fill the void that will be left when third-party cookies are ultimately banned. These tools not only assist with data collection and analysis but can also provide deeper insights via their robust algorithms. 

The other notable factor that’s spurring the adoption of artificial intelligence digital marketing technology is a simple fact that this technology helps marketers advertise more effectively.

Small businesses, international brands, and companies of every size in between are advertising online these days. This saturation has made it harder than ever to get noticed. Artificial intelligence can support ad development processes, facilitate experience customization, and permit marketers to make their brands stand out.

In other words, these technologies allow marketers to make every advertising dollar count and generate content that resonates with their audiences. The result is more consistent brand growth and campaigns that deliver for stakeholders. 

Use Cases for Artificial Intelligence Digital Marketing 

Now that we’ve covered the basics of artificial intelligence digital marketing, let’s showcase some of the top use cases for this rapidly evolving technology.

A/B Testing

A/B testing is a tried-and-true way to gain insights about consumer preferences and measure the efficacy of marketing content.

Traditionally, marketers have conducted an A/B test by dividing a campaign into two variations. They’ve then exposed audience segments to each version of the campaign and gathered feedback from participants to determine which option best fits the brand. 

The downside to standard A/B testing is that determining a clear winner can be time-consuming and difficult. Enter machine learning.

ML algorithms enable marketers to efficiently collect and analyze information about campaign performance. Sophisticated machine-learning digital marketing tools enable brands to begin assessing consumer behavior from the moment they’re exposed to content.

With ML at their disposal, marketers can test and refine campaigns faster and with better precision to produce higher-quality content and ensure better results for the brand. Just as importantly, thoroughly tested campaign content promises to yield a more enjoyable customer experience. 

Content Personalization

One of the most impactful use cases of digital marketing artificial intelligence technology is content personalization.

Marketers have been engaging in audience segmentation to support content personalization for years, dividing up audiences based on demographic data like age, location, education level, and more.

The only drawback to traditional content personalization efforts is that marketers often have to rely on their instincts to optimize content for each segment. And as useful as they are, instincts aren’t right all the time.

While humans will always be invaluable to the content personalization process, AI technology provides insights that marketers can use to support their intuitive decision-making.

With the help of AI, our team can determine whether their views about each customer segment are supported by measurable behaviors or whether they need to reevaluate the marketing mix.

Delivering personalized content has become more important than ever. According to Salesforce, two-thirds of consumers expect brands to understand their needs.

AI and ML solutions help your business do precisely that — you can track every click, monitor how long users spend viewing each type of content, and gain actionable information about your audience’s behavior. 

Chatbots

Chatbots are a type of customer service software, right? Yes, but they’re also a powerful marketing tool, especially when paired with machine learning and AI technologies.

One of the fundamental goals of any marketing campaign is to get customers to your website. But what happens when they get there?

If you’re using chatbot technology, they’ll be greeted by their very own virtual assistant that helps them find the information they’re looking for, learn more about your product, and get to know your brand.

Chatbots aren’t just important for marketing in general. They also play an important role in experience personalization.

You can use chatbots to learn more about your audience and their preferences and gather crucial information like email addresses and phone numbers. By asking questions like, “What brings you to our website today,” chatbots can also gather data about a site visitor’s intent.

Marketers can put this information to use to guide future content creation efforts. They can make every piece of content more appealing, bolstering traffic volume and supporting the brand’s growth goals. 

Recommendation Customization 

Want to show your audience that you understand their needs? If so, targeting them with personalized product recommendations is vital.

Machine learning algorithms can track user purchasing habits and help you determine which products are most popular among each audience segment. 

For example, your ML tools may reveal that a particular jacket is a favorite among female shoppers ages 40–55, and a pair of shoes you sell is a go-to for women ages 18–39. Your platform can apply these insights when making product recommendations to users within these demographics.

However, making sweeping product recommendations based on broad demographic data points is only the tip of the iceberg when it comes to AI. The true value of these technologies is their ability to deliver customer-specific recommendations using account information and purchase history data.

With the right AI tools in place, you can make individualized suggestions to every shopper that visits your site. For instance, if a returning customer recently purchased a sweater, your algorithm might recommend long socks, pants, and a hat, as that shopper is likely preparing for cold weather. 

Are you intrigued by the idea of providing your audience with truly customized product suggestions? If not, you’re missing out on an enormous opportunity to drive customer engagement, increase revenue, and check off major business goals.

Benefits of AI and ML for Digital Marketing

Using AI and ML to support your digital marketing efforts and provide customers with tailored experience can help you accomplish many objectives, including:

Reach Marketing Goals

Hitting your weekly, monthly, and quarterly marketing goals is essential to your brand’s success. Incorporating artificial intelligence and machine learning into your marketing management strategy is ideal for pushing toward your goals and getting more out of every dollar you invest in your brand-building efforts. 

Over 80% of marketing industry experts have already integrated AI technology into their strategies.

Clearly, these leaders in the marketing space believe in the power of artificial intelligence. That’s a good sign that you should consider adding AI and ML to your brand-building game plan if you haven’t already.