The Important Role AI Plays in Marketing

Marketers can’t deliver relevant advertisements and messages to consumers unless they understand their motivations and behaviors. This requires following, collecting, and analyzing the digital trail of consumers to understand their demographics and psychology.

Artificial intelligence (AI) allows marketers to analyze a consumer’s behavior in-depth and then predict his or her next action based on previous actions. AI makes predictive assumptions about people in a company’s demographics to help the business understand the desires, motivations, and actions of those it wishes to convert as customers.

To see how this looks in practice, assume that one group of people took three specific actions. Thanks to AI, marketers can then accurately predict that a similar group will take the same third step after completing the first two steps in the same manner.

This type of predictive analysis is how advertising platforms and computers create what is known as a lookalike audience. People who have engaged with a brand previously, which likely landed them on at least one customer list, help to provide relevant data that enables the organization to find additional consumers who behave in a similar manner when purchasing goods or services.

Consumers don’t like to feel like brands treat them in an impersonal manner or as part of a large, faceless group. With AI, companies can individualize their marketing efforts to reach more people.

Before AI became commonplace, marketers had to rely solely on demographics. It worked at the time, but AI provides so much more. When determining demographics, a company might look at age, gender, and income to create a customer persona. Over the last several years, demographics have gradually given way to psychographics. This helps companies understand the needs, motivations, and buying behavior of their target audience much more intimately.

As an example, two people of the same age, gender, and social class working in the same career won’t always spend their money on identical things. One might feel more comfortable with frivolous purchases while the other is more of a hard sale because he or she is deeply invested in saving as much money as possible.

AI makes it simple to review the behavior of a specific audience by determining individual interests, activities, and preferred products and services. Best of all, it continually evolves as consumers do. If your company is struggling to gain market share, not understanding your audience could be the primary cause. Let Call Sumo show you the many benefits of implementing AI today.