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

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.

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.

Promote Cost Savings 

According to McKinsey, 44% of businesses that have adopted AI technology report measurable cost savings. There are several ways you can reduce costs and free up capital by implementing AI into your marketing strategy.

In terms of direct savings, AI can be used to automate otherwise redundant and manual tasks. Your AI tools can complete basic work, freeing up your marketing team to flex their creativity and get started developing your next viral campaign.

What’s more, ML can expedite A/B testing and other content development workflows. This, in turn, reduces waste and helps you get campaigns to market faster. 

Facilitate Content Customization

Modern consumers crave custom content that feels like it was created just for them. Artificial intelligence and machine learning algorithms allow you to take a deep dive into the minds of your target audience so you can deliver content that aligns with their needs, wants, and interests. 

With AI, your team can keep pace with rapidly emerging trends among your audience segments. You can develop impactful content faster, more efficiently, and at a lower cost. Most importantly, you can drive better engagement and leave a lasting impression on your customers. 

Streamline Traditionally Manual Processes

Gathering feedback from A/B tests and applying this information to your campaigns is an involved, laborious, and tedious process — at least it used to be. With ML algorithms, you can gain even deeper insights into your audience without bogging down your marketing team for days or weeks at a time. 

Expediting A/B testing is just one efficiency-related use case for AI. Additionally, you can use these technologies to assist with campaign management, run multiple ads or campaigns simultaneously, and communicate with customers along a broader range of channels.

For instance, you can use AI tools to manage your email marketing campaigns and stay connected with customers in the months following a purchase.

Elevate the User Experience

Elevating the user experience by delivering personalized content and product recommendations can help you sprint toward business growth goals.

According to recent data, 80% of consumers report that they’re “more likely to make a purchase” if a brand offers a personalized experience. Moreover, 90% of consumers consider marketing personalization “somewhat” or “very” appealing. 

Artificial intelligence digital marketing tools provide the personalization capabilities you need to deliver more value for your audience. You can enhance their experience when interacting with your on-site content and nurture positive feelings toward your brand. 

Five Brands Using AI for Digital Marketing

Countless brands use artificial intelligence digital marketing technologies to support their continued growth. The companies that have had the most success with AI focus on delivering customized experiences to their audiences.

Here are a few such brands you should look to for inspiration.

1. Nike

Nike has always been a trailblazer when it comes to adopting new tech. Once again, the sporting goods behemoth has set the tone for the industry by leveraging artificial intelligence and machine learning in its marketing strategy.

What really sets Nike’s approach apart is that it not only embraced ML and AI but also devised several innovative ways of collecting consumer data for its learning algorithm. 

Nike’s collection of mobile apps is perhaps the company’s biggest marketing win. Together, its several-dozen apps harvest massive amounts of consumer data, all of which is fed into its AI-powered marketing program to facilitate content personalization.

When incorporating AI and ML into your strategy, make sure to pair these revolutionary technologies with a mechanism for harvesting consumer data. While you’ll organically gather some data by way of site visits, adding an application, shopping tool, or engaging on-site feature to the mix will expedite your information collection process. 

2. BMW

Artificial intelligence technology permeates BMW’s entire business model. The German automaker uses AI and ML to support vehicle manufacturing processes and provide consumers with world-class cars and SUVs. Many BMW vehicles are now equipped with AI-enhanced virtual assistants that deliver a luxurious driving experience.

As for marketing, BMW is known for its captivating and engaging campaigns. The automaker has been using AI to better understand its target audience and wow them with fresh, intriguing content.

Like Nike, BMW supports its use of ML and AI by implementing data-collection tools. While on the manufacturer’s website, users are encouraged to build out their own custom vehicles in exchange for a few pieces of data.

3. Starbucks

Starbucks has demonstrated masterful use of artificial intelligence and machine learning technologies for years.

The international coffee brand boasts a fiercely loyal following and a thriving rewards program. Adding ML and AI tools to the equation solidified its foothold in the coffee market and allowed it to connect with its customers more deeply. 

Starbucks’ mobile app epitomizes effective data collection and analysis tools. It gathers information about customer purchasing habits, including what drinks they order, how much they spend per transaction, which stores they visit, and what time of day they tend to fuel up with a Starbucks beverage. 

Once it’s gathered this information, the company uses machine learning algorithms and predictive analytics tools to target customers with personalized messages.

When app users get close to a Starbucks, the app will make drink recommendations and encourage them to stop in for a hot cup of coffee or another refreshing beverage. Customers can even use the AI-powered virtual barista to place orders via voice command.

4. Alibaba

The Chinese retail and technology brand Alibaba uses AI to make personalized product recommendations to customers. The AI and ML technology analyze purchase history and other consumer habits to connect users with clothes they’ll likely find appealing.

Additionally, Alibaba is working on using AI to power a virtual wardrobe app. The app allows customers to “try on” outfits without ever leaving their homes. 

Since consumers need an Alibaba account to shop on any of the company’s sites, it has no problem gathering the data it needs for analytics purposes. Millions of consumers willingly give the company tons of data for AI processing. 

5. Amazon

Amazon’s personalized shopping recommendation algorithms are some of the most sophisticated in existence. These artificial intelligence tools base their recommendations on past purchases, searching and browsing behavior, items other shoppers have brought, and many other factors.

Amazon also facilitates dynamic pricing with AI and ML algorithms. These algorithms will reduce prices to boost sales when transaction volume dips and raise them during periods of peak demand.

Furthermore, Amazon supports digital shopping by providing consumers with AI-driven stylist tools. This technology is capable of making outfit recommendations, thereby increasing accessory, shoe, and apparel sales.  

Artificial Intelligence Digital Marketing Is the Future — and the Future Is Here

Artificial intelligence digital marketing tools have already reshaped how marketers build content, plan campaigns, and interact with consumers.

Brands that have harnessed the power of AI are getting more out of every campaign and providing consumers with impactful experiences. As AI and ML technologies continue to evolve, they’ll play an increasingly critical role in digital marketing. 

If your organization has been striving to meet consumers’ insatiable demand for customized experiences, pairing your team of creatives with artificial intelligence digital marketing tools represents the most pragmatic path forward.

By doing so, you can cut costs, save time, and deliver personalized content that captivates, informs, and engages your target audience.