2024 is a new year which like its predecessors will surely witness the emergence of newer and more innovative marketing trends especially in the tech arena. With the rise of instant communication and changing consumer behavior, brands will continue steadily adopting tech tools to stay miles ahead in their markets.
The rise of AI has been disruptive for many industries. 2023 was undeniably a dominant year for AI as it became a mainstream phenomenon. In the realm of performance marketing, it stood out as an integral technology reshaping how marketers approach their campaigns. Marketers were increasingly seen using AI as a powerful tool to address their content planning, research, and beyond needs. AI not only evolved further but was also acknowledged by marketers for its potential to drive elevated results.
AI in performance marketing…powerplay!
The global AI marketing market, valued at USD 5 billion in 2017 is expected to reach USD 40.09 billion by 2025.
The value added to AI is being steadily acknowledged by marketers. 68% of marketers reported having a fully defined AI strategy in 2022, an astonishing 134% rise from 2019 (Source: eighth edition of Salesforce’s State of Marketing report). 61.4% of marketers reported having used AI in their marketing activities- in fact, 44.4% had used AI for content production. Predictive analytics was the most popular AI category impacting marketing (Source- Ascend2). Overall, 72% of marketers have given AI the credit behind their improved marketing campaigns.
From a futuristic point of view, 54.5% of marketers believe AI will greatly enhance their marketing efforts (Source: survey by Influencer Marketing Hub)
Undeniably AI’s relevance and usage in performance marketing will be cemented more strongly this year. The pairing of AI and performance marketing is here to stay and the impact of this combination is still at the tip of the iceberg!
Let’s understand why AI-based data insights and analytics should be a part of every brand’s performance marketing efforts in 2024.
Out of AI’s varied advantages, one that stands out is its prowess in analyzing large volumes of data and pinpointing patterns that in most cases are impossible to be detected manually through human efforts. By leveraging machine learning algorithms to study data from multiple sources, ranging from social media, search engines, and e-commerce platforms, the analyses provided by AI are already guiding marketers toward making well-informed campaign-oriented decisions. For example, AI-powered advanced attribution models lend important insights to pinpoint marketing channels and campaigns behind maximum conversions impacting efficient budget allocations by marketers. Such insights into understanding a customer’s journey covering multiple touchpoints are priceless.
The current environment is dynamic and AI has a strong capability of predicting trends, stemming from historical data. For example, by anticipating customer needs, businesses can act proactively and market the desired product to the right audience at an apt timeline. Getting access to such predictive analysis can be a game changer for many brands to stay ahead of the curve with better ROI on marketing efforts.
Brands in India are leaning towards personalized offers and communications to engage with savvy consumers. AI’s ability to analyze customer data (browsing patterns, purchase history, and social media interactions) is guiding marketers in the ideation and creation process to smartly target a specific audience. They are now able to roll out personalized marketing campaigns (tailored recommendations and targeted advertisements) aligned to the needs and interests of individual customers. Netflix uses AI to recommend movies and TV shows to its users (its algorithm takes into account a user’s viewing history and ratings etc.), Amazon uses AI to personalize its product recommendations (based on a user’s purchase history and browsing history, etc.) and Facebook uses AI to target its ads (based on a user’s interests and demographics etc)- the examples are plenty.
A high level of personalization plays a crucial role in improving customer engagement and loyalty, magnifying the overall customer experience, and ultimately driving sales and business growth.
Time is money and marketers are constantly looking at ways to deliver the best possible results for their brands. AI as a dynamic tool is enabling marketers to optimize their campaigns in real time. They are now able to keep track of key metrics- click-through rates, conversion rates, and/or engagement rates which helps them to identify campaigns that are performing well and those that need to be refined further. AI’s ability to decipher market conditions, demand, competitor pricing, and other key factors helps brands adjust their pricing strategies and maximize revenues to stay competitive.
The need of the hour is for marketers to make improved data-driven decisions. By using AI to automate A/B testing processes, they can identify the most effective strategies by consistently testing adaptations of their marketing campaigns.
AI is steadily automating routine operational activities including data entry, reporting, and analysis thereby allowing marketers to focus on more strategic initiatives such as campaign planning and optimization.
It’s time for businesses to redefine the way they approach performance marketing
While AI’s evolution in terms of its capabilities and usage across businesses will rise in 2024 and beyond, one thing is for sure- its relevance in performance marketing can no longer be ignored. What marketers ought to do is stay up-to-date with the latest AI trends in their line of business. Eventually, they need to be prepared to face whatever scenarios may come their way. At the same time, they must not forget that the success of AI as a tool rests on how best they use it to fulfill their marketing targets.
Authored by – Yogeeta Chainani, Co-Founder and CEO, Swaarm
