The rapidly growing field of artificial intelligence (AI) holds the potential to revolutionise many aspects of marketing. From data analytics to new growth opportunities, businesses are increasingly reliant on AI as consumer preferences and needs evolve.
Recent government research reveals that one in six UK organisations – 68% of large companies, 33% of medium-sized companies and 15% of small companies – have incorporated at least one AI technology.
With the AI market in the UK estimated to exceed £4.5 billion in 2024, understanding the driving factors behind AI adoption and how brands leverage AI in their marketing campaigns is crucial.
Driving Factors Behind AI Adoption
Insight by Statista reveals that more than 80% of marketers worldwide integrate some form of AI into their online activities, but what are the benefits?
AI’s ability to analyse vast amounts of data provides businesses with deeper insights into consumer behaviour and preferences. This enables companies to personalise marketing messages and create more effective customer segmentation, leading to more targeted marketing efforts and improved customer satisfaction. Additionally, AI allows brands to deliver personalised experiences at scale. Machine learning algorithms enable companies to tailor content, recommendations, and advertisements to individual users based on their past behaviour and preferences.
AI-driven analytics also provide marketers with real-time data and insights, facilitating faster and more informed decision-making. Predictive analytics can forecast market trends, allowing businesses to stay ahead of the competition. This proactive approach is critical in today’s fast-paced digital landscape.
Operational efficiency is another key factor driving AI adoption. Automation encompasses everything from managing social media posts and customer service chatbots to optimising supply chains. By automating routine tasks, businesses can operate more efficiently, reduce operational costs, and allocate resources more effectively.
How Brands are Using AI in Marketing
Content Creation and Curation: AI tools help identify trending topics, tailor content strategies, and curate content to engage target audiences more effectively. Coca-Cola’s Y3000 Zero Sugar limited edition is one example. The company used AI to envision what Coca-Cola would taste like in the year 3000 leading to the creation of ‘The Real Magic’ brand platform. This initiative not only inspired a new product, but it also helped the company launch a new brand platform that’s now central to all its online marketing campaigns.
Chatbots and Customer Service: AI-powered chatbots handle enquiries, provide product recommendations, and solve problems in real-time. Retailer H&M uses AI-driven chatbots on its website and social media platforms to assist customers with shopping. The chatbot engages users conversationally, helping them find products, check stock availability, and make purchase decisions based on their preferences. This enhances customer satisfaction and drives sales by providing immediate assistance.
Predictive Analytics and Customer Insights: Brands like Amazon use AI for predictive analytics to understand customer preferences and predict future behaviours. This insight helps create personalised recommendations, enhancing user engagement and satisfaction. Starbucks also employs predictive analytics through its AI platform, Deep Brew. This system analyses data from customer transactions and loyalty programs to personalise marketing messages and offers, predicting popular products in specific locations and personalising recommendations.
Programmatic Advertising: AI algorithms analyse vast amounts of data to make real-time decisions about ad placements, ensuring ads are shown to the right audience at the right time, maximising ROI. Unilever uses AI for programmatic advertising to optimise its digital marketing campaigns. By analysing consumer data and market trends, Unilever has been able to target its advertisements more precisely, leading to higher engagement rates and improved ad performance.
Social Media Monitoring: Burberry leverages AI to monitor social media and analyse customer sentiment, improving the personalisation of its products and services. AI-powered tools track brand mentions to understand customer preferences and trends. This real-time insight allows Burberry to engage with its audience more effectively and tailor its marketing strategies while maintaining its strong brand reputation and customer loyalty.
Voice Search Optimisation: With the rise of voice assistants like Alexa, Siri, and Google Assistant, brands are optimising their content for voice search. AI helps in understanding natural language queries and providing relevant answers, improving search engine visibility and user experience. Nestlé has optimised its recipes and cooking instructions for voice search, enabling consumers to access this information via voice assistants. By adapting its content for voice search, Nestlé makes it easier for users to interact with the brand and find the information they need quickly, enhancing the overall user experience.
Ongoing Evolution
The integration of AI in marketing is not just a trend but a fundamental shift in how businesses operate. As AI technologies continue to evolve, their impact on marketing will only grow, offering more sophisticated tools and strategies for brands to connect with their audiences.
For marketers, staying abreast of AI developments and incorporating them into strategies will be essential for remaining competitive in an increasingly digital world.
Further Reading / Sources
AI activity in UK businesses: Executive Summary GOV.UK
Ways in which marketers used artificial intelligence (AI) worldwide in 2021 and 2022 statista
