How Artificial Intelligence Transforms Digital Marketing

New tools, the transformation of advertising and an eternal question: can technology become creative?

The impact of new technologies on marketing obviously entails a rethinking of advertising, media consumption and the functions of marketers themselves. Artificial intelligence was invented in the 50s of XX century. For a long time, the technology was on the periphery of attention, and now its development is attracting huge amounts of money.

What is Artificial Intelligence?

AI is still a widely used concept. In order to form an object of research, by this, we will mean technologies based on algorithms, machine learning, and neural networks.

Which makes technology smart.

AI systems are based on expert opinion, which is their effectiveness and complexity. The experience gained helps to notice hyper-complicated, non-obvious connections.  Any neural network consists of layers of knowledge, some so deep that the human brain is no longer able to trace the pattern of actions. But initially only a person, or rather a lot of experts can teach a machine to mark data.

 

All AI methods work with knowledge, not with data. They describe the data structure on which forecasts are made. In order for this experience to have an accumulative effect, the Head of Knowledge or a cognitive engineer collects and ‘links’ information in a specific sequence, teaching AI to recognize tasks and goals.

For example, in marketing, the most successful design “algorithm” works, which allows solving the whole range of tasks – from personalization to creativity.

AI systems are based on expert opinion – that is their efficiency and complexity.

There are 4 main constructions:

Sequence

It’s an if-then scheme, many people think it’s the most common…

Algorithm

If A > B, then C equals

Semantics

According to this scheme, the film’s hero investigates a crime when he has a map hanging in his room with photos, dots, and threads between them.

Frame

It’s like the way information is written into the human brain, and it looks like a lot of interconnected tables with columns.

Application of AI in media and advertising agencies

According to research by McKinsey, the communications industry is the leader in AI implementation: 32% of the world’s companies already use it. The industry expects larger investments in technology (higher only in the financial sector).

Agencies go beyond a standard set of services and opportunities that were still relevant several years ago. Customers are waiting for innovations. In our case, AI allows us to implement really interesting and innovative projects like Mageworx modules that help increase the business indicators of the client business.

So how is the technology applied in marketing?

Advertising is now carried out by clear rules – in the main mass of creativity prevail sterility and stereotyping. Analyzing the market, we received proof that non-standard personalized approaches work. Properly organized disruption, based on deep insight, will be successful. But everything has to be done with intelligence, understanding of business priorities, audience and context.

Yaron Farizon cites the SPARC tool (search, pricing, availability, rating &reviews, content), which collects information from product sites and provides data on what is happening to the brand on “live”. The machine visualizes the price dynamics of the brand and competitors, as well as what position is “slipping”.

“The introduction of such technologies has been going on for about five years. They rid marketers of the painful routine – suffice it to say what price level the audience needs, and you can get a ready, “hot” group. At the same time, progress in the field of advertising messages is minimal. Marketers are not less, but their work has changed. Those who are also talented experimenters began to earn more.  Those who are afraid of Excel have gone to SMM or copywriting. Messaging is a human field for now, but only for now.

Will AI be able to become creative?

It is still difficult and inefficient to automate high creativity.

“The question about the AI’s place in creativity has been asked concisely and precisely – together or instead? I believe that in advertising creativity everything will start with “together” and end with “instead”.

Maximum automation is expected in dynamic creatives and when refining ideas. An example is Google with its Directors mix, which helps to create creatives for audience groups. He also decides who to show what advertising. “In some cases, automatic generation of banners and videos has been more effective in the final conversion. Algorithms are a universal tool. Everyone else is doing the same. Your competitive advantage is exactly what you said it would be. It’s not always creativity – knowledge of human psychology is important here. Cynically speaking, the ability to manipulate people well is difficult to call creativity, but it will be more valuable.

Conclusions

Artificial intelligence has made its way into marketing, but its use is only gaining momentum. So far, people are doing most of the work, because the first thing that is automated is what is easier to implement and where the most profitable economy of change. A deeper transformation is to be expected.

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