Apr 22, 2022

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How AI Is Affecting Advertising and Marketing

The hype around artificial intelligence (AI) rises every year, but how far does its impact really go? When it comes to AI and marketing, it still remains to be seen whether the technology will prove to be a help or a hindrance. But there’s evidence that it’s already becoming a powerful tool in the marketer’s arsenal.

More than half the globe is online

The last year alone has seen a year-on-year increase of four percent of internet users, taking the current global figure to 4.95 billion people. If you’re an advertiser or marketer, it makes sense to ensure you’re visible in the space where such a significant number of people are interacting and engaging every day. The International Data Corporation (IDC) forecast that in 2021, companies would spend close to $342 billion on AI in marketing.1

AI provides the opportunity to change the future and transform the dynamics of the advertising and marketing industry.

In advertising, as in other industries, AI is focused on using machines to ‘mimic’ human intelligence by programming them to think and respond in the same way humans do. This is achieved by assimilating historical data to determine certain behavioral patterns and make smarter decisions.3

The result is:

  • More personalized encounters with brands
  • Highly targeted, more sophisticated advertising
  • Easy identification of thought leaders and influencers
  • Quick but informed decision-making

All of the above benefits intersect to achieve one of the most sought-after goals of advertising: relevance at scale.4

AI-based personalization equips brands with the ability to amplify customer engagement, improve customer loyalty, improve sales and give them a deeper insight into what their customers want in real-time. With AI, brands are able to optimize their website content in order to align to what each specific customer is seeking, enhancing conversion rates. 5

Current industry opinion on AI in advertising and marketing

While some companies and business owners may be wary of the benefits of AI in advertising and marketing, the majority of businesses are positively inclined to adopting AI.

  • By 2021, AI augmentation was expected to create $2 trillion in business value. This value is equal to 6 billion hours of worker productivity globally 6
  • Nine out of 10 top companies continuously invest in AI 7
  • Almost half of executives believe AI’s greatest contribution is to provide data that can be used to make data-driven decisions 8
  • Confidence in AI’s ability to detect financial fraud increased by eight percent, from 85 percent in 2020 to 93 percent in 20219

It’s against this backdrop that companies and their marketing teams take the next step with their marketing strategies using AI.

Businesses can leverage off the following five AI trends to perfect their 2022 marketing strategies, helping their brands and businesses to thrive.10

  • Conversational marketing: This is aimed at connecting with the customer and their unique interests through chats, text, personalized videos, and emails
  • Video marketing: This requires the production of content that customers want to see and uses live broadcasts on social media platforms to drive higher engagement
  • Green marketing: With sustainability becoming a key business priority, customers are more likely to select brands that are committed to looking after the planet
  • Inclusivity and diversity: Brands that represent a cross-section of people from diverse backgrounds resonate more effectively with audiences
  • Shoppable content: This involves optimizing the manner in which audiences engage with content and moving them through the sales funnel

What are the main applications of artificial intelligence in digital marketing?

  • Eighty percent of marketing leaders believe AI will affect marketing, with 84 percent of those expecting AI to help enable improved workflows11
  • Chatbots are becoming integral to customer engagement: the bots don’t need sleep, so round-the-clock customer service for an online store becomes possible12
  • Sixty one percent of marketers say AI is central to executing their data strategies at scale13

Top-performing companies using AI in marketing

As AI expands its influence in business, take a look at how some companies are already working towards full integration of AI technology:14

  • The Trade Desk helps digital advertisers with targeted ad campaigns, using AI to optimize ads for clients’ ideal audiences.
  • Blue River Technology combines AI and computer vision to create ‘smart farm’ technology. The software can distinguish between plants and weeds, applying herbicide to the weeds alone. This has resulted in a 90 percent reduction in the number of chemicals sprayed on viable plants.
  • Siemens is using AI in the fields of energy, electrification, digitization, and automation. The company is a primary provider of devices and systems used for medical diagnosis, power generation, and transmission.

AI may offer a wealth of benefits to your organization’s marketing efforts, but only when viewed through a strategic business lens. Paired with good strategy, the latest AI tools allow for powerful, measurable results.

The latest technology shows that there’s significant untapped potential in reimagining the way we advertise, market, and sell products and services. Are you interested in understanding more about AI’s capabilities in relation to your marketing and advertising strategy? Then register for the AI-Driven Digital Marketing online short course from Medill at Northwestern University today.

Yield higher conversion rates and grow customer engagement with an AI-driven digital marketing course.

Medill School of Journalism, Media, Integrated Marketing Communications
Northwestern AI-Driven Digital Marketing
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  • 1 Shirer, M. (Aug, 2021). ‘IDC forecasts companies to spend almost $342 billion on AI solutions in 2021’. Retrieved from IDC.
  • 2 (2022). ‘Digital 2022 Global Overview Report’. Retrieved from Hootsuite.
  • 3 (Mar, 2021). ‘How AI is changing advertising’. Retrieved from IBM Watson Advertising.
  • 4 (Nd). ‘AI at scale’. Retrieved from Microsoft. Accessed February 16, 2022.
  • 5 Clark, S. (Nov, 2021). ‘6 Ways AI-based personalization is improving the customer experience’. Retrieved from CMS Wire.
  • 6 Dilmegani, C. (Oct, 2021). ‘141 Myth-busting statistics on artificial intelligence (AI)’. Retrieved from AI Multiple.
  • 7 (Jan, 2020). ‘NewVantage partners releases 2020 big data and AI executive survey’. Retrieved from Business Wire.
  • 8 Moyse, I. (Jun, 2021). ‘Human trust: Machine over man’. Retrieved from LinkedIn.
  • 9 Batley, M. M. (Nd). ‘AI adoption accelerated during the pandemic but many say it’s moving too fast’. Retrieved from KPMG. Accessed February 24, 2022.
  • 10 Gullan, D. (Jan, 2022). ‘Five digital marketing trends you need to know in 2022’. Retrieved from Media Update.
  • 11 Pearson, D. (Aug, 2021). ‘The impact of artificial intelligence on marketing’. Retrieved from IMM Graduate School.
  • 12 (Dec, 2021). ‘Benefits of using AI in digital marketing’. Retrieved from Verizon.
  • 13 White, C. (Nov, 2021). ‘How AI is changing the future of digital marketing (2022)’. Retrieved from Bramework.
  • 14 Maguire, J. (Apr, 2021). ‘Top performing artificial intelligence companies of 2022’. Retrieved from Datamation.

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