Before we start our journey into Generative AI for marketing, let’s take a look at some research:
- McKinsey found, 90% of business leaders plan to frequently use Gen AI in the coming two years.
- Businesses that invest in AI are experiencing a revenue increase ranging from 3% to 15% and an improvement in sales return on investment (ROI) of 10% to 20%.
- Survey by IBM showed that 35% of respondents identified Generative AI as one of the most promising technologies that will have an impact on business operations, including marketing.
- Capgemini’s report shows that 54% of executives view Gen AI as a driving force in sales, while 48% in marketing and communications.
What’s even more interesting in Generative AI for marketing is that:
- Statista 2023 research shows, 73% of U.S. marketers said that their companies had used Generative AI tools. These tools included chatbots and were integrated into their professional responsibilities.
- The AI in marketing market is projected to achieve a value of $107.5 billion by the year 2028.
- An IBM survey in May 2023 found that 67% of Chief Marketing Officers (CMOs) intend to adopt generative AI within the next year, while 86% plan to implement it within the following 24 months.
In this article, we’ll delve into Generative AI in marketing and how it drives results. We will also review common Generative AI enterprise use cases. Let’s explore examples showcasing the adoption of this amazing technology in companies.
Benefits of Generative AI for Marketing
Generative AI, with its remarkable capabilities, gives a lot of benefits in the world of marketing. This revolutionary technology transforms the way businesses engage with their audiences and adapt their marketing strategies. In this exploration, we delve into the diverse advantages that Generative AI brings to the field of marketing.
Time and Cost Savings
In a Salesforce survey, marketers believed that Generative AI could save them around 5 hours per week, equal to over a month of saved time per year.
The most compelling benefits are the remarkable time and cost savings that Gen AI offers. Here are just some examples:
- Generate personalized content. For example, chatbots for marketing can create personalized landing pages, or email campaigns. They can also generate social media posts for each individual customer. This will give better results, as personalized content is more likely to resonate with consumer behavior.
- Create videos and images. The use of Generative AI for marketing can save a significant amount of money on video production and graphic design costs. With this technology, you can easily create and edit videos or images. There is no need for specific skills.
- Improving the efficiency of marketing campaigns. Creating effective marketing campaigns with Generative AI automates tasks. These tasks include lead generation, customer segmentation, and campaign optimization.
Marketers often find themselves juggling multiple tasks, from content creation to data analysis. Companies using Generative AI for marketing streamline the process by automating repetitive tasks. This enables employees to concentrate on strategic initiatives.
Businesses owners may see advantages of using Generative AI for digital marketing. With its ability to analyze consumer behavior and preferences, Gen AI can write targeted content.
Currently, 52% of business leaders use AI content-generation tools in their marketing campaigns, and this is expected to rise to 64.7% by the end of 2023.
Amazon is using Generative AI for sales. Technology makes it easier for sellers to create better product listings. This new AI can help sellers to write more detailed and engaging descriptions, titles, and details for their products.
Sellers simply need to offer a brief product description. It could consist of a few words or sentences, and Amazon will generate good content for their evaluation. Sellers have the option to enhance these descriptions, or they can use the content generated automatically to the Amazon catalog.
Companies can also apply Generative AI in marketing to encourage leads. Gen AI tools can send personalized content and follow-up messages to keep their interest. Personalized email subject lines boosted unique open rates by 27% and resulted in an 11% increase in the click-to-open rate. This technology is great at interacting with website visitors and engaging potential leads.
Gen AI asks targeted questions to learn about potential clients and then helps them move through the sales process. It also suggests relevant webinars, book downloads, and reports to users on different web pages, based on their interests. These enable marketers to generate qualified leads and improve conversion rates.
Generative AI for digital marketing provides a significant advantage with its 24/7 virtual assistance. 51% of people believe that businesses need to be accessible 24/7 and convenient to meet their expectations in today’s world.
This technology provides marketers with 24/7 help, even when they are not available. This is because Artificial Intelligence is not limited by human working hours. It can work around the clock: generate content, provide insights, or respond to inquiries.
It doesn’t rest, ensuring that important reminders are never missed. It’s ever-ready to provide valuable feedback on marketing strategies and campaigns. With this constant support, businesses can stay agile and make data-driven decisions.
This can be a major benefit as it allows outsourcing tasks that employees either don’t have time for or lack the necessary skills. For example:
- Respond to customer inquiries and feedback 24/7.
- Generate personalized marketing campaigns.
- Analyze market trends and competitor data in real time.
Generative AI in the marketing market is a powerful tool that can help to save time and be more productive. By providing 24/7 support, Gen AI can help to deliver more effective marketing campaigns and reach business goals.
Read also: Chatbots and Conversational Marketing
Generative AI Marketing Use Cases
Generative AI can powerfully enhance marketing in various ways. As the technology continues to develop, we can expect to see even more innovative and effective use cases for Generative AI in marketing. So let’s explore some common use cases.
Personalized marketing messages are more likely to grab customers’ attention. This approach leads to higher conversion rates, as clients are more likely to buy from businesses that they feel understand and care about them. Generative AI can analyze a lot of data to create personalized content for each user’s behavior, likes, and past interactions.
Personalized shopping is a great Generative AI marketing example. Instacart Inc. has integrated ChatGPT technology into its grocery delivery app with the aim of enhancing user experience.
The company believes that ChatGPT adoption alongside its own AI software will give amazing results. The updated search tool will use information from over 1.5 million items available at approximately 75,000 grocery stores within Instacart’s partner network.
Instacart Inc. plans to leverage AI capabilities to strengthen its search engine. Make it engage in dialogues with users through a feature called ‘Ask Instacart’.
With this feature, users can ask about various food-related topics. They can ask questions about healthy meal options, recipe ideas, and ingredient suggestions.
Additionally, the app will generate customized shopping lists based on specific recipes. This streamlines the meal planning process for users and saves them valuable time and effort.
Gen AI enables marketers to refine their customer targeting efforts with a higher level of precision. In a survey by BCG, 41% of CMOs use Gen AI for improved targeting, often accompanied by proper customer segmentation.
This improved segmentation allows for more efficient resource allocation. It results in a better return on investment (ROI) as marketing resources are directed towards the most receptive audience.
This technology plays an important role in enhancing consumer and product strategy. It accelerates the pace at which companies can conduct market and consumer research, making it faster and more efficient.
This accelerated research process enables companies to gather insights quickly. These insights can then enhance their products and services.
In essence, GenAI enables businesses to adapt and respond to market dynamics more effectively.
Generative AI uses advanced algorithms and Machine Learning to collect and process large amounts of data.
This technology can uncover hidden patterns, customer behaviors, and trends within data sets. Businesses can make data-driven decisions that enhance their marketing strategies.
Generative AI gives marketers tools to get important insights from data. Whether it’s optimizing ad targeting, predicting consumer preferences, or segmenting audiences.
Interactions with Customers
There are different ways AI provides personalized responses, which improves the customer experience. For instance, chatbots in business can answer customer questions and allow human staff to focus on difficult tasks. Artificial Intelligence can manage client inquiries through social media, or even phone calls.
Generative AI in marketing automation can manage repetitive tasks and provide a level of personalization and insight that was not possible before.
Businesses can apply Gen AI to enhance and personalize an existing chatbot. For example, chatbots in business can be a game-changer. 58% of businesses in the B2B sector actively employ chatbots, whereas the usage rate among B2C companies stands at 42%. Businesses can integrate Generative AI into their chatbots, that build stronger relationships with customers by creating a personalized experience.
Master of Code Global, in collaboration with Infobip, developed a Generative AI chatbot. BloomsyBox chatbot creates unique and personalized greeting cards. This gamified marketing strategy helped to engage customers and increase brand interaction.
Master of Code Global incorporated interactive games, quizzes, and challenges into the chatbot. The bot drives user participation: gathers data, and rewards customers. All these provided unforgettable and entertaining brand experiences.
This interactive approach helps to gain attention and foster a deeper connection with the audience. As a result, 60% of users who interacted with the bot successfully completed the quiz.
Generative AI can support sentiment analysis by generating artificial text data. Data labeled with various sentiments, including positive, negative, or neutral.
This synthetic data serves as a valuable resource. They train deep learning models to recognize and classify sentiments in real-world text data. It involves the automated evaluation of customer feedback, reviews, and social media comments. This evaluation helps find the sentiment and emotional tone associated with a brand, product, or service.
Gen AI can create a variety of data that helps machine learning models understand and categorize emotions and opinions in text. This makes sentiment analysis more accurate in different marketing and customer feedback situations.
Abandoned Cart Recovery
Generative AI can engage with users who have abandoned their shopping carts. AI tools send personalized messages and offers to encourage them to complete their purchase.
Gen AI can increase conversion rates by addressing concerns and offering incentives. It also has the capability to recover potentially lost sales through these actions.
Such tools assist customers in placing orders and provide real-time updates on shipping and delivery status. They can also handle order modifications or cancellations, offering a seamless purchasing experience.
Cart abandonment rates online continue to be substantial, with approximately 70% on desktops and 80% on mobile devices.
For example, Dynamic Motivation for the online cart allows brands to make personalized messages to every visitor. It can be in real-time and doesn’t matter whether they are anonymous or not.
Implementing this cart abandonment strategy can give results within a few weeks. It also leads to increased customer conversions and higher average purchase values. This, in turn, contributes to a significant 3-5% boost in incremental revenue.
Customer Feedback and Review Collection
Generative AI tools can engage with customers to collect feedback and reviews about products or services. They can have interactive conversations with users to get their opinions, ratings, and suggestions. In this way, you gather valuable insights for product improvements.
A recent illustration of this is Amazon’s implementation of an AI-powered feature in its shopping app. The feature aims to summarize customer reviews for certain products. Then it provides a concise overview of the positive and negative aspects highlighted by shoppers. A disclaimer accompanies the summary, stating that AI generated it using customer reviews.
The feature caught the attention of Mark Wieczorek, the technology chief of Fortress Brand, an Amazon marketing agency.
Amazon has verified that they are indeed testing the feature. However, the company has not disclosed specific information about the inner workings of the feature. They have also not uncovered the specific AI models employed to summarize reviews and generate the accompanying text.
We are significantly investing in Generative AI across all of our businesses
For quite some time, Amazon has used AI and ML to provide shoppers with targeted ads and personalized recommendations. But, the recent rush of interest in Gen AI and OpenAI’s ChatGPT, has motivated companies to highlight the technology’s potential.
Amazon’s CEO, Andy Jassy, said Generative AI and LLMs have the potential to “transform and improve virtually every customer experience.”
Companies implemented Generative AI in their advertising campaign targeting millennials. The new technology engaged users and gathered information about their preferences. It then generated personalized ad copies based on their responses.
The campaign resulted in higher click-through rates. Moreover, it increased engagement and improved conversions. This showcases how effective it is at crafting customized and compelling ads that connect with the intended audience.
Bain & Company has partnered with OpenAI to leverage the capabilities of ChatGPT for their clients worldwide.
This collaboration aims to make companies, like Coca-Cola, use the combined power of DALL.E and ChatGPT. Especially in the fields of marketing and improving consumer experiences.
Bain & Company emphasizes customization in their approach. They aim to develop tailored solutions to assist clients in unlocking the full potential of their businesses.
Global digital creatives now have access to an AI platform developed by Coca-Cola in collaboration with OpenAI and Bain & Company. This unique platform, called “Create Real Magic”. It combines the power of GPT-4 and DALL-E.
This combination generates original artwork using iconic creative assets from the Coca-Cola archives.
GPT-4 generates human-like text based on search queries. While DALL-E produces images based on text. This leads to a seamless integration of text and visuals, offering creative possibilities.
Artists can take part in the “Create Real Magic” contest. They can download and submit their artwork for consideration.
If chosen, Coca-Cola may showcase their creations on digital billboards in prominent locations like New York’s Times Square and London’s Piccadilly Circus.
The company selected the best 30 creators to attend the “Real Magic Creative Academy” at its global headquarters in Atlanta.
Coke’s Global Design and Creative teams, in collaboration with OpenAI, led the three-day workshop. Together, they created content that could find use in Coca-Cola merchandise, digital collectibles, and other applications.
Lead Generation and Nurturing
Gen AI has the ability to engage with prospective customers and check leads based on specific criteria. Companies can apply technology to encourage leads by sending personalized content. They can also use follow-up messages to maintain their interest.
AI-powered applications are good at interacting with website visitors and initiating conversations. By asking targeted qualifying questions, they can gather relevant information. This information helps guide potential customers through the sales funnel.
Moreover, they can send event reminders and updates. This ensures a smooth registration process and boosts attendance rates.
Generative AI can provide relevant content across different web pages. It offers suggestions for webinars, book downloads, or reports based on users’ interests. These suggestions are based on the specific website they are browsing.
For instance, Digital First AI can create tailored marketing approaches. That encompasses every stage of the customer journey.
This includes activities such as:
- building brand awareness
- acquiring new customers
- retaining existing ones
- implementing upselling strategies.
Additionally, Gen Ai also facilitates seamless collaboration with your team members. By leveraging this technology, businesses can streamline and enhance marketing initiatives. This can lead to increased engagement and revenue generation for your business.
Generative AI is still a relatively new technology, but it is quickly gaining traction in the marketing industry. As it continues to develop and become more sophisticated, it is likely to offer even greater benefits for marketers in the future.
Gartner predicts that by 2025, large businesses will use Gen AI to automatically make about 30% of their outbound marketing messages. They also highlight that nearly 90% of the content in a major film produced in 2030 will come from AI-generated sources.
If you’re thinking about incorporating this new technology into your business, you are on the right way. First step you need to do is to contact Master of Code Global for Generative AI consulting.
We are a service company that approaches our work with the same focus on innovation and customer satisfaction as a product company. Our success in developing our own products is a testament to our expertise in this area. Take a look at our portfolio.
Whether you want to use the latest Generative AI models or need custom services adapted to your company’s specific needs, we have the expertise to provide you with a full range of development services.
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