The main difference between AIM and traditional forms of marketing resides in the reasoning, which is performed through a computer algorithm rather than a human.
Different factors such as the advancement in technology, rise of Big Data, and the significant increase in computational power, all opened the door.
This was used as early as 1998 by Amazon, and one of the first ways companies predicted consumer behavior, which enabled millions of recommendations to different customers.
A big milestone in AI marketing happened in 2014, when programmatic ad buying gained much greater popularity.
In order to cut costs, and remove the need for these tedious tasks, many companies started to automate the marketing process with AI.
In 2015, Google released its most recent algorithm known as RankBrain, which opened new ways to analyzing search inquiries.
Predictive analytics is widely used across businesses and industries as a way to identify opportunities, avoid risks, and anticipate customer needs based on information derived from the analysis of user data.
By analyzing historical customer data, artificial intelligence algorithms can deliver relevant and targeted marketing content.
[8] Personalization engines use artificial intelligence and machine learning to provide content or advertisements that are relevant to the user.
[9] By processing a large amount of data, personalization engines are able to match users to advertisements and recommendations that align with their interests or preferences.
Artificial Intelligence Marketing provides a set of tools and techniques that enable behavioral targeting.
Additionally, to prevent human bias in behavioral targeting at scale, artificial intelligence technologies are used.
Research shows that leveraging data-driven approaches, including analyzing corporate disclosures and AI engagement metrics, improves the transparency and reliability of AI-powered marketing strategies.
[17] Artificial intelligence marketing principles are based on the perception-reasoning-action cycle found in cognitive science.
In the context of marketing, an act would be an attempt to influence a prospect or customer purchase decision using an incentive driven message.
[20] AI allows companies to understand customers buying habits and make personalized ads based on consumers interests.
With precise targeting businesses can make more profits, increase customer retention rate and address individual needs in real-time.
[22] They also increase customer engagement as the voice integrated platforms are able to drive conversations and proactively suggest suitable services with the use of their natural language processing as well as machine learning models.