Here, in India digital marketing has been growing faster than my 3 year old after a candy binge. Experts estimate it will balloon from $8-9 billion today to $15-20 billion by 2024. Artificial intelligence (AI) and machine learning are proving to be critical for success in this rapidly changing environment. Let’s dive into how these technologies are revolutionizing marketing.
How AI and ML are Revolutionizing Digital Marketing
AI and ML are lending a helping hand to marketers in several key areas:
Personalization
Personalization means using customer data to customize content and product suggestions for each person. With tons of data available today, AI algorithms can analyze customer preferences and interests. This helps to automatically tailor messaging and recommendations at scale. For example, e-commerce sites can showcase different products to each user based on their browsing and purchase history.
Predictive Analytics
Predictive analytics leverages data to forecast future outcomes. Machine learning algorithms can uncover patterns in data to make predictions. For example, they can predict which customers are likely to switch to a competitor, respond to cross-sell pitches, or default on payments. These insights enable marketers to take proactive actions to influence future customer behavior. Brands can identify potential customers likely to deliver high lifetime value.
Ad Targeting
AI has revolutionized ad targeting on platforms like Google, Facebook, and Instagram. Algorithms optimize ad spend by automatically determining the optimal target audiences and placements for ads. They tap into data like demographics, behavior, interests, and location. AI-powered ad targeting is more efficient and effective than manual approaches.
Chatbots
Chatbots allow brands to engage visitors conversationally. With natural language processing (NLP), chatbots understand text and voice. This facilitates more natural conversations. Chatbots can be used on websites, messaging apps, and voice assistants to instantly respond to common customer questions and enhance customer experience.
Dynamic Pricing
Dynamic pricing means frequently adjusting prices based on supply, demand and other factors. Machine learning models can analyze past trends, events, and competition to optimize pricing. Companies like Ola, Uber, and travel sites use dynamic pricing driven by AI to maximize revenue.
Fraud Detection
AI helps uncover patterns linked to fraudulent activities like fake accounts, spam, illegal transactions etc. Machine learning algorithms can spot anomalies and shady behavior that may indicate fraud. They can analyze massive volumes of cross-channel customer data that no human can match. This strengthens fraud prevention.
Major Players Using AI/ML for Digital Marketing in India
Many big brands in India have already adopted AI and ML to step up their digital marketing game. Some examples:
- E-commerce biggies like Flipkart and Myntra use AI for visual search, product suggestions, demand predictions, and dynamic pricing. Their apps deliver a personalized experience.
- HDFC Bank uses an AI virtual assistant for customer service. It also offers AI-based fraud prevention.
- Ola integrates AI to analyze data like traffic patterns and user behavior. This optimizes driver allocation and dynamic pricing.
- Tata Motors uses ML for predictive lead scoring to identify potential buyers.
Many Indian startups are also bringing AI/ML marketing products and services to other businesses like:
- WebEngage – Marketing automation platform with AI capabilities like predictive user segmentation.
- Fractal Analytics – Offers AI solutions for forecasting, recommendations, and targeting.
- Persistent Systems – Developed an AI-powered e-commerce product configurator and pricing tool.
The Future Outlook
AI and ML adoption for digital marketing in India is expected to surge exponentially as brands see results from early adopters. AI and ML enable highly relevant 1:1 customer engagement and were not possible before. This drives higher conversions, revenue, and lifetime value.
To stay competitive, Indian companies need to start capitalizing on AI and ML or risk losing out to forward-thinking rivals. There is currently a huge talent shortage of data scientists to meet booming demand for AI. But colleges now offer specialized courses and certifications.
Experts believe AI and ML will cause major disruptions across marketing in the next 5-10 years. Areas like content creation and product development are likely to become automated using these technologies. The marketer’s role will shift more towards managing data, AI systems, and analyzing performance.
Conclusion
In a nutshell, AI and ML have become indispensable for modern digital marketing success. Their adoption is accelerating as Indian businesses realize the enormous advantages over traditional methods. AI and ML empower marketers to hyper-personalize, optimize campaigns, and predict outcomes. Brands that don’t adopt these technologies will lag behind the competition. The need for both AI solutions and talent will skyrocket as these technologies become mainstream.
