AI in Digital Marketing: Future Research Agenda

The paper "The Impact of Artificial Intelligence in Digital Marketing: Literature Review and Future Research Agenda" by Thilagavathy and Kumar is an exploration of how AI is moving digital marketing. Published in 2024 in Lecture Notes in Networks and Systems.

The authors emphasize that while skepticism exists about AI's role in marketing, the technology's ability to improve campaign precision, efficiency, and scalability cannot be overstated. The paper provides examples of AI-driven innovations, such as

• personalized advertising
• sentiment analysis
• ethical considerations

AI’s Transformative Role in Marketing

1. Personalized Campaigns: AI tools use predictive analytics and machine learning to analyze datasets, enabling marketers to create campaigns tailored to individual preferences. Netflix’s AI-powered recommendations keep 75% of viewers engaged. That algorithm knows me well and my preference for K-dramas.
2. Real-Time Insights: Natural language processing (NLP) allows AI to understand and analyze customer sentiment, helping brands adjust their messaging in real-time.
3. Efficiency at Scale: Automation through AI reduces time spent on repetitive tasks like ad placement or customer segmentation, freeing up marketers to focus on strategy. Chatbots handle over 85% of customer service interactions for top brands. That is crazy!!!

What’s Missing?

While the benefits of AI are clear, the paper highlights challenges:

• Trust and Transparency: Consumers are still skeptical about AI’s role in decision-making. Brands need to focus on ethical AI use and transparency to build trust.
• Over-Reliance on Automation: Striking the right balance between automation and human creativity to remain authentic and relatable. That is KEY.

Takeaway

Analyze consumer behavior, and streamline operations, brands can build stronger connections and drive better results with AI. However, marketers must prioritize ethical use and transparency.

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