The Impact of Artificial Intelligence on Branding

According to Oxford, AI technologies are expected to contribute $15 billion to the world economy by 2030.?

Today’s big companies like Amazon, Netflix, Google, Facebook, Uber have been using artificial intelligence as a part of their branding and marketing strategies, especially in recent years. In the near future, customer experiences are expected to be completely controlled by artificial intelligence.

Companies that use AI techniques in their organizations are already working smarter and benefiting from increased efficiency. The tools that were previously suitable for enterprise-level companies have become affordable and accessible for medium and small-sized businesses today.

We will examine how artificial intelligence is a game-changer in the field of branding and marketing.

What is Artificial Intelligence?

?We can define?Artificial Intelligence?as the ability of a computer or machine to mimic human capabilities ( recognizing objects, understanding and responding to language, making decisions, solving problems ) without any human intervention.??

AI works by processing large amounts of data and combining it with intelligent algorithms at high speed. This allows the software to learn automatically from patterns or features in the data. That way, AI can be used to recognize data, make predictions, or even to make recommendations.??

Examples of AI in our daily life are :

• In the applications we use in our daily lives such as Instagram, Facebook, Twitter, the posts we see on the home page, friend suggestions, advertisements are determined by AI in the background depending on many criteria such as our past likes and interests.
• Let's take a look at Netflix. According to Netflix, more than 80 percent of the TV shows and movies people watch happen through Netflix's recommendation system. This means that the movies and TV shows you watch are actually presented to you by the recommendation system, thanks to AI techniques.

Since we briefly talked about artificial intelligence, now let’s look at the impacts of artificial intelligence on branding and marketing.

AI and Digital Advertising

You may have heard the terms Programmatic Advertising and Cognitive Advertising before. Now get ready to learn about AI Advertising. While we used to make ads ourselves, it is no longer necessary thanks to artificial intelligence.

One of the great examples of this is Coca-Cola and Quartz, partnered with DigitasLBi Hewlett Packard Enterprise. With such a win-win situation, they are poised to win the market.

Let’s look at Albert, Harley-Davidson’s AI-driven platform for marketing.?Albert increased sales rates by 2,930 percent, which was great for Harley-Davidson marketers. Thus, time and effort were gained. According to Albert’s study, he discovered that the word “call” was 450 percent more effective than the word “buy.” The improvement was obvious.

Best Content or Product Recommendations

Like we said earlier with Netflix Example, Amazon, Youtube, Spotify, and many other big companies created their own recommendation systems. Customer profile information, demographics, and similar information as well as likes and dislikes data are constantly updated in the databases, and the most relevant products are constantly recommended to users.

The point to note here is that customers get used to these services and expect other companies to do the same.

Like we talked about the Netflix example, Amazon, Youtube, Spotify, and many other big companies created their own recommendation systems.

Real Time Customer Support

Fast responses and providing effective solutions are the most important features sought in good digital support for customers. Chatbots developed with artificial intelligence technology provide a fast and good service 24/7, creating an effective experience in customer support.

Chatbots can answer questions, perform simple transactions, and take orders. In this way, it can be in constant engagement with customers. For this reason, chatbots play an important role in today’s marketing field.?

KLM is a Royal Dutch Airline. After the company invested in this technology named?KLM Bluebot, passengers were impressed with the service and the company got great results.

With AI technology, the user experience on websites can be increased with the help of intelligent personalization. For Example :

• Website Experience: The most relevant product can be recommended by analyzing hundreds of user data (including location, device, demographics, etc.).
• Push Notifications: With the help of behavioral personalization, the right message can be delivered to the user at the right time.

?The 2017 Real Time Personalization Survey by Evergage?reported that 33% of marketers use artificial intelligence in personalized web experiences. According to the response of 63% of respondents, it reported increasing conversion rates by 51%.

Many publisher brands such as The Wall Street Journal, Pandora, La Redoute, and Top Fan also stated that they are using artificial intelligence to increase their conversion rates.

For example, Pandora brings together machine learning algorithms and human curators to offer users new songs they might like. Music services provide us with many benefits in this area. One of them is that the algorithms work on a lot of content, and more relevant content can be recommended.

It is clear that artificial intelligence offers great opportunities and it is certain that artificial intelligence technologies will not go anywhere, they will constantly develop, especially B2C and B2B brands will change the future. When used correctly, AI technology offers great opportunities for your brand value. Please reach out to me if you would like to know more about our Smarxion services in the area of Artificial Intelligence and Machine Learning and I would be happy to assist.