Masters of AI: Transforming Marketing with AI
How can we, as marketers, integrate Artificial Intelligence (AI) into our day-to-day processes?
Last week, AI firm and Octopus Group client, Peak, held an exciting event as part of the Masters of AI series at OG headquarters.
Data-influenced marketing is now commonplace, and we’re better able to shape our comms strategies around real consumer behaviour than ever. At the Masters of AI event, the speakers talked about how AI can be used to reduce customer acquisition cost, help deliver personalised experiences, and drive business growth.
Peak: Introducing Masters of AI
Peak is the pioneer of the Artificial Intelligence System, which helps businesses leverage and protect their data via AI and machine learning. Richard argued that all businesses need to make AI a core part of their operations in order to drive future growth and maintain a competitive advantage.
It found that companies monetising data with AI grow 30% faster, and have 50% higher profit margins.
Richard took us through an example of some work that Peak did with client FootAsylum. The fashion retailer was looking to provide customers with a more personalised and targeted experience, while increasing revenue generated by marketing efforts. Peak put its data into the System, drilling down into FootAsylum's large customer base to provide an insightful ‘single customer view’.
FootAsylum now uses Peak’s algorithms to draw insights based on the transactional and behaviour data of each customer, including in-market predictions, lifetime value, churn risk, brand and style preferences, and a recommendation engine.
It saw fantastic results, including a 28% increase in digital revenue, an 84% increase in click-through rate on ads, and a 300% return on ad spend (ROAS).
Richard said: ‘Data is an enabler – those using AI are growing 30% faster. It helps us know how customers engage in real time, so we know what to expect.’
Leaf Grow: Smarter Social Marketing
Social media marketing tech company, Leaf Grow, began in the music industry connecting artists with fans. Gilbert – who wowed the room with emoji only slides – spoke about how AI can improve your paid social strategy.
In a case study presented by Gilbert, Leaf Grow used data to achieve better audience segmentation and understanding, which led to amazing cost-per-acquisition results.
Leaf Grow run something that they call the ‘£1 test’: a test on Facebook Marketing that uses clever algorithms to find high-performing segments and audiences for a £1 spend, identifying gold seams and investing more ad spend into them.
Sky: Optimising Customer Insight and Understanding with AI
British broadcaster Sky spends £300m a year on marketing. With a budget like that you’d expect it to be right at the cutting-edge of martech, which – according to Andrew – it is. Sky already uses AI for ad targeting, which has led to cost savings on customer acquisition; better optimisation of the packages that it sells; and reduction of customer churn.
AI adds layers to customer behaviours in a way that traditional marketing can’t. It also helps Sky speak to customers in different ways, through segmentation and targeting. The long-term opportunity, said Andrew, is to add personalisation and something more meaningful than just ‘you watched this so you might like this’.
However, Andrew says, adopting AI wasn’t always easy, and it threw up some challenges. Among them, legacy platforms and data silos. Also, the team needed to identify where AI would sit within the business, and whether it was a fit with company culture. AI is a relative unknown, and Sky employees could still do their day jobs without it, so it was important to identify why it was needed. Sky used ‘weak AI’ (machine intelligence that is limited to a specific or narrow area) to pinpoint and solve specific problems, rather than attempt to use it for everything.
Achieving cut-through with marketing is getting progressively harder. AI is an opportunity to understand the customer, and improve interaction.
AI in Marketing: Harnessing AI for Business Growth
Katie is CEO of AI in Marketing. She moved into the AI world four years ago, believing it would provide her with a differentiating marketing skill. She’s now written a book called Using Artificial Intelligence in Marketing: How to Harness AI to Retain The Competitive Edge.
According to Katie, AI is unquestionably the way of the future – it permeates every aspect of marketing and customer service.
It is forecast that AI will boost global GDP by 14% in 2030, or nearly 16tn USD.
Marketers and brands should adopt AI, she says, or risk losing their competitive edge.
Katie suggested that AI technology can be used for help with writing, to generate notes, for predictive analytics, for advertising optimisation, for personalisation, and even for creative.
For example, last year a Lexus ad that increased sales in Europe by 35% was written by an AI that was developed by creative agency The&Partnership London and marketing technology firm Visual Voice. It was fed data from 15 years’ worth of successful car ads, as well as those for other luxury brands, along with data on human emotional intelligence and intuition.
Transforming Marketing with AI was a great event that provided inspiration as well as tangible advice for marketers looking to integrate machine-learning technology into their job roles and business operations.
Masters of AI is a new event series showcasing real-world applications of AI. The next event on ‘supply chain excellence and sustainability’ will take place on 24 October 2019.