So, let’s say you’re interested in what companies are doing for marketing using AI. Would you also like to snoop into what some of the most successful companies in the world are doing with AI?
Almost everything I share about AI examples in marketing below can be done by much smaller companies either free or simply affordable.
These companies are early adopters of AI and they have some of the best AI experts informing them. Would you like to see what they’ve come up with?
Let’s begin.
- Netflix’s Recommendation Engine, A surprising example of AI in Marketing
Netflix’s streaming service recommendation tool is one of the most visible aspects of the company and acts as its own bit of marketing to keep people glued to Netflix. Netflix’s recommendation engine acts as a powerful marketing tool in a few key ways:
· Increased Engagement and Retention: By suggesting content users are likely to enjoy, the recommendation engine keeps people engaged on the platform. This means they’re spending more time watching, which increases the overall value of a Netflix subscription.
· Content Discovery: The recommendation engine helps users discover content they might not have found on their own. This can expose them to new genres, actors, or directors, potentially leading them to explore more of Netflix’s library and become more invested in the service.
· Data-Driven Content Acquisition: The recommendation system analyzes viewing habits, allowing Netflix to understand user preferences on a large scale. This valuable data can inform decisions about what kind of content to acquire or produce, effectively marketing to their existing audience through the content they provide.
· Reduced Marketing Costs: By recommending content users already enjoy, Netflix reduces the need for extensive external marketing for its existing library. The recommendation engine itself becomes a marketing tool, keeping users engaged and satisfied without needing constant external promotion.
- Nike’s AI Audience Research
It appears that apparel store Nike primarily uses AI to aggregate information about their customers. It gives vital information to the Nike marketing department. Here’s an example of AI in marketing, Nike-style:
· Emotional Targeting: Nike doesn’t just look at what shoes you buy, but also analyzes data and emotional intelligence to understand your “why” as a customer. They can then craft ad content that resonates with your aspirations, motivations, and the emotions tied to your athletic endeavors. Imagine an ad campaign that speaks directly to your desire to push your limits, featuring athletes you admire, all powered by AI analysis.
· Micro-Communities: AI helps Nike identify micro-communities within their audience. These could be runners training for a marathon, young athletes in a specific sport, or fitness enthusiasts with a particular style. By understanding these micro-communities, Nike can create targeted campaigns with relevant messaging and imagery that feels personal to each group.
- Starbucks’ Use of a Chatbot for Customer Interactions
Starbucks’ chat bot is the face of the coffee company, catering to every possible need a customer would normally throw at a barista or a customer service center. Here are the ways this feature suits Starbucks’ marketing goals.
Personalization and Increased Engagement:
- Integration with Rewards Program: The chatbot can connect with a user’s Starbucks Rewards account, allowing for personalized recommendations and promotions based on past purchases. This catered approach makes customers feel valued and encourages them to stay engaged with the brand.
- Upselling and Order Customization: The chatbot can guide users through the menu and suggest additional food or beverage items that complement their initial choice. This can lead to increased order value and potentially introduce customers to new favorites.
Data Collection and Marketing Insights:
- Understanding Customer Preferences: Through chatbot interactions, Starbucks can gather valuable data on customer preferences, such as popular menu items, ordering habits, and peak ordering times. This data allows them to tailor future marketing campaigns and product offerings.
- Improved Targeting and Personalization: By understanding customer preferences, Starbucks can use targeted marketing strategies within the app itself. Imagine the app suggesting a seasonal drink you haven’t tried but others with similar tastes have enjoyed.
Overall, Starbucks’ chatbot acts as a convenient and personalized marketing tool that enhances the customer experience, gathers valuable data, and ultimately leads to increased sales and customer loyalty.
- Buzzfeed Using AI for Content Creation
Buzzfeed leverages AI in its marketing efforts in a couple of key ways:
Boosting Engagement: Social media traffic can be fickle, and Buzzfeed has turned to AI to create content that keeps users glued to their site. Their AI-powered formats, like Infinity Quizzes, see significantly higher engagement times compared to traditional content. This not only keeps users happy, but translates to more ad views and potential revenue.
Direct Traffic Acquisition: With declining reliance on big tech platforms for traffic, Buzzfeed is using AI to drive users directly to their own properties. Since AI-generated content is performing well, it entices users to return to Buzzfeed for their next dose of online entertainment, rather than relying on referrals from Facebook or other platforms.
In essence, Buzzfeed is using AI to create a more engaging and personalized user experience, which translates to a more effective marketing strategy. By keeping users on their own turf, Buzzfeed has more control over the advertising they see and can potentially capture more ad revenue.
- Amazon Ad Optimization Using AI
This is how Amazon, the shopping hub, uses AI in their advertising marketing efforts. This can get somewhat technical but it will be easily understood:
- · Super-fast Bidding: Instead of guessing how much to pay for an ad, AI helps Amazon decide the perfect price in a blink. It considers things like who’s seeing the ad and what they’ve looked at before, so advertisers get the most bang for their buck.
- · Specific Ad Maker: Amazon can use what it knows about people (like their past purchases) to create special ads just for them. So, if you love looking at running shoes, you might see an ad for a new pair you might like.
- · Target Practice: Finding the right people to see your ad is like hitting a bullseye. AI helps Amazon do this by figuring out who’s most likely to want what you’re selling, based on their searches and browsing habits. This way, more people who are interested see the ad.
- · Ad Following: Imagine a tiny spy tracking your ads everywhere they go, online and off Amazon! That’s kind of what Amazon Attribution does with AI. It helps advertisers see how well their ads are working and where they should spend their money for the best results.
If the above 5 examples of AI in marketing don’t creep you out, they may just amaze you. All of this AI is only optimizing the experience for people to be matched with the right company and the right product when they’re ripe for the sale.
Hopefully this gave you some encouragement to at least snoop around and try different AI technology in your journey to improve your professional life.
Most of us do not run mega-corporations but their example proves useful to let us know what early adopters of this technology are doing.
And we don’t have to have a large wallet to use many of these tools. It’s open and available to nearly everyone.
I hope you enjoy the journey.
Love,
