The Role of Artificial Intelligence in Performance Marketing

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Artificial intelligence (AI) encompasses a branch of computing that attempts to replicate a human being’s capacity for performing specific tasks, like analyzing data and answering questions that require research. The technology is undoubtedly improving, but AI isn’t new; it’s been around and in regular use for over a decade now.

In comparison, though, today’s artificial intelligence tools can deftly sort data to find patterns and make recommendations — something of much use to digital marketers who aim to understand consumer behavior.

As such, AI has begun taking the world by storm, with tools like ChatGPT and AI-integrated search engines like Bing poised to change the landscape of the internet as we know it over the years to come. When intertwined with performance marketing, AI can benefit organizations seeking to maximize conversions.

Performance Marketing: A Definition

First and foremost, performance marketing is a results-oriented form of digital marketing through which companies encourage their customers to take a specific kind of action, such as clicking on a link or making a purchase.

Many forms of performance marketing exist, and while older performance marketing methods, such as cost-per-click (CPC) banner ads and display advertisements, are still around, more modern types incorporate artificial intelligence to learn more about a customer’s behavior.

Those behavior analytics, along with an in-depth understanding of a customer’s purchasing habits, help advertisers deliver ads to the people that are most likely to take action on them. Most companies will only pay for their advertisements when people interact with them; they won’t pay for ads that don’t result in action.

Combining Performance Marketing and Artificial Intelligence

Older digital marketing practices rely on large-scale enterprise software to reach their target audiences. They also require plenty of manual intervention, with cohesion among different platforms being an ongoing problem. Marketing professionals struggle with ensuring that their ads reflect a personalized message and reach people when they’re most likely to respond to an advertisement.

With artificial intelligence, on the other hand, optimizing a campaign for the best results becomes much easier. There’s less manual work to be done, and AI-driven tools can make real-time adjustments that better drive results.

Benefits of AI in Performance Marketing

Performance marketing with the help of AI offers multiple benefits, such as:

Greater Personalization

Personalizing a campaign becomes nearly automatic with AI. When companies adopt an omnichannel marketing strategy, AI tools can collect data across multiple platforms. For instance, you can track a customer’s browsing history on your site if they log into their account.

Later, you can display advertisements for the products they looked at through search engines or social media channels, and if they subscribe to your email list, you can automate emails that further encourage them to make a purchase.

Reach Customers Across Channels

New forms of performance marketing are becoming more popular each day, such as connected TV ads, which appear on devices with an internet connection as customers watch shows or movies through popular streaming platforms, such as Hulu or Roku.

These ads outperform traditional commercials due to their personalization, driven by AI. According to CTV statistics, over 80% of retailers use connected TV ads to reach their audience.

Marketers can target their ads depending on a viewer’s demographics, prior search history, and browsing habits. Connected TV ads are unskippable, which makes for an added benefit that forces the viewer to see the ad through to its completion.

Ad Optimization

With artificial intelligence, carefully crafting pay-per-click ads through A/B testing is a thing of the past. There’s no need to regularly compare one ad’s performance over another’s or regularly tweak your calls to action (CTAs). Instead, AI can intuitively update the language of your ads and display them to individuals that are most likely to take action on them.

Predictive Analytics

With the right AI tools, understanding your customer’s behavior patterns is much simpler as well. AI can examine your first-party data, capturing strategic insights and identifying patterns you may not otherwise notice.

With more robust data analysis, you can optimize your campaigns to better predict the outcome of a customer taking a particular action, allowing your campaigns to become more effective and efficient over time.

Higher ROIs

In lean times, you want to ensure your marketing expenditures lead to results. Otherwise, you’re wasting money on efforts that don’t increase your revenue or bring in more customers.

Since artificial intelligence greatly empowers the personalization and optimization of your ads, you’re more likely to see a higher ROI from your marketing campaigns, and you won’t blow your marketing budget on ineffective strategies.

Power Your Performance Marketing Campaign with AI

Companies that capitalize on the many opportunities offered by AI technologies will see more substantial results from their performance marketing campaigns. You don’t want your competitors to leave you in the dust, so find out how to boost your advertising efforts by combining performance marketing and artificial intelligence today.

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