The use of AI in marketing can help marketers respond more effectively to consumers, even as consumers themselves are finding that AI helps them get through their own tasks more quickly.
Why AI matters to marketing
Everyone understands that AI is a game changer. In the words of Google’s Gaurav Bhaya, speaking at DMEXCO in Germany, the current situation is an inflection point when “it finally became possible for marketers to market at the speed of consumers”. And for those consumers, he also holds out the welcome possibility of no longer showing them ads for a particular product once they’ve bought it.
Google reports that using AI in its Performance Max platform helped airline Lufthansa increase new bookings 59% while at the same time reducing cost per acquisition.
Simple AI-driven techniques such as flipping horizontal video to vertical for different platforms can drive up to 13% more conversions.
At the same event, Microsoft’s Mascha Driessen reported that 72% of people coming to Bing Chat arrive via Google Search; one-third of them have never used Bing before. “We’re extending our reach with this,” the regional vice president for advertising, Continental Europe, said.
Bing Chat users tend to be younger and they complete their tasks in half the time of traditional search.
“You’re not competing against AI. You’re competing against other marketers who are using AI. The sooner you start practising and experimenting with AI, the greater the advantage you have over your competition” – Gaurav Bhaya, VP & GM Google Ads, Measurement.