Why Is AI Becoming Popular Among Businesses For Marketing?

Last Updated: 

March 19, 2024

Artificial Intelligence (AI) has become an integral part of the marketing landscape, and it's no surprise that small businesses of all sizes are looking to incorporate this technology into their marketing campaigns.

Utilising AI in your marketing can help you to personalise campaigns, automate repetitive tasks, and gain valuable insights into your audience. In this article, we will discuss how to utilise AI in your marketing campaigns and why you should consider doing so. The global artificial intelligence market value is around $200bn and is poised to experience a tenfold increase by the year 2030, reaching a staggering two trillion US dollars. As the AI market continues to burgeon, integrating artificial intelligence into your marketing strategy becomes not just a trend but a strategic imperative for staying competitive in the evolving landscape.

Key Takeaways on Why the Popularity of AI for Business Marketing is Growing:

  1. Personalised Campaigns: AI enables highly personalised marketing campaigns by analysing customer data like browsing and purchase history. This personalisation can increase conversions, revenue, and customer loyalty.
  2. Automation of Repetitive Tasks: AI can automate repetitive tasks in marketing, such as segmenting email lists, identifying high-value leads, and sending personalised follow-up messages, saving time and improving efficiency.
  3. Predictive Analytics: AI's predictive analytics can forecast customer behavior, helping businesses make informed decisions. It identifies high-risk customers for retention campaigns, high-value customers for targeted offers, and optimises marketing campaigns in real-time.
  4. Audience Insights: AI provides valuable insights into audience trends, patterns, and preferences, informing more effective marketing strategies. It helps identify popular products and effective channels for reaching the target audience.
  5. Chatbots for Customer Support and Upsell: Chatbots, powered by AI, offer 24/7 customer service, lead generation, and personalised recommendations. They improve customer satisfaction, reduce service team workload, and can handle multiple languages for market expansion.
  6. Market Growth: The AI-based personalisation market and chatbot market are experiencing significant growth, indicating increasing adoption and reliance on AI in marketing strategies.

These takeaways highlight AI's growing role in marketing, offering personalisation, efficiency, predictive insights, and enhanced customer interaction, making it a valuable tool for businesses to improve their marketing efforts.

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Why You Should Utilise AI in Your Marketing Campaigns?

There are several reasons why you should consider utilising AI in your marketing campaigns. Firstly, as mentioned earlier, it can help you to create highly personalised campaigns that can increase conversions and revenue. Secondly, it can help you to automate repetitive tasks, saving you time and money. Finally, it can help you to gain valuable insights into your audience that can inform your marketing strategy.

Personalised Campaigns

One of the biggest advantages of AI in marketing is that it allows you to create highly personalised campaigns. With the help of machine learning algorithms, you can analyse customer data such as browsing history, purchase history, and demographics to create highly targeted campaigns. This can help you to increase conversions and revenue, as well as improve customer loyalty.

According to a study by Technavio, The AI-based personalisation market is estimated to grow at a CAGR of 20.45% between 2022 and 2027. The size of the market is forecast to increase by USD 2,541.4 million.

Megan Arkis, CTO of ICRFQ, says “I'm planning to utilise AI in my marketing campaigns and I believe it is a good idea because AI generates really good prompts for marketing. I usually prompt AI to design an ad copy template and if I feel it lacks emotion I can add my human touch to make it easily connectable with human emotions.”

Automation of Repetitive Tasks

Another benefit of using AI in your marketing campaigns is that it can help you to automate repetitive tasks. For example, you can use AI to automatically segment your email list, identify high-value leads, or send personalised follow-up messages. This can save you time and money, while also improving the efficiency of your campaigns.

Predictive analytics

Predictive analytics is a powerful application of AI in marketing. It involves using advanced algorithms and machine learning techniques to analyse customer data and predict future behavior. This can help businesses make more informed decisions and improve their marketing strategies.

One of the main benefits of predictive analytics is that it can help businesses identify which customers are most likely to churn, or stop doing business with them. By identifying these high-risk customers, businesses can target them with retention campaigns and try to keep them from leaving. This can help reduce customer churn and save money on customer acquisition costs.

Predictive analytics can also be used to identify customers who are most likely to make a purchase. By targeting these high-value customers with personalised offers and promotions, businesses can increase sales and revenue.

It can also be used to optimise marketing campaigns in real-time. For example, a company might use predictive analytics to adjust the targeting of a display ad campaign based on the performance of different segments. This can help businesses get the most out of their marketing budgets and improve the ROI of their campaigns.

Another use of predictive analytics is to identify customer segments that are most profitable for a business, this can help businesses to focus on these segments and improve their targeting and personalisation efforts.

Insights into Your Audience

AI can also help you to gain valuable insights into your audience. By analysing customer data, you can identify trends, patterns, and preferences that can inform your marketing strategy. For example, you can use AI to identify which products or services are most popular among your customers, or to identify which channels are most effective for reaching your target audience.

ChatBots for customer support & Upsell

Chatbots are one of the most popular applications of AI in marketing. These computer programs are designed to mimic human conversation and can be integrated into websites, messaging platforms, and mobile apps.

One of the main benefits of chatbots is that they can provide 24/7 customer service. Customers can interact with customer service chatbots at any time, and the chatbots can provide answers to frequently asked questions, troubleshoot problems, and even complete transactions. This can help businesses improve customer satisfaction and reduce the workload for customer service teams.

In addition to customer service and the utilisation of chatbots development services, chatbots can also be used for lead generation. Chatbots can engage with website visitors, gather information about their interests and needs, and even book appointments or demos. This can help businesses capture leads and increase sales.

According to a study on Statista, “The size of the chatbot market is forecast to reach around 1.25 billion U.S. dollars in 2025, a great increase from the market size in 2016, which stood at 190.8 million U.S. dollars.”

Chatbots can also be used to provide personalised recommendations and offers to customers. For example, an e-commerce website might use a chatbot to recommend products based on the customer's browsing history. This can help increase customer satisfaction and drive sales.

Tiffany Homan From RentalPropertyCalculator Says, “AI Chatbots can handle a high volume of customer interactions, which can help reduce the need for human customer service representatives. It can also be programmed to handle multiple languages, which can help businesses expand to new markets.”


AI is a powerful tool for businesses of all sizes looking to improve their marketing campaigns. By utilising AI, you can create highly personalised campaigns, automate repetitive tasks, and gain valuable insights into your audience. If you're not already using AI in your marketing, now is the time to start.

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