Why do we need AI for eCommerce marketing

AI is changing the game everywhere by processing large quantities of information and making fast decisions on large scale problems many times outperforming humans.
Quality marketing is strongly dependent on processing large amount of information and making the right decisions. For eCommerce, knowing which products are hot, what demographics will be interested in purchasing, correlating advertisement bids with product availability, micro-targeting and accurate predictions on the correct marketing strategy, are all tasks that grow rapidly out-of-hand for human management.
This is exactly where Artificial Intelligence and Machine learning makes amazing things possible. In particular, due to the fact that the marketing space in itself is using AI quite heavily in order to determine ad placement (who will see the ad, when will they see it, where will it be displayed) AI based automated campaign management can monitor every parameter in the campaign performance and make fast decisions that influence ROAS dramatically.
In eCommerce, advertising to a window-shopper rather than an intending-customer can mean thousands of dollars being spent in vain. An automated AI vs. AI eCommerce marketing, bid decisions can be made based on large number of monitored user behaviors and changed quickly if they prove wrong, giving brands the power to maximize their ROAS and minimize advertisement loses.
But this is not everything, the main challenge for advertisers is to scale. Good ROAS and positive ROI are relatively easy to obtain when you aim at a small number of sales/conversions, but eCommerce is a game of scale. When one does not have a restriction on the supply side, the demand is the only concern. And creating the demand requires reaching large amount of audience, the right audience. Large scale micro-targeting can only be done when analyzing large amount of purchasing patterns across many users in many different scenarios. Every shopping behavior demographics parameter and every person age, sex, nationality site visits and many more data points should be analyzed in order to get the best outcome and produce the kind of message the user needs to see to make the purchase.
Taking into account all the data computers will have access to and their AI and Machine Learning analytical capabilities, we can expect them to make the most accurate predictions. Content performance, marketing and advertising campaign results can be seen before you even run them. And of course, the machines will give you an exhaustive list of improvements you need to make to achieve the result you are hoping for. Soon, instead of taking action and tracking its results we will be able to anticipate them, and adjust our efforts if necessary.

Related reading

Disruptive advertising How Machine Learning Will Shape the Ecommerce Industry by 2020

BigCommerceA Business Intelligence Approach to AI Implementation in Ecommerce

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