|Digital marketing is one of the competing strategies for the past years and a key to the success and popularity of the business / Photo Credit: 123RF|
The world of digital marketing has grown over the past years as many businesses have realized that they need to succeed. Today, one of the priorities of companies is to have a coherent, comprehensive digital marketing strategy to stand out in a saturated market. The most common reason is that it can reach people across the world without much expense.
It's been reported that the average internet user has at least seven social media accounts – an increase from only three just five years ago. These people spend over two hours a day on social media, showing how the internet is integrated into everything they do, from school to work to entertainment and many more. Businesses can use this to their advantage.
It’s hard to compete with huge companies like Walmart when you only have traditional methods to promote your products and services. The name recognition and the millions that they put into marketing and reputation management are something you just can't beat. This is why digital marketing has become a beacon of hope for small businesses. It allows them to hold a top-ranking position and compete with a much smaller advertising budget.
However, digital marketing has its own issues that can negatively affect businesses that are using it. For instance, the incorrect selection of the platform on which a company’s site is to be built is one of the most significant marketing issues. Choosing a bad platform for a website can cause a lot of issues, not the least of which being disgruntled customers.
Businesses also tend to neglect their search engine optimization (SEO), the process of increasing the quality and quantity of website traffic. A 2018 Hubspot survey of marketing problems revealed that the need to generate traffic and concerns regarding low traffic is one of the biggest challenges for the companies. “Building SEO should be a systematic process over the long term; unfortunately, nowadays it is not enough to have just titles marked as h1, h2, h3,” the report said.
Fortunately, machine learning can address all these issues.
Machine Learning and Digital Marketing
Today, several industries and companies are using machine learning to improve their services. Forbes, a global media company focusing on business, investing, technology, entrepreneurship, leadership, and lifestyle, reported that machine learning grew at a 34% Compound Growth Rate (CAGR) between 2013 and 2017. Research firm IDC projected that the spending on artificial intelligence and machine learning will grow from $12 billion in 2017 to $57.6 billion by 2021.
Also, the 2018 Outlook: Machine Learning and Artificial Intelligence report showed that 61% of organizations across the world mostly chose machine learning as their company’s most significant data initiative. Of the companies using machine learning investments, tech market leaders like Apple, Amazon, Google, Microsoft, and Tesla are leading their industry sectors by a wide margin. Each of them is designing machine learning into future-generation products. At the same time, they are using it along with AI to improve customer experiences and improve the efficiency of selling channels.
This is why machine learning has become an interesting tool for companies nowadays, given its abilities and functions. A report showed that more than 97% of marketers believe that machine learning tools would play a crucial role in digital marketing to succeed. Also, 3 in 4 businesses are already implementing machine learning to increase sales of the new products by 10%. Machine learning has improved the sales and marketing of companies by a whopping 40%.
|On the digital age, some companies are now using machine learning to improve their services in accordance with what their consumers need / Photo Credit: 123RF|
How Machine Learning Can Boost Digital Marketing
Now, many companies have realized that machine learning and marketing go hand-in-hand. Here are the ways machine learning can address common issues and boost digital marketing.
1 - Improving user personalization
According to Big Data Made Simple (BDMS), a leading tech portal in big data, data analytics, AI, machine learning, and data science landscape, personalization has become an important factor in many industries because customers are expecting personalized content when interacting with their favorite brands online. Machine learning can be used to monitor customer feedback on various platforms, helping companies determine the moods and personal perspectives of their customers.
For instance, Netflix dove into personalized ranking, page generation, search, image selection, messaging and much more beyond rating prediction to get more engaged subscribers.
2 - Reducing churn rate
The churn rate refers to the rate at which customers stop doing business with an entity. Companies need to reduce this because dropping the churn rate by 5% can increase profits by a whopping 125%. According to Innovation Enterprise, a business media company specializing in enterprise innovation, machine learning can help a business reduce their churn rate to a greater extent.
3 - Automating marketing operations
Digital marketing also needs a hand with its daily tasks. With machine learning, it can automate processes for opening and analyzing email attachments, reading emails, tracking/engaging social media triggers, and data entry for templated reports. This can help marketers stay ahead of the curve.
Overall, machine learning has great potential for digital marketing. Companies should integrate machine learning tools to compete in this technology-driven market.