JPMorgan Chase, the banking giant we all know, recently ventured into something unexpectedly creative. This bank stepped into the AI ring, not for typical tasks you’d expect like financial modeling or market predictions but to write ad copy. The bank joined hands with Persado, an AI software startup to put this idea to the test and see if AI could outdo humans in creating engaging ad copy.
Now, if you're picturing AI-generated ads as dry and robotic, prepare to be pleasantly surprised.
The AI-generated copy didn't just perform well; it achieved double the click rates in many cases compared to human-written content. Who would have thought, right?
Kristin Lemkau, the then chief marketing officer at JPMorgan Chase, was more than impressed. She noted that Persado’s AI deviated from traditional marketing approaches and created ad copies that were not only different but also resonated really well with the audience. And the results? A whopping 450% increase in click-through rates on ads crafted by Persado's AI. Need we say anything more?
But, of course, this brings us to that looming question — what about our jobs? It's a question that’s definitely brewing in everyone’s minds. Sure, the idea of AI in marketing or any field can naturally bring up concerns about job security. However, leading voices in the marketing industry offer some reassurance. According to them, AI isn't here to steal our thunder. It’s here to take some weight off our shoulders, enhance our marketing efforts, and even cut costs along the way. Paul Roetzer from the Marketing AI Institute has an interesting take on AI’s influence. He says:
I've always said that artificial intelligence is not about building more intelligent businesses, but more human brands. And what we mean by that is, while AI is going to assist many aspects of business and marketing, it's not going to necessarily replace it.
With that in mind, let’s explore AI’s role in the marketing world and how marketers like you can leverage Artificial Intelligence (AI) to your advantage. In this blog, we’ll also cover what AI marketing is, how to use it, the best examples of AI in marketing, and marketing strategies that can benefit from the intervention of AI. We'll delve into AI marketing use cases that illustrate how AI has been used in the marketing landscape. Let’s get started.
How is AI used in marketing?
AI-led marketing refers to strategies that involve using AI to derive insights into customer behavior to craft more effective marketing campaigns. It makes marketing and customer engagement more personalized. Think chatbots that provide contextualized responses, relevant and relatable ads, and customized campaigns. AI in marketing involves using machine learning (ML), deep learning, natural language processing (NLP), and other AI technologies to address key marketing and advertising challenges.
But the scope of AI in marketing doesn't just stop at data analysis. AI tools can take over manual and repetitive tasks like sending emails or answering common customer questions. This sort of automation makes a marketing team's job a lot easier and more effective, freeing up their time to focus on what they do best: designing winning campaigns.
4 successful AI marketing examples
Now that you have a pretty good idea of how AI is shaping marketing, let's discover what AI wizardry looks like in practice. Here are a few real-world AI marketing examples of how brands have successfully integrated AI into their marketing strategies to help you get started.
Example #1: Netflix uses AI personalization for movie recommendations
Have you ever noticed how Netflix always seems to know what you want to watch? It’s quite impressive how it consistently gets it right with the shows and movies it suggests. Especially if you’re in marketing, you'll appreciate how adept Netflix is at personalization. This is all powered by AI!
Here's how it works: Netflix analyzes what you've been watching.
Let's say you've been enjoying an Adam Sandler movie marathon. The Netflix AI picks up on this and goes, “All right, the subscriber likes Adam Sandler. Let's show them more of what they like.” So, when it's time to watch another movie, it’s not just any film that shows up on the list of suggested titles, but a Sandler movie, complete with artwork prominently featuring the beloved actor. It's Netflix's way of saying to its subscribers, “We know what movie genre you like.”
Let's say you're more into sitcoms than those feel-good, family-friendly flicks. You're the kind who snorts at clever one-liners and lives for those comedic pauses. Netflix gets that, too. So, when it recommends a movie, it cleverly sidelines the mushy stuff and spotlights the laughs.
Here’s where it gets even better. Let’s say you love romantic movies, and Netflix suggests “Good Will Hunting,” which is actually a drama. Instead of the usual cover, the artwork cleverly will feature those heart-tugging moments with Matt Damon and Minnie Driver. And if you are more of a comedy aficionado? Then expect to see Robin Williams' smiling face beaming back at you. It's all about what you like.
Still, finding it hard to picture? No worries – just take a look at the image below and witness Netflix’s AI sorcery in full effect.
So what are Netflix’s achievements with AI? The personalized artwork strategy has worked wonders for the brand and has resulted in a meaningful improvement in how Netflix’s subscribers discover new content on their screens.
Example #2: Wowcher uses AI personalization to create social media posts and ads
Just as Netflix has mastered personalization, Wowcher, a well-known e-commerce company, has forged its own success story by creating personalized ad copy. It has taken a leaf out of Netflix’s book, using AI not for movie recommendations but for tailoring its social media posts and ads.
The company employed Phrasee’s AI copywriting technology to breathe new life into its Facebook ads. For example, if you often click on ads for vacation deals, Wowcher's AI takes note and detects this pattern. And before you know it, your Facebook feed is filled with Wowcher ads, that uncannily match your interests, showcasing irresistible deals.
Let’s look at how Wowcher pulled this off with AI. Sara Cartelle Buceta, Account Director for agency Tomorrow TTH, who worked with Wowcher alongside the brilliant minds at Phrasee, essentially turned AI into a copywriting ninja. The team began with small-scale tests, comparing AI-generated ads against those written by humans, a bit like a creative contest. Then, they moved on to A/B testing. Here, four AI-generated ads were tested against a human-written one to see which resonated better with the audience and to understand “Who penned the ads better?”
With AI flexing its copywriting muscles, Wowcher saw its ad relevance scores go up. We're talking scores of 9 or 10 out of 10. As a marketer, you know that's like getting a standing ovation in the world of online advertising.
And what was the big win? A 31% drop in cost per lead, along with those sky-high relevance scores.
Take a look at how Wowcher's ads were transformed by the magic of AI.
If you compare the two ads above, you'll see that Phrasee's AI has skillfully incorporated emojis into the ad copy, much like a human would.
Example #3: Sephora implements AI chatbot technology to turn overwhelming choices into a curated beauty experience
Sephora, the beauty powerhouse, transformed a potential pain point — the paradox of choice — into an opportunity using AI. After conducting consumer research, the brand found that many of its customers were bogged down by the sheer volume of choices, spending too much time browsing through numerous pages to find the right product.
To tackle this, Sephora turned to chatbot technology, not just to sell but to guide and assist shoppers. It introduced a chatbot-driven interactive quiz that acts as a digital beauty consultant. These chatbots weren’t just programmed to give canned responses; they were designed to understand and interact, offering personalized advice and suggestions based on individual customer responses.
Sephora's experiment with chatbot technology turned out to be an overnight success. So much so that they've now launched a chatbot-powered shopping service on Facebook Messenger. You could get a virtual color match, book sessions, and even interact with KikBot — an autonomous chatty makeup guru, always ready with beauty tips and tricks.
How transformative has this AI strategy been for Sephora?
Well, the Sephora bot with its blend of personal touch and tech savviness has outshined other channels by a mile. The chatbot technology has managed an 11% higher conversion rate for booking in-store makeover appointments compared to any other channel.
Pro Tip: Sprinklr AI+ allows enterprises to analyze customer experience data from over 30 digital channels, such as social media, messaging apps, and various online sites. In addition, it uses generative AI to enhance content creation, streamline feedback, and quickly uncover actionable insights.
Example #4: Amazon implements AI personalization for smarter shopping experience
When you visit Amazon, you can see there's this nifty section of recommended products and deals that feels like your personal shopping wishlist. This curated selection isn't some random list of products; it's been carefully brewed by Amazon's AI.
Amazon uses its AI to line up products on your screen, betting on which ones will win your heart — and your wallet. The AI sifts through the vast ocean of data: your past purchases, items lingering in your cart, products you've looked at but never bought, and the top-trending items among other shoppers. That's Amazon's AI playing matchmaker between you and things you didn't even know you needed!
Now, how does Amazon pull this off?
They use a technique called item-to-item collaborative filtering. Picture it as a potluck dinner where everyone brings a dish they think you'll love based on what they know about your taste. That's kind of what Amazon’s doing but with products. This method, pioneered by Amazon in 2003, revolutionized not just online shopping but the entire experience of it, making every visit to their site feel like a personalized shopping spree.
And the big question — what's the impact of all this?
Reports suggest that 35% of Amazon's sales come from these AI-driven suggestions. Plus, it has managed to turn many casual browsers into loyal Amazon fans. The final outcome? Shopping on Amazon feels like it's customized just for you, showing how powerful AI can be in changing your online shopping game. So the next time you see that “Recommended for You” list, just remember it’s Amazon’s AI working overtime to make sure your shopping experience is as on-point as possible.
Watch on Demand: Why AI is a “Must-Have” in Digital Research
The essential use cases of AI in marketing
As technology continues to evolve, the potential for AI in marketing only grows, promising a future where brands and consumers are more closely aligned than ever. Here’s a glimpse into what AI can do to augment your marketing efforts:
Intelligent content curation
Intelligent content curation is all about using AI not just to distribute content, but to smartly tailor it to your customers' interests. This process is far from random. It's highly strategic and thoughtful. The AI assesses current market trends and understands your customers' unique preferences, then blends these insights to present content that's not only relevant but also surprisingly aligned with interests they hadn't yet discovered.
The heavy lifting and data reading is carried out by cognitive computing systems powered by AI. These systems are great at quickly going through vast amounts of data — your customers’ past online interactions with your brand, browsing history, and social media activities. From all this info, the AI gets a good grasp of the kind of content your customers may find appealing on social media.
Effective ad targeting and optimized ad spends
AI algorithms have taken on a crucial role in marketing. Their role extends far beyond just scattering ads randomly. These sophisticated algorithms strategically place ads across various channels, significantly reducing overspending and boosting the overall effectiveness of marketing campaigns.
So, what does this mean for your brand?
It means your advertising budget is being spent more wisely and you’re investing where it’s going to matter the most. In AI-driven ads, ML is the driving force and serves as an intelligent analyzer too. It sifts through an extensive range of marketing data, including user demographics, browsing behaviors, purchase histories, and engagement metrics to understand what your audience expects from your brand, whether through the content of the ads or social media posts.
Based on this analysis, ML algorithms create ads that are specifically tailored to the intentions and current interests of users, and it does this in real-time. This means that when people browse online, the ads they come across aren't just generic commercials. They turn into personalized recommendations carefully aligned with their distinct interests and behaviors.
Interesting Read: Future of social media: Exploring new trends and the evolving role of AI
Active social media listening across all digital platforms
AI also helps manage social media by analyzing vast amounts of data. This is where AI uses its NLP skills — to get the gist of social media conversations. It’s not only combing through the words on social media but also analyzing customer sentiments and collating useful information from all sorts of user content such as posts, comments, and reviews.
In fact, with AI-powered social media listening tools, you can easily determine how your customers feel about your brand — are they happy, upset, or somewhere in between? Having these insights at your disposal lets you quickly address customer issues, reassure them, and take actions that boost their happiness and emotional connection with your brand.
Sprinklr’s reporting dashboard offers insights into how people perceive a particular brand across different social platforms.
Learn More: 10 ways to use AI in social media strategy
Leverage AI in marketing easily with Sprinklr AI+
Now that you've gone through some of the most crucial AI applications in marketing, don't you think the sky's the limit when it comes to using AI in marketing?
As a modern marketer, the onus is on you to continuously experiment with AI and push the boundaries until you're confident that every dollar of your marketing budget is making an impact. Even if your initial foray into AI-led marketing begins with something as simple as using an ML program to come up with catchy email subject lines, remember, that every little AI step you take is a giant leap over your competition. Every tweak, every test, every “aha!” moment with AI nudges your brand forward. It’s a journey of gradual and consistent progress. Focus on finding the right AI tools that can align with your marketing needs and give you more control over your projects.
Tools like Sprinklr AI+ are designed to assist you in generating campaign ideas and developing content strategies efficiently. They can streamline various tasks throughout your campaign’s lifecycle, including generating briefs and creating channel-specific posts. With Sprinklr AI+ integration, you can easily create diverse content, from posts to reels for various social and non-social channels.
However, Sprinklr AI+ is just one of many AI tools available. It's important to find a solution provider that aligns with your marketing goals and offers AI solutions that simplify marketing and improve campaign results significantly. So, keep exploring and keep innovating with AI. And before you know it, your marketing game will be at a whole new level.
If you feel you're ready to learn and experience firsthand how AI can transform your marketing, give Sprinklr AI+ a try today.
Here are some additional resources on how AI can be integrated effectively across business functions: