Marketing’s intelligent future

As with big data a few years ago, artificial intelligence (AI) is something the gaming community likes to talk about a lot, without always understanding exactly how to best leverage its undeniable power.

We are constantly told that AI will change marketing, but I believe it is important to first take a step back to explain the significance of the technology and why it is proving such a game changer.

In the simplest terms, AI is where computers and algorithms take over from humans to automate and streamline tasks. This can include everything from programmatic marketing and real-time bidding, to harnessing customer data for personalised and predictive marketing to communicate with customers.

We’ve seen marketers begin to implement this technology across a number of sectors over the last couple of years. A recent survey found that 80% of marketing leaders believe AI will revolutionise marketing by the year 2020. Meanwhile, AI is set to become a $5bn industry by the end of the decade.

The gaming opportunity

There are obvious and essential benefits to automating the marketing process, particularly in gaming, a sector that has undergone something of a data revolution of late.

Operators are now gathering unprecedented amounts of data on their players. The problem is, many continue to struggle when it comes to converting this data into actionable insights that can have a positive impact on the bottom line. The challenge is finding the signal in the noise.

This is not something always achievable manually. Even the very best CRM teams are simply not able to process this volume of data without powerful tools. AI is a way of drilling deeper than ever before into the reams of data now collected on a daily basis.

AI is not only able to automate processes and provide intelligent, relevant digital content for customers, it can also split-test countless messages against different audiences to come up with the most powerful one. It is essentially serving as a marketing function, a CRM function and a BI function all at once.

AI can also analyse customer data and sort through what is and isn’t relevant far more efficiently and quickly than any marketer. It is essentially a cost-efficient way of sorting through data that would normally sit unused in data warehouses. The result is a genuine version of the previously unattainable 360-degree view of the customer.

On the marketing side, AI is the best method to process behavioural data in real-time, allowing operators to better target customers with relevant, timely and personal promotions.

Personal touch

The ability to segment customers and provide personalised, relevant and targeted marketing is a big benefit of using AI. It hands operators the power to drill down deeper into measuring which content works best for a specific audience, without the limitations of a manual process.

Automation essentially hands operators the power to offer a personal, VIP CRM experience to all customers – each through their preferred communication channel.

A combination of BI and AI will also be an important tool as operators adjust to the increasing regulatory demands they will face in the coming years and months.

Firstly, it can serve as a powerful enforcement tool in partnership with operators. It has never been more crucial that operators show they are doing everything in their power to ensure a safe and secure environment for customers, and AI is well-placed to provide the type of insights that can improve this process.

Secondly, with the UK considering a daytime TV advertising ban, and with affiliate marketing under pressure, AI can help scale marketing in other areas to fill the gaps.

A new reality

This is not to say that the proliferation of AI will not pose challenges for the gaming industry. If it is integrated in a clumsy manner, it could heighten concerns about data privacy, while some customers will inevitably be turned off by a form of marketing they consider intrusive.

Similarly, operators will suffer if they do not build a deep, human understanding of the technology and its uses. There will also be a role for the human touch in gaming marketing. AI is an extremely powerful tool, but it needs to be wielded by skilled marketers and used as part of a broader marketing strategy.

Those who overly rely on AI to automate every single part of the marketing and customer communications process could find their output becomes too impersonal, which is precisely the opposite of what we are trying to achieve.

Then there is the way this AI is integrated by operators. Those on legacy platforms will likely have difficulty implementing this technology in a workable fashion. It will be those who use agile, data-driven marketing platforms that are in the best position to automate their processes, because they already have the depth of data and the functionality at hand.

The future of automation

I expect the automation of CRM and marketing processes via AI to be the primary driver of revenue growth in mature markets in the coming years. We are already seeing operators competing heavily on marketing, and those who most successfully leverage AI will be able to return stronger ROIs and reduce the need to offer ever-escalating bonuses to attract and retain players.

AI will certainly be at the heart of Beehive’s roadmap over the coming months. We recently launched our new BI product, Pulse, with AI very much in mind. It is increasingly important to empower operators across the fields of marketing, cohort analysis, game activity, bonusing and more. To put this all into one platform was a real breakthrough.

If we look at the gaming industry as a whole, I would say we are off to an encouraging start when it comes to AI, but there is still plenty more work to be done. We are in a similar position to where we were with big data a few years ago, with all operators realising its importance but perhaps not quite understanding how best to implement it. Those operators who solve this question will be able to very quickly see the benefits.

Adi Dagan is CEO and co-founder of Beehive, the market-leading and only dedicated egaming CRM and business intelligence provider. He started the company in 2010 after running a number of independent consultancies in the industry. He previously worked for Playtech, leading client integrations with large operators including Mansion, Victor Chandler, and iPoker.it.