The benefits on becoming more data-driven and the use of AI in marketing

Marketing technology has become a compulsory item in any modern marketer’s toolkit, with brands in North America and the UK spending over a quarter (26%) of their budgets on martech, according to new figures from BDO.

Making up a proportion of that spend are data and AI technologies, including new tools for data collection methods, predictive analytics, sentiment analysis, audience targeting and product recommendations to name a few. These are all designed to help marketers make sense of the spiralling amount of data they can now get their hands on and achieve useable insights.

For CMOs data is incredibly important in terms of value. By using the right technology, data can provide marketing departments with real-time insights into preferences, tastes, behaviours and habits of their customer base allowing them to run more effective campaigns.

But given the significant cost of having to invest in these technologies, are they really worth the investment, and what key benefits do they bring?

Making the most of technology

Time saving is a huge consideration. Gone are the days of having to manually sift through media mentions to create a huge coverage report. Using smart data collection technology and AI to perform repetitive tasks, such as reporting, means the entire marketing team has more time to focus efforts on more important creative and consultative aspects of their role, where they can truly add value.

Of course, having a machine collate and manage data also means that the number of errors in the dataset is dramatically reduced. This means marketing teams can be assured that they are making decisions and building campaigns based on accurate information.

AI is incredibly helpful for analysing data, particularly for identifying patterns and making accurate predictions. Where forecasts, estimates and analysis carried out by humans have a tendency to be somewhat biased, and based on limited past experience or subjective decisions, AI can help provide a more precise and objective view in many cases.

It is also possible to use AI to predict customer behaviour – for instance using historical data and sophisticated algorithms to calculate which products or services they will most enjoy, or what channels they are most likely to engage in. The ultimate goal being that this information can be utilised to create a more personalised experience for the customer.

Measurement to inform strategy

 These technologies can be used to measure the impact and success of a marketing team’s efforts with more precision than ever. For example, it is possible to use data to see if a company podcast has reached the required audience or which publications have the most impact in driving website traffic, right down to the exact demographic engaging with social content, all of which can then inform future strategy.

Time and time again, we hear of marketing teams struggling to measure ROI. But by using data analytics and AI it is now possible to do so. As long as goals and KPIs are determined from the outset of the project, it has never been easier to measure the effect a specific campaign has had on building a brand using the latest data analytics technologies.

What’s the hold up?

The real question is, are all marketing teams making the most of data and AI in their marketing efforts? It seems not. Analyst firm Forrester calculated that on average between 60% and 73% of all data within an enterprise goes unused for analytics. In addition, according to research by Allison+Partners, one-fifth of marketing directors haven’t even invested in augmented or advanced data analytics yet. And it’s unlikely to change quickly as nearly all respondents (98%) said there will be obstacles to improving how data-driven their marketing department is in the future.

With the amount of data growing exponentially, time is running out for marketers who are yet to embark on their data and AI journey. If they fail to invest now, then they are missing out on the data goldmine.

Sue Grant, managing director of Allison+Partners UK, has specialised in PR in the B2B technology industry for 35 years. During her career Grant has gone on to create and implement communications campaigns for many of the industry’s most successful and emerging brands. She provides the experience and strategic guidance that has helped both established and emerging B2B brands take their profile to the next level in EMEA. She is passionate about digital marketing and integrating into client campaigns.