As digital marketing campaigns grow increasingly innovative, keeping up becomes challenging for businesses, leading to a shared query; 'How can one maintain stay ahead in this marketing race?' Several small to medium-sized companies, even with a high-quality product, need help making money from it due to ineffective marketing approaches.

When every penny counts, it is important to prioritize campaign optimization that brings a greater Return on Investment (ROI) with smarter campaign optimization. However, manual campaign optimization requires time, capital, and resources.. That’s where businesses have the option to turn to AI for marketing and automate the entire process within minutes. But how does this automation marketing lead to a higher ROI? Let’s find out.

How does AI affect performance marketing?

Traditional performance marketing is often time-consuming, requires resources, and is prone to human error. Hence, 54% of companies globally prefer AI marketing campaigns to automate these tasks for them to increase efficiency and make smarter decisions. Here's how marketing with AI and automation makes a difference in campaigns:

Data-driven Insights

Personalized marketing campaigns rely heavily on the ability to extract valuable insights from existing data. Manually, it can take days or weeks to collect, analyze, and identify patterns, and another few weeks to plan a campaign based on the findings. 

AI helps cut down on this process to a few minutes by analyzing vast amounts of data from various sources and highlighting hidden patterns and trends that would be difficult to identify manually. These AI-led insights speed up decision-making and streamline campaign optimization, budget allocation, and audience targeting.

Hyper targeting and Personalization 

One of the reasons why many marketing strategies yield lower ROI is because they target the wrong audience. AI digital marketing lends a helping hand by precisely micro-segmenting your audiences with data, based on demographics, behaviors, interests, purchase patterns, and more.

But AI doesn’t stop there. It also recommends personalized messaging strategies tailored for each micro-segment. This way, the right message reaches the right person at the right time, reducing the scope for errors.

Predictive Analytics 

At the end of the day, good marketing boils down to understanding customer psychology. But why? Simply because it helps predict consumer behavior, preferences, and trends, you can recommend the customer with what they need before they even express it.

AI’s study of customer data helps predict future behaviors and trends that automate this process and further enhance the quality of the campaign. By predicting which campaigns will perform best, marketers can better allocate resources and maximize ROI more efficiently.

Dynamic Creatives

The final but equally crucial piece of the puzzle is the creatives. Everything from design to copy needs to stop your audience in their tracks and pay attention to your message. AI helps you custom-tailor creative elements like images, headlines and calls to action by thoroughly studying how people interact with ads and aligning them with each viewer's preferences and behaviors. 

This level of personalization can significantly improve click-through rates (CTRs) and conversion rates, driving higher ROI. AI-driven dynamic creatives also adapt in real time to optimize performance and keep the ads relevant and engaging. 

How is marketing with AI increasing ROI for performance campaigns? 

Eliminates Repetitive Tasks

By using AI for marketing, marketers can refocus their energy on big-picture strategies, since most of the data-driven tasks are taken care of by AI. They can utilize this time to focus on higher-value strategic activities like creative ideation and mastering specialized skills that drive more impactful marketing campaigns.

Increasing Conversion Rates

AI helps optimize every stage of the customer journey, from streamlining the target audience to creatives. With these highly targeted AI marketing campaigns, businesses can significantly increase their conversion rates by an average of 20% compared to those who don’t.

Higher Ad Efficiency 

AI optimizes performance marketing spend by identifying the most effective channels, times, and formats for each target audience. This precision reduces costs and improves ad efficiency. According to McKinsey, AI can reduce acquisition costs by up to 50% while increasing campaign effectiveness by 33%. This efficiency directly translates into a higher ROI.

Enhancing Budget Allocation 

When it comes to budget allocation for a small or medium-sized business, every advertising dollar counts. However, AI ads unburden you by making informed decisions across campaigns with its predictive analytics qualities. By analyzing existing data and predicting future performance, AI can identify the most profitable areas to invest in without any guesswork, ensuring that the advertising  budget is optimized for maximum ROI.

Increasing Customer LTV

By creating personalized messages, creatives, and timely interaction for different audience segments, AI powered marketing contributes to a well-rounded customer experience, translating to an increase in customer lifetime value (LTV). Furthermore, with data on customer behavior, AI also identifies opportunities for cross-selling, upselling, and delivering experiences that promote long-term customer loyalty and retention.

Is AI powered marketing the future?

AI marketing tools save time, and that's what makes them the future of marketing. They are bridging the gap between customer personalization expectations and delivering targeted communication. AI in marketing will soon prove to be an absolute must, instead of a choice, for businesses to stay competitive and maximize their ROI. In the future, this will foster deeper customer engagement and loyalty while transforming jobs for many marketers to only make it more action-oriented.

How can Thirdi help you leverage the power of AI marketing tools?

At Thirdi, AI is at the core of driving performance marketing campaigns that yield returns. Our state of the art and innovative AI platform is designed to work seamlessly with existing marketing tools and channels, providing instant data-driven recommendations and empowering you with an end-to-end marketing solution.

With Thirdi's AI-led platform cutting through the confusion and analyzing your business objectives and goals, you get access to the perfect AI marketing approach tailored to your needs, regardless of your technology efficiency or your business size.

In conclusion, the future of performance marketing lies in the collaboration of AI and human expertise. AI marketing automation changes marketing jobs to be more action-oriented and makes room for more creativity. Businesses that embrace this powerful technology are not only quicker to action but also have the potential to outperform their competitors and drive exceptional ROI from their AI marketing efforts.

If you are looking to jump on the AI bandwagon, reach out to us today.