The importance of AI in online marketing – a critical examination of the opportunities and challenges for promotional strategies 2/2
Welcome to our series of articles about current final theses of our students!
Alumna Antonia Biel wrote an outstanding bachelor thesis on “The importance of AI in online marketing – a critical examination of the opportunities and challenges for promotion strategies” as part of her bachelor studies at the Fresenius University of Applied Sciences in Cologne. The second abstract is presented below. You can read the first part here.
AI offers several opportunities for companies
AI will become a key skill for successful online marketing in the future and to prevail over the competition. It is clear that the implementation of AI brings both opportunities and challenges. The following opportunities arise for companies:
- more cost-effective and efficient online marketing processes
- real-time analysis and measurement of large amounts of data
- customer information and reactions can be collected, processed and evaluated faster and in greater detail
- data-based decision support and recommendation of online marketing measures
- personalization and automatic playout of advertisements and content
- in the context of promotion: targeted and individually tailored addressing of target groups, identification of potential customers and new customer groups
The following challenges arise for companies:
- skilled personnel is needed, which is hardly available on the labor market
- technical possibilities and existing data are not optimally exploited/evaluated
- AI must be constantly developed so that new areas of application in online marketing can be opened up
- prerequisite for the target-oriented use of AI: large mass of customer data
- consideration of legally compliant collection and processing of customer data
- in the context of promotion, it must be taken into account which degree of automation and individualization the respective advertised person accepts
- the human connection between company and customer cannot be lost
The area of promotion and AI
Focus of this work was the area of promotion with the instruments that on the one hand pursue commercial intentions, on the other hand take place on the Internet and communicate rather one-sidedly. These are media advertising, direct marketing and the own website. AI will have a constant impact especially in these areas. Smart Ads, automatic content optimization and creation will raise the distribution of advertising to a new level. Communication with customers will be optimized and can be planned data-driven as well as targeted and measured in real time.
Artificial Intelligence is no longer a future topic…
…but is already part of the present and is becoming increasingly important for companies. Companies should be aware of the opportunities and challenges that arise from the use of AI in online marketing if they want to implement the technology successfully. Since the development of AI is far from over and the limits of the technology have not yet been exhausted, it needs to be considered further.
Huge developments will be expected
In the future, the technology will continue to show tremendous developments and can offer a variety of opportunities. There is no question that AI will become indispensable in online marketing. Companies should get to grips with the technology in good time in order to understand it and benefit from its possibilities. In doing so, they should invest in their employees and their know-how as well as in the corresponding AI systems.
AI – from competitive advantage to competitive necessity
Companies should therefore implement the available applications of AI in the area of promotion. Otherwise, they run the risk of losing attention and, as a consequence, interest from their target audience in the future. AI will establish itself in online marketing and in the area of promotion and ultimately, based on the expert survey, will move from being a competitive advantage to a competitive necessity in the next three years.