How AI and API are revolutionizing marketing and the customer experience

SmartyAds COO Oleksii Oliinyk shares with DATAx the revolutionary benefits of integrating AI and automation into your marketing strategy, how APIs are transforming business partnerships and why you should jump on the bandwagon before being left behind


Artificial intelligence (AI) is gradually shifting from the science fiction arena toward the domain of digital marketing. IT companies are not the only businesses interested in AI, but along with API technology, it attracts the attention of businesses from a variety of industries.

The experts in data processing and analysis use a whole set of terms to define AI and its related technologies such as machine learning, deep learning and cognitive computation. All of these share the same strategic task; to evolve from rule-based, programmed systems to flexible mechanisms capable of decision making and self-adapting to fast-paced business realities.

It will take years, maybe even decades until we see the full potential of AI. However, the technology is already conquering digital marketing and we can see proof of this in advertising personalization and profound big data analysis. API technologies, meanwhile, are penetrating the market at a different angle, suggesting new approaches to business creation and the vast opportunities for growth.

Register today to see a host of AI and big data marketing specialists share their thought and views at the AI & Big Data for Marketing Summit, part of the DATAx New York Festival, on December 12–13, 2018

Marketing automatization

Marketers already use AI to customize mailing campaigns delivered to customers. AI systems take into account customer preferences and behaviors in order to make more relevant offers. The algorithm sends different offers to different demographics and interacts with them within the target application.

The algorithms conduct auctions, manage and monitor the progress of the ad campaigns and manage creatives on different platforms including newsletters, search engines and social networks. The programmatic ad purchasing and selling processes are also powered by AI. Algorithmic buying runs automated auctions in real-time, during which the advertising is sold and bought automatically without human interaction. The system streamlines the trading process and skyrockets efficiency as this decision-making takes microseconds.

In programmatic systems, supply-side and demand-side platforms connect to the advertising server via API, enabling communication between the advertiser, publisher and the ad message delivery. In other words, API ensures efficient information exchanges between programs that utilize each other’s functions and resources.

The brands apply the API code to provide customers with quick and easy access to their platforms. Tech giants such as Google, YouTube and Facebook all work with API. For instance, Google API allows users to integrate Google Maps on any website, while Google AdSense allows advertisers to automatically upload text, images and videos to network websites. Facebook comments left on any website sync with Facebook pages automatically which is a great example of how API simplified blogging.

Money saver

Algorithmic buying helps the marketer achieve greater efficiency through sophisticated communication with customers. With this technology, the marketers reach their aimed audience through precise targeting with ease and are able to individualize every impression according to the user’s tastes, geolocation, level of income, gender or age.

For example, a playable or rewarded ad format is an excellent tool that "captures" those audiences fond of mobile games. Utilizing these kinds of creative ploys through programmatic system targeting directed toward the right kinds of on mobile platforms can increase campaign effectiveness by 70%. Because the ad will only be shown to the target audience, you’ll have to spend less on a campaign, but you will gain more because the relevant public is more likely to convert.

Companies traditionally conduct research in an effort to understand their target audience and learn about their motives and experiences, a task which AI helps with today. One renowned manufacturer once faced the dilemma of which fragrance to apply to a new laundry detergent. It decided to use an AI-based human-emotion analyzer to evaluate each which, unlike focus groups, was able to scan mimics and determine with a high degree of accuracy which scent customers would prefer before the campaign started.

When it comes to the cost-saving properties of API technologies, it offers entirely different opportunities to business creation. Small brands and startups no longer need hefty capital investments to start a business as they can build it on ready-made tech solutions connected via API. For example, our White Label programmatic platforms offer brands the opportunity to purchase our platform technology or monetize it for their own benefit. Operating independently, the brand will determine its own financial model and cut out intermediaries and their commission fees.

Better customer acquisition and retention

Personalization of the user experience is one of the greatest strengths of AI in marketing; it helps improve both retention and acquisition. Targeting configuration helps to overcome the so-called "grouping effect," when the customers see an offer based on "average", common portraits of them.

The additional advantage of modern AI-based advertising technologies is that they’re able to generate detailed, real-time analytics. Discovering the authentic tastes and interests of your customers which they might not realize they have, is how you find out what really drives them to commit to a purchase. Knowing the preferences of your target audience is a competitive advantage that brands now have access to with real-time analytics in the AI-powered digital space.

APIs are tools for implementing such campaigns that enable brands to manage large-scale advertising campaigns, receive reports on each of them and accurately forecast budgets. In marketing, APIs are also used for alluring users via referral links and affiliate programs. If your application is popular, to a certain extent, it will work out just fine. The more users the application is able to attract, the more developers will consider it a great idea to integrate your API. As a result, your application will grow exponentially and increase the lifetime value of every customer who will connect with it.

The operations of big brands such as Expedia and is based on this method. When users look for hotel rooms on different websites, the search is performed by and Expedia and delivered to the website through API. Such models are beneficial to both parties, while the tech "donor" increases its sales, the small sources save time and money, receiving ready-made solutions instead of building one from scratch.

To sum up

In the near future, every aspect of marketing will witness significant changes, the greatest part of which will be caused by AI and API. With AI marketing becoming less reactive and more predictive, it will be possible to address every customer’s need before it even arises. With API, brands will be able to actively develop partnerships, build their own business models and create additional sources of income.

The existing marketing landscape is growing ever more relevant and technology will be the key to reaching the right people at the right time and in the right places.

To hear more insights about how AI and big data is transforming and elevating marketing strategies, visit this year's AI & Big Data for Marketing Summit, part of the DATAx New York, happening in New York on December 12–13, 2018.

Find out more HERE

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