5 WAYS HOW AI-ENABLED

MARKETING DRIVES
BUSINESS GROWTH
Introduction 3

Are the Answers in Data? 4

AI as a Driver of Marketing Performance 8

What’s the Idea Behind Augmented Analytics? 9

How AI-powered Analytics Can Be Used in Practice 10

AI-Enabled Marketing Can Drive Growth 13

INTRODUCTION

Navigating the rough waters of today’s economy presents a

major challenge for organizations of all sizes. In these
difficult times, any sort of assistance in improving your
market performance and customer satisfaction is more than
welcome. As it matures as a technology and gets adopted
by more and more companies, Artificial Intelligence is
becoming the key tool that can transform companies into
leaders of tomorrow’s marketplace.

In a world of constant change and is to align marketing and communication

disruption, economies around the world
are facing numerous challenges. For
example, Germany narrowly escaped
slipping into recession at the end of 2019.
Multiple factors, from rapid change in the
automotive sector to uncertainty around
US trade policies and Brexit, are taking
their toll. And this is one of the top 5
global economies, so it’s not hard to
imagine the ever-growing number of
issues troubling the rest of the world’s
leaders.
To be able to navigate through this
challenging economic environment,
businesses need to adopt a clear strategy,
focused on attainable results and
sustainable growth. Besides focusing on
improving product quality and optimizing
processes, one of the ways to achieve this
strategies with the challenges of a
constantly changing market. Companies
must be able to interact effectively with
both existing and prospective customers,
and successfully differentiate from
competitors, if they are to overcome
current and future challenges.
With marketing budgets inevitably
tightening and increasing pressure for
performance improvements, promotional
campaigns need to be both efficient and
effective, reaching the right people with
the right message at the right time. To be
able to invest budgets wisely, marketers
need more intelligence on the behavior of
target audiences, and also on campaign
performance. This information is often
not so easy to reach, and integrating it
from multiple data sources takes time.

3
ARE THE ANSWERS
IN DATA?
Utilizing advanced analytics methods and
tools, based on data from various
sources, has become essential in driving
marketing efficiency. This helps
businesses to get to know and
understand their audiences, and interact
through the most appropriate channels.
Data analysis also enables accurate
measurement of campaign performance,
allowing marketers to achieve the best
possible results with the resources they
have available.
With an abundance of information
delivered through connected devices –
from location and demographics to
interests and shopping habits – data-
driven marketing campaigns seem well
within reach. Yet, marketing departments
are finding it difficult to capitalize on the
data opportunity. This is partly due to a
lack of data scientists, with around
346,000 needed across Europe in 2020.
This situation is part of a larger skills
shortage where vacancies in IT, as well as
science, technology, engineering and
mathematics (STEM), are becoming
increasingly difficult to fill. In 2018 the
number of vacancies for IT specialists in
Germany rose to 82,000, an increase of
almost 50% from the previous year. While
data can help in enabling cost-effective
marketing in a time of economic
uncertainty, the necessary talent isn’t
always available to transform it into
insight.
The answer to this challenge lies in
utilizing artificial intelligence (AI), and
associated technologies such as
augmented analytics, to bridge the talent
gap. These technologies can automate
data management processes and allow
creation of deeper insights that will be
effectively used to drive marketing
performance, with minimal human
interaction and no further investments in
the workforce.
¾ of organizations that
implement AI increase sales
of new products and
services by more than 10%
According to the Capgemini Digital
Transformation Institute, three-quarters
of organizations that implement AI
increase sales of new products and
services by more than 10%. The use of
artifical intelligence in marketing will
stimulate growth and can soften any
fallout from the current economic
uncertainties.
4
ARTIFICAL INTELLIGENCE: THE
ILL-DEFINED ENABLER
Artificial Intelligence is often
seen as mysterious, puzzling, or
even frightening. The idea is
often perpetuated that, as the
world enters the fourth
industrial revolution, robots are
coming to take over from
humans.
In fact, AI is already used in many areas
on a daily basis. Credit card processors
and banks have been using some forms
of AI for decades to detect fraud every
time a purchase is made. Email systems
use machine learning to protect users
from spam, while Google Maps uses AI to
analyze data from smartphones and
identify traffic congestions.
AI is speeding up and improving
processes and everyday tasks, from work
and shopping to communication and
research. And far from being the workers’
demise, AI is actually predicted to create
58 million new jobs worldwide by 2022.
Artificial intelligence is often widely
misunderstood, and one of the reasons is
that it’s difficult to define, and its meaning
has changed over time.
There is no definition of AI which is
generally valid or consistently used, so
one of the answers could be the
definition listed in Encyclopedia
Britannica:
ARTIFICIAL INTELLIGENCE [noun]
Artificial intelligence, or AI, is the
ability of a digital computer or
computer-controlled robot to perform
tasks commonly associated with
intelligent beings.
So, the term “artificial intelligence” usually
refers to the ability of machines to
perform actions that were previously
requiring human participation, such as
ability to reason, discover meaning,
generalize, or learn from past experience.
As scientists develop increasingly
sophisticated forms of AI, able to perform
tasks once thought impossible, the
definition of AI is continually evolving, and
also the area of application of these
technologies.
One of those areas is marketing, where AI
is perceived as the key aid in many
strategic, but also tactical tasks.
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THERE ARE
TWO BASIC
TYPES OF AI
The artificial intelligence solutions
currently in use mostly fall into the first
category, designed to perform specific
(mostly mundane) tasks and support
other processes handled by humans.
Recent development efforts are moving AI
in the direction of the second category,
but it’s still in early stages.
The term AI encompasses a wide range of
technologies and platforms, including
deduction systems that validate
computer generated results, knowledge-
based or expert systems that simulate
human expertise, pattern analysis or
recognition technologies, robotic or
autonomous systems, and human
interaction or language analysis
processors.
Narrow (or weak) AI
Focusing on solving a specific
problem, with systems using
various mathematical and
statistical techniques to self-
optimize and support or simulate
human thinking
General (or strong) AI
This refers to systems that are
capable of reproducing or even
exceeding human-level
intelligence
As a general term, artificial intelligence
includes a number of subset methods
such as machine learning, deep learning,
natural language processing, predictive
analytics, and sentiment analytics.
Rather than thinking of it as a stand-alone
technology, AI is best thought of as an
enabler that allows systems to display
intelligent behavior and perform
cognitive, human-like tasks. Therefore its
contribution to the overall business
growth goes in multiple directions. And as
more companies are embracing it, it is
being described as “the fastest paradigm
shift in technology history,” with the
proportion of global enterprises with AI
initiatives growing from one in 25 to one
in three in just three years.
6
LARGE ECONOMIES ARE
ALREADY INVESTING IN AI
If you follow the news from the
technology arena, you’ll quickly realize
that the world is on the cusp of a
technological and societal revolution
powered by AI. A large proportion of
research and development in this field is
currently taking place in North America
and China. All those countries lagging
must prioritize R&D efforts for AI,
because the growth and future of their
economies might depend on AI’s ability to
allow them to remain competitive.
With this in mind, the European
Laboratory for Learning and Intelligent
Systems (ELLIS) was created. Its mission is
“to create a diverse European network that
promotes research excellence and advances
breakthroughs in AI, as well as a pan-
European PhD program to educate the next
generation of AI researchers.” In addition,
the European Union has published a
Coordinated Plan on Artificial Intelligence,
which requires each member state to put
together their own national strategy
supporting the development and
application of AI. While some countries
such as Germany, France, Belgium,
Sweden and Denmark have already
published these, others are still in the
process of developing them.
There are already considerable
investments in AI, and it is recognized as
an essential driver of growth by many
countries. Germany’s national strategy for
AI is titled AI made in Germany, and the
Federal Government has pledged €3
billion up to 2025 to implement that
strategy. The strategy builds on
Germany’s existing strengths in AI and
aims to safeguard the country’s position
as a center of research, increase the
competitiveness of German industry, and
promote the use of AI in all parts of
society to achieve tangible progress.
Steps outlined in this strategy include
developing existing Centers of Excellence
for AI into a national network of centers
and application hubs, working with other
European countries on cooperative
research and development projects,
increasing funding and support for start-
ups and small to medium sized
businesses, and funding in-company
innovation initiatives for AI applications in
the area of work, as well as those that will
benefit the environment and the climate.
As one of largest global economies,
Germany is already well positioned in
many areas of AI research and
development, and this strategy serves as
a framework for the government to build
on these strengths and use AI as a driver
of growth in the future. It is safe to expect
other countries to be following on this
example and start focusing more on
developing and maintaining AI-focused
capacities which will fuel their economies
in the times to come.
7
AI AS A DRIVER OF
MARKETING
PERFORMANCE
In the same way AI affects countries and
economies worldwide, it has profound
effects on businesses and the way they
structure their marketing efforts. The use
of some form of artificial intelligence in
marketing is already relatively
widespread. According to the “State of
Marketing” research from 2019, AI was
used in some form by almost half of
surveyed marketers. And, according to
Adobe, top performing companies are
more than twice as likely as lower
performing companies to be using AI for
marketing. But most marketing
departments are still only in the early
stages of exploring AI’s potential.
AI’s primary use within marketing is to
automate the analysis of vast and
complex data sets coming from various
sources, including connected devices. It
can be used to correlate large data sets
from multiple sources, which could
deliver deep insights and unlock the true
power of analytics. The use of AI in this
way enables marketers to understand the
performance of their campaigns and to
meet the campaign goals more
effectively. Analysts and data scientists in
companies currently spend a great deal of
time collecting, cleansing and sorting
data that is stored in disparate data silos.
This regularly means manually compiling
information from basic spreadsheets
stored on individual computers, which is
a waste of their skills and time that could
be used for much more insightful work.
Once data sets are ready for use, analysts
take an explorative approach, ‘digging’
through data to discover patterns and
trends or answer specific questions
presented to them. This method can be
time consuming, especially as analysts
don’t always know what they are looking
for and have to search through masses of
detail to find the right piece of
information.
There is a tendency to make assumptions
based on previous experience and then to
use data to support those initial
expectations, which can result in vital
insights being overlooked or business
decisions being influenced by incomplete
information. AI and associated
technologies, such as augmented
analytics, allow businesses to make far
better use of analyst and data scientist
skillsets, as well as to deliver more
valuable and precise insights, based on
previous information and forecasting
techniques.
8
WHAT’S THE IDEA BEHIND
AUGMENTED ANALYTICS?
Augmented analytics takes over the
tedious tasks associated with data
preparation and automatically unifies
information from multiple fragmented
sources, cleaning it and making it ready
for use and further analysis. It then takes
a more objective, predictive and proactive
approach to data discovery, automatically
identifying patterns and trends that
humans may never uncover, as well as
providing context into why these patterns
exist and how relevant they are.
By evaluating multiple
dimensions concurrently, this
AI-powered technology can
recognize hidden opportunities
within data and suggest how
marketers can best act on those
findings.
For example, patterns in customer
interaction with ad campaigns can reveal
customer preferences in certain
geographic areas, so marketers can
adjust campaign deliverables to address
these preferences better.
By eliminating the labor-intensive and
time-consuming parts of data analysis, AI
enables the end users of this information
– data scientists, analysts or marketing
executives – to focus on tasks where they
can add more value.
It also makes analytics more accessible,
empowering individuals employed in
sales, customer service or marketing to
generate valuable insights through
moderately sophisticated analysis that
would previously have required a higher
level of expertise and engagement.
Through AI, marketing teams can make
far better use of avaiilable resources,
accelerating their team’s productivity and
overcoming the skills gap, while
simultaneously increasing the
effectiveness of their marketing
investments.
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HOW AI-POWERED
ANALYTICS CAN BE USED
IN PRACTICE
Application of AI can bring strong effects
to marketing departments in companies
of all sizes. Whether they use it only to
process data before further analysis, or
do you actually use the full potential of
AI’s discovery possibilities, the positive
effects on the daily operations of
marketers are significant. Highlighted
below are five examples of practical use
of AI-backed analytics in marketing.
Segmentation and
personalization
One of the biggest benefits AI-based
analytics can bring to businesses is to
help them understand their target
audiences. Through popular AI methods
such as machine learning and natural
language processing, marketers can find
out what their customers and prospects
are interested in, what motivates them,
and what their preferences are. AI can be
used to identify highly specific audience
segments, outlining their desires and pain
points, as well as predicting their buying
patterns by product or service.
Armed with these insights, businesses
can drive marketing success by aligning
messaging with audience needs and
directing budget into the most effective
promotion channels and messages. They
can use the information at hand to
deliver hyper-personalized customer
experience, tailoring communications to
the user’s individual profile and
preferences in real time to ensure they
resonate and drive action.
Personalization could mean tailoring ad
creative based on contextual factors such
as location or device type, or it could
mean optimizing email content to ensure
it contains relevant information that
speaks to the recipient directly and is sent
at the time most likely to drive action.
Personalization could also mean making
dynamic product recommendations
based on data points such as the user’s
past purchases and viewing history.
Some companies have set benchmarks in
effective use of AI-enabled product
recommendation engines, giving ideal
examples of the power and potential uses
of AI.
• Amazon analyses users’ purchase and
viewing history in real time to identify
the products they are most likely to
buy next and displays these products
to create a relevant shopping
experience.
10
• Netflix has an AI-powered algorithm
that takes into account data points
such as viewing history, title ratings,
choices of members from similar
demography or location, viewing
times, device type and viewing
duration, to make recommendations
about what customers might want to
watch next.
• Spotify uses a highly sophisticated
recommendation algorithm to
develop a user’s music profile, and
then compares it with billions of other
Spotify playlists, identifying songs
from those lists that fit the user’s
profile and music preferences, but
they haven’t yet listened to.
Real-time campaign
analysis
To make best use of their marketing
budgets, businesses must identify clear
campaign goals and target metrics and
then allow AI-enabled algorithms to
browse through campaign execution data
and determine how to achieve these KPIs
at the lowest cost possible. Optimization
opportunities are numerous, from
reduction of basic ad indicators such as
CPC and CPM, towards more complex
models that include multi-variant
analyses of data coming from disparate
sources throughout the business, not
only marketing ones.
Marketing performance can be precisely
measured using advanced attribution,
and the resulting insights leveraged to
continually optimize campaigns in real
time across all channels to ensure
maximum efficiency. Historical
performance data can also be used to
optimize campaign planning, while
forecasting performance can play a
crucial role in setting realistic
expectations for future campaigns.
Error and anomaly
detection
AI-based anomaly detection uses
statistical and machine learning
techniques to identify unusual patterns in
large data sets, discrepancies that would
otherwise remain hidden. It can also
detect and point to bias within data sets
that could come from unconscious
human preconceptions or flawed data
collection techniques, which could
negatively impact marketing
performance.
Anomaly detection can also alert
businesses to operational problems or
process errors that could be overlooked
or only noticed when it is too late to
rectify them. For instance, a Google
employee accidentally created a cost to
the company of $10 million with the
‘yellow box’ advertising blunder in 2018.
Google caught this mistake within the
hour as they most likely had a form of
anomaly detection within their systems,
which prevented further wasted ad
spend.
Dynamic pricing
By using AI to monitor external factors
such as general buying trends and
competitor pricing, as well as internal
trends such as seasonality in customer
11
demand or operational costs, businesses
can dynamically adjust product pricing to
an optimum point of competitiveness.
Small changes in price can have a huge
impact on sales volumes, but also
profitability, which is especially important
for businesses operating with small
margins.
The ability to offer multiple price points
optimized for factors such as price
elasticity, product availability and phases
in a product’s lifecycle, all help to increase
revenue and profits. Also, this shows a
very customer-oriented approach of the
company, offering the best possible terms
to customers, while at the same time
maintaining profitability and other key
business goals.
Customer service
interactions
Many brands are using AI to reduce costs
and increase effectiveness of customer
service functions. It can be used for
augmented messaging, enhanced phone
support, or routing enquiries to the right
customer service agent. AI-powered
chatbots that receive conversational input
through text or voice and then generate a
response in natural language are already
moving to the frontline of customer
service interactions.
Chatbots use technologies such as deep
learning, natural language processing,
predictive analytics and sentiment
analytics to learn from patterns in data.
They can then apply the resulting insights
to customer issues to try to solve them.
Chatbots are useful for predicting
customer needs and resolving simple
issues quickly. In the times of increased
focus on customer experience
improvements, chatbots have become
increasingly popular due to 24/7
availability and their capacity to deliver
instant answers to the most common
questions.
AI is Compatible with Data
Regulation
AI’s dependence on data to drive
marketing performance may ring alarm
bells with some marketers at a time when
data regulations require businesses to put
consumer privacy first, and ensure their
data processing practices are beyond
reproach. But AI and machine learning can
actually help businesses to ensure
compliance with regulations such as the
GDPR.
Machine learning allows businesses to
mitigate risk by tagging sensitive
information and automating the data
handling process within established
guidelines, ensuring individual users’
personal preferences are routinely applied
across the organization. By using AI in
data processing marketers reduce the
potential for human error, which is often a
major factor in highly damaging data
breaches. Also, by using AI alongside a
robust internal regulation structure and
employee education program, businesses
can ensure they are continuously
compliant with the latest data regulations.
12
AI-ENABLED
MARKETING CAN
DRIVE GROWTH
In an unstable economic climate, marketers
simply have to up their game and achieve more
with less. Data provides the key to efficient and
effective campaigns and, by embracing AI-enabled
technologies such as augmented analytics,
marketers can overcome the skills gap and
become citizen data scientists, performing
moderately sophisticated analysis themselves and
generating valuable insight.

AI-enabled data analytics opens up a number of

possibilities for marketers, from personalization
and real-time measurement to anomaly detection
and enhanced customer service interactions, all
within the framework of data privacy regulations.
The examples listed above are only the start of
what technology can do for marketing
effectiveness, as businesses follow the
government’s lead and leverage AI to drive growth
in the face of economic uncertainty.

13
ABOUT ADVERITY

Adverity is an intelligent marketing analytics platform enabling data-driven

marketers to make better decisions and improve performance, faster and
easier. By transforming siloed data into actionable insight, Adverity reduces
the complexity involved in demonstrating ROI of marketing spend.

With the help of powerful data visualizations, this vendor-agnostic, end-to-

end platform uncovers real-time opportunities to fuel growth with
augmented analytics. Founded in 2014, Adverity powers the marketing
intelligence of some of the world’s leading brands and agencies, including
IKEA, Red Bull, GroupM, Unilever, Omnicom, Barilla, JD Sports and Forbes.
Our fast-growing company is headquartered in Vienna, and has offices in
Frankfurt, London and New York.

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