Internet Marketing

The AI-powered path to smarter marketing

The rise of generative AI has fueled an explosion of data, creating immense potential for marketers. However, navigating this abundance requires sophisticated tools to extract actionable insights from the noise.

With the ideas of Tooba DurrazePh.D., founder and CEO of data analytics company Amoeba, explores how AI-powered solutions can turn big data into actionable marketing insights.

The data explosion and its challenges

The amount of data created on a global scale is staggering. Durraze points out: “According to IDC, global data creation is expected to increase from 64.2 zettabytes in 2020 to 181 zettabytes by 2025.” If stored on 64 GB USB drives, 181 zettabytes would fill approximately 2.8 trillions of USB sticks.

The growing use of generative AI has created a wave of data that presents a double-edged sword. On the one hand, it provides marketers with incredible opportunities to uncover insights that will help move things forward. On the other hand, this highlights a major challenge: the inability to translate it into actionable insights.

Durraze further notes:

“Marketers are drowning in data from website analytics, CRM systems, social media, email campaigns and transactions. Each touchpoint produces more content, more personalization and, above all, more data to analyze. What was once just a handful of KPIs is now a vast network of information. Marketers know there is value in these signals, but often the sheer volume of the noise drowns out the clarity.

Without the right tools, this amount of data can overwhelm even the most capable teams. For example, an e-commerce business may obtain data from, among other things, its website analytics, CRM, e-commerce platform, and social and PPC campaigns.

Dig Deeper: The hierarchy of data analysis: the place of generative AI

AI-powered solutions: turning challenges into opportunities

The answer to this complexity lies in AI-based systems. Designed to sift through large data sets, they identify patterns and provide actionable insights in a way that is impossible for human teams to replicate.

Durraze explains that these systems can help in two key areas:

Identify large-scale patterns

AI can discover non-linear relationships and trends hidden in massive data sets. For example, it may reveal that a specific audience segment converts better to video content posted on Thursday afternoons.

“AI tools don’t just process data; they link them to business outcomes by finding opportunities that were previously invisible,” says Durraze.

Provide predictive insights

Beyond understanding the past, AI can predict future outcomes.

“Predictive models can estimate customer lifetime value, predict campaign ROI and lead conversion potential. This allows marketers to allocate resources where they will have the greatest impact,” says Durraze. “This approach transforms marketing analytics from a reactive reporting function into a proactive driver of business growth.”

Dig Deeper: 3 Ways to Use Predictive Analytics to Make Better Decisions

Remember, AI is not a replacement for human creativity or decision-making, but an augmentation tool. It can provide clarity by analyzing data and presenting information. People remain responsible for strategic decision-making. As Durraze says: “The value of AI is not in eliminating creative strategy or human judgment, but in giving teams better insights.”

For example, AI could suggest that a discount on a product will lead to higher conversions. However, it is up to the marketing team to determine how to position and promote this offer. Even if AI identifies an audience segment that responds better to video, marketers still need to create content that engages them.

This interaction between AI and human expertise is changing the role of marketing leaders. Instead of spending time sorting through data, they can focus on the right questions:

How can we improve next quarter? What drives customer loss? Which markets offer untapped growth potential?

Durraze notes: “AI provides answers, but it’s up to marketers to act on them. »

Conditions for success: putting AI at the service of marketing

For AI-based analytics to add real value, businesses must meet two essential prerequisites:

Unified data systems

“Siled data remains a major obstacle,” says Durraze. Many marketing teams operate with separate systems for CRM data, web analytics, and ad performance, which prevents AI tools from creating a comprehensive view of customer behavior. He points out: “AI tools work best when data is unified, creating a comprehensive view of customer behavior. »

Clear business objectives

Durraze points out: “AI without focus produces noise.” Teams should align analytics initiatives with specific goals, such as reducing customer acquisition costs, improving retention, or increasing campaign ROAS. “Aligning AI efforts with business outcomes ensures that the technology will have meaningful impact rather than generating further confusion. »

For example, consider a business focused on acquiring new customers but measuring PPC success based solely on ROAS, with no value assigned to net new customers. These goals require fundamentally different strategies, and misaligned KPIs can lead to suboptimal results, highlighting the need to align goals with measurable outcomes.

Dig Deeper: AI and Machine Learning in Marketing Analytics: A Revenue-Driven Approach

The competitive advantage of AI

Organizations that effectively implement AI-driven analytics gain a distinct competitive advantage. “They can optimize resource allocation, minimize unnecessary expenses and generate higher revenues,” says Durraze. “The future of marketing is not about creating more data. It’s about making the right decisions with the data we already have.

“Without tools that can manage the complexity and scalability of data, businesses rely on intuition, experience, or simplified dashboards to make decisions. The result is marketing strategies that look good but lack precision,” says Durraze.

Embracing AI for Smarter Marketing

The explosion of data has raised the stakes for marketers. Customers now expect campaigns tailored to their needs, and businesses can no longer afford to guesswork. AI-powered marketing analytics bridges the gap between data abundance and actionable insights, turning challenges into opportunities.

However, success depends on marketers’ ability to integrate data, set clear goals, and embrace AI as a tool. As Durraze reminds us, “success will belong to companies that know how to give it meaning.” For marketers, the challenge is clear: adopt tools that unlock the full potential of data and focus on meaningful results.

Dig Deeper: Why Causal AI is the Answer to Smarter Marketing

Contributing authors are invited to create content for MarTech and are chosen for their expertise and contribution to the martech community. Our contributors work under the supervision of the writing and contributions are checked for quality and relevance to our readers. The opinions they express are their own.

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