Artificial Intelligence Marketing - AbsoluteAstronomy.com

Artificial intelligence marketing (AIM) is a form of direct marketing

Direct marketing

Direct marketing is a channel-agnostic form of advertising that allows businesses and nonprofits to communicate straight to the customer, with advertising techniques such as mobile messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional...

leveraging database marketing

Database marketing

Database marketing is a form of direct marketing using databases of customers or potential customers to generate personalized communications in order to promote a product or service for marketing purposes...

techniques as well as AI concept and model such as machine learning

Machine learning

Machine learning, a branch of artificial intelligence, is a scientific discipline concerned with the design and development of algorithms that allow computers to evolve behaviors based on empirical data, such as from sensor data or databases...

and Bayesian Network

Bayesian network

A Bayesian network, Bayes network, belief network or directed acyclic graphical model is a probabilistic graphical model that represents a set of random variables and their conditional dependencies via a directed acyclic graph . For example, a Bayesian network could represent the probabilistic...

. The main difference resides in the reasoning part which suggests it is performed by computer and algorithm instead of human.

Behavioral targeting

Artificial intelligence marketing provides a set of tools and techniques that enable behavioral targeting

Behavioral targeting

Behavioral targeting is a technique used by online publishers and advertisers to increase the effectiveness of their campaigns.Behavioral targeting uses information collected on an individual's web-browsing behavior, such as the pages they have visited or the searches they have made, to select...

Collect, reason, act

Artificial intelligence marketing principle is based on the perception

Perception

Perception is the process of attaining awareness or understanding of the environment by organizing and interpreting sensory information. All perception involves signals in the nervous system, which in turn result from physical stimulation of the sense organs...

-reasoning-action cycle you find in cognitive science

Cognitive science

Cognitive science is the interdisciplinary scientific study of mind and its processes. It examines what cognition is, what it does and how it works. It includes research on how information is processed , represented, and transformed in behaviour, nervous system or machine...

. In marketing context this cycle is adapted to form the collect, reason and act cycle.

Collect

This term relates to all activities which aims at capturing customer

Customer

A customer is usually used to refer to a current or potential buyer or user of the products of an individual or organization, called the supplier, seller, or vendor. This is typically through purchasing or renting goods or services...

or prospect data. Whether taken online

ONLINE

ONLINE is a magazine for information systems first published in 1977. The publisher Online, Inc. was founded the year before. In May 2002, Information Today, Inc. acquired the assets of Online Inc....

or offline these data are then saved into customer or prospect databases.

Reason

This is the part where data is transformed into information and eventually intelligence

Intelligence (information gathering)

Intelligence assessment is the development of forecasts of behaviour or recommended courses of action to the leadership of an organization, based on a wide range of available information sources both overt and covert. Assessments are developed in response to requirements declared by the leadership...

or insight

Insight

Insight is the understanding of a specific cause and effect in a specific context. Insight can be used with several related meanings:*a piece of information...

. This is the section where artificial intelligence and machine learning

Machine learning

in particular have a key role to play.

Act

With the intelligence gathered from the reason step above you can then act. In marketing context act would be some sort of communications that would attempt to influence a prospect or customer purchase decision using incentive

Incentive

In economics and sociology, an incentive is any factor that enables or motivates a particular course of action, or counts as a reason for preferring one choice to the alternatives. It is an expectation that encourages people to behave in a certain way...

driven message

Again artificial intelligence has a role to play in this stage as well. Ultimately in an unsupervised

Unsupervised learning

In machine learning, unsupervised learning refers to the problem of trying to find hidden structure in unlabeled data. Since the examples given to the learner are unlabeled, there is no error or reward signal to evaluate a potential solution...

model the machine would take the decision and act accordingly to the information it receives at the collect stage.

Machine Learning

Machine learning
Machine learning
Machine learning, a branch of artificial intelligence, is a scientific discipline concerned with the design and development of algorithms that allow computers to evolve behaviors based on empirical data, such as from sensor data or databases...

is concerned with the design and development of algorithm
Algorithm
In mathematics and computer science, an algorithm is an effective method expressed as a finite list of well-defined instructions for calculating a function. Algorithms are used for calculation, data processing, and automated reasoning...

s and techniques that allow computers to "learn".

As defined above machine learning is one of the techniques that can be employed to enable more effective behavioral targeting

Concerns

As mentioned in the behavioral targeting

Behavioral targeting

article :

"Many online users & advocacy groups are concerned about privacy
Privacy
Privacy is the ability of an individual or group to seclude themselves or information about themselves and thereby reveal themselves selectively...

issues around doing this type of targeting. This is an area that the behavioral targeting industry is trying to minimize through education, advocacy & product constraints to keep all information non-personally identifiable or to use opt-in and permission from end-users (permission marketing)."

Behavioral targeting

Collect, reason, act

Collect

Reason

Act

Machine Learning

Concerns

Further reading