Why Do We Need AI in eCommerce Marketing?

AI in eCommerce is changing the game everywhere by processing large quantities of information and making fast decisions on large-scale problems, many times outperforming humans.


Quality marketing is strongly dependent on processing a large amount of information and making the right decisions. For eCommerce in marketing, knowing which products are hot, what demographics will be interested in purchasing, correlating advertisement bids with product availability, micro-targeting, and accurate predictions on the correct marketing strategy, are all tasks out-of-hand for human management.


That is precisely where AI in eCommerce and Machine learning makes amazing things possible. The marketing space utilizes AI quite heavily to determine ad placement (who will see the ad, when will they see it, where will it be displayed). AI-based automated campaign management can monitor every parameter in the campaign performance and make fast decisions that influence ROAS dramatically.


In eCommerce, advertising to a window-shopper rather than an intending-customer can mean thousands of dollars being spent in vain. In automated AI  targeted advertising vs. AI in eCommerce marketing, bid decisions can be made based on many monitored user behaviors and changed instantlyif they prove wrong, giving brands the power to maximize their ROAS and minimize advertisement losses.


But this is not everything. The main challenge for advertisers is to scale. Good ROAS and positive ROI are relatively easy to obtain when you aim at a small number of sales/conversions, but eCommerce marketing is a game of scale. When one does not have a restriction on the supply side, the demand is the only concern. And creating the market requires reaching a large audience, the right audience. Large-scale micro-targeting can only be done when analyzing a large amount of purchasing patterns across many users in many different scenarios. Every shopping behavior demographics parameter and every person’s age, sex, nationality, site visits, and many more data points should be analyzed to get the best outcome and produce the kind of message the user needs to see to make the purchase.


Considering all the data computers will have access to and their AI and Machine Learning analytical capabilities, we can expect them to make the most accurate predictions. Content performance, eCommerce in marketing, and AI targeted advertising campaign results can be seen before you even run them. Of course, the machines found through eCommerce marketing automation solutions will give you an exhaustive list of improvements you need to make to achieve the result you are hoping for. Soon, instead of taking action and tracking its effects, we will be able to anticipate them and adjust our efforts if necessary.


Related Readings

Disruptive advertising How Machine Learning Will Shape the Ecommerce Industry by 2020

BigCommerceA Business Intelligence Approach to AI Implementation in Ecommerce

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