It seems like AI (Artificial Intelligence) is top of mind, or at least top of media chatter. Applications like ChatGPT, Google Cloud, Microsoft Copilot, Midjourney, Dalle-2, Adobe generative functions and many others create great demos. Those all focus on the creative applications of AI, but for marketing return those provide little value without understanding the target audience. 

Marketing AI is the process of using AI capabilities like data collection, data-driven analysis, natural language processing (NLP) and machine learning (ML) to deliver customer insights and automate critical marketing decisions. AI can offer several advantages in direct marketing, enhancing the effectiveness of campaigns and improving overall outcomes. The key to this is Predictive Analytics, with which AI can predict customer behavior based on historical data, helping marketers anticipate the needs and preferences of their audience. This allows for more accurate targeting and the creation of direct mail campaigns that resonate with specific segments.

While the media is focusing on some of these new generative AI solutions, Marketing AI has really been the growth driver for many large online businesses for years. For those who have been able to afford these types of predictive analytic solutions, it has been a core strategy. Those who didn’t have the technical or financial resources to build these types of systems were relegated to relying on their existing contact lists or buying more generic lists which provide a shotgun approach to marketing at best.