AI in Retail Marketing & Advertising
Mins Read
July 29, 2022

The adoption of AI is changing almost every industry, especially how they are approaching marketing and advertising. Retail advertising and marketing is an area that is prime for optimizations that come from utilizing AI platforms for things like product recommendations, image recognition, audio processing, and more. Video advertising is a key area for AI use within retail, so we've compiled a guide for you here.

Let's explore how AI is affecting retail today.

State of AI in Retail

AI is quickly becoming a staple within retail supply chain, marketing, advertising and management.

In a recent study by KPMG, 90% of retail business leaders said that their employees are ready and able to adopt AI, which was an increase over 2020 results by 47%.

And moreover, a study by Insider Intelligence states that more than 80% of IT professionals in marketing and sales believe that AI leads to a reduction in costs. In fact, cost decreases attributed to AI within that study stated that 57% of respondents said AI decreases costs associated with marketing and sales by more than 10%.

For example, a cosmetics company, KISS Cosmetics used CatapultX AI-based contextual advertising and said that when comparing standard native and display ads that typically run on Facebook and Google with the quality of traffic from CatapultX, the price was about 60% less -- not only the media cost but costs to create the video assets.

How AI is Improving Retail Marketing & Sales

1. AI can help retail brands target consumers more accurately with advertising.

Through contextual advertising, AI can identify the product and match it within content or associated with keywords that are related to the purpose, genre or topic of the content being consumed.

2. AI can help retail brands automate and personalize retail marketing content on a massive scale.

By using natural language processing (NLP) retail brands can automatically generate retail marketing content such as retail product descriptions, blog posts, social media posts, and retail email marketing content. AI-powered advertising engines can also use NLP to better match advertisers with content that is related to their product.

3. Retail brands can enhance retail customer service experiences.

By utilizing chatbots, retail brands can engage with retail customers in a more personal way to provide retail customer service, recommendations, and even place orders on behalf of the retail customer.

4. Retail brands can use image recognition for retail product identification and search.

By using image recognition, retail brands can allow retail customers to take a picture of a product they see in the wild and search for it on the retail brand's website or app. This is especially helpful for retail customers who may not know the name of the product but can identify it by sight.

5. AI retail brands can use predictive analytics for retail product recommendations.

By understanding a retail customer's purchase history and behavior, retail brands can make retail product recommendations to retail customers in real-time. This is often done through first-party data within retail loyalty programs that keep track of retail customer data and purchases.

How Should Retail Companies Seek to Use AI in Retail Advertising

Video is the fastest-growing method of advertising. In 2021, video ad spend increased by 49%.

Contextual video advertising is an AI-based form of video advertising that allows retail brands to place their video ads within content that is related to their product.

This type of retail advertising has a number of benefits, including:

- Reach retail customers who are already interested in what you're selling

- Increased brand awareness and  retail customer engagement

- More retail sales and conversions

When done right, contextual video advertising can be an extremely effective way for retail brands to reach their target audiences and boost their bottom line. This can be a great retail marketing strategy for retail brands who are looking to increase their video ad spend in 2022.

If you're a retail brand looking to use AI in your retail advertising, download our guide here.

The Future of AI in Retail Marketing & Advertising

There are many benefits that come with utilizing AI within the retail industry - both for retail brands and retail customers. The retail industry is only going to continue to grow and change with AI, so it's important to stay ahead of the curve and understand how AI can be used to improve retail marketing and advertising strategies.

What do you think? How do you see AI changing retail marketing and advertising in the future?

ai in advertising white paper cover page by catapultx

The Future of AI In Advertising

AI is evolving from a nice-to-have capability, to an everyday staple, especially in advertising. Learn everything you need to know about the future of AI as it applies to advertising.

In this FREE 15-page whitepaper, you'll learn:
- What AI is
- How AI applies to advertising
- Top uses of AI
- How contextual ads work
- How AI will impact your strategies tomorrow
- New  forms of AI advertising

Get The White Paper Now

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