Difference between revisions of "Artificial Intelligence and Digital Marketing"
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==History== | ==History== | ||
===Web 1.0=== | ===Web 1.0=== | ||
| − | Web 1.0 | + | Web 1.0 brought us a very basic version of the internet. Coined in 1994 by Tim Berners-Lee, we saw people use the internet to search and purchase products or services; however, they were not able to contribute their own ideas to the web. During this time, the web was sprawled with many personal web pages that, by today’s standards, were very basic and consisted of mainly static pages. Companies attempting to go digital would need to get around advertisements being banned while surfing the web. |
===Web 2.0=== | ===Web 2.0=== | ||
| − | Web 2.0 | + | A big upgrade from Web 1.0, Web 2.0 didn’t actually change any of the technical specifications that came with its predecessor. Instead, Web 2.0 aimed to alter the way that web pages were designed and interacted with. We saw a plethora of new technologies emerge that are still used today, such as JavaScript, Ajax, CSS, and much more. This resulted in the first interactive and collaborative websites being created, inevitably bringing us the birth of social media. With the average person now being able to interact with friends, family, and strangers across the globe, companies wanted to be able to interact with their customers. Corporations began to realize that since the Web became interactive, social networking website usage has increased immensely. To get a wider net of customers, companies started to spend larger percentages of their budget on digital advertising and marketing. This resulted in digital advertising and marketing becoming a $2.9 billion industry by 2004. |
| + | ===Web 3.0=== | ||
| + | Often referred to as the Semantic Web, Web 3.0 was an extension of the existing Web. Instead of having a front-end focus like Web 2.0, this upgrade was more back-end oriented. In other words, we were able to make our machines much smarter. The Semantic Web provided an efficient way to represent data on the Web, or in a database, to a machine. Computers were, and still are, able to extract meaning from the data utilizing relationships, rules, and logic. With the new functionality implementation of technologies such as Artificial Intelligence and 3D Graphics were possible. We can also access content across multiple services being used across the globe, a concept known as ubiquity. | ||
===Growth of the Digital Marketing Industry=== | ===Growth of the Digital Marketing Industry=== | ||
| − | + | Knowledge about the history of the Web is critical in understanding the recent growth of the digital marketing industry. Transitions from Web 1.0 to Web 2.0 brought us interactive ads. Transitioning from Web 2.0 to Web 3.0 has presented us with behavioral advertising, allowing companies to target different audiences in a plethora of ways. Because of these developments in the Web, we have seen tremendous growth throughout the industry in the past few years. It was estimated that the digital marketing industry was worth $350 billion in 2020 and is projected to grow to $786.2 billion by 2026. Since the pandemic, there have been understandable budget cuts which have brought down the overall digital marketing spending; however, that does not mean that the industry’s value is shrinking. With the increase of people working from home, there is now an even wider range of people for companies to advertise to. Companies are also in a better position to start increasing their digital marketing budgets as we continue approaching a post-pandemic world. | |
==AI Development in Recent Years== | ==AI Development in Recent Years== | ||
| + | Since the creation of Web 3.0, AI development has been at the forefront of giving each consumer a unique Web experience. Not only is this beneficial to the end user, but companies are seeing massive profits by digitizing and automating their advertising network. The McKinsey Global Institute states that AI and Machine Learning are on track to generate $1.4-$2.6 Trillion in value over the next 2 years. Interestingly enough, when barriers are brought up, 70% of respondents reported that a lack of AI-focused education and training is holding the marketers and marketing industry back. | ||
| + | |||
===Examples=== | ===Examples=== | ||
Revision as of 16:38, 27 January 2022
Artificial Intelligence has been complementing traditional marketing techniques for almost 30 years now. Typical mediums for traditional marketing are newspapers, radio stations, and commercials. Digital marketing on the other hand only needs the web to display a vast amount of different advertisements. While the mediums of communication may differ greatly, the most important difference is that digital marketing leverages concepts such as machine learning, neural networks, and other technologies to develop its own algorithms. During recent years we have experienced an uptick in the amount of industries and major corporations utilizing and researching AI in innovative ways. Inevitably, this rise in applications has caused a surge of questioning in regards to the ethics, purpose, and litigation surrounding Artificial Intelligence and Marketing.
Contents
History
Web 1.0
Web 1.0 brought us a very basic version of the internet. Coined in 1994 by Tim Berners-Lee, we saw people use the internet to search and purchase products or services; however, they were not able to contribute their own ideas to the web. During this time, the web was sprawled with many personal web pages that, by today’s standards, were very basic and consisted of mainly static pages. Companies attempting to go digital would need to get around advertisements being banned while surfing the web.
Web 2.0
A big upgrade from Web 1.0, Web 2.0 didn’t actually change any of the technical specifications that came with its predecessor. Instead, Web 2.0 aimed to alter the way that web pages were designed and interacted with. We saw a plethora of new technologies emerge that are still used today, such as JavaScript, Ajax, CSS, and much more. This resulted in the first interactive and collaborative websites being created, inevitably bringing us the birth of social media. With the average person now being able to interact with friends, family, and strangers across the globe, companies wanted to be able to interact with their customers. Corporations began to realize that since the Web became interactive, social networking website usage has increased immensely. To get a wider net of customers, companies started to spend larger percentages of their budget on digital advertising and marketing. This resulted in digital advertising and marketing becoming a $2.9 billion industry by 2004.
Web 3.0
Often referred to as the Semantic Web, Web 3.0 was an extension of the existing Web. Instead of having a front-end focus like Web 2.0, this upgrade was more back-end oriented. In other words, we were able to make our machines much smarter. The Semantic Web provided an efficient way to represent data on the Web, or in a database, to a machine. Computers were, and still are, able to extract meaning from the data utilizing relationships, rules, and logic. With the new functionality implementation of technologies such as Artificial Intelligence and 3D Graphics were possible. We can also access content across multiple services being used across the globe, a concept known as ubiquity.
Growth of the Digital Marketing Industry
Knowledge about the history of the Web is critical in understanding the recent growth of the digital marketing industry. Transitions from Web 1.0 to Web 2.0 brought us interactive ads. Transitioning from Web 2.0 to Web 3.0 has presented us with behavioral advertising, allowing companies to target different audiences in a plethora of ways. Because of these developments in the Web, we have seen tremendous growth throughout the industry in the past few years. It was estimated that the digital marketing industry was worth $350 billion in 2020 and is projected to grow to $786.2 billion by 2026. Since the pandemic, there have been understandable budget cuts which have brought down the overall digital marketing spending; however, that does not mean that the industry’s value is shrinking. With the increase of people working from home, there is now an even wider range of people for companies to advertise to. Companies are also in a better position to start increasing their digital marketing budgets as we continue approaching a post-pandemic world.
AI Development in Recent Years
Since the creation of Web 3.0, AI development has been at the forefront of giving each consumer a unique Web experience. Not only is this beneficial to the end user, but companies are seeing massive profits by digitizing and automating their advertising network. The McKinsey Global Institute states that AI and Machine Learning are on track to generate $1.4-$2.6 Trillion in value over the next 2 years. Interestingly enough, when barriers are brought up, 70% of respondents reported that a lack of AI-focused education and training is holding the marketers and marketing industry back.
