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East Asian Journal of Multidisciplinary Research (EAJMR)

Vol.3, No.1, 2024: 319-332

The Role of Artificial Intelligence (AI) and its Benefits in Digital


Marketing Strategy

Ari Apriani1*, Indra Sani2, Lia Kurniawati3, Rahmat Prayoga4, Helena Louise
Panggabean5
1Universitas Dian Nusantara
2ITB Asia Malang
3Universitas Mandiri
4Institut Komunikasi dan Bisnis Swadaya
5Universitas Mohammad Husni Thamrin

Corresponding Author: Ari Apriani ari.apriani@undira.ac.id

ARTICLEINFO ABSTRACT
Keywords: Artificial This study explores the role of artificial
Intelligence (AI), Digital intelligence (AI) in digital marketing strategy and
Marketing, Technology its benefits. AI is a technology that enables
computers or machines to process information
Received : 10, November and produce outcomes similar to human thought
Revised : 15, December
processes. The implementation of AI in marketing
Accepted: 20, January
can enhance personalization, predictive analytics,
©2024 Apriani, Sani, Kurniawati, chatbots and customer service, content
Prayoga, Panggabean: This is an optimization, ad targeting and optimization, and
open-access article distributed under marketing automation. Understanding customer
the terms of the Creative Commons behavior, strategic decision making, tactical
Atribusi 4.0 Internasional. marketing, ethical and responsible AI, integration
with other technologies, and collaboration with AI
providers and start-ups are all best practices for
incorporating AI in marketing initiatives. The
search results emphasize the anticipated
importance of AI solutions in marketing decision-
making across the five stages of the marketing
process, which include analysis, strategy, tactics,
customer interactions, and value proposition
creation. With enhanced customization,
integration with other technologies, and a stronger
emphasis on ethical and responsible AI, the future
of AI in marketing analytics is bright. To
effectively exploit the power of AI, businesses
should invest in AI knowledge, emphasize ethical
and responsible AI, focus on customer privacy
and data protection, embrace new technologies,
and collaborate with AI suppliers and start-ups.

DOI prefix: https://doi.org/10.55927/eajmr.v3i1.8075 319


( ISSN-E: 2828-1519
https://journal.formosapublisher.org/index.php/eajmr
Apriani, Sani, Kurniawati, Prayoga, Panggabean

INTRODUCTION
Artificial Intelligence has been growing in prominence in digital
marketing strategies due to its various benefits and potential implications. By
harnessing the power of AI, companies can gain valuable insights into customer
behavior and preferences, allowing them to create highly targeted and
personalized marketing campaigns (MR, 2021). In addition, AI technology
allows companies to automate tasks and processes, increasing efficiency and
productivity (Peyravi et al., 2020). Moreover, AI can analyze large data sets in
real-time, so companies can make data-driven decisions and optimize
marketing strategies for better results (Badica & Mitucă, 2021). In short, the
integration of AI into digital marketing strategies offers the potential to
improve customer understanding, increase efficiency, and enhance decision-
making capabilities, ultimately leading to better overall marketing performance
and business success (Aladayleh, 2020).
Implementing AI in digital marketing strategies is becoming increasingly
important for businesses to stay competitive and improve their marketing
efforts. With rapid technological advancements, artificial intelligence has
emerged as a powerful tool in digital marketing strategies (Peyravi et al., 2020).
It has revolutionized the way companies interact with customers and has
proven to be a game-changer in terms of customer engagement, conversion
rates, and overall marketing success (Badica & Mitucă, 2021). By leveraging AI
in their digital marketing strategies, businesses can collect and analyze large
amounts of data, thus allowing them to gain valuable insights into customer
behavior and preferences (Fuaddah et al., 2022).
In today's digital age, the role of artificial intelligence (AI) in digital
marketing strategy has become increasingly significant. As technology
continues to advance, businesses are leveraging AI to enhance their marketing
efforts and gain a competitive edge in the digital landscape. This study will
delve into the multifaceted role of AI in digital marketing strategy and explore
the myriad benefits it offers to businesses seeking to optimize their online
presence and engage with their target audience in more meaningful ways.

THEORETICAL REVIEW
Understanding Artificial Intelligence
Artificial intelligence is a fictitious word that refers to a computer or a
computer-enabled robotic system's capacity to process information and create
outputs that are comparable to human cognitive processes in learning, decision
making, and problem solving. It originated in 1956 and has since seen several
ups and downs in terms of interest and research. Artificial intelligence,
commonly referred to as AI, has become a prominent field in computer science
and technology (Truong & Diep, 2023).
The objective of AI systems is to create systems that can solve
complicated issues in ways that are akin to human logic and reasoning. AI is
rapidly being used in a variety of industries, including marketing, finance,
military, and sports, and its use is evolving in tandem with technical
improvements.

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Vol. 3, No. 1, 2024: 319-332
To comprehend the role of AI in digital marketing strategy, it is crucial to
understand what artificial intelligence encompasses in the context of marketing
(Alkhayyat & Ahmed, 2022). AI technologies in digital marketing comprise a
wide range of tools and applications, including machine learning, natural
language processing, predictive analytics, and others (MR, 2021). These AI-
driven capabilities enable marketers to analyze vast amounts of data, automate
repetitive tasks, personalize customer experiences, and derive actionable
insights to inform their marketing strategies (Sholihah & Saputra, 2022).
AI technology allows companies to analyze large amounts of data to gain
insights into customer behavior, preferences, and demands (Mao & Huang,
2021). As a result, they are able to build more targeted and individualized
marketing efforts that resonate with their target demographic (Cui et al., 2022).
In addition, AI-powered chatbots and virtual assistants provide valuable
support to customers throughout their purchasing journey, enhancing their
overall experience (Perret & Heitkamp, 2021). By leveraging AI technology for
marketing purposes, companies can stay ahead of their competition and
maximize their business opportunities (Djermani & Hajimia, 2021).
Furthermore, AI technology can optimize forecasting and pricing strategies,
identify customer trends and patterns, and enhance customer relationship
management systems (Zvaigzne et al., 2023).

Understanding Digital Marketing Strategy


Digital marketing strategy is essential for businesses in the modern era,
as it allows them to effectively reach their target audience, increase brand
awareness, and drive sales growth (Agha & Akram, 2022). By utilizing digital
marketing tools and techniques, organizations can create a well-defined
strategy that aligns with their company objectives (Matidza et al., 2020). This
strategy helps prioritize and use the most relevant and impactful digital
marketing tactics, such as content marketing, search engine optimization, social
media marketing, email campaigns, and pay-per-click advertising, to achieve
their goals (Rahim et al., 2020). In addition, digital marketing strategy
constantly evolves as technology advances, providing businesses with new and
innovative ways to connect with their target audiences (Rathore, 2021).
It is important to note that digital marketing strategies require time,
resources, feedback, and tangible steps to achieve the company's vision and
goals (Adona et al., 2023). Implementing a successful digital marketing strategy
involves careful planning, analysis, and adaptation to ensure that the chosen
tactics align with the overall marketing goals and target audience (Lazo-Amado
et al., 2021). Furthermore, digital marketing allows organizations to adapt to the
modern marketing tools and rules of online marketing. This enables
organizations to connect with their clients at any time and provide them with
relevant information, whether they are at work, in-store, or browsing the e-
Commerce.

METHODOLOGY
This study was carried out using a qualitative research approach by the
researcher. Qualitative procedures are essentially exploratory research methods

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used to investigate causes, viewpoints, and opinions in order to answer the


research question. Because the goal of this study is to examine the impact of
digital marketing AI from various literatures and prior studies, qualitative
research is an excellent choice. Data for this study will be gathered from both
primary and secondary sources. The researcher gathered primary data to
address the research questions through an examination of scholarly papers,
journals, books, websites, and blogs used in this study.
The qualitative research method with literature review entails analyzing
many existing textual sources in order to comprehend and integrate the
knowledge obtained about the research issue. This strategy enables researchers
to identify trends, debates, hypotheses, findings, and knowledge gaps relating
to interesting study topics that already exist in the literature.

RESULTS AND DISCUSSION


The Role of AI in Digital Marketing
Artificial intelligence (AI) is becoming important in defining digital
marketing strategy. Marketers can use it to analyze enormous amounts of data,
tailor customer experiences, and automate repetitive operations (Lee & Trim,
2022). Artificial intelligence-powered solutions can segment audiences, forecast
customer behavior, and optimize ad targeting (Shaik, 2023). AI-powered
chatbots can provide customer care, increasing user engagement. AI can also
aid with content generation, A/B testing, and dynamic pricing (Djermani &
Hajimia, 2021). Overall, artificial intelligence (AI) enables marketers to make
data-driven decisions and improve the success of their digital marketing
activities.
Through numerous applications, Artificial Intelligence (AI) may greatly
improve customer experience in digital marketing. By analyzing massive
amounts of data to understand customer preferences and behavior, AI provides
personalized marketing, allowing for targeted and relevant content delivery
(Haleem et al., 2022). AI-powered chatbots provide customer service by
answering questions and creating a seamless user experience, which can
increase customer happiness and loyalty (Khana et al., 2023). Furthermore,
artificial intelligence (AI) can be utilized for sentiment analysis to comprehend
customer comments and predict consumer insights on items, resulting in
improved product offerings and customer engagement (Taherdoost &
Madanchian, 2023). Overall, artificial intelligence (AI) enables marketers to
provide a more personalized, efficient, and successful customer experience in
digital marketing (Ramamoorthy & Manoj, 2022).
AI implementation in digital marketing presents a number of obstacles.
One barrier to commercialization is a lack of knowledge of the technology by
businesses (Schipmann, 2019). Furthermore, it is critical to ensure the ethical use
of AI in marketing and to solve privacy concerns (Lee & Trim, 2022). Integrating
AI with existing marketing systems and processes can also be difficult and
expensive in terms of infrastructure and talent (Ramamoorthy & Manoj, 2022).
Furthermore, the dynamic nature of digital marketing platforms and consumer
behavior necessitates ongoing AI algorithm and model adaptation (Raheem et
al., 2020). Finally, determining the influence of AI on marketing performance

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Vol. 3, No. 1, 2024: 319-332
and ROI can be difficult, necessitating defined KPIs and metrics (Khana et al.,
2023).

The Role of AI in Advertising and Media Buying


AI has significantly transformed the landscape of digital advertising and
media buying, offering marketers advanced targeting, optimization, and
attribution capabilities. Through AI-powered advertising platforms, businesses
can leverage granular audience targeting, dynamic ad creatives, and real-time
bidding to maximize the impact of their advertising campaigns (Chen et al.,
2019). AI-driven ad optimization algorithms continuously analyze performance
data and adjust targeting parameters to deliver more relevant and effective ads
to the right audience segments (Qin & Jiang, 2019). Moreover, AI facilitates
media buying decisions by providing insights into optimal ad placements,
budget allocation, and performance projections, enabling marketers to make
informed decisions and maximize the return on their advertising investments
(Vrublevskaia, 2021).
While AI presents a myriad of benefits in digital marketing strategy, it is
essential to address the ethical considerations and data privacy implications
associated with its implementation (Ljepava, 2022). As AI technologies rely on
vast amounts of data to fuel their algorithms and models, businesses must
prioritize data privacy and security to safeguard consumer information (Huh et
al., 2023). Furthermore, ethical considerations arise in the context of AI-driven
personalization and targeting, as businesses must ensure transparency and
consent in their data collection and usage practices (Abakouy et al., 2023). By
adhering to ethical standards and regulatory requirements, businesses can
build trust with their audience and mitigate potential risks associated with AI-
powered marketing initiatives (Tahoun & Taher, 2021). Another pivotal role of
AI in digital marketing strategy is automation. AI-powered tools and platforms
enable marketers to automate repetitive tasks, such as email marketing, social
media management, content curation, and ad optimization (Deng et al., 2019).
By automating these processes, businesses can streamline their marketing
operations, improve efficiency, and reallocate human resources to more
strategic and creative endeavors (Rodgers & Nguyen, 2022). Additionally, AI-
driven automation allows for real-time optimization of marketing campaigns,
as algorithms continuously analyze performance data and adjust targeting,
messaging, and delivery to maximize results (Rodgers & Nguyen, 2022).

The Benefit of AI in Digital Marketing Strategy


One of the key benefits of AI in digital marketing strategy is its ability to
facilitate personalized and targeted marketing efforts. With AI-powered data
analysis and machine learning algorithms, businesses can segment their
audience more effectively, identify individual preferences and behaviors, and
deliver personalized content and recommendations to enhance the customer
experience (Khatri, 2021). Through advanced personalization, businesses can
tailor their marketing messages to resonate with specific audience segments,

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thereby increasing the relevance and effectiveness of their digital marketing


campaigns (Zaman, 2022).
AI empowers marketers with the capability to harness predictive
analytics and derive valuable consumer insights from vast datasets. By
leveraging AI-driven predictive modeling, businesses can forecast consumer
behavior, identify emerging trends, and anticipate market demands with
greater accuracy (Chaitanya et al., 2023). This enables marketers to make data-
driven decisions, optimize their marketing strategies, and allocate resources
more efficiently to capitalize on emerging opportunities in the digital landscape
(Nair & Gupta, 2020). Furthermore, AI facilitates the extraction of actionable
insights from unstructured data sources, such as social media conversations,
customer reviews, and online interactions, providing marketers with a deeper
understanding of consumer sentiment and preferences.
AI plays a crucial role in enhancing customer engagement and
experience within the digital marketing landscape. Through chatbots and
virtual assistants powered by natural language processing, businesses can
provide personalized and real-time customer support, address inquiries, and
guide users through their purchasing journey (Stone et al., 2020). Moreover, AI
facilitates conversational marketing, enabling businesses to engage with
customers in more interactive and personalized ways, fostering stronger
relationships and brand loyalty. By leveraging AI to deliver tailored content,
product recommendations, and interactive experiences, businesses can create
more meaningful interactions with their audience, ultimately driving higher
levels of engagement and customer satisfaction (Abakouy et al., 2023).
In the realm of digital marketing, AI has revolutionized search engine
optimization (SEO) and content marketing practices. AI-driven tools and
algorithms enable marketers to analyze search patterns, user intent, and content
performance, empowering them to create more relevant and valuable content
that resonates with their target audience (Kingsnorth, 2016). Furthermore, AI-
powered content generation tools and natural language processing capabilities
facilitate the creation of high-quality, optimized content at scale, enabling
businesses to maintain a consistent and impactful online presence (Tsuei et al.,
2020). Additionally, AI assists in the optimization of website and content for
search engines, enhancing visibility and driving organic traffic through
advanced SEO strategies (Pohjanen, 2019).

Research references can be used to support arguments and conclusions


in new research. It provides an empirical and theoretical basis for the
statements made by the researcher. By examining previous research,
researchers can identify gaps in the literature that new research can fill. This
helps in determining its relevance and uniqueness in contribution to a
particular field of knowledge. In this case, the relevant research is related to the
implementation of artificial intelligence in digital marketing strategy.

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East Asian Journal of Multidisciplinary Research (EAJMR)
Vol. 3, No. 1, 2024: 319-332

No Author, Year, Method Relevance Finding


Title
1 Aladayleh (2020) Qualitative Artificial The study explores
A framework for with a Intelligence the ethical
integration of theoretical (AI) implications of
artificial review implementation
technology while
intelligence into in Digital combining the
digital marketing Marketing technical
in Jordanian components of AI
commercial banks. with the intricate
disciplines of
marketing that
relate to the human
factor.
2 Anoop MR (2021) Qualitative The usage of AI Integrated
Artifial Intelligence Analysis in Marketing marketing is
and Marketing Strategy important to
coordinate and
consumer-based
messaging and
relations strategies
used in marketing.
3 Alkhayyat & Qualitative Implementation Marketers today are
Ahmed, (2022) using semi of AI in Digital willing to learn how
The impact of structured Marketing. to improve digital
artificial analysis marketing to touch
intelligence in on every customer
digital marketing and clearly express
their desires. AI can
help companies
reach their potential
marketing goals.
4 Mao & Huang Quantitative The Usage of According to the
(2021) method Mobile study's findings,
Complexity computing and intelligent
Construction of machine marketing based on
Intelligent learning as machine learning is
Marketing output of the more appropriate
Strategy Based on AI. for firms than
Mobile Computing generic marketing
and Machine tactics. When
Learning compared to
Simulation traditional
Environment marketing tactics,
enterprise efficiency

325
Apriani, Sani, Kurniawati, Prayoga, Panggabean

has grown by
roughly 20%, and
enterprise income
has increased by
more than 30%.
5 Schipmann A Literature Implementation The literature
(2019) Review of AI in Digital review reveals that
Artificial Method Marketing (1) all proposed
Intelligence : The applications have an
cutting-edge impact on the OCE
technology that antecedent factors
revolutionizes the customization and
digital marketing usability, (2)
Product
Recommendations
and Chatbots have
an impact on the
factors perceived
benefits and
interactivity, and (3)
there is little
evidence that
Chatbots have an
impact on the factor
enjoyment.
6 Vrublevskaia Qualitative Artificial The findings show
(2021) Analysis Intelligence that incorporating
Effectiveness and implementation artificial intelligence
Universality of in Marketing technologies into
Artificial marketing is
Intelligence effective. Artificial
Implementation in intelligence
Marketing Media significantly
Industry and improves the
Cosmetics Industry company's
marketing mix and
draws clients as
their prospects
improve.
7 Tahoun & Taher, Quantitative Implementation The findings
(2021) Analysis with of AI in revealed that AI is
Artificial regression. Marketing gradually
Intelligence as the Strategy. developing in the
New Realm for four stages of the
Online data-driven internet
Advertising advertising process.

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East Asian Journal of Multidisciplinary Research (EAJMR)
Vol. 3, No. 1, 2024: 319-332
Furthermore,
research revealed a
substantial
association between
AI utilization in
each stage and the
next. Using AI at
each level of the
advertising process
increases the
perceived
effectiveness of the
total online ad
procedure.
8 Chaitanya et al. Qualitative Implementation Finally, the study
(2023) Analysis of AI in Digital emphasizes the
The Impact of Marketing importance of AI
Artificial Strategy and ML in defining
Intelligence and the future of digital
Machine Learning marketing. It
in Digital emphasizes the
Marketing importance of
Strategies organizations
adapting and
embracing modern
technologies in
order to remain
competitive in an
increasingly data-
driven and
customer-centric
market.
9 Shaik (2023) Qualitative Relationship The conclusions of
Impact of artificial Research between AI and the study
intelligence on Approach Marketing emphasize the
marketing Strategy components that
drive AI integration
in marketing, as
well as the benefits
and challenges of AI
integration in
marketing, as well
as your company's
pre and post AI
marketing strategy,
ethical issues, and

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Apriani, Sani, Kurniawati, Prayoga, Panggabean

use of AI in the
marketing business.
10 Haleem et al. Qualitative Artificial AI has evolved into
(2022) Analysis. intelligence an ideal 'enabler' for
Artificial applications for marketing and sales
intelligence (AI) marketing professionals. It
applications for processes and
marketing: A makes use of
literature-based massive amounts of
study data. It automates
the building of
analytical models,
uncovers hidden
insights, and adjusts
program actions
using cognitive
reasoning.

CONCLUSIONS AND RECOMMENDATIONS


In conclusion, the role of artificial intelligence in digital marketing
strategy is multifaceted and far-reaching, offering businesses a wealth of
benefits to enhance their online presence, engage with their audience, and drive
measurable results. From personalized marketing and predictive analytics to
automation and enhanced customer experiences, AI empowers marketers to
navigate the complexities of the digital landscape with greater precision and
efficacy. As technology continues to evolve, the integration of AI into digital
marketing strategies will undoubtedly shape the future of marketing, enabling
businesses to adapt to changing consumer behaviors, optimize their campaigns,
and achieve sustainable growth in the digital era. By leveraging the capabilities
of AI responsibly and ethically, businesses can harness its transformative power
to elevate their digital marketing efforts and stay ahead in an increasingly
competitive and dynamic digital ecosystem.
The recommendation for incorporating AI into digital marketing strategy
is to use AI to improve customer experience, personalize marketing activities,
and improve operational efficiency. AI may be used to evaluate enormous
amounts of data, forecast client behavior, and automate repetitive operations,
making it possible to deliver tailored and relevant information. Furthermore,
AI-powered chatbots can provide customer service, answering questions and
delivering a consistent user experience. Furthermore, artificial intelligence (AI)
can be used to improve the effectiveness of marketing automation operations,
resulting in greater consumer engagement and open rates. Overall, the smart
use of artificial intelligence in digital marketing can result in a more
personalized, efficient, and successful consumer experience.
Marketers will be able to employ AI in the future to build personalized
experiences for their customers as well as develop marketing analytics tools to
target potential customers. Every encounter a prospect or customer has with a

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East Asian Journal of Multidisciplinary Research (EAJMR)
Vol. 3, No. 1, 2024: 319-332
product or service is documented and used to improve the product or service in
the future. There will never be a better time for marketers to begin
experimenting with AI tactics that will assist them in creating highly
personalized experiences for their customers. With AI primed to continue rising
across all industries and segments, marketers should devote time and money to
testing new methods and ensuring their marketing organization is set up for
long-term success.

FURTHER STUDY
For future research, it is recommended to examine the security and ethical
aspects associated with the use of AI in digital marketing strategies. How can
security policies be implemented, and how can AI ethics affect brand
perception?

ACKNOWLEDGMENT
This study was conducted independently without any interest and
funded by any institution. The results of this study are used as benefits for the
authors and their institutions as a contribution to literature and thoughts for
interested academics and practitioners.

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