Machine Learning and the Marketing Industry


2020 is shaping up to be a landmark year as e-commerce spending surges to exceed brick and mortar sales. Consumers, either by choice or otherwise, are increasingly turning to online shopping, and as this spending rises, marketers and advertisers should consider the advantages that personalized marketing can bring. Not only have personalized marketing methods shown increases in different types of sales, more customers expect it, and are shifting their spending habits accordingly. 

Your Customers Are Human

People want to be treated as fellow humans, not numbers, and they appreciate when businesses communicate with them as such. And companies that take advantage of deep personalization as they interact with customers and prospects have reported dramatic returns in advertising and marketing spending.

Personalization is Powerful 

Check Amazon if the brand they’re shopping with doesn’t provide product suggestions that are relevant. - SmarterHQ 

Will stop buying from brands that use poor personalization tactics. - Smart Insights

Say being treated like a person, not a number, is very important to winning their business. - Salesforce

Are investing in personalization. - Forrester

Your Solutions Don’t Have To Be Fully Human

Machine learning performs heavy lifting in the process creating personalized marketing and advertising experiences. Supervised machine learning allows you to hold the hand of your machine learning process to give it rules and boundaries. 

For example, if you’ve determined a person is likely to organically convert, perhaps there’s an online offer that you don’t have to serve to them. You can help tailor the customer journey to offer the right content at the right time. You can aid your machine learning process to bucket customers more effectively, and what actions to take to add value to your customer’s experience. Supervised machine learning allows you to offer a second set of eyes so you deliver the right message.

2020: A Landmark Year Of Online Sales Growth

While digital marketing and advertising methods continue to evolve, machine learning and artificial intelligence (AI) are reaching toward the top of the solution stack. First, there has been a significant increase in spending in the e-commerce space. Total e-commerce sales for 2019 were estimated at $601.7 billion, an increase of nearly 15% from 2018, according to the U.S. Census. (Source)

Predicted worldwide spending on cognitive and artificial intelligence systems in 2022 (Source) 

This increased spending and developing trends in technology’s role in building sales points a marketer’s attention toward advanced personalization in advertising and marketing. Thankfully, through machine learning, effective and advanced personalization is not just possible, it’s within reach. In fact, these technologies can create environments where insights and outcomes merge and learn from each other to create continuous, self-improving cycles. Further, by employing these technologies, marketers gain insights they weren’t capable of manually deriving in the past, which can liberate their time and create opportunities for insightful, predictive and personalized campaigns. 

Let’s examine some ways personalization can be applied to advertising and marketing, and then dig deeper into how machine learning and AI can boost these efforts into smarter ways to interact with customers. 

  • Real-time segmentation — Identify hidden customer groups and how they will interact with certain products 
  • Churn and customer lifetime value — How long will your customer be your customer? 
  • Wiser ad spending — Target narrow groups to avoid overspending on ads and unearth new campaign strategies


The marketing industry leads all others in terms of investments and innovations in machine learning and AI technologies. They offer a potential additional $2.6T in value for marketing and sales by the end of 2020. (Source)

Machine learning is a heavy-hitting tool if your business wants to uncover predictive knowledge in your personalized marketing campaigns. There are so many data points that need to be considered to cull these trends and insights that humans shouldn’t — and in most cases can’t — hold all of them in their heads at once. That’s because humans excel at leveraging empathy, creativity and strategy, while machine learning amplifies these skills with the power of data collected from innumerable sources.

Ready to Learn More? 
You may have seen how large businesses employ machine learning to inform their successful marketing efforts. How can startups, small- and medium-sized businesses or enterprises that are performing well leverage this same technology to maintain competitiveness? 

Stratorsoft’s machine learning experts can help these businesses define goals, design solutions, and create roadmaps to optimize marketing efforts to make them more efficient, competitive and adaptive in a rapidly changing world.