Zhi Yan Teo, Author at antics@play

Artificial Intelligence (AI) is rapidly changing the face of the marketing industry. It provides clearer insights into audiences while simultaneously offering the ability for users to identify online trends and conversations swiftly. Therefore, brands that covet better returns on investments would do well to invest in AI-powered marketing tools. In this introductory article, we will delve into the relationship between AI and marketing, and how businesses are leveraging AI to drive better outcomes. Be it personalised product recommendations, predictive analytics, AI-powered customer segmentation, or chatbots- AI is an immensely versatile Swiss army knife that helps marketers enhance the effectiveness and efficiency of their campaigns. To start off, let’s briefly explain what Artificial Intelligence is.

What is artificial intelligence?

In short, Artificial Intelligence is the simulation of human intelligence via machines that are programmed to emulate human actions and thought processes. It involves the development of complex algorithms and models that enable machines to perform tasks that would typically require the intervention of human intelligence. For instance, AI is now capable of facilitating image recognition, deciphering natural language, and making decisions.

AI encompasses several subfields, including machine learning, big data, natural language processing, and predictive analytics.

The relationship between AI and marketing

In essence, marketing is all about empathising with, understanding, and engaging customers. In the digital age, AI is playing a critical role in helping businesses achieve this. Currently, with AI, businesses can analyse vast amounts of customer data, identify patterns, and make accurate predictions about consumer behaviour. Overall, this allows marketers to tailor their messaging and offerings to better meet customer needs.

Big data and predictive analytics

Big data refers to the vast amounts of data generated by businesses and consumers. Currently, this data includes customer interactions, demographic information, and behavioural data. With the implementation of artificial intelligence in marketing, businesses can analyse this data to gain insights into customer behaviour and make calculated predictions about future trends.

Predictive analytics is a branch of AI that involves the use of statistical models and algorithms to dissect data and anticipate future events. In the context of marketing, predictive analytics are used to identify the most effective marketing strategies, predict customer behaviour, and optimise marketing campaigns in real-time. As such, AI marketing capabilities allow for dynamic features such as automated sales forecasts and content creation, and real-time personalisation.

Chatbots and customer service

Chatbots are AI-powered virtual assistants that utilise natural language processing to interact with customers in real-time. They are used to answer frequently asked questions, provide product recommendations, and even handle customer complaints. Therefore, chatbots provide an efficient and cost-effective way for businesses to engage with customers. As a result, they have become increasingly popular in recent years.

Consider why chatbots are desirable in the first place. Plainly, chatbots help consumers find solutions regardless of where they are or what they use. Effectively, this means that individuals do not have to waste valuable time combing through cluttered inboxes, irrelevant forms, and other content. Communication, service, and transactions are all intertwined in one convenient service.

Real-time bidding in digital advertising

Thanks to its efficiency and cost-effectiveness, real-time bidding (RTB) has undoubtedly become one of the most popular ways to purchase ad inventory online. It is a type of programmatic advertising that uses AI to automate the buying and selling of advertising space in real-time. RTB enables advertisers to target specific audiences based on demographics, behaviour, and other criteria. As such, it has become an essential tool in the marketing industry.

When a consumer visits a web page, the browser sends a request to an ad server. The ad server then directs that particular ad request to an exchange where AI-powered software can bid on those impressions. Prospective advertisers (or more accurately, their software) analyse the statistics and impressions before deciding if they should bid. Finally, the exchange accumulates the bids and doles out the coveted ad spot to the winner.

Predictive analytics for better decision making

Predictive analytics can play a crucial role in helping businesses make better decisions. By analysing vast amounts of customer data, businesses can identify patterns and predict customer behaviour. As such, this information is particularly useful to inform marketing decisions. Examples could include which products to promote, which customer segments to target, and which marketing strategies to use.

In the context of marketing, predictive analytics are invaluable in any marketing or advertising campaign to increase return on investments and to engage audiences better. With the advent of AI, advertisers have the ability to accurately predict which consumers are more receptive to certain variations of messaging. This allows for highly personalised ads to be delivered to the right individuals at optimal timings, therefore resulting in more targeted information being presented to the consumer, potentially leading to an increase in clicks and conversions.

AI-powered customer segmentation

Customer segmentation is the process of dividing a customer base into smaller groups based on shared characteristics. AI plays a crucial role in AI-powered customer segmentation by analysing vast amounts of customer data and identifying recurring patterns. Thereafter, this information is used to tailor marketing messages and product offerings to specific customer segments. As such, customers are more likely to be satisfied or intrigued by what they perceive as personalised services.

Here are some instances of how some high-profile megacorporations are using advanced technologies in digital marketing to offer a personalised experience to their customers.

Google Cloud Platform provides a streamlined process for creating personalised customer profiles. Thus, businesses have a better understanding of each individual customer and may adjust their experiences accordingly.
Microsoft Dynamics 365 leverages AI-generated insights to personalise each customer experience. This enables brands to boost conversions from their campaigns.
Amazon offers an automated segmentation system that matches customers with products and services that cater to their unique needs.

Personalised product recommendations using AI

Personalised product recommendations are a key aspect of e-commerce that significantly improves the customer experience by catering to a customer’s specific needs. How this works is that AI-powered recommendations employ machine learning algorithms to analyse customer data and make personalised suggestions. Similarly, this helps businesses to increase customer engagement and drive sales by offering tailor-made products.

The streaming juggernaut Netflix is a shining example of a brand tapping successfully into AI-based recommendations. Since its conception. the platform has spent years adjusting recommendation algorithms to highlight the best possible content for each subscriber. As such, Netflix users do not have to scroll far to find a show or movie that interests them. This translates to increased subscriptions and decreased member churn. In fact, Netflix has asserted that its AI-based personalised product recommendations save the company $1 billion per annum.

Conclusion

In conclusion, the rise of Artificial Intelligence in marketing is changing the game- providing businesses with powerful, state-of-the-art tools to understand and engage with customers. With AI, businesses can perform AI-powered customer segmentation, analyse vast amounts of customer data, make predictions about customer behaviour, and tailor their marketing messages and product offerings to meet specific customer needs better. Moreover, a strategic combination of different technologies can give you the edge in outcompeting other leading players in the market. At the bare minimum, understanding what’s already in use is important for bringing your company up to speed. Regardless of whether you’re a beginner or an experienced marketer, it is crucial to understand the basics of AI and how it complements marketing for success in the digital age.

What is in-app mobile game advertising?

Advertising on mobile games usually manifests in the form of In-game advertising. This variation of advertising is currently popular among game developers as a monetisation strategy to increase profits and revenue. Game developers often receive financial incentives and payments from business partners when they agree to display advertisements on their games. As long as the advertisements are implemented non-intrusively, most gamers are somewhat receptive towards mobile-game advertisements.

There are several mobile game advertising strategies that drive ad revenue. Some instances are Offerwall, rewarded/unrewarded video ads, and interstitial ads. Ads that complement the mobile game experience yield the best results when they integrate seamlessly with gameplay loops. In so doing, these ads complement the mobile game’s internal economy and are completely undisruptive.

What are some benefits of in-app mobile game advertising?

Advertising in mobile games allows for a mutually-beneficial working relationship between game developers and businesses to flourish. For advertisers, in-game ads are a highly interactive and engaging way to attract the attention of gamers to their core businesses. As for game developers, ads are a great alternative source of revenue and they allow for the developers to construct a player retainment system that incentivises them to invest a little more time and resources into the game in return for substantial awards- everyone wins.

Drive heaps of revenue

Recently, there has been a surge in the popularity of free-to-play mobile games. However, this does not mean that the developers and publishers of these games are philanthropists. The implementation of advertising strategies upon cooperation with external partners is a potential goldmine of revenue. This revenue scales linearly with the number of advertisers you are partnering with. Based on a study by Vantage Market Research, ‘The Global In-Game Advertising Market size is forecasted to reach USD 12.35 Billion by the year 2028 ， and is forecast to exhibit a Compound Annual Growth Rate (CAGR) of 10.7% during the forecast period. ‘ That is a staggering number indeed.

Incentivise gamers to play

Naturally, effective mobile game advertising strategies would encourage users to continue playing while hopefully spending some cash to support the developers. With a two-pronged approach of improving user experience and implementing a generous in-game reward system, players will feel incentivized to play for longer periods of time. More importantly, they may develop a sense of loyalty to the game and return even after quitting for extended periods of time. Via tweaking your rewards and adjusting the advertisements for optimal user experience, an incentive-based advertising strategy is the ultimate strategy for earning the players’ goodwill. Remember, empathy goes a long way in winning the hearts and minds of your target audience.

Extend the reach of your in-app mobile game advertising campaign

Gaming, while still incredibly popular among male adolescents, is surging in popularity among females as well. With reference to a January 2021 survey by https://www.statista.com/statistics/1243409/us-mobile-gaming-users-gender/, a whopping 55% of mobile gamers identified themselves as females. Advertisers can now effectively reach out to both genders while utilising mobile games as a fun, interactive marketing platform that appeals to practically everyone. While the participants of this survey are mostly younger adults, gaming grows in popularity as technology advances.

The most effective variations of in-app mobile game advertisements?

Rewarded video ads

Such advertisements grant users and advertisers a clear value exchange. Users sacrifice a chunk of their time to watch a brief video. In return, they acquire some form of compensation. These rewards usually take the form of additional free playtime, complimentary in-game currency or other miscellaneous rewards. These optional ads are usually designed to encourage users to purchase additional micro-transactions or to continue playing while being seamlessly integrated with the game’s economy.

Offerwall

Offerwall is a pseudo-job listing platform in certain mobile games. It displays a variety of missions and objectives for users to fulfil in return for receiving in-game rewards. Again, these offers are completely optional and pursued by users at their whim.

Interstitial ads

Interstitial Advertisements intrigue users with unpredictable, personalised advertisements that come in either static or video formats. Space out your ads strategically so as to avoid disrupting the user’s experience.

Interactive ads

In the case of in-app advertisements, interactive ads usually take the form of playable advertisements. They may serve as a demo of the game they are promoting. These are often a welcome surprise as they enable users to adopt a hands-on approach instead of passive viewing.

5 tips to enhance your in-app mobile game advertising strategies!

1. Rewards matter

Players desire that game developers respect their free time. People expect compensation for their time and efforts. They will not willingly partake in ads without some kind of compensation. Such compensation could manifest in the form of rewards such as complimentary in-game currency, or items within the game. Rewarded video ads can be highly effective in attracting users’ attention, thus justifying the high in-app mobile game advertising expenditure. As mentioned above, rewarded ads compensate users for watching a video by lavishing upon them complimentary in-game currencies, items, and other potential rewards. There are many freemium and even pay-to-pay games that employ such strategies by allowing gamers to expedite certain tasks via watching an ad or topping up a purchase by interacting with a rewarded ad.

The interactive nature of a reward ad also allows for some degree of engagement with users. Users may opt to either access an external site or an external application via clicking on the Call-To-Action. This could potentially result in new users of the advertiser’s advertised product.

2. Avoid disruption of the gaming experience

Any gamer or app user would share a disdain for being abruptly interrupted by an intrusive ad during moments of intense gameplay or complete concentration. Your objective as a competent advertiser is to identify opportune timings for your ad to appear without earning the ire of gamers by being a thorn in their flesh.

In the case of rewarded video ads or interstitial ads, it would be prudent to display them during downtime. Instances include post-stage-completion summaries, gameplay pauses, menus, and of course the dreaded loading screen. These moments are apt for temporary diversions of the user’s attention while being rather non-intrusive.

3. Keep your advertisements strictly within the boundaries of the application

Nothing would annoy an avid gamer more than disrupting their gaming experience by forcing them to momentarily exit the game via imposed circumstances such as clicking on a mobile game advertisement. Always keep in mind the importance of maintaining a good User Experience and ensure that players can pick up where they left off seamlessly after accessing your ad.

In short, advertisers should ideally aim to condense and relay all the information through a singular ad if possible without ever leaving the mobile game itself. If you absolutely require users to head to an external site or application to view your information, please request their permission and ensure that they have the opportunity to save their progress in case their mobile game force closes. Do compensate players for the inconvenience as a gesture of goodwill.

4. Address banner noise

As users come across more advertisements every day, it’s inevitable that banner ads would be glossed over by desensitised consumers. This is also known as ad blindness where users may consciously or subconsciously dismiss banner ads out of habit. While we are engrossed or extremely focused on a task or objective, we often ignore occurrences in the background. For instance, we would probably not notice that the traffic light has switched colours if we are busy sending text messages to our friends via a mobile device. Likewise, gamers who are attempting to focus on completing a mission are prone to ignore any ads that appear in their way by closing them immediately if that option is available.

Thus if you observe that engagement rates are plummeting with regard to your mobile game advertisements- do consider switching up your ad formats and incorporating more interactive and rewarding advertisements.

5. Factor in ad blockers that hinder your in-app mobile game advertising campaign

Undoubtedly, there will always be a sizable number of users who detest advertisements due to having a prior unpleasant experience. Every day, the number of Adblock users is consistently on the rise. This does not mean you should automatically dismiss them as being unreceptive to your ads.

Fortunately, adblockers have yet to find themselves integrated into mobile games, but this does not mean that game developer and advertisers should not attempt to foster goodwill amongst their communities by producing creative and engaging advertisements that are non-intrusive and beneficial for users to a certain degree. It would be ideal to implement advertisements in mobile games discreetly in order to prevent potential backlash. This would result in a lack of demand for AdBlock in mobile games and thus delay or prevent its integration.

Adopt a comprehensive, multi-pronged in-app mobile game advertising approach!

To fully maximise the potential of in-app mobile game advertising, game developers and advertisers should collaborate in brainstorming. Mixing and matching ad formats is a surefire way to optimise revenue generation. Rewarded video ads can be displayed to players when they fail a stage by gifting them a complimentary life. Banner ads can be scattered strategically throughout the menus and user interfaces during lulls and downtime. Lastly, you may consider reserving interstitials for loading screens or post-mission completion summaries. These are just examples- Use your boundless creativity and you will yield the fruits of your labour in time!