The Impact of Artificial Intelligence on Digital Marketing Strategies

  • Arina Sterkhova

Student thesis: Bachelor's Thesis

Abstract

Currently the business environment is evolving in the way business processes and strategies are performed due to the innovative technologies which are developed and implemented in business and daily activities. This thesis aims to investigate how Artificial intelligence (AI) influences digital marketing strategies in the B2B sector, especially in the area of customer engagement. It is a highly relevant topic since the latest advancements in AI have started transformation in digital marketing strategies. Because of this it is necessary for the marketing professionals to adapt and exploit these technologies for competitive advantage. As it is a current and dynamic topic, there is yet a limited amount of research available. However, it can be observed that more and more research is being conducted. Research shows that the B2C sector has had more focus as the changes in marketing strategies have been more apparent in that sector. However, despite the scarcity and limited amount of data on this topic, changes in B2B are now being recognized and observed more thoroughly. One interpretation for this can be that the B2B environment is less flexible in changing their strategies due to the higher complexity of relationships between companies and their customers compared to B2C. Consequently, this caused a slower pace of changes in marketing strategies due to emerging AI technologies in the current market. This thesis aims to close this research gap on the transformation of digital marketing strategies due to AI in the B2B sector and changes to customer engagement approaches through a literature review and empirical research. Nevertheless, the research results of this thesis cannot be generalized to every B2B company since companies may be different in company structures, goals, among other factors which influence individual approaches to digital marketing strategies. In comparison to the traditional rule-based approaches, modern digital marketing relies more on data-driven strategies. Also, a growing focus on increased personalization strategies is observed as customer data increases and is being constantly analyzed, which has also created a change from targeting broader audience groups to meeting the needs of each individual customer in a personalized way. There are changes observed towards companies connecting with their customers on a deeper level and establishing more personal interactions due to the changes due to AI integration into the digital marketing landscape. Research shows that primarily AI is used for reducing time, content creation optimization, personalization and understanding the audience better in digital marketing strategies of companies, which is done through data analytics and predictive analytics. Furthermore, research indicates that the integration of AI into digital marketing and business strategies is challenged by data availability, an education gap, high investments, and the need for constant training and adaptation to new technologies and legal requirements. Due to these rapid changes, many companies struggle to follow legal requirements, especially with the lack of transparency in ethical AI use, which calls for the implementation of AI ethics policies in companies. The outcome of the research suggests that AI has had an impact on customer engagement strategies, especially by allowing more personalization in interactions and improving data analysis, which enhances customer behavior predictions and anticipating needs. However, to achieve successful integration of AI into the company’s system and approaches, there are a number of challenges that a company faces, such as data management, education, and following regulations. Through this research, a foundation for more analysis into this dynamic topic of AI in B2B digital marketing strategies will be established.
Date of Award2024
Original languageEnglish
SupervisorClaudia Wallerstorfer (Supervisor)

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