What Types of AI Are Changing Performance Marketing? 

"AI" is not just one thing: there are several different types.

About 80% of marketers are using AI, and primarily for content generation. But that's just because the most accessible, widely adopted tools so far are large language models (LLMs), a type of generative AI.

ChatGPT is a household name. The other types of AI - not so much! But that doesn't mean they can't be useful for performance marketers.

In this article, I'll break down the most impactful AI technologies in performance marketing and explain how each can be used to gain a competitive edge, beyond the LLM you're likely already using.

1. Generative AI in Content Creation and Personalization

Generative AI plays an increasing role in performance marketing, particularly in automating content creation. This AI type generates new content or insights based on existing data, helping marketers produce customized messaging at scale.

Applications:

• Automated ad copy creation: Generative AI can create multiple variations of ad copy tailored to different audience segments, increasing relevance and engagement.
• Dynamic content personalization: By analyzing user preferences and behaviors, generative AI helps marketers serve personalized content in real time, such as adjusting website copy or email subject lines.

Brands like Netflix use generative AI to provide personalized recommendations, adjusting the content offered based on user behavior, which increases engagement and retention. Tools like Pixis employ generative AI to help brands create highly personalized marketing messages at scale, driving greater engagement and improving overall campaign performance.

2. Predictive Analytics for Behavior Forecasting

Predictive analytics is one of the most widely used AI technologies in performance marketing. This machine learning technology analyzes historical customer data to predict future behavior, allowing marketers to adjust their strategies accordingly.

Applications:

• Customer churn prediction: Marketers can identify which customers are at risk of leaving and target them with retention offers.
  
   
• Purchase behavior forecasting: Predicting which products a customer is likely to buy next based on browsing and purchase history helps marketers create more relevant offers.
• Campaign optimization: Predictive models can identify which campaigns are most likely to succeed, helping marketers allocate budgets more efficiently.

Amazon uses predictive analytics to suggest products based on shopping history, increasing conversion rates by showing items customers are most likely to purchase.

3. Natural Language Processing (NLP) for Customer Insights and Engagement

Natural language processing (NLP) is a type of AI that allows machines to understand, interpret, and generate human language. In performance marketing, NLP is used to analyze customer feedback, social media sentiment, and automate communication with customers.

Applications:

• Sentiment analysis: Marketers can track customer sentiment across social media platforms to understand brand perception in real time.
• Chatbots and virtual assistants: NLP powers chatbots that provide instant responses, improving customer service and engagement.
• Content optimization: NLP analyzes language and structure to identify content that resonates best with audiences, improving SEO.

With NLP, marketers can quickly understand customer thoughts, adjust their messages, and build stronger connections with their audience.

4. Computer Vision for Visual Content Analysis

Computer vision allows machines to interpret and make decisions based on visual data, such as images and videos. In performance marketing, this technology helps optimize visual content, track interactions, and improve the overall customer experience.

Applications:

• Ad and content analysis: Computer vision analyzes video ads to identify visual elements that capture attention, helping marketers refine creative assets.
• User-Generated Content (UGC): Identifying branded content or user-generated images/videos that can be used in marketing campaigns to increase engagement.
• Visual search: Allowing customers to search for products using images, improving the shopping experience by showing visually similar items.

Instagram uses computer vision to automatically tag images with relevant hashtags, making the platform more interactive and engaging.

5. Reinforcement Learning for Real-Time Campaign Optimization

Reinforcement learning learns by interacting with the environment and receiving feedback. In performance marketing, this AI type is used to optimize decision-making processes in real time, such as ad bidding and campaign adjustments.

Applications:

• Real-time ad bidding: Reinforcement learning algorithms adjust ad bidding strategies in real-time, making sure marketers get the best return on investment (ROI).
• Dynamic campaign adjustments: The system learns and modifies marketing strategies based on live performance data, improving results.
• Customer segmentation: Reinforcement learning dynamically segments customers, targeting the most profitable groups based on real-time interactions.

Google Ads uses reinforcement learning to automatically adjust bids, improving ROI by making changes in real-time.

6. Robotic Process Automation (RPA) for Marketing Efficiency

Robotic Process Automation (RPA) uses AI to automate repetitive, rule-based tasks. In performance marketing, RPA helps simplify workflows, reducing manual effort and freeing up time for more strategic activities.

Applications:

• Data entry and reporting: Automating data collection and reporting tasks to ensure faster, more accurate analysis.
• Lead generation and nurturing: RPA automates initial outreach to leads, sends follow-up emails, and schedules appointments, improving lead conversion.
• Campaign monitoring: Automating the monitoring of campaigns to ensure they are running smoothly and achieving goals.

Tools like Pixis help marketers automate repetitive tasks like reporting and campaign tracking, allowing them to focus more on strategy while improving workflow efficiency and reducing errors.

Harnessing the Power of AI in Performance Marketing

AI is a vital tool for performance marketers, offering faster insights, more precise targeting, and personalized customer experiences. From predictive analytics to natural language processing and reinforcement learning, AI technologies offer distinct advantages depending on your marketing needs. Marketers who employ these tools can improve campaign results, optimize budgets, and deliver more engaging experiences to their customers.

For those looking to take full advantage of AI in performance marketing, platforms like Pixis provide powerful AI-driven tools that help unlock insights, optimize strategies, and drive measurable results. Explore Pixis today and boost the performance of your marketing campaigns with AI.