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The Rise of the AI Agency: What It Means for Marketers in 2020

The Rise of the AI Agency: What It Means for Marketers in 2020

Trapica Content Team

Industry News
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4 min read
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August 31, 2020

In recent times, it has become normal for SaaS companies to go into hiding before re-emerging as an AI agency. We predict this trend will continue In 2020 and beyond as artificial intelligence plays a more prominent role in the marketing world.  

What’s an AI Agency?

Historically, one of the most salient concerns about artificial intelligence was that it would take over the workplace. People claimed that AI solutions would replace the need for thousands of professionals, forcing them into different careers or joblessness. Now it’s clear that humans and AI work together and benefit businesses without dismantling careers.

Although machine learning and AI can process data faster than ever, humans are still required to manage the system and implement the insights it generates. For traditional agencies, human workers are essential for scaling. With AI agencies, technology can automate workflows and other tasks that were previously resource-intensive. Nonetheless, while software can certainly replace some roles, humans are still an important cog in the marketing machine.

Currently, we stand on the brink of a very important change. There seems to be an Old Western movie scene forming between traditional and AI agencies. While some traditional agencies are holding onto the past, AI agencies are battling to become the new norm. As always, those who pay for these services will decide which wins.

The Emergence of Two Agency Species

If you shop around the different services available right now, this split is clear to see. We seem to have two species of agencies developing: one is rejecting AI and using grit as a unique selling point, while the other is embracing machine learning.

Customers are increasingly choosing AI agencies. We’ve seen people compare this phenomenon to the rise of social media. Those who failed to embrace social media when it was taking off were left behind. Those who are unwilling to embrace artificial intelligence may suffer the same fate.

Why Consumers Choose AI Agencies

Why are consumers currently voting for AI and machine learning agencies?

Lower Costs

We’ve mentioned that AI agencies need fewer staff because AI can optimize workflows and make a marketing agency more efficient. AI agencies have lower overheads and can pass a percentage of savings onto customers. In fact, some solutions are surprisingly affordable.

More Efficient Service

With a traditional human-led agency, we’re relying on the efficiency of their workers to generate results. From a business perspective, we almost need to make decisions in real-time, and traditional services don’t allow for this speed. While AI can process data and generate insights within seconds, humans can take hours if not days. By the time we get the insights, competitors with AI will be way ahead of the curve.

Ability to Handle More Data

Because AI can process data quickly, businesses can handle more data too. The more it can process, the more accurate the insights will be. These days, businesses have data coming in from all angles. Can they really afford to stick to traditional agencies when an AI agency can use this data to continually improve machine learning models?

Opportunities to Scale

Artificial intelligence has revolutionized ad creation and optimization. With a service like Trapica, you can optimize ad campaigns across several platforms at once. Rather than tracking everything manually, the tool will automate targeting, bidding and more.  Now, the ad is continually improving, and the business is always targeting the best audience. When the time is right, AI can help with scaling decisions too.

Better Customer Support

With AI agencies, marketers are often under less pressure to process data, predict outcomes and generate insights. AI handles these tasks and optimizes workflow, which means that businesses using the service get a stronger customer support system. Employees will be available more often and can focus on the big picture rather than getting lost in the data.

For all these reasons, businesses are choosing AI agencies over traditional offerings. If marketers fail to adapt to this new technology, they risk getting left behind as newer AI services replace them.

Today’s AI Agencies

AI excels at narrow tasks, including:

  • Organizing repetitive tasks
  • Collecting data
  • Organizing and analyzing data

While some companies use AI for candidate screening, others use it to manage and analyze ad campaign data. With services like Trapica, AI will help across Facebook, Instagram, Twitter, Pinterest, LinkedIn and other platforms. It’s an effective tool for bringing all campaign management under one roof.

Future AI Agencies

As artificial intelligence continues to make strides, job requirements for AI agency employees shift. Even for entry-level jobs, we believe marketers should know coding languages like Python— this will be the modern-day Adobe Suite requirement. Some high schools are including coding in their curricula, giving the next generation of marketers the preparation they need for their future careers.

Marketers will need advanced knowledge of artificial intelligence and machine learning. This will be easier for the younger generation because they are entering the industry not knowing anything different. For older marketers, it requires an evolution—similar in scope to the one we saw when it became clear social media would change the marketing world.

AI Enablement Managers and Directors of Marketing Data are replacing traditional roles. As soon as niche AI becomes general AI—and the technology can hold conversations and perform other human tasks—the industry will shift completely.

As companies invest in AI, it continually evolves. You’ve probably seen marketing companies offer artificial intelligence and machine learning as their unique selling point. If AI is now a competitive advantage, the question remains of how you will introduce the technology.

How to Adopt AI as a Marketer

Businesses now have a variety of services to choose from in this niche, so make sure you find one that suits your needs. As a marketer, consider embracing artificial intelligence and machine learning to evolve your service and stay ahead of the competition.

First, decide how to use AI. Will you offer customers a 24/7 chat feature on both your website and theirs? By giving clients access to AI chat tools, they can keep customers happier and process more orders. What’s more, they can reallocate time to bigger picture tasks rather than drowning in conversations with customers.

You may decide to use AI to help businesses improve their advertising campaigns. Across several platforms, AI could collect data, organize it and analyze to provide insights for ad campaigns. Depending on the level of control you want to allow, the AI could suggest improvements to targeting and creatives, or even make the changes automatically.

Once you’ve made a decision, make sure that everybody in the business buys into this new direction. While some employees will appreciate this new help to their job, others will feel threatened by AI taking over menial tasks. If anybody is worried, start a conversation and get to the bottom of the concerns.

Both businesses and marketers need to adapt to the rise of AI. Failure to do so may mean losing customers and market position. We’re here to be a helpful resource for AI-curious businesses.

Industry News
|
4 min read
|
August 31, 2020
Trapica Content Team

The Trapica Content Team aims to share relevant industry news, marketing tips, and company updates to make sure our readers have the best info about digital marketing.