Artificial intelligence was a stand-alone technology thirty years ago, but its applications are now extensive in many aspects of marketing and sales.
According to the Gartner report, the adoption of artificial intelligence during 2018-2019 increased from 4% to 15%, and it shows no signs of slowing down.
Artificial Intelligence has taken over the business world because of its ability to improve precision, deliver accurate results and increase job efficiency.
Moreover, practical algorithms can enhance the capabilities of gadgets like GPS tracking devices, voice assistance, and home automation systems, helping them adapt to new input via progressive machine learning techniques. On the other hand, AI-powered applications also automate corporate operations, personalize service delivery, and provide company-specific insights.
All in all, artificial intelligence has changed the world due to its extraordinary capacity to evaluate and learn from data. Medical, finance and marketing are just a few areas that have a strong demand for AI skills.
Artificial Intelligence has forever altered the way we identify digital marketing trends, thanks to excellent data analysis and its capacity to react to the input. Brands and marketers also use AI-led digital marketing to save time and resources through automation.
Here is how artificial intelligence helps digital marketers:
As AI becomes more widely available, marketers can now use it to analyze data, predict future trends, and enhance the quality of their brand. As a result, the way a brand conducts digital marketing has also evolved.
But, what does this mean for the year 2021?
First, businesses must adopt a more customer-centric approach and reinvent their marketing models to incorporate AI.
Artificial intelligence already automates manual and repetitive tasks, and the chances are that it will soon supplement human decisions as well. Furthermore, its growth will generate many good jobs while also altering the way current jobs are performed.
Digital marketers are looking for ways to use AI to satisfy the ever-evolving customers’ expectations. This is particularly the case for established businesses that have relied on traditional marketing methods for a very long time.
It is essential to realize that technological solutions are growing smarter, but so are your customers. They are knowledgeable and favor quick response platforms and search engines.
Artificial intelligence is being widely used in digital marketing, but why?
Let’s discuss some of its advantages.
38% of consumers believe that customer service can be improved by using AI. Artificial intelligence and big data solutions can evaluate user search trends and assist digital marketers in identifying important areas where they should focus their efforts.
AI enables digital marketers to create innovative advertising campaigns across social media sites where the targeted audience spends their time.
Marketing automation is similar to refueling traditional marketing businesses with several new technologies. Using AI, all manual digital marketing tasks will be automated.
Digital marketers can use AI tools to utilize the data and target the right audience at the right time. Marketing teams can use artificial intelligence tools and solutions in digital marketing to find potential buys and send personalized content that meets their needs.
Retaining customers was a difficult task for digital marketers earlier. However, they can now effectively serve, delight, and engage them with AI-powered customer service Chatbots. As a result, more than half of digital marketing firms rely on customer service bots to increase conversion rates.
One of the most significant advantages of using artificial intelligence in digital marketing is that it analyzes competitors’ moves and helps you generate more revenue than before. Moreover, AI assists marketers in identifying patterns that are likely to harm the future of the marketing business.
As the world has shifted to digital marketing, AI plays an essential role in optimizing and rationalizing marketing campaigns. There are several artificial intelligence digital marketing tools that the world uses to eliminate errors and to promote their business efficiently.
Here is a list of AI tools for digital marketing that can help you boost your business:
Let’s explore these in detail.
With the use of artificial intelligence, Phrasee helps you write email subject lines creatively. In addition, Phrasee’s AI-powered NLG technology generates several human-sounding copy variations to fit your overall brand identity.
Moreover, It employs customized language standards for all consumers to guarantee that each delivered copy is accurate for them. And the algorithm is persistent, which means that when you send the outcomes to Phrasee, it analyzes the consumer behavior for the future.
Key Features
This artificial intelligence (AI) technology determines the items and services that your audience prefers at any particular time. The tool employs a formula to determine the best interests of each contact, which are constantly updated based on their search history.
Moreover, it provides the data you require to build focused marketing and sales efforts that boost response rate, conversion rates, and client preference.
Key Features
HubSpot SEO is a crucial AI tool for people in the content department. Machine learning is used to evaluate how searchers perceive and classify your content as HubSpot SEO assists you in outranking your competition by improving your search engine ranks.
Websites that arrange their material around key themes or topics are rewarded by search engines. HubSpot SEO assists you in discovering and ranking for the subjects that are important to your consumers and organization.
Key Features
Acrolinx is a platform for content alignment that helps companies scale and improve the standards of content.
Acronlinx uses artificial intelligence to assess existing material from your brand and ensure that it adheres to your brand guidelines. Afterward, it examines your available content to determine what works and where it may be improved.
Moreover, the tool gives real-time feedback and ideas to help you improve your writing and strengthen unconvincing pages.
Key Features
MarketMuse employs an AI-powered assistant to aid marketers in developing a content strategy.
The tool tells you the appropriate keywords to use in specific subject categories and advises target keywords for your content. Moreover, it identifies gaps and possibilities for additional material and ranks them based on their likelihood of impacting your results.
The AI analyses your work and compares it to hundreds of publications on a similar subject, and tells you what is missing on your website.
Key Features:
ChatFuel uses an intelligent bot to automate Facebook Messenger chats. It is a famous AI chat solution, powering 46 percent of all Messenger automation solutions. Furthermore, it lets you automate FAQs and sales discussions and links customers to sales professionals in a live chat.
Key Features
Albert AI is a software that produces marketing promotions for your company automatically. It analyzes massive quantities of documents and utilizes them to conduct self-optimized ads.
Albert allows you to feed in your targeted consumer and creative content and leverages information from its database to identify the essential qualities of a loyal customer. The company then finds potential consumers with those characteristics, conducts sample campaigns on fewer customers, improves the promotion, and posts it on a broader scale.
Moreover, Albert integrates with your current marketing technology stack, allowing you to continue using your accounts, advertising, social, search, and other tools.
Key Features
Running a business is a full-time job in and of itself. It might be challenging to keep track of your rivals’ activity.
Crayon is a popular intelligence tool that allows you to follow what your competitors do and avoid on their websites. It will enable you to track any competitor’s entire digital presence, capturing everything from new hiring, pricing, and products.
Key Features
Automated bidding eliminates the uncertainty and heavy lifting associated with creating bids to fulfill your performance objective. Unlike CPC bidding, there is no need to change bids for individual ad groups or keywords manually.
Google Ads automatically sets bids for your ads based on the chance of that ad resulting in a click or conversion that helps you reach a specified business objective.
Various automated bidding techniques can assist you in increasing conversions, clicks, and visibility.
Key Features:
Social media marketers understand that communication with customers is key to building genuine relationships. However, it can be a bit challenging to do it online. For that, digital marketers use Persado.
This marketing language tool employs AI and machine learning to generate language most appealing to any particular audience, sector, or person.
By evaluating previous campaign reactions, Persado generates emotional profiles for each consumer category. It may then tailor material for your target while incorporating your brand’s voice.
Key Features:
Artificial intelligence (AI) is already widely used in various industries, including healthcare, finance, retail, and e-commerce. It has created several chances for firms to get engaged in digital marketing.
Marketers have adopted artificial intelligence (AI) for their digital marketing strategies since it assists them in tracking client preferences and behaviors.
In digital marketing, AI delivers more significant customer insights and provides exceptional service to its clients. However, the use of a successful marketing plan has been a source of consternation for marketers. With the help of artificial technology digital marketing tools, you can get the necessary insight, reducing the requirement for human operations in deep learning.
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When this apartment complex client partnered with PPC.co, their goal was clear: generate more qualified leads through Google Ads. In just 60 days—from January to March 2025—we transformed their paid acquisition performance. Total conversions more than tripled, jumping from 10 to 32, while the overall conversion rate soared by over 300%. At the same time, we drove down the cost per conversion by 44%, delivering significantly more leads at a much lower cost.
By strategically combining Performance Max and high-intent Search campaigns, we not only increased lead volume but improved overall efficiency and ROI. This rapid and measurable improvement underscores the value of data-driven optimization and expert campaign management.
This case study is a testament to what can happen when a well-structured campaign meets expert strategy and continuous optimization. Whether you're launching a new property or looking to boost occupancy in a competitive market, PPC.co delivers real results—fast.
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If you’re running an e-commerce or retail business, you already know that visibility is everything. The best product in the world won’t sell if no one sees it. That’s where paid ads for ecommerce comes in.
Done right, they drive traffic, conversions, and repeat customers.
Done wrong, they drain your budget and leave you wondering what went wrong.
Whether you’re spending $500 a month or $50,000, your goal is the same: profitability. Not just clicks, and certainly not just impressions. You want to turn ad dollars into real, predictable revenue.
So how do top-performing e-commerce and retail brands make their paid ads work?
What are they doing that you’re not?
This guide breaks it down step-by-step, so you can start running profitable ads with confidence.
Before you launch a single campaign, you need clarity on your audience and goals. Are you trying to boost first-time sales? Increase average order value? Each objective requires a different strategy and metrics for success.
Don’t fall into the trap of launching ads just to “see what happens.” Paid media works best when it’s part of a bigger strategy. So before you log in to Google Ads or Meta Ads Manager, get specific about what success looks like.
If you want to run profitable paid ads, knowing your numbers is the foundation of your entire strategy. Without a clear understanding of your margins, break-even points, and how much you can afford to spend to acquire a customer, you’re essentially gambling with your ad budget.
And in e-commerce, that can get expensive fast.
Let’s start with the most critical numbers you need to know:
Your break-even ROAS tells you the minimum return you need on your ad spend to not lose money. It’s calculated by dividing 1 by your gross profit margin.
So if your margin is 50 percent, your break-even ROAS is 2.0. That means for every $1 you spend on ads, you need to make $2 in sales just to break even.
For example, let’s say you’re running Facebook Ads and spending $1,000 on a campaign. If your break-even ROAS is 2.0, you need to generate at least $2,000 in revenue to avoid losing money. Anything above that is profit. Anything below that eats into your cash.
Once you know your numbers, you can reverse-engineer your ad strategy instead of throwing money into the void and hoping for results. For instance, if your AOV is low (say $25), you might struggle to profit from ads unless you have a very low COGS or high conversion rates. In that case, you might want to:
On the other hand, if your AOV is $150 and your margins are strong, you have more room to compete in ad auctions, bid more aggressively, and test multiple audiences and creatives without instantly wiping out your profit.
A lot of beginner advertisers focus entirely on immediate return from ads. That’s understandable – but short-sighted. If you’re breaking even or slightly losing on the first sale, that might still be a smart move if you’re building long-term customer relationships.
That’s where Customer Lifetime Value (LTV) comes in. If you know that your average customer places three orders a year, each worth $60, then their LTV is $180. If you spend $40 to acquire that customer with your first ad, but earn $140 more over the next 12 months, that ad was extremely profitable in the long run.
Top e-commerce brands build their paid strategies around LTV-to-CAC ratio – how much they earn over time compared to what they paid to acquire the customer.
A healthy ratio is usually 3:1 or higher. So if you’re spending $50 to acquire a customer, you want to earn at least $150 from that customer over time.
Once you understand your numbers, you can plan your ad spend with precision. You’ll know exactly:
Let’s say you want to make $5,000 in profit this month, and your product has a 50 percent gross margin. That means you need $10,000 in sales. If your target ROAS is 2.5, you can spend up to $4,000 in ad spend to hit that goal. With those numbers in hand, you now have a roadmap for campaign budgeting, not just a shot in the dark.
Every ad platform has strengths. But if you try to use them all at once, you’ll burn through your budget without learning much. Instead, pick one or two that align best with your business model and customer behavior.
If you’re selling visually appealing products like apparel, skincare, or home goods, platforms like Instagram and TikTok can deliver strong returns – especially with the right creative. If you’re focused on high-intent buyers, Google Search and Shopping Ads are goldmines. And if you’re targeting professionals or B2B retail buyers, LinkedIn may offer surprising results.
Test channels strategically. Start with the one that matches where your customers spend their time and scale from there. The best platform for you is the one where your ideal customers are already shopping, scrolling, or searching.
One of the biggest mistakes retailers make is casting too wide a net. You don’t want everyone to see your ad – you want the right people to see it.
On Google, this means targeting high-intent keywords that signal buying behavior. Focus on terms like “buy,” “best,” “free shipping,” or product-specific searches. On Facebook, Instagram, or TikTok, you’ll want to dial in your custom audiences using demographic data, lookalikes, interests, and behavior.
Don’t forget retargeting. Most people won’t buy the first time they visit your site, but retargeting brings them back when they’re ready. Set up ads that follow people who viewed a product, added to cart, or engaged with your brand but didn’t check out.
The more relevant your targeting, the more efficient your spend and the higher your return.
Creative is the make-or-break factor in most e-commerce ad campaigns. You can have perfect targeting and the right product, but if your ad doesn’t grab attention in the first two seconds, it won’t convert.
Your creative needs to do three things quickly:
Use high-quality product photos or videos. Show your product in action. Highlight a clear benefit or solve a specific problem. Incorporate customer reviews or user-generated content to build trust.
For paid social, test multiple creatives at once – video vs. image, UGC vs. branded, short-form vs. long-form – and let performance data guide your iterations. On search platforms like Google, focus on copy that’s compelling and packed with relevant keywords. Test different headlines and descriptions to see what gets the best click-through rate.
Sending paid traffic to your homepage is a rookie mistake. You want every click to land on a page that’s designed to convert. That means fast load times, mobile optimization, and a clear call-to-action.
If you’re promoting a specific product, send users to that product page and not your full catalog. If you’re offering a bundle or a seasonal deal, create a dedicated landing page with copy, visuals, and layout tailored to that offer.
Remove distractions. Reduce friction. Make it stupid-easy for people to buy. The less effort it takes, the more sales you’ll see. And don’t forget to A/B test. Sometimes a simple tweak to your headline or CTA can double your conversion rate overnight.
Once your ads are live, your job isn’t done. In fact, this is where it really begins. You need to monitor performance regularly, looking at more than just the surface-level metrics.
Click-through rate (CTR) tells you how well your ad is capturing attention. Conversion rate shows how well your landing page is sealing the deal. ROAS tells you how profitable your campaign is. And CPA helps you compare efficiency across different products or audiences.
Watch for early indicators of success – or failure.
Treat your campaigns like living systems. Tweak, test, and improve them continuously.
Once you find a winning combination – an ad, offer, and audience that works – it’s time to scale. Increase your budget gradually while keeping an eye on performance. Scaling too fast can tank your results, so go step by step.
Duplicate high-performing campaigns to test new audiences or creatives. Experiment with upsells, bundles, or time-limited offers to increase AOV. Layer in email or SMS marketing to retarget paid traffic and drive repeat sales.
And just as importantly, don’t be afraid to kill underperforming ads. If something isn’t working after a reasonable test period, cut it. Your budget should be flowing to what works – not what you hope will work.
One of the biggest mistakes in paid advertising is chasing one-off sales without thinking about the bigger picture. Winning e-commerce brands think in terms of customer lifetime value.
If your first sale breaks even, that’s fine. (As long as you have a plan to turn that customer into a repeat buyer. ) You can use post-purchase emails, loyalty programs, and retargeting ads to bring people back.
At the end of the day, when you view paid ads as the beginning of a customer relationship – not the end – you unlock real long-term profitability. And at PPC.co, that’s where we want to help you! We offer industry-leading PPC management services for ecommerce and retail brands who want to stop wasting ad spend and start generating real ROI.
Contact us today to learn more!
