In the field of marketing, artificial neural networks have a lot of uses. Neural networks can help marketers in sales forecasting, market and customer segmentation, customer behavior analysis, content creation, and marketing automation.
How is Artificial Neural Network Used in Marketing?
Artificial neural networks help marketers predict sales, analyze customer behavior, create content, and automate marketing. Day by day, the neural network is getting more and more important in the marketing industry, do you want to know more about it? Here I tell you.
Artificial Neural Network – An Overview
Artificial neural networks (ANNs), usually simply called neural networks (NNs) are a broad family of machine learning algorithms that have formed the basis for the branch of data science and artificial intelligence called deep learning.
The neural network has great results in various fields such as classification of objects in images, user behavior prediction, voice recognition, etc.
Neural networks and deep learning became very popular in 2015 when AlphaGo, a computer program based on neural network technology and deep learning, defeated high-profile “Go” player Lee Sedol 4-1. Go is a complex board game in which the aim is to surround more territory than the opponent. This game requires intuition, creative and strategic thinking.
But technically, what is a neural network? An Artificial Neural Network (ANN) is a computing system inspired by the biological neural networks that make up the brains of animals.
A neural network is an algorithm that consists of simulating the behavior of a biological brain through thousands of interconnected artificial neurons that are stored in rows called layers, forming thousands of connections.
There are several types of neural networks, such as monolayer or single-layer perceptron (SLP), multilayer perceptron (MLP), Convolutional neural network (CNN), recurrent neural networks (RNN), Feedforward neural networks (FNN), or Radial basis function (RBF).
The Applications of Neural Networks in Marketing
Artificial neural networks promise a breakthrough in areas where traditional computer systems have difficulty performing complex tasks. They represent a radical attempt to break the deadlock by building computers that mimic the way humans think.
The neural network has been applied in various areas for many years, such as biology, which uses it mainly to learn more about the brain. Another area in which it is commonly used is in the field of the environment, where trends and patterns or weather forecasting are analyzed. In medicine, it is working excellently for the prediction of tumors or abnormalities, as well as for elaborating complex diagnoses and treatments to follow, based on some symptoms.
In finance, the neural network is commonly used in everything related to forecasting price developments, assessing or determining credit risk, and counterfeiting.
As you can see, it has a direct application in many areas, and of course, in marketing as well.
From a marketing perspective, artificial neural networks are a form of new, more efficient, and more dynamic software tools used to aid in decision-making.
Neural networks not only lead to a deeper understanding of basic marketing decision-making processes but also allow the study of normative aspects of marketing systems.
Artificial neural networks are effective in collecting and extracting information from large data sources. They have the ability to determine cause and effect within data.
Neural networks are transforming the available set of marketing technology resources.
In the field of marketing, the neural network has various uses, including:
- Sales prediction.
- Identify patterns of behavior.
- Recognize written characters.
- Predict consumer behavior.
- Create personalized marketing strategies.
- Create and understand more sophisticated buyer segments.
- Automate marketing activities.
- Content creation.
Of all the uses of artificial neural networks, the greatest uses are in predictive analytics, where they help marketers to be able to make predictions about the outcome of a campaign, recognizing marketing trends from previous campaigns.
Currently, the appearance of Big Data has made this technology really useful for marketing, since we can have much more data that makes those predictions much more accurate. By having more accurate predictions, marketers will be able to improve marketing strategies when it comes to deciding how much they should spend on their marketing campaigns.
As you have seen, neural networks are complex algorithms with an increasing future tendency in various applications, giving humanity great benefits in the field of Artificial Intelligence.
Read Also: Top 10 Artificial Intelligence Technologies You Need to Know