The digital transformation in the Kingdom of Saudi Arabia is progressing steadily towards strengthening its position as a global centre in the field of artificial intelligence. A study of current market trends shows that this transformation is noticeable in the retail and AI marketing.

As industry reports indicate, AI is expected to contribute approximately $135 billion to the Kingdom’s GDP by 2030, making it not just a new technology tool, but an influential force reshaping the relationship between brands and consumers today.

Despite the enormous investments and striking headlines, the real impact of artificial intelligence is evident in the field, as it reformulates the concepts of creativity, flexibility, and cultural communication within marketing campaigns.

The difference between traditional marketing and AI marketing in Saudi Arabia

In light of the rapid digital transformation in the Kingdom of Saudi Arabia, it has become necessary to understand the difference between traditional methods of marketing and those based on artificial intelligence technologies, especially with the increasing trend towards innovative solutions that enhance the efficiency of marketing campaigns and customer experience.

1. Content type

While traditional marketing relies on general content that does not take into account individual differences between customers, AI marketing offers personalised content based on each customer’s behaviour and preferences, achieving greater interaction and a more profound connection with the brand.

2. Measurement methods

Measurement in traditional marketing usually takes place after advertising campaigns have ended, delaying decision-making. Artificial intelligence provides real-time analytics and live data through which performance can be improved and strategies modified instantly.

3. Cost

The cost of traditional marketing is relatively higher, since it targets a broad audience without accuracy. In contrast, AI provides intelligent and effective targeting, reducing ad spend and achieving better results with the same or lower budget.

4. Technology used

Traditional marketing relies on manual tools and limited technologies. In contrast, artificial intelligence marketing relies on advanced technologies such as data analysis, machine learning, chatbots, and recommendation algorithms, which enable companies to understand customers and interact with them efficiently.

5. Reaction speed

Traditional marketing is slow to react because it relies on multiple implementation steps. Artificial intelligence enables instant and automated interaction with customers, increasing the chances of rapid response and increasing conversion rates.

6. Audience response

The response of the target audience in traditional marketing is limited as a result of general and standardised messages. In AI marketing, response rates are increasing thanks to personalised messages and personalised experiences that enhance engagement and loyalty.

Thanks to these fundamental differences, more companies in Saudi Arabia are moving towards adopting AI marketing to achieve faster results and a more effective customer experience.

Is the importance of using artificial intelligence to improve electronic marketing

Artificial intelligence can improve electronic marketing for companies, which enhances the success of AI marketing campaigns, as insurance companies can use predictive analytics for artificial intelligence to know which consumers are about to leave before completing the purchase process, by making special offers and discounts that help them make the purchase decision.

• Artificial intelligence also contributes to identifying factors that may lead customers to stop at a specific step before completing the purchase process through predictive analytics, which helps companies take the necessary measures to prevent this defect from occurring.

• Advertising companies also use the data provided by artificial intelligence to improve electronic marketing campaigns by targeting customers who are most likely to respond to their advertising campaign. This helps it increase sales volume for its services, increase profits, and reduce the cost of spending on marketing campaigns.

• In addition, marketing companies use predictive analysis of artificial intelligence to raise their investment returns by making improvements to their entire strategies in the marketing process, such as developing products, changing the ways services are provided, etc. In similar cases, Staples benefited, as its investment return increased by 137 per cent.

As this importance increases, it becomes essential to understand how artificial intelligence can be intelligently employed to enhance the effectiveness of digital marketing strategies and achieve tangible results.

How does artificial intelligence contribute to the development of digital marketing

When exploring the transformation in digital marketing, we find that artificial intelligence has played a fundamental role in reshaping marketing strategies. It helps businesses personalise customer experiences with unparalleled accuracy, enhancing the efficiency and effectiveness of marketing campaigns.

Artificial intelligence is a key focus in ensuring the effectiveness of modern technologies in the digital marketing environment, contributing to the creation of unique and carefully targeted customer experiences.

By realising the effectiveness of modern technologies, companies continue to invest their resources in modern technologies to enhance their competitiveness today. Artificial intelligence allows us to collect detailed data about customer behaviours and preferences, which becomes the basis for making smarter marketing decisions.

Technology

Impact on digital marketing

Big Data Analysis

Enables companies to understand customer needs more deeply.

Machine learning

Helps enhance advertising targeting and accurate market forecasts.

Automated Conversations (Chatbots)

Provides ongoing, interactive customer experience support.

All of these contributions demonstrate how artificial intelligence is no longer just a technical tool but has become a strategic partner in formulating marketing campaigns and achieving growth and expansion goals.

Challenges of applying artificial intelligence in electronic marketing in Saudi Arabia

Despite the advanced capabilities offered by electronic marketing using artificial intelligence in Saudi Arabia, there are challenges facing its widespread application in the local market, the most prominent of which is the weak availability of qualified personnel in this field.

Many companies are also still reluctant to take steps toward complete digital transformation, fearing the risks associated with changing infrastructure or making significant investments without immediate results.

Privacy and data security are vital challenges, as the use of modern marketing techniques requires collecting and analysing sensitive data from users, which requires companies to operate according to precise controls.

In addition, the lack of knowledge among some decision-makers about the importance of digital transformation may delay the full adoption of these technologies in various sectors. To address these challenges, it is necessary to train national cadres and adopt a culture of digital creativity within institutions.

Examples of using artificial intelligence in marketing

In today’s digital age, there are many examples of artificial intelligence in electronic marketing, as this contributes significantly to achieving effective interaction with customers and increasing sales.

The remarkable impact of AI can be seen in various aspects of marketing activities, from predictive analysis to personalising customer experiences.

Personal Marketing and Artificial Intelligence

Personal marketing is emerging as one of the most important aspects of modern marketing strategies, powered by the power of artificial intelligence. 

These technologies allow companies to accurately analyse big data to understand customer preferences and behaviours, helping them deliver more compatible products and services.

It is now possible to target potential customers and provide personalised offers that meet their precise needs and personal preferences, which enhances engagement and brand loyalty.

Automation in advertising campaigns

With the development of advertising automation technologies, it has become possible to design and implement effective advertising campaigns with high efficiency and speed. 

Automated marketing allows companies to automate repetitive tasks such as scheduling ads, distributing them across multiple social media platforms, and continuously analyzing performance to ensure the best results. 

These strategies not only reduce the need for human intervention but also enhance the accuracy and performance of marketing campaigns.

The combination of personal marketing and campaign automation opens up new opportunities for businesses to reach their customers in more innovative and more effective ways.

AI Marketing Solutions for Startups

In today’s competitive era, it has become necessary for startups to exploit all available technologies to enhance their position in the market. Artificial intelligence is a powerful tool that provides innovative marketing solutions that enable these companies to achieve tangible and practical results.

Integrating AI with emerging strategies

One of the most prominent forces of artificial intelligence is its ability to analyse big data and turn it into actionable insights. Startups that adopt marketing solutions using artificial intelligence find in this approach a way to quickly and sustainably excel, especially in a market like the Saudi market, which is full of opportunities and challenges.

Local success stories

These are results achieved in several previous marketing projects outlined by startups in Saudi Arabia, thanks to their use of artificial intelligence. Through local case studies, we find examples of companies that have been able to increase their marketing efficiency, enhance their interaction with customers, and attract a broader segment of the audience.

Company “A” faced the challenge of weak digital interaction, so it relied on artificial intelligence to automate content and customise interactions, which increased interaction by 50 per cent. As for B Company, it used behavioural data analysis to understand its customers and create appropriate products. C Company succeeded in reducing its marketing costs by 30 per cent thanks to improving advertising campaigns using artificial intelligence technologies.

There is no doubt that artificial intelligence has vitally changed the features of electronic marketing and has become an indispensable tool in light of the intense competition and rapid changes in consumer behaviour. As Saudi Arabia continues to drive digital transformation, adopting AI marketing strategies is a necessary step for every brand that aspires to grow and stay ahead.

With continued progress in this field, investment in technology and qualified personnel will be the real difference between leading companies and those that watch from afar.

Frequently Asked Questions (FAQ)

1. What is artificial intelligence in marketing?

AI marketing is the use of techniques such as data analysis, machine learning, and behaviour prediction to improve customer experience, personalise content, and increase the effectiveness of advertising campaigns.

2. How does artificial intelligence help improve marketing campaigns?

By analysing customer behaviour and providing accurate insights that help make smarter marketing decisions, leading to higher conversion rates and reduced costs.

3. What is the difference between traditional marketing and AI marketing?

Traditional marketing relies on generic content and delayed measurement methods, while AI-powered marketing provides personalised targeting, real-time analysis, and real-time customer interaction.

4. What are the most prominent challenges of applying artificial intelligence in marketing in Saudi Arabia?

The most prominent challenges include: lack of specialised personnel, fear of changing infrastructure, limited digital knowledge, and concerns related to data privacy.

5. Can artificial intelligence replace the human marketer?

Not quite, it acts as an intelligent assistant that enables marketers to make informed decisions faster, but it does not replace creative sense and human experience.