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Artificial Intelligence Social Media Ecommerce

Better informed, prettier content: AI will transform luxury social media marketing

By Lily Power, Social media specialist



The Drum Network article

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June 21, 2023 | 8 min read

From automated content and personalized ads to social listening and beyond, AI is reshaping the landscape of social media. This is also true for the ultra-luxury market. Relevance’s Lily Power reveals all.

Social media app open on smartphone

Scared of AI coming for social? Lily Power of Relevance gives four reasons why you shouldn't be. / Image courtesy of Relevance

Artificial intelligence (AI) continues to permeate every aspect of our daily lives, including how we use and interact with social media. In particular, ultra-high-net-worth-individuals’ (UHNWIs’) approach to social media differs from the average user's as they navigate a unique landscape of luxury, privacy, and professional networking.

Luxury brands can use AI to digitally deliver exceptional, personalized customer experiences for UHNWIs and, in turn, successfully target and access this exclusive group.

With the aid of AI, brands can determine the best times to post, choose images, and create unique and engaging captions, making it easier to maintain an online presence. Brands can also apply AI to analyze user behaviors and deliver personalized and targeted content, which can help businesses identify the right target audiences and create targeted, high-converting campaigns.

How will AI transform social media?

AI continues to revolutionize how businesses use social media for marketing their products or services. Despite recent setbacks, AI has the potential to offer a significant augmentation to streamline social media processes, making it more viable for users.

Brands are using AI solutions to understand customer preferences, with the AI market in social media predicted to be worth $3.7bn (£2.9bn) by 2026. Here are just a few ways AI can transform social media marketing strategies.

1. Analyze user behavior

If you’re wondering what’s spiking your screen time, AI could be the answer. Numerous social networks rely on technology (targeted ads, recommended Twitter profiles and tweets, etc). By analyzing data from social media platforms, AI algorithms can identify patterns and trends, which can help brands make informed decisions about their marketing strategies.

UHNWIs require a tailored marketing approach. AI can help identify which types of content your audience finds most engaging, which can inform the creation of future content, enabling social media platforms to improve the accuracy of their advertising.

By analyzing user data, AI algorithms can predict the products or services users are likely interested in, enabling advertisers to deliver more targeted and relevant advertisements. This targeted advertising is hugely beneficial for advertisers and users, as it ensures that ads are more effective and less intrusive.

2. Create personalized content

Content marketed to UHNWIs must be aesthetically pleasing. Imagery must be professional, unique, and thoughtful, and copy must be elegant and genuinely reflect how the brand communicates with its audience.

Generic content will yield poor results; this elite audience looks for personalization. AI on social media can help your brand understand this niche audience, enabling you to create more personalized content.

A ‘content popularity prediction’ model can analyze huge amounts of data to help brands better understand their customer base and recommend content that they might want to see, accordingly. For example, it might use UHNW demographic data to discover what tweets are most popular among this audience – brands can then leverage this data to create impactful campaigns that resonate.

3. Influencer marketing

The influencer marketing industry was worth $16.4bn in 2022. Considering this profitable collaboration, it’s no surprise that AI is transforming social media, helping to improve and enhance influencer marketing strategies.

AI can improve influencer marketing by enabling brands to efficiently identify relevant influencers for their campaigns. By leveraging machine learning algorithms, AI tools can analyze magnitudes of data from social media platforms (follower demographics, engagement rates, content relevance, audience sentiment) to predict an influencer's potential reach and impact before making informed collaboration decisions.

A key example of influencer marketing amassing impressive results is Fendi’s ‘F Is For Fendi’ campaign. The luxury fashion brand collaborated with Hilary Rhoda (566,000 followers) and Coco Rocha (two million followers) to create content that reached 3.6 million people worldwide with over 33k impressions on social media.

4. Build better ads

Another benefit of AI on social media is ad management. Social media platforms produce vast amounts of user data, which AI algorithms can analyze to find and segment audiences. Analytics can then be used to create ad campaigns that better connect and engage with UHNWIs.

AI also enhances ad performance through optimization. AI algorithms continuously monitor and analyze ad campaigns, optimizing ad creative, placement, bidding, and targeting parameters.

By analyzing historical data and real-time performance metrics, AI can make data-driven decisions and automatically adjust campaign settings to improve results. This leads to increased ad performance, higher click-through rates, and better ROI.

The downfalls of AI on social

Ad fraud is a significant concern in digital advertising, with fake clicks, impressions, and bots impacting campaign performance and effectively wasting ad spend.

AI algorithms can detect patterns and anomalies associated with fraudulent activities. By using AI-powered fraud detection tools, brands can identify and mitigate ad fraud in real-time, ensuring that their ad budgets are allocated effectively and efficiently.

Overall, AI creates exciting new possibilities for businesses to enhance engagement on social media and streamline their processes. From post scheduling and personalized content to influencer marketing and ad management, AI can help brands get more value and conversion from their social media strategies and transform how they market across social channels.

Artificial Intelligence Social Media Ecommerce

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Relevance is a strategic and creative digital marketing agency specialising in profiling and targeting Ultra-High-Net-Worth-Individuals for the world's most exclusive...

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