Abstract
The objective of this chapter is to examine the impact of emerging technologies, such as AI, NLP, VR, and AR, on the digital marketing landscape. It highlights the transformative nature of these technologies in the realms of personalization, virtual retail, and customer experience enhancement. The chapter emphasizes that these technologies offer novel opportunities for businesses to engage with consumers and optimize marketing strategies. However, it also recognizes the significant security and privacy challenges arising from these advancements, particularly with regards to data mining, customer data usage, and virtual environments. Additionally, the chapter discusses the growing influence of social media platforms, influencer marketing, and voice search technology in shaping the future of digital marketing. The authors conclude by recommending that businesses prioritize data privacy and security while embracing emerging technologies to remain competitive and navigate the evolving intersection of AI, privacy, and customer experience.
TopIntroduction
The digital marketing world is evolving rapidly with the emergence of innovative technologies, such as the metaverse, immersive tech, and blockchain (Rizvanović et al., 2023). These technologies are changing how businesses interact with customers, by providing personalized and immersive experiences that blend the online and in-store shopping experiences (Valaskova et al., 2022). Augmented reality (AR) and virtual reality (VR) have enabled brands to create engaging virtual experiences that enrich product visualization and increase customer loyalty (Quiroz-Guitierrez, 2022). Spatial computing, telepresence, and holographs are expected to expand digital marketing capabilities in the future (Huynh-The et al., 2023). The metaverse, a shared virtual space populated by digital representations of users, is still in development but presents many opportunities for digital marketing. As the platform evolves into a scalable and interoperable virtual space (Ball, 2022), businesses will be able to create unique customer experiences and establish deeper connections with their audience.
The interoperable virtual platform promises to go beyond current restrictions in centralized banking and provide more flexible e-commerce exchanges. Blockchain technology offers a prospect of decentralization that can address the limitations imposed by centralized digital economies (Kshetri, 2021a). This technology enables a trustworthy and user-centric digital environment (Hollensen et al., 2022) and can empower users to interact seamlessly in the digital marketing landscape (Berg et al., 2019). The foundation of contemporary digital currency market was established by blockchain technology, initially introduced with the advent of Bitcoin cryptocurrency, by enabling the creation of a shared economy (Gadekallu et al., 2022). Blockchain serves as a ledger that records committed transactions, facilitating digital asset tracking and security within financial networks. This allows for secure sharing in an insecure commercial environment without requiring a centralized authority (Yang et al., 2022).
The decentralized and transparent nature of blockchain technology, along with its consensus mechanism, proof of work, make it an excellent match for e-commerce platforms and the emerging metaverse (Avital et al., 2016; Rückeshäuser, 2017; Weber et al., 2016). By eliminating the need for intermediaries like central banks and counterparties, blockchain offers accountability and security in uncertain digital financial ecosystems (Alt & Puschmann, 2016; Nakamoto, 2008). However, the potential benefits of blockchain come with challenges as cryptocurrencies can bypass existing legislation on money laundering and facilitate illegal activities (Fanusie & Robinson, 2018; Foley et al., 2018; Möser et al., 2013). Consequently, there are calls for further regulation of distributed ledger technology in finance (Auer & Claessens, 2018; Carstens, 2018; Landau & Genais, 2018). In addition to blockchain, the emergence of immersive technologies also poses significant social, professional, and economic transformations that are likely to shape the future global economy and how information and currency are exchanged (Hutson et al., 2023). As a result, businesses need to adapt to the evolving digital landscape and its three dimensions of commerce, where physical stores, websites, and metaverse retail are essential to stay competitive (Ramadan, 2023).
Key Terms in this Chapter
Digital Retail Platforms: Online platforms that enable the buying and selling of products or services, such as e-commerce websites, mobile apps, and social media platforms.
Privacy: The ability to control and protect personal information from being disclosed or misused by unauthorized parties.
Artificial Intelligence (AI): The simulation of human intelligence processes by machines, such as learning, reasoning, and self-correction.
Digital Marketing: The practice of promoting products or services through digital channels, such as search engines, social media, email, and websites.
Augmented Reality (AR): A technology that overlays digital information onto the physical world, typically viewed through a mobile device or headset.
Blockchain: A decentralized, distributed ledger technology that allows for secure and transparent record-keeping of transactions without the need for a central authority.
Immersive Technologies: Technologies that allow users to feel fully immersed in a virtual environment, such as augmented reality (AR) and virtual reality (VR).
Virtual Reality (VR): A technology that creates a fully immersive digital environment that simulates a physical world, typically viewed through a headset.
Metaverse: A virtual shared space created by the convergence of physical and virtual reality, enabled by advanced technologies and populated by digital representations of users.