Drum | Drum How Diageo uses AI to halve the price of 1,000 ad impressions

AI Basics

The beverage conglomerate is incorporating artificial intelligence into its marketing function after finding efficiencies, with CreativeX analyzing and optimizing Diageo’s creatives every three minutes.

Diageo plans to expand its AI adoption after the technology helps reduce the price of 1,000 ad impressions (CPM, or cost per mil) by 50%.

Cristina Diezhandino, Diageo’s chief marketing officer, told The Drum that the company was an early adopter of AI, and the technology is already built into marketers’ dashboards.

“We’re taking advantage of that. I think this is one of those areas where we fully understand that the adoption of technology will only make our work more successful and enhance our creative process.” think.”

As Diageo increased its investment in digital marketing, it realized that consumer interest and algorithms increasingly determined the success of advertising on these platforms. Good ads that didn’t fit their intended platform were unlikely to run, let alone appear.

That’s why Diezhandino asked CreativeX, a company that builds a creative data platform for brands, to see the effectiveness of digital content before distribution. (CreativeX was also behind his Nestle’s ambitious plans to have artificial intelligence handle all creative.)

The first step was to run marketing assets through CreativeX to generate a Creative Quality Score (CQS), an industry metric that measures the suitability of an image or video for each target platform. Diageo was then able to measure its investment in the media behind content that wasn’t suitable for the platform to find the biggest areas of improvement. Once problem areas are discovered and best practices are created, it’s possible to find out if new ads are a good fit for the platform and then put media spending on the back burner.

CreativeX now analyzes and optimizes Diageo creatives every 3 minutes. This means there is always-on AI integration. “The advantage of using this technology is that you can learn from experience very quickly and reapply those learnings,” he says.

Diageo then incorporates that creative data into its media data to accurately measure how different creative decisions affect media efficiency and the CPMs they pay to reach consumers on digital media. bottom. Results for the first half of 2022 show that using CreativeX can reduce the cost of 1,000 digital ad views by 50%.

“There are a lot of examples that address some simple basics and the content performs very differently, which is great,” says Diezhandino. “We will continue to expand the application of AI.”

Create a business case

Anastasia Leng, CEO and founder of CreativeX, was amazed at how quickly Diageo was able to get staff behind the technology. “Diageo is a big organization, it’s global, and it’s a challenge to keep everyone on the same page,” she said.

From Leng’s experience, having a local team of market experts and a global team of large-scale implementations can make or break a successful deployment of a new technology. “One of the things that makes Diageo so unique for her is the collaboration between local and global teams and the mutual respect that allows us to deploy new technologies and AI very quickly,” she says.

Instead of telling marketers, “This is new technology, try it,” Leng said. We need to extract more data from the content we are creating here. If the answer to these questions is yes, Diageo said his AI is the solution.

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