When brand AI hits the advertising industry

AI For Business


One of India’s largest ad agencies last year hired a team of three postgraduate researchers in artificial intelligence (AI). They were tasked with inputting precise prompts into his ChatGPT 4 on OpenAI and providing a set of “narratives” from which the creative team could select specific elements to design the campaign script. Once the scripts are designed, the team feeds these into her visualization tools like DALL.E to create prototypes for logos, print ads and product placements.

The Mumbai-based ad agency has produced two such campaigns so far, and in both cases, clients report better connections with consumers, Business Standard said. requested that it should not be identified.

According to Ridhima Das (name changed), a member of the agency’s AI team, ChatGPT4 was used in a recent advertising campaign designed for a handloom and knitting startup. The campaign was intended to promote handwoven and hand-knitted apparel for young consumers in big cities.

AI is poised to transform marketing, making advertising more targeted and more efficient. But that’s good news. The bad news is that the introduction of AI in marketing will lead to job losses.

But have Indian marketing and advertising firms really embraced AI, be it traditional or generative?

precision marketing

Mayank Makkar, CEO and founder of Rivi Labs, an AI and technology consultancy, says AI can help advertisers with precise targeting, micro-personalization, and understand public sentiment about brands and campaigns in real time. Point out that you can.

“We use AI services to create complex matrices of user behavior, preferences and demographics. We can make sure the right message is delivered, and as a result, targeted campaigns are more relevant and more impactful,” says McCarre.

Das’ hand-knit apparel campaign is an example of what Makkar calls micro-personalization. “We used AI to create five to seven different combinations of products and user profiles based on age, gender, and purchasing power. It also helped us identify how we could tailor the story of the brand based on details like color, size and timing,” Das explained.

Also read: Small business marketers invest in AI to stay resilient in challenging economic times

AI processes information such as user behavior and purchase history to create hyper-personalized ads, leading to higher engagement and conversion rates. “In the advertising industry, one of the key challenges of all time is deciphering the complexities of audience segmentation. Advertisers often find themselves wrestling with broad and vague audience groups But with AI’s advanced data analysis capabilities, the ambiguity has faded, and we can now segment very specific audiences based on subtle parameters such as unique behavioral patterns, interests and geographic location. It allows for unprecedented targeted advertising,” says McQuar.

Rashi Gupta, CEO and chief data scientist at Rezo.ai, said AI’s focus on personalization will help automate the next stage of ad campaign management, as well as the continuous generation of campaign narratives based on real-time data. It also helps in monitoring and adjusting

“This removes the need for manual optimization, saving time and resources while improving campaign performance,” she says. By tracking impressions, clicks, conversions, and more, advertisers can make timely adjustments to improve results.

Das and her team also helped reallocate budgets through AI-powered advertising performance tracking. Her AI tools at the company identified that video ads were not performing as well on social media as they were on search ads.

customer behavior

There are other ways AI is revolutionizing marketing. In Amazon subsidiary Whole Foods’ “Just Walk Out” stores, orders are monitored and billed through AI, allowing shoppers to pick up and leave without stopping at the checkout counter.

Netflix’s AI algorithms analyze viewing behavior, ratings and preferences to suggest personalized content for each individual user. In yet another example, Coca-Cola worked with Google to create an AI-powered vending machine campaign. The machine used facial recognition technology to analyze customers’ emotions and recommended specific Coca-Cola products based on their mood.

Closer, Tata Motors used AI to launch personalized ads for Tata Nexon for different audience segments. AI algorithms analyze customer data and preferences to help design ads. Myntra also uses natural language processing (NLP) techniques to generate ad copy and descriptions.

But what about the fear that AI will inevitably lead to job losses? Forrester says he could replace 7.5 percent of US agency jobs by 2030. So many people need upskilling. ”

Jain revealed that Seekho has had great success with AI-only content and advertising campaigns. “Instead of his usual team of seven (copywriter, screenwriter, artist, actor, VO artist, director), we used one AI enthusiast intern and his six AI tools,” he said. says.

Summit Sinha, founder and managing partner of Alchemist Brand Consulting, believes AI will “kill the sub-par or mediocre talent in the advertising industry.” Those who are unable to come up with truly original and groundbreaking ideas are already under threat. In addition, AI-crafted communications enable communication without the spelling, grammatical, and visual misalignments that sometimes creep into human-created ads. ”

But most advertising professionals Business Standard spoke to said human creative control is irreplaceable at this stage of AI-driven advertising campaigns. Seekho’s Jain agrees, noting that their campaign had its challenges. AI voices and scripts were not perfect, he says, and editing AI images was difficult.

Experts such as McCarr and Rezo’s Gupta have expressed concerns about the need for ethical guardrails and quality control, marketing departments and advertising firms jointly brainstorm ideas, and creative experts and AI systems states that it is necessary to establish an iterative feedback loop in

“Although AI will be able to imitate human creativity indistinguishably from human creativity, the messy, chaotic, subjective, inspirational, yet endlessly imaginative, human mind will occasionally lack explanation. There is something that evokes an indescribable emotion, and establishes a uniquely deep connection with another human being.Great brands are built when that kind of magic happens,” says Sinha.



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