How To Drive Driving Consumer Obsession Through AI
In this guest post, Edge Melbourne’s managing director, Dan King, takes a look at 2017’s buzzword, Artificial Intelligence (AI), and, he says, it’s set to radically change advertising and marketing as we know it…
Artificial Intelligence isn’t a new phenomenon in the marketer’s toolbox. We’ve been hearing about AI and its offshoots machine learning, robots and automation interminably over the last few years (think IBM’s Watson). But while these words are now cemented in the ad industry’s vernacular, it’s only the big tech companies that have been ploughing money in to AI innovation… so far.
To some, the mention of Artificial Intelligence might trigger thoughts of human-like robots that can read facial expressions and respond to them, or the use of autonomous drones run by AI software in warfare. But for marketers it opens different opportunities.
To take the Oxford Dictionary’s definition, AI is “the theory and development of computer systems able to perform tasks normally requiring human intelligence, such as visual perception, speech recognition, decision-making, and translation between languages.”
From an agency and brand perspective, that means AI has the potential to radically change marketing, advertising and branding, giving us the opportunity to reach customers at any point in their journey, and to send out the appropriate message to capture them on the fly.
Where are we now?
A study by Weber Shandwick found that 68 per cent of CMOs report their company is “planning for business in the AI era” with 55 per cent of CMOs expecting AI to have a “greater impact on marketing and communications than social media ever had.”
While the majority of companies are in the planning phase, it’ll come as no surprise that the tech behemoths including Amazon, Netflix, Spotify and Google are leading the charge in AI as they look to create more informed, meaningful relationships with their consumers.
In the case of Amazon, Netflix and Spotify, the trio leverage user behaviours to curate recommendations that keep their customers engaged, consuming and continuing to subscribe. According to the American Marketing Association, about a third of Amazon’s business comes from recommended purchases, a machine learning-powered function that analyses what users have bought in the past, what items are in their virtual shopping cart, which items they’ve rated and liked, and what other customers have viewed and purchased.
Similarly, Spotify utilises AI and machine learning to deliver its ‘Discover Weekly’ service, which is a personalised play list of music the company predicts you haven’t heard before. To do this, Spotify taps into the behaviour of each user, including musical tastes, listening habits, what features they use and which artists they follow to create the list.
Netflix meanwhile uses the billions of data sets collected from its 75 million subscribers worldwide to suggest movies and TV shows based on previous viewing behaviour. It distinguishes between family members, and the more content you view, the better the recommendations you receive.
For brands whose businesses aren’t solely data driven, the opportunity that AI presents is the ability to find small groups of like-minded people or ‘micro-segments’. These micro-segments combine elements of a person’s profile and their behaviour — allowing marketers to leverage audience information to better target, understand and connect with customers and deliver the message that resonates the most.
Content is another space utilising AI to serve up articles and blogs based on customer browsing and reading habits. Online media owners are turning to content management systems such as Sitecore that delivers targeted, relevant content to website visitors. This might be news services offering up personalised homepages, or personalised areas in a mobile or tablet app based on browsing data. The more relevant content a customer receives, the more likely they are return.
From a customer perspective, the data points we create aren’t just the posts we upload to Instagram, or the restaurants we check in to on Facebook: every interaction on our smartphones is trackable. As consumers we have the right to release data for more contextually relevant opportunities to engage with brands or the right to protect ourselves from public video surveillance and advances in optical recognition should we wish.
What does the future hold?
At Edge, we are consumer obsessed. We want to make sure the brands we work with know everything about how, why and when their consumers behave, to make sure they are relevant, relentlessly.
To achieve this vision around consumer obsession, Edge is looking at how we can leverage AI to creative an objectives based outcome. Take for example the insurance sector, an area that Edge is particularly interested in. As a consumer, if you were checking in to the gym four, five times a week wouldn’t you want a cheaper health insurance premium as a reward? AIA Vitality is one insurer tapping in to consumer data through a Points scheme that rewards you for going to the gym or for a health screening. Vitality has partnered with a number of gyms such as Anytime Fitness and Fitness First, and awards customers points each time they visit the gym. Points can then be redeemed against shopping and cinema tickets as well as discount on insurance premiums.
Rather than churning out an annual premium renewal with no customer interaction, Vitality understands how their customers are behaving and can target them contextually. This concept could solve a very real challenge marketers have: catching the customer in the journey cycle. So, not just having them interact with you when they choose, but knowing what they need, when and where.
There have never been as many opportunities for truly data-driven marketing as we are seeing today, and marketers have barely scratched the surface. AI allows brands to use data already at their disposal to measure in real time, learn more about the customer and most importantly as we move forward in to 2018, anticipate what happens next in their journey to deliver, relevant, personalised messages that ensure the brands we work with stay ahead of the curve.
Latest News
Enjoy A Hahn Solo… And May The Fourth Be With You
This May the fourth Hahn will celebrate alongside Star Wars fans rewarding their passion via a giant Hahn travelling solo through the sky. It’s the one day of the year when all sci-fi fans rejoice and giggle to themselves and Hahn in partnership with Thinkerbell, UM and Affinity is celebrating with an out of this […]
DMARGE Founder Unveils Creator-Led Social Media Agency Feedstar
New creator-led social media agency Feedstar to be aimed directly at Gen Zs. Well, they'd hardly want print, would they?
TV Ratings (02/05/2024): A total of 1,753,000 Aussies Witness Port Adelaide’s Defeat
Seven's AFL numbers almost double that of the NRL last night. The NRL still easily winning for ruptured ACLs.
Hotglue Cashes In With La Trobe Financial Digital Media Account
Hotglue staffers learning their cashflows from their collaterals today after nabbing La Trobe Financial's digital media.
M&C Saatchi’s Sydney Creative Lead Exits
B&T's stopping short of calling it a revolving door at M&C at the present, but there's definitely heat on the hinges.
Taylor Swift’s Music Re-Enters TikTok As Universal Pens Landmark Deal
Yes, B&T may have spent 152 hours failing to get Taylor Swift tickets, but, as you'll read here, it's all behind us now.
HAVAS Red launches inaugural Influencer White Paper
Havas Red has debuted its first influencer white paper. Unless you print it out in colour, of course.
Two Sides Global Campaign Reports Increasing Greenwashing As Organisations Focus On Sustainability
New report confirms greenwashing's on the rise. Apparently Mars' 'work, rest & play' claims also under investigation.
Aruga Launches New HQ & Changed Ownership Structure
PR agency Aruga proves Brisbane is 'so hot right now'. So hot in fact, Adelaide's had to go on anti-anxiety meds.
Delicious & American Express Partner To Launch Month Out 2024 In Sydney
Cost of living got you eating noodles prepared in the two-minute style? Why not live vicariously through this.
Aussie Ad Market Continues Decline In March
The belt-tightening in adland shows signs of a turnaround soon. Bar the belt-loosening at the all-you-can-eat buffet.
VMA Focuses On Skills And Training For Members
If there was a post-COVID hangover (bar the anti-vax ranters) it was the rise in skills shortages. Here's another one.
Nearly 90% Of Consumers Want Transparency About AI Images, Finds Getty Images Report
Study finds consumers want transparency around AI images. Couldn't care less about photoshopped magazine covers.
The National Breast Cancer Foundation Partners With VML To Boost Funds
Anyone else feel we've exhausted the office morning tea for cancer? B&T proposes the office moonshine still instead.
Perry ‘Pez’ Lazaris Named New National Hit Network Announcer
Why is it mandatory for the media to only publish the nicknames of people in radio & underworld crime figures?
Before Adland: Garry Dawson’s Journey From Teacher To Marketer
Here, the Hopeful Monsters marketer talks his shift from the classroom to the room wherever marketers congregate.
Scott Cam Urges Tradies To Prioritise Sun Protection
The Block host promoting sun protection to tradies. Also, don't try getting into the RSL after 6pm wearing high viz.
PubMatic Study: Advertising On Retail Media Is 50% More Effective Than Social Media
New study finds retail media 50% more effective than social. B&T says two-for-one Tim Tams trumps the lot.
From MOWING to life GROWING: Jim Penman launches ‘Life Coaching’ services
Can't decide on getting the hedges trimmed or finding a deeper meaning to life? You're in luck with this new venture.
Budweiser Brazil Turns Songs That Name Drop The Iconic Brand Into Spotify Ads
It's strange that Budweiser never found a market among beer-swilling Aussies. Then again, neither did the fluffy duck.
Effie Worldwide Strengthens Board With 6 New Members
B&T hopes everyone's wearing their Maseur sandals at the Effies, as it's standing room only at the next board meeting.
Special Enlist A Penguin Named Nigel In Latest Energy Campaign For Contact
Special unveils Nigel the penguin in work for energy provider Contact. Apparently Percy the peacock was booked.
Anya Taylor-Joy, Chris Hemsworth & George Miller Ignite Sydney For Epic Mad Max Launch
The Mad Max film franchise is Australia's cinematic gift to the world. That & Chris Hemsworth's near perfect cheekbones.
IAS Launches First-To-Market Integration With Roblox To Provide 3D Immersive Measurement
Always thought you could do with better 3D immersive measurement? Happy days are ahead here.
Fast And Furious: Top Gear Australia Launch Thrilled Motorheads, Car Entusiasts And Guests
B&T is still no closer to knowing who the new Stig is, except that she is a woman and a ridiculously fast.
TV Ratings (02/05/2024): Seven’s The 1% Club Wins The Night
The 1% club did not live up to its name when it comes to TV ratings last night.
TRA Welcomes Raft Of New Hires; Bolstering Expertise Across Markets
Insights and research agency TRA announces slew of new hires. Still no news on the return of marble wash denim, however.
CX Lavender Hires Boston Consulting Group’s Kim Verbrugghe as Chief Strategy Officer
CX Lavender announces new strategy hire and channels 'acoustic folk act at local RSL' for the publicity pic.
Opinion: Community standards, will they be the death of us?
This columnist is talking community standards. Sadly not those people who put dogs in trolleys in supermarkets.
Tegel gets heads bobbing with new free-range chicken platform
Sure, there's a lot of moral considerations when buying a chook. Yet, not as baffling as buying eggs or canned tuna.
Study: 66% of Aussie men believe masculinity is under attack
Two-thirds of Aussie blokes say masculinity's under attack. That said, sales of Solo lemon drink appear robust.
‘Equal Writes’: Canyon reveals new campaign and refreshed brand for women and non-binary writers
As this brand redesign again proves, nothing beats black on white. Well, white on black in this instance.
Icon Agency bolsters consumer and integrated offer with major hires
Icon Agency unveils new recruits. As press photo confirms office moustache competition now a lay-down misère.
Clemenger launches agricultural graduate program
Has Farmer Wants A Wife triggered an interest in dagging & hay balers? This grads program may resonate.
Levi’s Appoint UM As Global Media Agency For $217m Account
Levi's are the jeans for rockstars, models & the cool kids. Although that's not stopped dads from ruining their image.
QMS Nabs Sean Rigby From oOh!media
Things set to get spicy at the next Outdoor Media Association dinner and dance as a rival gets poached.