NAB
Brands and agencies are excited about
the potential of AI to bring mass personalization to advertising campaigns, but
will need the assistance of experts to help them make the most of their data.
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“If you consider that large agencies,
media companies and holding companies [own] a huge amount of proprietary data
about markets, audiences and campaign history [it is] going to enable them to
create very powerful AI models,” said Jamie Allan, director of business
development, global agencies and advertising at chip maker NVIDIA.
After a year of pilots and tentative
AI activity in the world of advertising, Allan said that in 2024 we will see
agencies asking the question, “How do you connect the power of generative AI
with the power of data?”
Speaking with Little Black Book, Allan said that 2024 is “the year of platform and
production,” telling LBB’s Ben Conway that it’s “true table stakes”
for every enterprise in the world.
“It needs to not be the product
anymore,” said Allan. “AI isn’t ‘the thing’ — it’s how AI helps us create new
things.”
WPP, Publicis, Dentsu, Omnicon and
Media Monks are among agency groups investing in AI trained on centralized
pools of data to build mass targeted ad strategies for the post-cookie era.
“The idea of
personalization-at-scale, from content production, and using proprietary data
to create privacy-first personalization that can bring an era of a more
attractive, dynamic one-to-one advertising,” Allan said. “Many years of
research have shown that it can drive better brand engagement and growth, and
improve return on ad spend.”
It is in NVIDIA’s interest to be
talking about this since its chips are being sold into agency groups to
supercharge the crunching of data.
“Understanding the data you’re using
to create or fine tune AI models and processes is very important, so having
your own proprietary data is inevitably a huge advantage,” he said.
“The quicker the business models can
be adapted to the impact of AI, the more successful companies will be as well,”
added Allan. “That’s something agencies have the opportunity to help guide
brands on, once they become experts in that business transformation.”
He insisted that GenAI is not about
the generation of content, but the generation of intelligence. “The quality of
that intelligence is based on the data, the sources and the teams building
those models and pipelines,” he said.
“If you are generating and owning
data, then you should own the intelligence that that data is going to produce
as well. And you should have the capability to generate that intelligence.”
Marla Kaplowitz, CEO of agency
advocacy group 4As, recently stated, “GenAI is here to stay, leaving the
advertising industry with a stark choice: adapt or become irrelevant.”
As 4As SVP of creative technologies and
innovation Jeremy Lockhorn wrote in Fast
Company, “agencies must embrace the
opportunity to transform their revenue model.”
Next in Media talked with Cognitiv CEO Jeremy Fain about what ad industry execs really need to understand about the difference between LLMs, deep learning and Computer Vision.
According to Fain, deep learning is a
powerful tool in performance advertising, allowing for more efficient and
effective targeting of impressions.
“Transparency and customization are
key factors in successful media buying, and deep learning can provide insights
and analytics to support these efforts,” Fain says.
His company applies AI, in the form
of deep learning applications and technologies, to predict consumer behavior
and self-drive full-funnel marketing performance at scale.
“If you rely on third-party cookies
to message your customers, you could be missing out an 80% of the people you
want to reach,” Fain said.
AI will drive inefficiencies from the
advertising process from the creative to analysis of campaign performance but
the technologists says this won’t lead to a loss of jobs.
Allan said, “Jobs will be augmented
and supercharged, especially in the creative side. The best in the industry are
looking at these tools and setting out very flexible strategies about their
creative pipelines — how they can integrate multiple tools and not be set in a
single creative process.”
Fain said, “I think the roles will
change but I don’t think that the number of people employed at agencies will
necessarily materially change over the long term.
A recent Goldman Sachs study suggests
that, in the next 10 years, most jobs will be complemented by AI, not
substituted by it.
“If we let it, and get it right, we
can use generative AI to tell more compelling stories, connect with audiences
on a deeper level, and usher in a new era of advertising that is both effective
and meaningful,” said Lockhorn.
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