Dentsu is out with its annual media trends study and finds that generative AI is not just a trend but future-redefining technology with the potential to “lead a period of growth for media and a new golden age of creativity.
According to Dentsu research, 91% of CMOs believe this technology is the future and not a fad, and 78% of consumers agree.
One of the areas it is already transforming is search, per the report. “Generative AI represents a massive paradigm shift in how we search, to the point it feels almost magical for any first-time user,” the report states, noting that Google and Microsoft have already brought Gen AI capabilities to their search engines.
“The ability to use natural language, to get an actual answer rather than an index of links, and to follow up on questions is a game changer for our relation to technology.”
Gen AI is credited with reviving and “supercharging” chatbots. The report notes that KAYAK, the travel search engine, uses the technology to respond to questions such as ‘Where can I fly to from NYC for under $500 in April?”
And more than 150 million people have used myAI, Snapchat’s Gen AI-powered chatbot “for everything from design inspiration to recommendations for skincare.
Next year the report asserts, “is set to experience a revival in chatbots, and brands should take another look at them now that generative AI has revolutionized their capabilities.”
Generative AI is also expected to lead to major improvements in media efficiency and effectiveness. The report cites examples where that’s already happening.
It notes that Meta Advantage+ allows direct response advertisers to upload campaign assets including images, text, and links to commerce pages. The advertiser and agency then relinquish some control of the campaign performance optimization to let Meta’s AI-powered technology make decisions including adapting the creative, placements, budget and audience targeting, to generate as many conversions as possible, with conversion increases of up to 20% and greater efficiency gains predicted going forward.
Google is planning to roll out Product Studio in 2024, which aims to give brands the possibility to automatically create custom scenes in their product images, using simple prompts such as “surrounded by peaches, with tropical plants in the background” to create several background options.
However, the study offers a note of caution: “AI-enabled optimizations could shift power to the largest advertising vendors who have the most resources and data to train their models and implement them in their campaign planning, management, and measurement suite. Smaller players may still be able to compete by engaging in strategic alliances to build their own, shared generative AI solution for advertising.”
Some takeaways for brands:
“Avoid gimmicky applications of generative AI by identifying clear use cases where this technology can improve your customer experience. What value can it create, and what pain points can it alleviate? From better ways to navigate through your product catalogue to always-on customer support, determine options with greater impact for consumers.”
Also, “Evaluate potential gains for media [and] Identify experimental opportunities and transformational opportunities for media efficiency and effectiveness.”
Use cases might explore access to new intelligence, from different consumer insights to faster performance analysis. “It is also about better team support, including freeing time for planners and creatives to focus on strategic tasks, and offering new creative and ad targeting optimizations.”
The report strongly recommends conducting due diligence before starting generative AI-enabled initiatives, “as this powerful technology calls for responsible use. This includes understanding audience expectations, the limitations of the technology, the impact on ways of working, the legal framework, and the data used for training models. It also requires clear ethical commitments and guidelines.”
There’s much more in the full report which can be accessed here.
Source: mediapost.com
