Major Corporations Harness AI for Cost-Effective, Innovative Advertising
In the world of advertising, artificial intelligence (AI) is becoming an increasingly popular tool for creating cost-effective campaigns. Major companies such as Nestle and Unilever, along with the world’s leading advertising agency WPP, are leveraging AI technology to reduce costs and enhance productivity. However, the journey to fully integrate AI into their advertising strategies is not without challenges, including potential security risks, copyright issues, and the potential for unintentional biases.
AI has been a hot topic in recent years, particularly generative AI, which can generate new content based on past data. This technology has the potential to revolutionize advertising by offering a cheaper, faster, and virtually limitless way to market products. For instance, instead of dispatching a film crew for a commercial shoot, companies can now create these scenarios virtually, resulting in significant cost savings.
WPP’s CEO Mark Read revealed that the company is collaborating with consumer goods companies such as Nestle and Mondelez to utilize generative AI in their advertising campaigns. WPP has also partnered with the University of Oxford to offer an “AI for business” diploma, aiming to equip its executives and client leaders with vital knowledge about data and AI.
In a campaign for Mondelez in India, WPP used AI to create personalized ads featuring Bollywood superstar Shah Rukh Khan. The ads encouraged people to shop at local stores during Diwali. Small businesses used a microsite to generate their own versions of the ads, which could then be shared on social media. This campaign resulted in 130,000 ads featuring 2,000 stores and garnered 94 million views across YouTube and Facebook.
Nestle is also exploring the potential of AI with ChatGPT 4.0 and Dall-E 2. According to Aude Gandon, Nestle’s Global Chief Marketing Officer, these AI engines are providing creative ideas and inspiration that align with their brand and strategy. The creative team then further develops these ideas into content for their websites.
Despite the ongoing debate about whether AI-generated content can match human creativity, companies are already incorporating this technology into their promotional campaigns. For instance, WPP used OpenAI’s generator system DALL-E 2 to create an imaginative scene in a YouTube ad for Nestle’s La Laitière brand, which generated a significant media value for the company.
Unilever is another company utilizing AI technology. It has developed a generative AI tool that can write product descriptions for retail and digital commerce websites. However, the company is mindful of potential issues such as copyrights, intellectual property, privacy, and data. Unilever is also keen on ensuring that its AI tools do not reproduce human biases that might be present in the data it processes.
The use of AI in advertising can be particularly beneficial for companies in the standing desks/office health industry. For instance, an electric height adjustable standing desk could be marketed using AI-generated content that highlights the health benefits of an electric stand up desk. This could be a cost-effective way to inform potential customers about how to choose the best standing desk or the best sit stand desk.
While AI offers promising opportunities for cost-effective advertising, companies need to be cautious about potential risks. As Ben King, VP of customer trust at Okta, warns, companies should consider everything they tell an AI service as if it were sensitive information. If they wouldn’t want it getting out, they should think twice about sharing it.
In conclusion, while there are challenges to overcome, the use of AI in advertising holds significant potential for cost savings and increased productivity. As companies continue to experiment and learn, we can expect to see more innovative and engaging campaigns in the future.