Dentsu Partners with Microsoft for Enhanced Marketing Solutions

Top stories from an overview of what's happening at the intersection of Advertising and AI this week:

• Dentsu Partners with Microsoft for Enhanced Marketing Solutions

• DoubleVerify Enhances Ad Bidding Capabilities with AI Startup Scibids Acquisition

• AI's Impact on Creativity in Digital Advertising

• Meta's AI-Powered Chatbots Set to Boost User Engagement

On Edge

• Coca-Cola's "Create Real Magic": AI-Powered Art for Consumer Engagement

1. Dentsu Partners with Microsoft for Enhanced Marketing Solutions

Global advertising agency Dentsu has partnered with Microsoft, aiming to integrate artificial intelligence (AI) more deeply into its operations. The initiative is led by Dentsu's internal group, AI Connective, which includes client-facing teams, engineers, and solutions teams. The goal is to optimize AI deployment in both internal processes and market-ready products.

The collaboration allows Dentsu to incorporate Microsoft's GenAI into its products swiftly, improving omnichannel marketing for clients. This move aligns with similar efforts by other advertising giants like Omnicom, WPP, Huge, and MNTN, who are also leveraging generative AI models.

However, the swift adoption of AI in advertising brings potential risks, including copyright infringement, data privacy non-compliance, job displacement, and misinformation. Some even warn of existential threats posed by runaway AI.

The Dentsu-Microsoft deal builds on an existing relationship between the two companies. They previously collaborated to create a metaverse space for Web3 experimentation, demonstrating their commitment to exploring technological frontiers. As the AI revolution continues, Dentsu is positioning itself at the forefront of this transformative wave.

Read the full story here (Paywalled content summarized by Edge)

2. DoubleVerify Enhances Ad Bidding Capabilities with AI Startup Scibids Acquisition

Measurement and analytics company DoubleVerify has acquired Paris-based AI startup Scibids for $125 million to bolster its programmatic ad bidding capabilities. Leveraging Scibids' cutting-edge AI technology, which specializes in using impression-level data to automate and optimize programmatic bids across demand-side platforms (DSPs), the acquisition is set to enhance DoubleVerify's digital ad campaign targeting and budget allocation.

Scibids' sophisticated AI technology is already sought after by major advertisers like Spotify, Allianz, and Dell, helping them determine the most effective allocation of funds for each campaign. The technology seamlessly integrates into DSPs, gathering and analyzing various data types from clients to create bespoke bidding algorithms.

The acquisition comes on the heels of a successful June partnership between DoubleVerify and Scibids, which led to significant improvements in media CPMs, attention levels, and impressions. DoubleVerify is confident that Scibids will continue to drive growth, with projected earnings of $15–$17 million in 2024, showcasing an impressive 30%–40% year-on-year growth rate.

With DoubleVerify's second-quarter revenues increasing by 22% YoY to $133.7 million, this strategic acquisition of Scibids and its AI prowess is set to revolutionize DoubleVerify's activation and measurement lines of business, offering a substantial market differentiator for the company.

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3. AI's Impact on Creativity in Digital Advertising

Artificial Intelligence (AI) is revolutionizing the digital advertising industry, from programmatic media buying to SEO generation and optimization. Now, it's set to impact every other aspect of the industry, including production, insights, and reporting.

AI's rise is timely as the industry moves away from third-party cookies. AI enables marketers to deliver relevant, targeted advertising and gain insights into campaign effectiveness. It also helps marketers understand how different campaign components interact, driving better outcomes.

Subsets of AI, including deep learning, computer vision, neural networks, large language models, and reinforcement learning, are set to drive creativity in digital advertising. This will enable digital marketers to create custom content in real time, designed to maximize audience attention.

However, as AI's integration into creative processes becomes more widespread, it's widely accepted that many jobs will be affected. Despite this, human oversight remains crucial, especially considering the importance of brand safety and suitability.

For brands, integrating AI into their digital advertising and wider business requires clear strategy and direction. This includes making a clear distinction between the AI-driven applications needed in-house versus those delivered through third-party vendors. The appropriate level of investment in data science resources will be a critical decision.

Read the full story here (Paywalled content summarized by Edge)

4. Meta's AI-Powered Chatbots Set to Boost User Engagement

Facebook owner Meta is set to launch a range of AI-powered chatbots exhibiting different personalities, aiming to boost user engagement on its social media platforms. The tech giant has been designing prototypes for chatbots capable of having humanlike discussions with its nearly 4 billion users.

These chatbots, internally referred to as "personas", will take the form of different characters. They will provide a new search function, offer recommendations, and serve as an engaging product for users to interact with. This move comes as Meta seeks to attract and retain users amidst competition from social media platforms like TikTok.

However, these chatbots could also collect vast new amounts of data on users’ interests, potentially helping Meta better target users with more relevant content and adverts. This development raises concerns around privacy and potential manipulation.

Other tech groups, including Character.ai and Snap, have already launched chatbots featuring personalities. Meta's CEO, Mark Zuckerberg, has shared plans for AI "agents" that act as assistants or help users interact with businesses and creators.

Meta has been investing in generative AI and recently released a commercial version of a large language model called Llama 2. This investment in AI, while promising, also brings scrutiny from experts for signs of bias, the risk of sharing dangerous material, or misinformation.

Read the full story here

On Edge

This week, On Edge delves into Coca-Cola's groundbreaking initiative, "Create Real Magic". In a unique collaboration with OpenAI and Bain & Company, Coca-Cola has harnessed the power of AI to redefine the consumer-brand relationship. This platform allows consumers to infuse Coke-branded elements into AI-generated art, creating a personalized and immersive brand experience.

Artists globally are invited to contribute their work, potentially seeing it displayed on digital billboards in New York and London. Moreover, thirty creators will join the Real Magic Creative Academy in Atlanta, where they'll use AI to co-create content, democratizing Coca-Cola's iconic advertising assets and fostering a deeper connection with the brand.

Coca-Cola's "Create Real Magic" initiative is a testament to the transformative power of AI in creating meaningful consumer experiences. By intertwining AI and creativity, Coca-Cola is not just pushing the boundaries of technology, but also reimagining consumer engagement, making every interaction a moment of 'Real Magic'.

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