IPG Mediabrands and Google: Pioneering AI-Driven Branding Solutions

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

• IPG Mediabrands and Google: Pioneering AI-Driven Branding Solutions

• Automated Ad Creation: Striking a Balance Between Speed and Quality

• Generative AI Gains Traction in Advertising, Raises Questions About Labeling and Copyright

• The AI Revolution in Advertising: Embracing Potential with Caution

  On Edge

• #NotJustACadburyAd Campaign: AI Avatar of Shah Rukh Khan Boosts Local Businesses

1. IPG Mediabrands and Google: Pioneering AI-Driven Branding Solutions

In a landmark collaboration, IPG Mediabrands has teamed up with Google to accelerate the integration of advanced technologies into branding strategies. The partnership will focus on utilizing Google Cloud's generative tools, designed to "codify the essence of a brand," thereby ensuring consistent and impactful branding.

The use of Google's generative models, capable of crafting text and visuals, is on the rise among brands aiming to enhance their advertising efforts. This uptick highlights the pivotal role of advanced technologies in shaping the advertising landscape.

To spearhead this transformation, IPG Mediabrands is launching two groundbreaking products. "BrandVoice AI" is designed to encapsulate a brand's unique identity, facilitating the creation of content that aligns with its history and market tone. This ensures that generated content resonates authentically with a brand's core values.

Conversely, "BrandPortrait AI" functions as an interactive platform for strategists. It enables real-time dialogue with advanced algorithms to assist in planning and research, thereby streamlining the campaign development process.

Although IPG Mediabrands has yet to reveal the specific clientele that will benefit from these innovations, sectors such as finance, consumer goods, and retail have been identified as target markets. This initiative underscores the transformative potential of advanced technologies in offering brands a competitive advantage in today's digital-centric world.

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

2. Automated Ad Creation: Striking a Balance Between Speed and Quality

As brands try to make sense of the usefulness of generative AI in deploying their campaigns, research firm Kantar recently asked the question of how generative AI can actually help improve ad effectiveness. Kantar explored this question by testing fully AI-generated ads and ads with partial GenAI involvement using their AI-powered ad-testing tool, Link AI for Digital.

Kantar's Demand Power Contribution score measures the long-term potential of an ad to drive meaningfulness, difference, and saliency for the brand. Of the nine ads tested, six performed better than average by this metric, and two of the three fully AI-generated ads were in the top 30%. However, the quality of the ads was variable, with no particular pattern as to whether the ad was entirely or partially AI-generated.

There are different approaches to using AI in advertising, and the key to success is how it is used. Brad Lightcap, the COO of OpenAI, said that "these tools still fundamentally need humans to be creative." Kantar's testing highlighted three ads that stand out as good examples of the different approaches that can be taken to using AI. One ad was fully AI-generated, one featured a human-created script with AI bringing famous paintings alive, and one had a story created by AI and brought to life by an Oscar-winning director.

AI can also assess different creative routes and variants, as well as generate content. Kantar tested two fully AI-generated ads for the same brand and campaign in context for Facebook. Their Link AI for Digital solution found that one of the ads had better potential in terms of enjoyment, persuasion, and interaction.

The common consensus on the use of AI in advertising is that humans need to be at the center of the creative process. AI is not a thought partner in creation but rather a helping partner that allows agencies and marketers to explore new ways to be creative and impactful. However, producing content more easily may also bring the temptation to produce high quantities of content. Marketers need to remember that efficiency should never be at the expense of effectiveness.

Read the full story here 

3. Generative AI Gains Traction in Advertising, Raises Questions About Labeling and Copyright

As brands and agencies increasingly explore applications of AI in their ad campaigns WPP and Unilever have recently announced efforts to test generative AI tools for ad creative, both static images and videos, destined for live campaigns.

WPP teams recently worked with Nestlé and Mondelez, makers of Oreo and Cadbury, to use OpenAI’s DALL-E 2 in the creation of ads. One ad for Cadbury, which ran in India, featured an AI-generated video of Bollywood actor Shah Rukh Khan inviting pedestrians to shop at stores. WPP’s CEO Mark Read told Reuters that the savings from generative AI can be "10 to 20 times."

In addition to the efforts with Dall-E 2, Unileverhas developed its own generative AI advertising tools, which it used to write copy for one of its shampoo products. The company is part of a growing trend of brands experimenting with generative AI to create marketing content.

However, as more brands look to use generative AI to make more ads, questions arise about whether they need to label their content as AI-generated. Big AI companies have signed an agreement with the White House to develop watermarking technology to label content made with AI tools. Ken Sickles, chief product officer for digital watermarking company Digimarc, told The Verge that there should be standard policies on tagging AI-generated content.

"Marketing content is technically original AI content, and context is important when looking at something," Sickles said. "Tagging that content is great because it brings context, but there has to be an industry standard policy around it."

Companies using generative AI for advertising also have concerns about copyright protections and security risks. As the use of generative AI in advertising continues to grow, these issues will likely become more prominent.

Read the full story here 

4. The AI Revolution in Advertising: Embracing Potential with Caution

Generative AI is set to transform the advertising industry. As discussions about AI echoed throughout the Cannes Lions Festival of Creativity, the industry witnessed an AI-driven ad spend of $370 billion last year. However, the "black box" nature of AI, where its intricate processes remain hidden, prompts a sense of caution.

While AI's origins can be traced back to the 1950s, recent tools like ChatGPT have reignited interest, leading to an AI resurgence in advertising. Mark Singer of Deloitte Digital highlights this sentiment, pointing out that while AI captivates many, its practical applications are still being explored.

Agencies are leveraging AI in various ways, from digital twinning to A/B testing. The Sprite campaign, however, is distinctive, positioning AI at the forefront of its creative strategy and setting both brands as industry innovators.

Yet, the intricacies of AI remain enigmatic to many, underscoring the need for transparency. Agencies are emphasizing clarity, ensuring they grasp the data that trains their AI models.

Clients, while fascinated by AI, approach it with prudence. Their emphasis is on comprehending AI's capabilities rather than rushing its implementation. Annmarie Turpin of Ocean Media observes that the initial trepidation surrounding AI is waning. Today, clients perceive AI as a powerful instrument, not merely a passing phase.

In conclusion, as AI carves its niche in advertising, the industry finds itself at a pivotal juncture. The road ahead beckons with innovation, but with a commitment to harnessing AI's potential responsibly and effectively.

Read the full story here 

On Edge

This week, On Edge spotlights the success of the #NotJustACadburyAd campaign by Mondelēz International, designed to support small local businesses in India during the COVID-19 pandemic. The campaign featured an AI avatar of Shah Rukh Khan and consisted of targeted ads and a microsite with personalized videos.

The #NotJustACadburyAd Mondelēz International's campaign featured an AI avatar of Shah Rukh Khan, achieving remarkable outcomes and supporting local businesses in India.

Developed in collaboration with Rephrase.ai, the campaign included 500 personalized video ads targeting specific PIN codes. A dedicated microsite allowed shopkeepers to generate personalized videos of Shah Rukh Khan endorsing their stores.

The campaign delivered a 22% higher VTR and an 18% higher CTR compared to previous campaigns. Over 105,000 users created personalized versions of the ad, generating 130,000 versions and 94 million views across social media platforms.

The campaign's impact on sales was significant, contributing to a 29% growth in Cadbury Celebrations' sales during Diwali. The Confederation of All India Traders reported a 74% increase in Diwali sales, marking the highest sales in a decade.

The #NotJustACadburyAd campaign showcased the potential of AI-based innovations for brands to explore in future marketing endeavors, highlighting the power of leveraging media, creativity, and technology to forge meaningful connections between brands, local stores, and consumers.

Read the full story here 

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