McDonald's vs. Burger King: AI-Driven Billboard Duel

Hello and welcome to Edge, your weekly digest of what's happening at the intersection of AI and Marketing. For this week we look at:

🚀 McDonald's vs. Burger King: AI-Driven Billboard Duel

📺 A Glimpse into the Future of Western Advertising Agencies?

🌐 SpeedyBrand: A Cautionary Tale in Creativity-Driven SaaS

🤳 Top XR and AI Marketing Trends in 2023

💸 A look at 3 top AI Tools that can help you take your marketing to the Edge

1. McDonald's vs. Burger King: AI-Driven Billboard Duel

Fast food giants McDonald's and Burger King have recently showcased the potential of advanced technology in out-of-home advertising campaigns. The two companies engaged in a billboard duel in Brazil, using the language model ChatGPT to generate their billboard content.

McDonald's was the first to use ChatGPT for an outdoor ad, asking the model, "Which is the most iconic burger?" The answer, the Big Mac, was then displayed on a billboard. In response, Burger King placed its own ChatGPT-generated billboard, asking, "And which is the biggest?" referring to their Whopper. This playful exchange not only entertained audiences but also demonstrated the potential of AI in creating engaging and dynamic advertising content.

The use of AI in out-of-home advertising campaigns is not limited to generating creative content. It is also transforming the medium by making it more measurable and results-driven. The global market for outdoor advertising, estimated at $28.2 billion in 2022, is projected to grow to $39.2 billion by 2030. With the rapid adoption of AI, even more investment could be made in this space.

AI can utilize a wealth of new data to alter an out-of-home campaign in real-time, including weather, location, traffic patterns, and date and time triggers. This allows brands to alter their creative content more effectively and deliver more personalized messaging on digital billboards. For instance, billboards can be hyper-localized or adapted based on whether it's sunny or rainy, day or night.

However, the use of AI in out-of-home advertising also raises privacy concerns. The technology can be used to track people in their daily lives, and brands are having to navigate the fine line between innovative and intrusive. As AI continues to evolve and transform the advertising industry, brands must ensure they use this powerful tool responsibly, balancing innovation with respect for privacy.

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2. A Glimpse into the Future of Western Advertising Agencies?

In a significant move that signals the future of advertising, Dentsu Next, part of Dentsu Creative, has launched MIXER & LUCIE, a pair of AI innovation marketing solutions. This development, while currently focused on the Asia-Pacific region, provides a glimpse into the potential future of Western advertising agencies, including giants like WPP and IPG.

MIXER & LUCIE aim to optimize brand interactions and create unparalleled experiences. By analyzing big data on consumer trends and social sentiments, MIXER condenses a process that traditionally takes months into hours, generating fresh ideas based on marketing requests input by users. LUCIE, an advanced customer intelligence and engagement AI, is designed to enhance loyalty-driven experiences in the retail service industry.

This debut is a clear indication of how well-positioned large agency holding companies are in terms of access to training data from large brand accounts. The fact that this innovation is launching in Asia first suggests that we can expect similar rollouts from other major players in Western markets soon.

The use of AI in advertising is not a new concept, but the scale at which Dentsu is implementing it represents a significant shift in the industry. The launch of MIXER & LUCIE is a testament to the transformative potential of AI in advertising, showcasing how it can enhance efficiency, reduce costs, elevate customer experience, and augment brand identity.

As AI continues to evolve and become more integrated into advertising strategies, Western agencies will likely follow suit. The key to growth in this new era of advertising will be to strategically engage with evolved consumers, leveraging content and creativity to meet growing demands and capitalize on market opportunities.

Dentsu's debut of MIXER & LUCIE in the APAC region is a clear indicator of the future of advertising. As AI becomes a cornerstone of customer service and marketing strategies, we can expect to see similar innovations from Western advertising agencies in the near future.

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3. SpeedyBrand: A Cautionary Tale in Creativity-Driven SaaS

SpeedyBrand, a Y Combinator-backed startup, recently raised $2.5 million in seed funding for its generative AI tools designed for marketing use cases. While this might seem like a promising development, it's worth approaching with a degree of skepticism, particularly when considering the value of creativity in the realm of AI SaaS.

The company's platform uses generative AI to create custom SEO-optimized content, including websites and social media posts. However, the question remains: can AI truly replace the human touch in creative endeavors? And more importantly, can a startup like SpeedyBrand compete with large agencies and established tech firms like Dentsu, which have access to vast amounts of training data?

Generative AI, no matter how sophisticated, has its limitations. It can "hallucinate," making up facts, and can produce toxic or offensive remarks due to biases in its training data. It can also plagiarize copyrighted work, and there's the risk of it spamming the internet with lower-quality content.

SpeedyBrand claims to mitigate these issues, stating that its AI can be personalized to brand tone and generates "plagiarism-free" content. However, without a third-party audit, it's hard to verify these claims.

While the market for generative AI is projected to be worth more than $110 billion by 2030, and SpeedyBrand has already gained around 50 paying customers, it's important to remember that creativity is a core driver of value in marketing. AI can certainly assist in this process, but it's unlikely to replace the unique insights and ideas that humans bring to the table.

In conclusion, while SpeedyBrand's recent funding round might seem like a positive development for AI in marketing, it's worth approaching with caution. The value of human creativity in marketing should not be underestimated, and startups like SpeedyBrand will need to prove they can compete with larger agencies that have access to more extensive training data.

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4. Top XR and AI Marketing Trends in 2023

The world of marketing is rapidly evolving, with extended reality (XR) and AI at the forefront of this transformation. Here are the top five XR and AI marketing trends for 2023 and beyond:

• AI for Everything: AI tools are becoming increasingly sophisticated, capable of tasks from generating SEO-optimized content to creating personalized learning experiences. However, the ethical implications of these tools and their potential to replace human creativity are still under debate.

• AI Doubles: The concept of AI doubles, AI-driven versions of individuals, is becoming a reality. These AI versions can perform tasks like attending virtual meetings or creating social media posts, but their implications on personal identity and privacy are yet to be fully understood.

• Simplified 3D Content: Generative AI is making the creation of 3D content more accessible. Tools like Curie and EyeJack are enabling the production of 3D content and interactive experiences, disrupting traditional copyright models.

• Hardware Advancements: Despite the current slump in headset sales, advancements in hardware are expected to support 3D computing and content consumption. Apple's announcement of their spatial OS, Vision Pro, and the development of the AR Laptop are promising steps towards this future.

• Interactive Ad Units: Paid media and programmatic campaigns are becoming more interactive and immersive with the help of platforms like Undertone and Snapchat. These platforms allow brands to create engaging ad units and experiences that can be delivered at scale.

As the future of marketing is poised to be shaped by advancements in XR and AI, it becomes increasingly crucial to consider their ethical implications alongside the enduring value of human creativity amidst the ongoing evolution of these technologies in the marketing process.

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On Edge

In the rapidly evolving world of marketing, AI is playing an increasingly pivotal role. Here, we take a closer look at three AI marketing tools that are making waves in 2023: AudioPen, Snazzy AI, and LoopGenius.

AudioPen

AudioPen: This tool allows users to record their thoughts and ideas, which are then transcribed into organized, editable notes. By decluttering the mind and facilitating the ideation process, AudioPen can be a powerful tool for marketers. It allows for the rapid generation of content ideas and can help streamline brainstorming sessions, making it a valuable asset in any marketer's toolkit.

Snazzy AI

This e-commerce tool uses AI to generate product descriptions that drive sales. Its AI technology analyzes product information and creates unique, persuasive descriptions that highlight the benefits of the product and appeal to potential customers. In a world where e-commerce is king, Snazzy AI can help businesses stand out from the crowd and effectively communicate the value of their products.

LoopGenius

This website builder makes it easy to create a professional-looking website with just a few clicks. Simply explain your idea for a side hustle and LoopGenius will build you a website, content marketing plan, and sales strategy to execute for you. In an era where online presence is crucial, Loopgenius can help businesses establish a strong digital footprint.