The convergence of generative AI and marketing science is revolutionizing the advertising industry. Brands are increasingly recognizing the potential of AI for both creative and operational purposes, despite some hesitation. Coca-Cola is one of the most prominent brands incorporating AI into its advertising.
The company’s AI remake of its iconic “The Holidays are Coming” ad showcased the technological advancements made in a short time. PetSmart Charities utilized AI to produce vibrant profiles of animals available for adoption, while Coca-Cola employed AI for image generation, translation, and other tasks previously outsourced. Ad agencies are also heavily investing in AI.
Omnicom disclosed plans to spend hundreds of millions on the technology. A Forrester survey found that many ad executives are engaging with generative AI, recognizing its ability to refine ad tactics and tailor messages effectively. Jonathan Woolf, chief revenue officer at AI analytics provider Persado, detailed practical applications of the technology.
AI can predict conversion rates for engagement activities across customer segments and identify optimal times to send messages based on user behavior.
AI shaping marketing strategies
This refinement in message timing prompted one financial services provider to see a nine-fold increase in clickthrough rates.
“The AI on the phone is able to choose that optimal moment to engage,” Woolf noted. Despite the growing use of AI in marketing and advertising, concerns persist. Research from the World Federation of Advertisers showed that 80% of multinationals are uneasy about how their agencies use generative AI.
Legal, ethical, and reputational risks were identified as top concerns. Dentsu’s chief growth officer JJ Schmuckler acknowledged that AI technology has become crucial for clients of large agencies. However, he pointed out that brands are not yet requesting AI to create campaigns, describing it as “a step too far for everybody.” This underscores the value that clients place on the human element of storytelling.
As AI technology continues to evolve, it offers significant opportunities to enhance both the creative and operational aspects of advertising. It is becoming a vital tool for brands, solving practical problems at substantially reduced costs. The key is for marketers to focus on using AI not just for easy tasks but for complex, strategic developments that can provide significant competitive advantages.
