The process of developing advertising campaigns is evolving with the increasing use of artificial intelligence (AI). Advertisers want to optimise the amount of data at their disposal to craft better campaigns and drive more impact. Since early 2020, there has been a real push to integrate AI to help measure the effectiveness of campaigns and where to allocate ad spend. This now goes beyond media targeting and includes planning, analytics and creative. AI can assist in pattern matching, tailoring messages through AI-enabled hyper-personalisation, and analysing traffic to communicate through pattern identification of best times and means of communication. AI is being used to create ad copy; and social media and online advertising platforms are starting to roll out tools that help advertisers create better ads.
Ecosystm research shows that Media companies report optimisation, targeting and administrative functions such as billing are aided by AI use (Figure 1). However, the trend of Media companies leveraging AI for content design and media analysis is growing.
WPP Strengthening Tech Capabilities
This week, WPP announced the acquisition of Satalia, a UK-based company, who will consult with all WPP agencies globally to promote AI capabilities across the company and help shape the company’s AI strategy, including research and development, AI ethics, partnerships, talent and products.
It was announced that Satalia, whose clients include BT, DFS, DS Smith, PwC, Gigaclear, Tesco and Unilever, will join Wunderman Thompson Commerce to work on the technology division of their global eCommerce consultancy. Prior to the acquisition, Satalia had launched tools such as Satalia Workforce to automate work assignments; and Satalia Delivery, for automated delivery routes and schedules. The tools have been adopted by companies including PwC, DFS, Selecta and Australian supermarket chain Woolworths.
Like other global advertising organisations, WPP has been focused on expanding the experience, commerce and technology parts of the business, most recently acquiring Brazilian software engineering company DTI Digital in February. WPP also launched their own global data consultancy, Choreograph, in April. Choreograph is WPP’s newly formed global data products and technology company focused on helping brands activate new customer experiences by turning data into intelligence. This article from last year from the WPP CTO is an interesting read on their technology strategy, especially their move to cloud to enable their strategy.
Ethics & AI – The Right Focus
The acquisition of Satalia will give WPP and opportunity to evaluate important areas such as AI ethics, partnerships and talent which will be significantly important in the medium term. AI ethics in advertising is also a longer-term discussion. With AI and machine learning, the system learns patterns that help steer targeting towards audiences that are more likely to convert and identify the best places to get your message in front of these buyers. If done responsibly it should provide consumers with the ability to learn about and purchase relevant products and services. However, as we have recently discussed, AI has two main forms of bias – underrepresented data and developer bias – that also needs to be looked into.
The role of AI in the orchestration of the advertising process is developing rapidly. Media firms are adopting cloud platforms, making IP investments, and developing partnerships to build the support they can offer with their advertising services. The use of AI in advertising will help mature and season the process to be even more tailored to customer preferences.