Last week, as internet users buzzed about mishaps in Google’s new AI-generated search results, like its suggestion to add glue to tomato sauce on pizza to keep the cheese from sliding, the tech giant revealed some other notable AI news.
These AI-generated results will soon include advertisements, the company said. It also revealed a number of other AI features.
A new capability in its Product Studio, which can generate a realistic background behind a standard product photo, now allows brands to tailor the result to their brand aesthetic by allowing them to upload a reference image representing their style. One of the three new ad formats integrates that of Google AI-powered virtual try-on in clothing ads, giving shoppers a glimpse of what a product would look like on different body types without the brand needing to photograph their item on different models. (For now, it’s only available in ads for men’s and women’s tops.) Another uses AI to create 360-degree rotating views of a product from a set of still images.
Since the capabilities of generative AI gained attention, Google and many other tech companies, from Meta to Salesforce, have rushed to integrate AI of all kinds into more of their products. The target audience for these features is not limited to the general public using the Internet. These are also the marketers who are willing to invest in tools that make it easier to create ads that attract buyers.
Technology companies have good reasons to call on them. Their money fuels much of the industry. In Google’s most recent quarter, about 77% of its revenue came from companies paying to advertise on its properties, including YouTube.
The AI money could even be in convincing brands and retailers to use AI tools that can help them sell their products better.
Last week, Salesforce also expanded the capabilities of its AI conversational assistant, Einstein, to allow marketers to generate campaign briefs, content and emails. TikTok, on the other hand, announced an automation feature where advertisers enter their content, budget and goals and the platform will automatically choose the best asset and serve it to the target audience at the best time.
Earlier this month, Meta announced its own enhancements to its generative AI tools for advertisers, first introduced last October. The company described in a statement how a coffee bean company whose ad depicts a steaming cup of coffee can now use its generative AI to produce variations on the ad, “including landscapes that embody a lush, idyllic farmhouse, and also make adjustments to advertising.” the coffee mug to give you more creative options. In Meta’s most recent quarter, about 98% of its revenue came from advertising.
Although generative AI has its flaws, such as its inability to sort fact from fiction when answering a question, leading to fears that it has been overindulged in a bubble waiting to burst — the technology is already competent at simple creative tasks, such as producing backgrounds for campaign images. For this reason alone, it appears to be impacting the advertising industry and raising concerns about how it could affect creatives in the industry. In a 2023 survey by Gartner, 63% of marketers intend to invest in generative AI in the next two years.
Those already announcing projects include some of the biggest names in the industry. Publicis, one of the world’s largest advertising and communications agencies, has committed to investing €300 million ($327 million) in AI over the next three years. Another advertising giant, WPP, announced a partnership with Google Cloud in April that it said would allow its clients “to create brand and product specific content using AI generation, d ‘gain deeper insights into their target audiences, accurately predict and explain content’. efficiency and optimize campaigns with continuous adaptive processes.
Of course, brands and retailers must want to use these tools to make an impact. The first indications, according to a new Bain & Company reportit’s that they’re at least starting to do it.
“Retailers have likely already experimented with using generative AI to improve and streamline their marketing efforts, with promising results,” he says.
The company estimated that using generative AI for marketing tasks ranging from translating or repurposing content to creating dynamic, personalized landing pages could increase marketing productivity by up to 40%.
It’s no wonder retailers are eager to at least try this technology. They face high costs of acquiring buyers online and the demands of producing content for several different channels, all while trying to stand out and grab buyers’ attention for even a moment. (Pressure contributes to growing importance of loyalty programs which can retain existing customers and generate repeat purchases.)
It remains to be seen whether generative AI can keep all its promises. In the meantime, it appears to be a spending target for marketers looking to get every advantage possible.
