The convergence of generative AI and marketing science is revolutionizing the advertising industry. Brands are increasingly recognizing the potential of AI for creative and operational purposes, despite some hesitation. Coca-Cola is one of the most prominent brands integrating AI into its advertising.
The company’s AI remake of the iconic “The Holidays are Coming” commercial showcased the technological advancements made in a short period of time. PetSmart Charities used AI to produce dynamic profiles of animals available for adoption, while Coca-Cola used AI for image generation, translation and other previously outsourced tasks. Advertising agencies are also investing heavily in AI.
Omnicom has revealed plans to spend hundreds of millions on the technology. A Forrester survey found that many advertising executives are engaging with generative AI, recognizing its ability to refine advertising tactics and tailor messages effectively. Jonathan Woolf, chief revenue officer at AI analytics provider Persado, detailed the 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 shapes marketing strategies
This refinement of message timing prompted one financial services provider to see a nine-fold increase in click-through rates.
“The phone’s AI is able to choose the optimal moment to engage,” Woolf noted. Despite the growing use of AI in marketing and advertising, concerns persist. A study by the World Federation of Advertisers showed that 80% of multinationals are concerned about how their agencies use generative AI.
Legal, ethical and reputational risks were identified as key concerns. JJ Schmuckler, Dentsu’s chief growth officer, acknowledged that AI technology has become crucial for large agency clients. However, he stressed that brands are not yet leveraging AI to create campaigns, describing it as “a step too far for everyone”. This highlights the value customers place on the human element of storytelling.
As AI technology continues to evolve, it provides significant opportunities to improve both the creative and operational aspects of advertising. It becomes an essential tool for brands, solving practical problems at significantly reduced costs. The bottom line is that marketers focus on using AI not only for easy tasks, but also for complex strategic developments that can provide significant competitive advantages.
