Digital Marketing Tools using Artificial Intelligence

Recently, I came across this article “5 Ways Artificial Intelligence Will Change Your Business in 2017” (http://www.huffingtonpost.com/danielle-sabrina/5-ways-artificial-intelli_b_13866328.html) and I started wondering how artificial intelligence can provide specific help to advance digital marketing.

I am passionate about Artificial Intelligence, so I started googling for other digital marketing tools that use artificial intelligence to drive its function. And here are some of the unique digital marketing tools that I came up with, that small and medium-sized businesses can use to dramatically improve their digital marketing function:

• GrowthBot (http://growthbot.org/) – this is a free tool that attaches to HubSpot, Google Analytics and a dozen other systems to provide quick and convenient answers to questions such as: how was my organic traffic last week, what search keywords does buffer.com rank for, show me SaaS companies in New York City
•  Grid (https://thegrid.io/) – this is a self-designing website tool (called Molly) that uses artificial intelligence to build tailor-made home for the content. Wix (wix.com) is another such tool.
• EyeEm (https://www.eyeem.com/) – this is a great photo curation tool that not only save curation time but also provides visual images consistent with the theme for te target customer. EyeEm can search catalog of 80 million images and find a selection of photos matching the desired visual style.
• Instagress (https://instagress.com/) – this is a great bot that likes, comments, follows and unfollows you in Instagram and helps promote Instagram account. It does what is not possible to do 24x7.
• AgilOne (http://www.agilone.com/) – analyzes tracking data to creates predictive customer profiles that can be used to engage customer across all channels.

The Marketing Value of Health Care Professionals

The average brand spends a few hundred dollars a year reaching their target customer with marketing messages. On average, it works out about $700 per customer per year ($200b total US ad spend for 300 million consumers). In contrast, the pharmaceutical industry spends $25,000 per year for their target customer (i.e., physicians) promoting their drugs.  This disparity is due the enormous economic influence of physicians. In the US, 1 million physicians are the decision makers for $400 billion of drug spend. Because it is not possible to spend $25,000 per physician on digital ads (there is not enough ad space), marketers end up deploying this ad spend in non-traditional ways (e.g., hosting conferences). A consequence of this supply-constrained marketing dynamic is that new digital marketing players are manufacturing new opportunities to deliver ads to physicians online. For example, companies like Crossix are assembling proprietary lists of physicians that can be targeted online even when they are consuming non-healthcare content (e.g., checking the weather).

https://www.washingtonpost.com/news/wonk/wp/2015/02/11/big-pharmaceutical-companies-are-spending-far-more-on-marketing-than-research/?utm_term=.9bf5e3b3658d

http://www.businesswire.com/news/home/20170202005223/en/Crossix-Announces-Release-DIFA%E2%84%A2-Digital-Measurement-Platform

Sloppy Fix By Facebook

On Jan. 31, Facebook announced it was going to try to give marketers a more accurate measurement of how ads on its site compare to other media (like television) through additional partnerships with third-party ad tech companies like Nielsen and Comscore.  It's the latest step in Facebook's ongoing response to allegations that it has been providing advertisers with misleading, inflated data. It's also a strategic play for a bigger share of ad dollars being spent elsewhere.

It's obvious that for some part of the ad industry, this is a welcomed move... it will be easier for them to explain the ROI of their digital spending, right?

But, given the controversy around how accurate the existing traditional data is (i.e. Nielsen ratings system), is this really an improvement?  Isn't it a bit like sandbagging a breach in the dam?   The announcement could even perhaps be perceived as a bit of a transparent move to pander to advertisers, extending existing flawed models that will allow advertisers to appeal to their clients, without actually creating any solutions that allow for a more accurate, transparent system.


http://adage.com/article/digital/facebook-marketers-data-tools-compare-tv/307767/

P&G Sets New Digital Ad Standards

Proctor & Gamble's Chief Brand Officer, Marc Pritchard, has announced a program to drive transparency and quality in P&G's dealings with digital media agencies.  Pritchard is hopeful that the rest of the industry will follow suit, leading to industry wide standards.

Two major tenants of Pritchard's program are cost transparency and viewability standards.

P&G's previous contracts had allowed media agencies to use their contract money in any way they saw fit, without P&G oversight.  The new arrangement will require full transparency and the return of unused funds.

In terms of viewability standards, P&G will now require agencies to achieve verification by an accredited, 3rd party agency.  They will be the first major firm in their industry to set this requirement.

http://adage.com/article/media/p-g-s-pritchard-calls-digital-grow-up-new-rules/307742/

Changing Brand Perceptions through Native Ads

This article discusses native advertising- ads on online publications that resemble the websites' content.  These are generally found on news sites.

While a six month native ad campaign can cost nearly half a million dollars, advertisers are moving forward due the native ads providing 4-5x more engagement than traditional banner ads.  This trend is likely to continue with the rise in ad blocking efficiency.

Marketers have also found that an extended native ad campaign can be an effective method of changing brand perceptions, though this effort can take time as publishers must continually adjust the content.


http://adage.com/article/digital/native-content-yielding-big-returns-publishers/307799/

Digital Marketing Saving the American Mall

Digiday published a blog today about the demise of the American mall, citing the failure of strip malls and malls anchored by failing department stores.  “Good” and vibrant malls were described as re-invigorating themselves by brining in experience-based businesses, like theatres, restaurants and workout gyms.  Another key feature of the successful mall is digital navigation and mobile-enabled maps.

The article cited a statistic – there are apparently 1,221 malls in the United States.  The International Council of Shopping Centers report that 550 malls generate only 28 percent of total mall revenue and will likely close.

The article described the way digital in-store activations and mobile integration was driving in-store sales.  I think this article is over-stating the situation.  While many malls are having trouble, I see this as a transition, not an ending.  People may order more on Amazon and online, but they still want and need a physical experience. 

What I find intriguing is the way digital advertising can be targeted based on geography and how it can infuse or enhance the physical shopping experience.  From my experience, I still appreciate the real-world shopping experience, but I no longer accept the inventory available in the store.  I shop in the analog world, but if the item doesn’t exist in my size, or the color I want, I shift immediately to online and order the product on the website.

Being able to use technology, such as beacons to track where I am in the store, send me coupons, alerts and connect me with a store representative would enhance my experience.  As digital becomes more integrated into our lives, more mobile and further away from a desktop environment, I predict mall businesses will embrace it as a method of igniting the real-world shopping experience vs. killing it.

P&G brand chief calls out 'murky' and 'fradulent' digital marketing practices

Interesting article here about fraudulent ads and media transparency. P&G is launching a new four point plan to better hold media providers accountable, improve standards, and avoid fraudulent ads. This does appear to be more about P&G feeling they have been duped in some as contracts or had poor experiences with some media providers. However, in an age where technology is pretty broadly accessible and digital can be easy to do, it seems like standards would be helpful to provide better information for marketers and for consumers.

http://www.cmo.com.au/article/613455/p-g-brand-chief-calls-murky-fradulent-digital-marketing-practices/

Snapchat rolls out QR-style ‘Snapcodes’ to open links in app

Link:
Snapchat rolls out QR-style ‘Snapcodes’ to open links in app


Snapchat added a feature to its mobile app for people to turn links into “Snapcodes” that can be used to open web pages within Snapchat’s in-app browser. Snapchat will provide in-app analytics for Snapcodes that are scanned at least 100 times.

It reminds me of Wechat. In China, people are very familiar with scanning QR code through Wechat app. It is simple, effective, and Chinese users adopt QR codes very fast. QR codes actually reshape Chinese Internet and consumers' behaviors in many aspects. People add contacts, browse websites, download app, and pay money via QR codes. Nowadays, the QR code is like the entry point for mobile Internet in China. QR codes can change people's behaviors effectively and more importantly, drive conversions. It brings the good user experiences and simple solutions like how search engines do. Snapchat realized it and launched this new feature. It is likely to see QR code being flourishing again and driving traffic across platforms, and from offline to online. Although QR code is nothing new, it hasn't been very popular in the U.S. and people don't bother to download an app to scan it. Snapchat rolls out this feature, I'm looking forward to the changes it might bring to the market in the future.

Facebook’s mobile video strategy – opportunity for digital marketers

Facebook reported Q4 2016 earnings today – Q4 2016 revenue was $8.81 billion and 84% of that ad revenue was from mobile. Reading the earnings report and details of the earnings call, I found several interesting bits of information from digital marketing perspective

Facebook got rid of desktop advertising platform FBX in May 2016 in order to focus on mobile advertising. Which indicates that digital marketers and the digital marketing trends are seeing more opportunity in mobile and less in desktop.

Mobile video and mobile video advertising are going to be the biggest priorities for Facebook in 2017. Facebook will focus on shorter-form content which indicates that Facebook is going after YouTube. It would be interesting to see how Facebook implements video. As popular as YouTube is, nobody wants to watch ads on YouTube and everyone skips the ad as soon as the skip option is enabled. So far digital marketers have not adopted to short-form video advertising in a big way; most ads are still cross platform and tend to be longer in length; I often wonder about the ROI on them, if the users are skipping the ad before the product is even displayed. It will be interesting to see if Facebook will change that.  

Short-form video consumption is exploding and it looks like digital marketing is on the verge of another change. The companies and marketing agencies that can quickly adapt will win.

What Digital Marketing can learn from Super Bowl Ads

Super Bowl Week is upon us, and in addition to the biggest sporting event in American Culture comes the day that the advertising industry showcases it’s best, most amusing, most innovative, and most importantly, deep-pocketed, creative.

Advertisers will shell out on average $5 million for a 30 second spot. Anticipated reach, by ratings is 100,000,000 people, which results in a $50 CPM. By contrast, a digital ad campaign, leveraging video assets in rich-media banners, averages roughly a $10 CPM.

Does this mean that a Super Bowl ad spot is 500% more effective than running the same video spot in a banner, adjacent to digital content?

Marketers, time and time again, answer “yes” to this question, which introduces the fundamental flaw with digital advertising as it currently exists. Engagement is much lower with content adjacent to a reader’s desired content (a banner sitting next to an ESPN article), primarily because a reader is trying to avoid the banner creative in order to consume the article she clicked toward in the first place. By contrast, the Super Bowl holds its audience fully captive to the ad spots played between content presentation, and, uniquely differentiated for the Super Bowl, the audience actually anticipates and absorbs the commercial content. Easy to see why marketers are willing to pay 5x more per view for Super Bowl Commercial than for a video banner ad.

Furthermore, an advertiser in the Super Bowl will generate significant amount of earned media, in the way of Youtube views of the commercial, buzz across social media, coverage (if they’re lucky) in trades and on Good Morning America, as well as the prestige of having run a commercial in the Super Bowl and being associated with other “blue chip” brands with the marketing gusto that a Super Bowl commercial implies.

The main takeaway, for digital marketing, from these observations is that the future of digital marketing is video. While I cited a $10 CPM for views of in-banner video creative, other video executions such as pre-roll and content interstitials, garner a CPM north of $50 and is competitive with a Super Bowl Ad, since these also have a captive audience, and in many instances, secure brand exclusivity which carries a premium. With broadband internet access expanding exponentially, publishers and platforms will look to open up any and all video inventory possible. Banners are on the way out.

The Super Bowl is indeed a unicorn-type advertising environment, with engagement levels unparalleled by any other event or medium, but the rest of the digital media space isn’t too far behind in understanding that deep engagement with video assets is the most valuable virtual interaction a consumer can have with a brand. CPMs are already neck and neck between many digital vide ad formats, and Super Bowl TV spots, and publishers/platforms will continue to grow out this inventory and opportunities for brands to run their video spots.

Influencer Marketing

While scrolling through Instagram I am often served content that is sponsored by brands, clearly marked and has links through to that retailer's website. However there are often times when I see that an Instagram Celebrity with over 1 million followers is promoting a product in native advertising that may not be disclosed through #ad.  The rise of the influencer industry is staggering as we are now looking to Instagram and Snapchat personalities to help define fashion as opposed to magazines 20 years ago. There is an important role for brands to play here and a very large addressable market. However it is also important to maintain ethical advertising so the payment from brand to influencer is clearly disclosed.

Mobile Shopping

One thing that often makes life easier, but often makes it more difficult, is mobile based transactions. For instance, shopping on the internet is clearly the way forward and the force driving big box retailers out of business.  However as I spend more time on my phone and less on the computer, my purchases would logically shift towards web on my iPhone. However the interface is often very frustrating and leads me to not make the purchase at all. If companies want to ensure that they don't lose business because of poor customer experience they need to refine the mobile shopping process. This is something touched on in the article below.

http://www.forbes.com/sites/kateharrison/2017/01/09/top-10-trends-that-will-transform-digital-marketing-in-2017/#40e57661758a

Cross-Platform Consistency: a Threat to Social Media Innovation?

In a report published today, Econsultancy argued that Instragram seemed to be taking Snapchat visitors.  While the assertion that Instagram Stories is taking share from Snapchat has some basis – 150 million daily user increase on Instagram and approximately the same number of daily user decrease on Snapchat – I don’t believe the two are directly correlated.  The increasing popularity of Instagram Stories happened around the same time as Snapchat changed its user interface.

Econsultancy also cited a report that 74% of companies plan to use Instagram this year.  They increasingly favor it over Instagram, which makes sense as brands seek to create enduring content vs. transitory experiences.  The decline in popularity of Snapchat is likely due more to the way they have innovated on their platform to match the FB user experience.

Which brings to mind a good question about marketing in the digital age: does the established behavior pattern of users on one platform mean other platforms are better served to match it?  How much can platforms innovate without risking user attrition?  Digital marketing requires such an investment in content development specific for a platform that companies don’t like their audiences shrinking or moving off a platform after they’ve invested in it.

Yet, platforms have to innovate to remain fresh and relative to their target customers.  eMarketer projected last year that digital ad spend would be higher in 2017 than TV broadcast ad spend.  As more and more marketers move their ad spend to digital, I can see a growing pressure to inform advertisers before significant user experience upgrades are made.

In my mind this threatens the natural fluidity and excitement of social media.  The fact that FB hasn’t changed in several years is actually a detriment for its clout as a tech platform, even as it increases its loyalty for users who seek a consistent experience.  Continuing to innovate and add user value is critical to the social media experience and the platforms that facilitate it.  I hope the decline in users on sites that update their experience, like Snapchat, are seen for what they are -- temporary disruptions.  I wouldn’t want the need for advertiser delivery to pressure platforms to remain so consistent they become stale.

The 3 Big Problems with Personalization in digital marketing

I recently read an interesting article in Entrepreneur – The 3 big problems with personalization in online sales and marketing https://www.entrepreneur.com/article/288332 . This is interesting to me because the business concept I was thinking about was totally focused on personalization and the current lack thereof.

To quote the author “Personalization in the digital space is just like sex in high school. Everyone is talking about it, but few are doing it.”. Companies are increasingly making personalization part of their digital marketing strategy, but so far I have seen very few companies being able to accurately personalize. Accuracy is still questionable even with major companies like Google, Yahoo and Amazon. Most ads are displayed based on basic information such as past searches and inferences based on the “type” of searches; however search is not always a good tool for personalization for various reasons like I could be searching for another family member or it could have been a random one-off search. The most common personalization is when Yahoo or Amazon display ads or related ads for something after you already bought the item.

The article talks about segmenting the audience, keeping it simple, testing various data points and scale. I don’t think accurate personalization is an easy problem to solve. I think Google is making progress on this  - using one google account across many services and devices and unique advertising Id, but I do not believe that will completely solve the problem either.

I am reminded of a scene in the movie Minority Report where a person’s eyes are automatically scanned by digital display boards in malls and subways to display a personalized ad. Now that is personalization in digital marketing !