A sneak peek into where advertising is going in the AI Era
A thought-provoking examination of the current status of advertising and its future possibilities in the AI era.
New sources of consumer data and the AI-produced info
VR/AR glasses, smart assistants, smart TV, smartwatch, smart fridge, smart A/C — did you hear about DigitalSTROM ? It’s exactly that! A smart home system that can program your gadgets to follow your daily habits. Coffee prepared for you before you get out of bed, lights turned on when your alarm goes off, or the thermostat set to the exact time you’re supposed to get home from work.
All connected to the internet — the Internet of Things.
All of this enables the collection of additional data.
More data means more control. Biometric data from smartphones and security systems that employ fingerprints, facial recognition, or retinal scans is one of these new sources. Wearables, eye-tracking cameras, and other similar technologies capture behavioral data. Voice samples captured by smart speakers, smart displays, and other voice-controlled devices.
Automated, AI-powered systems generate huge results. By looking for patterns in scraps of user data, automatic algorithms can predict consumer behavior to a larger extent than a person may have consented to. And people are unaware of the wealth of information that may be gleaned from seemingly innocuous data that they generate.
Enters the famous GDPR (EU’s General Data Protection Regulation) which put us all through hell a few years ago. The GDPR legislation, along with various privacy scandals or data leaks, has also changed a lot for people by putting the privacy issue on the lips of everyone. Some are annoyed by yet another popup. Others are distressed by discovering how much data has been gathered on them by companies.
Another point to make here is the opt-out choice. It is relatively easy to withdraw one’s consent to data storage. But what if one’s data is used to train AI? Would the deletion of the source data be enough?
The issues of privacy and data ownership have changed the industry forever and will continue to have an increasing influence on it.
Enters Ad blockers. They are a way for people to say that they’ve had enough. According to reports, 47% of Internet users have some sort of ad blocking mechanisms enabled. This increases the costs of advertising, and the only way to combat that, is to work towards less intrusive ads for a better customer experience.
The marketing and the 5G technology
Do you remember that scene in Star Wars where R2-D2 is delivering a message from Princess Leia in the form of a hologram? Can you even imagine the power of the internet they must have had?
Back to the future, imagine presenting your product in a virtual or augmented reality, smart assistants proactively promoting your offers, your ads shown on fridges or microwave ovens’ displays. An advertising paradise or a nightmare depends on which side of the screen you are on. Well, the IoT plus 5G is making it possible.
What we do have now is the unabashed rise of VR/AR technologies, with more and more applications in experiential marketing.
The reality of many touchpoints encouraged marketers to attempt to engage with a consumer genuinely. It is known as omnichannel marketing. Needless to say that all touchpoints, from awareness through to purchase, are seamless.
But eventually, the fragmentation of the Internet is inevitable. In recent years, the Internet has ceased to be a worldwide anarchic platform devoid of country. Big techs have changed it into an oligopoly.
Now we find out that big tech players also have a nationality and an agenda. Chinese, Russian and Western nets are divided more and more. Soon an advertiser may not be able to run global campaigns and switch from country to country with ease.
There have always been barriers between countries in the online world. But the new, divided Internet — splinternet — may consist of completely incompatible parts.
Because the competition is fiercer and the growth in ad space is insufficient to meet demand, the average cost of a click varies between verticals, but it is rising.
Moreover, ad blockers usage is still going up and bot traffic, despite the small drop, still makes a huge chunk of traffic. And this is a matter of ad fraud practically.
NFTs, or non-fungible tokens, are a new means of distributing capital introduced by blockchains. They are one-of-a-kind digital IDs for physical or digital items. You may buy and sell single tweets or.jpeg files, as Christie’s did in its latest record-breaking auction.
Digital commodities are a real way to invest large sums of money. This new product category needs fresh advertising.
Blockchain technology has the potential to significantly alter the marketing sector. It can considerably decrease prices, but it may hasten the split of the advertising industry between large companies by removing intermediaries.
My proverbial two cents
Considering a user’s history of touch-points across various channels, focusing on the cost of a click will be inefficient in the long run. As a result, the profit created by a customer over time will become increasingly essential, and marketers will finally be able to quantify it.