Can Generative AI change the world of Marketing?

4

October

2023

5/5 (1)

A few months ago there was a Coca-Cola advertisement that everyone was talking about. Coca-Cola has decided to create a “Masterpiece” advertisement by using Generative AI Stable Diffusion (Dean, 2023). The ad itself represents a student in a gallery hall drawing sketches, while a Coca-Cola bottle is being tossed around people who come alive from classical and modern paintings. The bottle changes its appearance according to the style of the painting that it is currently in. At the end of the ad the bottle reaches the boy, he drinks and feels inspired to continue his drawings (Dean, 2023). When watching the ad, the audience cannot distinguish between what is AI generated and what is added by humans because of their perfectly blended combination. However, the making video reveals that the characters from the paintings that come to life are real people but everything around them is generated by Stable Diffusion. The ad is named “a true work of art” (Rajput, 2023). Furthermore, Coca-Cola is creating a new limited edition Y3000 flavour “with a taste of the future” which design is fully generated by Stable Diffusion (Edwards, 2023). Therefore, it seems that Coca-Cola will continue using Stable Diffusion in different forms in their marketing in the future.

Stunned by this experience, I decided to try the tool myself and see how endangered is the marketing industry. I tried with generating different people and animals. Overall, the pictures look realistic, but there are some problems with them. Some defects that I have encountered in people are related to their eyes looking in different directions, their teeth being blurry when they smile, their fingers being more than 5 when they hold something and also not that detailed such as having no nails. The Coca-Cola bottle is also blurry and the label is not readable. When looking at the rat, it has 4 hands because the AI is confused and has added extra hands for it to hold the bike frame.

The experience with Stable Diffusion (the free online option) has left me with a good impression of its ease of use and fast generation of content. Although there are still some problems with perfect people and animals generation, the Coca-Cola advertisement is showing a new way of ad creation which can be impressive and easily captivates the attention of the targeted audience through the whole time of the ad (Gaiduk, 2023).

Do you think that Stable Diffusion can change the world of Marketing and how far are we from that to happen? In what ways? Maybe more personalized AI-generated ads based on each other’s preferences?

References:

Brinks, D. (2023). Coca-Cola’s masterpiece – MarketingFacts. Marketingfacts. https://www.marketingfacts.nl/berichten/coca-colas-masterpiece/

Dean, I. (2023). Finally, a good use of AI? Coca-Cola’s new ad is a branding masterpiece. Creative Bloq. https://www.creativebloq.com/news/coca-cola-ad-masterpiece

Edwards, B. (2023). Coca-Cola embraces controversial AI image generator with new “Y3000” flavor. Ars Technica. https://arstechnica.com/information-technology/2023/09/ai-hype-reaches-coca-cola-with-new-y3000-flavor-co-created-with-ai/

Gaiduk, D. (2023). AI creation, AI validation: A case study of Coca-Cola’s ‘Masterpiece.’ Medium. https://cooltool.medium.com/ai-creation-ai-validation-a-case-study-of-coca-colas-masterpiece-e50aaebd3933

Rajput, A. S. (2023). Coca-Cola’s latest commercial: A stunning fusion of 3D, Film, and AI – Social Nation. Social Nation – Find what’s happening in the digital content world. https://www.socialnationnow.com/coca-colas-latest-commercial-a-stunning-fusion-of-3d-film-and-ai

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The New Way Of Digital Marketing; Programmatic Advertising

30

September

2021

5/5 (3)

Within the advertising sector, the digitization of processes and automation has become a trend that is omnipresent. A particular form of digital marketing that is advancing fast is that of programmatic advertising. It entails automated bidding for digital campaigns or website display, and is established to replace extensive human negotiations with real-time online auctions (Rask, 2021).

It has been estimated that by this year, the US digital display spending via automated transactions will be approximately $81 billion (Fisher, 2019). Programmatic advertising thus enhances the efficiency, costs and transparency for both parties (advertisers and publishers) on the advertising platform, also called Ad Exchange. The described automated or real-time bidding process is a form of programmatic advertising that uses the technologies of Artificial Intelligence and Machine Learning to optimize the advertising process.
Where before it was needed to go through negotiations and pre-set prices to buy an advertising spot on a website, it now takes milliseconds to find the optimal price and target group for both the supplier, the website owner, and the demand, the advertisers, through ad exchange (Rask, 2021). This ad exchange is similar to a platform where you can buy online ad space from different ad networks or groups of websites that offer advertising space. The real-time bidding process will be explained in more detail below, to illustrate the efficiency of it compared to traditional human price bargaining;

When a website visitor clicks an URL, a request is sent to the ad exchange with their information such as related interests, if the individual visited the website before, etc. This visitor is then matched against the available advertisers and the system evaluates which advertisers’ willingness to pay (WTP) is the highest for this particular website visitor. A real-time auction takes place and the highest WTP or bid will be the advertisement that the website visitor sees when the webpage is loaded. The advertiser with the highest bid can hence show you their ad via the webpage, of which the corresponding webspace is supplied by a publisher on this ad exchange platform. This whole process happens in a few milliseconds and is based on data analysis and available information about each individual website visitor, whereas before advertisers would show their ads to all website visitors of a particular page, solely based on the fact that they thought these visitors would be interested in their respective product or service. Due to the implementation of real-time bidding, it is possible for your ad to show up on multiple different webpages of a particular ad network via the connection through ad exchange (Rask, 2021). If interested, the process of real-time bidding is described in more technical detail in the following picture.

The usage of real-time bidding in the advertising sector shows the impact of automation for digital marketing, given the usage of technologies as AI and algorithms to find the optimal advertising spot for advertisers. It can have a disruptive impact on this industry, since advertising is made more accessible for companies with a smaller budget, while the targeting is way more precise given the granular data that is included in the decision-making process during real-time bidding.

References

Rask, O. (2021, September 22). What is Programmatic Advertising? The Ultimate 2020 Guide. Match2One. Retrieved on 24-09-2021 at https://www.match2one.com/blog/what-is-programmatic-advertising/.

Fisher, L. (2019, April 25). US Programmatic Ad Spending Forecast 2019. Insider Intelligence eMarketeer. Retrieved on 25-09-2021 at https://www.emarketer.com/content/us-programmatic-ad-spending-forecast-2019.

Reagan, R. (2013, November 11). Turn Infographic: The Life of an Ad. ExchangeWire. Retrieved on 28-09-2021 at https://www.exchangewire.com/blog/2013/11/11/turn-infographic-the-life-of-an-ad/.

Photo Credits: https://www.hetdeventernieuws.nl/2018/09/21/online-marketing-van-ondernemingen-in-deventer-is-ondermaats/



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