Generative AI Evolves from a Novelty to a Practical Tool, Yet Still Has Further to Develop
The Evolving Role of AI in Marketing
AI’s Impact on Advertising Conversations
In recent discussions surrounding advertising, particularly during the Possible conference, the enthusiasm for artificial intelligence (AI) has taken on a more grounded approach. Marketers are shifting their focus from visionary ideals to practical applications of AI that can address current challenges in the fragmented digital landscape.
Understanding AI’s Practical Applications
With the ongoing challenges of navigating various digital platforms, many advertisers are adopting AI as a strategic tool to refine audience targeting and segmentation. Ravi Patel, CEO of SWYM, articulated this shift, stating that brands are thinking more critically about how to effectively utilize smaller audience segments and AI-driven methodologies to achieve measurable outcomes. The aim is to transition from broad, blind audience buying to a more targeted, data-informed approach.
Third-Party Cookies and Privacy Considerations
The recent announcement from Google regarding third-party cookies has raised important questions. Unlike Apple’s Safari and Mozilla’s Firefox, Google’s Chrome remains an outlier. This creates an increasingly complex environment for advertisers, especially with the growing prevalence of cookie-less platforms, such as connected TV (CTV) and mobile devices. Advertisers are more aware than ever of the need for transparent data practices as they harness AI to navigate these challenges.
AI as a Tool for Efficiency and Performance
During a discussion led by Tyler Romasco of OpenX, the application of AI emerged in two primary areas: improving operational efficiency and enhancing customer service. The panel included representatives from CVS Media Exchange and other influential companies, highlighting how AI can help combat issues like ad fraud and detect harmful content. According to Romasco, the conversations reflect a wider industry acknowledgment of AI’s role in enhancing basic marketing operations.
Generative AI and Content Creation
The potential for generative AI to transform content and conversion strategies is being realized by companies like Mondelez. Jon Halvorson from Mondelez emphasized their focus on leveraging AI to improve content quality and e-commerce operations. For instance, iconic brands such as Ritz and Oreo are missing out on converting a significant percentage of traffic into sales, indicating an opportunity for substantial improvement. By enhancing online content quality through AI, brands can streamline their marketing efforts and boost sales conversions.
The Call for Transparency and Understanding
Despite the excitement surrounding AI, there remains a palpable level of uncertainty among marketers regarding its applications. Charlie Johnson from Digital Envoy pointed out that the conversations at the Possible conference concentrated on immediate concerns such as platform volatility and data privacy, highlighting a cautious yet intrigued attitude toward AI adoption. Industry professionals are still in the early stages of integrating AI into their strategies—more like "base camp" rather than at the summit of AI capabilities.
Hyper-Personalization and Agentic AI
The potential for hyper-personalization powered by AI has garnered interest among marketers. Jason Downie, from the tech consulting firm Making Science, noted a keen interest in understanding how specific AI applications could deliver real value, whether through performance improvements or time savings. Additionally, the concept of agentic AI—a type of AI that actively engages and interacts with various marketing tools—continues to develop as businesses aim to streamline their workflows across multiple platforms.
The Cautionary Tone around Creative AI Applications
Creative processes in marketing are also being re-evaluated in the wake of AI advancements. Matt Barash from Nova pointed out that many discussions around AI still include a mix of buzzwords, resulting in conversations that lack depth and clear understanding of AI’s true potential. This highlights the need for marketers to be wary of superficial claims and to focus on substantive applications of the technology.
Throughout the Possible conference, it became evident that while the integration of AI into marketing is progressing, there is still much work to be done. Understanding how to effectively harness this technology remains a priority for many as they navigate the complexities of a rapidly evolving landscape.
