Despite concerns from some in the industry, AI in marketing isn’t going anywhere. As discussed during last week’s Advertising Week in New York, brands are becoming increasingly AI-savvy, utilizing the technology to optimize campaign metrics and streamline user experiences. Find out more about the latest uses of AI in marketing and advertising in our Marketing Must Reads.

Discussing the Future of AI at Advertising Week

Last week, advertising experts gathered in New York for the annual Advertising Week conference to discuss industry trends and innovations. This year, much of the conversation focused on the use of AI in marketing, and specifically how creatives can utilize AI tools to enhance their work. Speakers at the conference noted AI’s ability to handle the more tedious or technical aspects of the creative process, giving employees more time to focus on “critical thinking and come up with new ideas.”

Experts also brushed off worries that AI could replace jobs and be used to create original content. Marketing executives insisted that there will always be need for human intelligence and creativity. Read more about hot topics discussed at the conference and how marketing leaders see AI technology evolving in the coming year here: https://www.thedrum.com/news/2024/10/10/experts-advertising-week-combat-the-notion-ai-will-supplant-human-creativity

Diageo Navigates Alcohol Advertising with AI

During Advertising Week, alcohol giant Diageo outlined the ways AI helped their brands generate better ROI and navigate industry regulations. Diageo’s liquor brands have successful used the technology to refine their audience targeting metrics, ensuring their ads are served only to those over age 21. They’ve also relied on AI to help them make strategic choices about which brand to market, with their advanced algorithm signaling whether they should serve a Smirnoff or Kettle One ad to a specific zip code, depending on which brand offers a higher profit margin in that area.

Diageo executives also admitted that just a few years ago, they assumed investing heavily in AI would make advertising costs soar and decrease their ROI. However, once they began initial testing, they quickly saw significant returns on their campaigns that utilized AI optimization. Get the details on Diageo’s AI-led efforts here: https://www.marketingdive.com/news/how-ai-helping-diageo-target-audiences-navigate-regulatory-waters/729284/

Hershey Optimizes Ad Spend with AI

The weeks leading up to Halloween are some of Hershey’s biggest of the year. However, the candy company’s head of US media noticed a gap in their advertising strategy, with their ads’ reach heavily concentrated on just five cities. This year, Hershey is employing AI to fill in the gaps in their coverage, shifting ad spend from oversaturated markets to underutilized ones. Their AI algorithm ensures Hershey’s ad budget is allocated accordingly to avoid overpriced buys, as well as markets seeing a huge influx of political ads ahead of the election.

In initial testing of this algorithm during last year’s Halloween push, Hershey recorded a 1.5% growth in sales. This year, with refined parameters and wider rollout, the brand is hoping for even stronger results. Find out more about their AI strategy here: https://finance.yahoo.com/news/ai-gives-hershey-edge-high-090000456.html

Volkswagen Leverages Google’s Generative AI for Their Mobile App

With interest and investment in AI quickly growing, Google has developed their own artificial intelligence tools to analyze data and enhance customer experiences. Volkswagen is one of the first brands to integrate these new tools from Google into their own mobile app to improve their users’ experience. Using Google’s Gemini and Vertex AI products, Volkswagen owners can now search their car’s manual by typing or speaking a question. Even more impressively, owners can also get information about their car’s indicator lights by simply pointing their phone at the dashboard.

As cars have become more laden with technological features, owners are increasingly relying on their manufacturer’s mobile app to diagnose issues, access remote start, and contact their dealership. In addition to the owner’s manual, Gemini and Vertex will also pull answers to users’ queries from FAQs, Volkswagen YouTube videos, and other trusted sources. Learn more about Google’s AI products and Volkswagen’s integration here: https://www.marketingdive.com/news/volkswagen-google-generative-ai-myvw-app-experience/727941/