TL;DR:
- AI is driving the next creative revolution in advertising.
- The AI marketing industry is expected to reach $35 billion next year and potentially over $100 billion by the end of the decade.
- AKQA, a global agency network, has been experimenting with AI for several years, creating a new sport, “Speedgate,” and a campaign for Nike featuring Serena Williams.
- AI is seen as a means of enhancing the creative process, freeing up resources, and allowing for more imaginative ideas.
- AI is being used to streamline administrative tasks and support the creative process.
- The use of AI in advertising has sparked a discussion about the role of AI and large language models, with some viewing it as a threat and others as an opportunity.
- Dickon Laws, Global Head of Innovation at Ogilvy, presents a roadmap for the adoption of new technologies in advertising.
- AI is changing the way agencies and clients work, and it’s not going to eliminate them.
- The rise of AI presents a transformative opportunity for the advertising industry, but there is still uncertainty about its proper use.
Main AI News:
The Business of AI in Advertising
It’s been just over a month since OpenAI’s ChatGPT made headlines for its ability to produce human-like essays and poems. Actor Ryan Reynolds used the technology for a comedic advertisement for Mint Mobile, showcasing the chatbot’s uncanny ability to mimic his voice and humor. This was soon followed by Hendrick’s Gin’s spoof, “ChatG&T.” These instances have sparked a wider discussion in the advertising industry about the role of AI and large language models. While some view it as a threat to the industry, others see it as a way to enhance their creative capabilities.
Dickon Laws, Global Head of Innovation at Ogilvy, presents a roadmap for the adoption of new technologies in advertising. He explains that the industry goes through a series of stages, from the “Magpie Moment” of initial excitement to the “Napster Moment” of excessive hype to the “Cambridge Analytica Moment” of abuse and regulation, before finally reaching the “Spotify Moment” of normalization and utilization. Laws emphasize the importance of guiding clients through this process to minimize brand risk.
The AI marketing industry is expected to reach $35 billion next year and potentially over $100 billion by the end of the decade. Navigating this rapidly growing and evolving market requires a balanced approach that considers both the potential benefits and potential risks. The industry is still in the process of exploring AI’s capabilities and their impact on the future of advertising.
Revolutionizing Creativity with AI
AKQA, a global agency network under WPP, has been experimenting with AI for several years now. In 2019, the agency used a neural network to create a new sport called Speedgate and, more recently, generative AI tools to create a campaign for Nike featuring Serena Williams. In December, they utilized AI to turn GoFundMe’s year-end report into an art-inspired film with the help of AI artist and director Paul Trillo and OpenAI’s DALL-E and Stable Diffusion.
According to AKQA founder and CEO Ajaz Ahmed, the use of AI in this project resulted in a 65% cost reduction compared to traditional methods and a significantly faster turnaround time. He views AI as a liberating and democratizing force in the creative industry, freeing up resources and allowing for more imaginative and innovative ideas.
Ahmed emphasizes that AI is not a threat to the industry but rather a means of enhancing it. The automation of routine tasks through AI allows for a greater focus on creativity and ideation. He predicts that AI will continue to change the way agencies and clients work, offering new opportunities to serve a wider array of clients and budgets.
Leveraging AI for Streamlined Creativity
The creative advertising industry is looking to harness the power of AI to streamline administrative tasks and free up energy for original thinking. Nilesh Ashra, founder and CEO of OK Tomorrow, sees AI as a capable assistant for senior marketers, lifting the burden of operational management and allowing for more valuable contributions.
Similarly, Mike Creighton, Director of Experience Innovation at Stagwell-owned digital shop Instrument, views generative AI like ChatGPT as a powerful creative assistant. Instead of using AI to directly create new work, he sees it as a tool to enhance the existing creative process by improving understanding and rephrasing concepts for audiences.
The instrument uses AI tools like ChatGPT and Stable Diffusion to rapidly create storyboards, acting as a jumping-off point for additional creativity. The real value of AI lies in its ability to support and enhance the creative process rather than solely in its output.
AI Transforming the Business of Advertising
Agencies that are effectively integrating AI tools are finding that it changes not only the way their creative teams work but also their relationships with other parts of the business. Legal and compliance teams now have a more critical role in ensuring the ethical use of generative AI and data.
In the near future, agencies will be able to train AI tools on proprietary data to produce more customized results. For example, Ogilvy plans to train its AI on its own culture and philosophies to create a unique tool for clients.
While the rise of AI presents a transformative opportunity for the advertising industry, there is still uncertainty about its proper use. OK, Tomorrow’s Ashra urges agencies and creatives to start experimenting with AI now or risk becoming obsolete. The low barrier to entry makes it easy for anyone to get involved, regardless of their level of technical understanding.
Conlcusion:
The use of AI in the advertising industry is expected to revolutionize the way creative work is produced and delivered. The AI marketing industry is expected to reach $35 billion next year and potentially over $100 billion by the end of the decade. The use of AI is seen as a means of enhancing the creative process, freeing up resources, and allowing for more imaginative ideas. Agencies that effectively integrate AI tools are finding that it changes not only the way their creative teams work but also their relationships with other parts of the business.
However, there is still uncertainty about the proper use of AI in the industry, and it is important for agencies and creatives to start experimenting with AI now to avoid becoming obsolete. The rise of AI presents a transformative opportunity for the advertising industry, but it also requires a balanced approach that considers both the potential benefits and risks.
