Generative artificial intelligence (AI) is revolutionizing the advertising industry, with some of the biggest brands experimenting with AI software like ChatGPT and DALL-E to cut costs and increase productivity. Companies like Nestle, Unilever, and WPP are embracing the potential of generative AI to create cheaper, faster, and more innovative ways to advertise their products.
Generative AI technology can produce seemingly original text, images, and even computer code based on past data. This means that instead of simply categorizing or identifying data like other forms of AI, generative AI can create content that appears unique and original. It offers a virtually limitless source of creative material for marketing teams.
WPP, the world’s largest advertising agency, is working with Nestle and Mondelez, the maker of Oreo, to leverage generative AI in advertising campaigns. This technology allows them to create virtual commercials without the need for expensive film crews or physical shooting locations. The savings can be significant, with CEO Mark Read stating that the cost reduction can be 10 or 20 times compared to traditional methods.
In India, WPP collaborated with Mondelez on an AI-driven Cadbury campaign featuring Bollywood star Shah Rukh Khan. The campaign generated ads that showcased Khan interacting with passers-by and encouraging them to shop at local stores. Small businesses were able to generate personalized versions of these ads featuring their own stores, resulting in 130,000 unique ads and 94 million views across YouTube and Facebook.
Nestle is also exploring the use of ChatGPT 4.0 and DALL-E 2 to market its products. The AI-driven software provides campaign briefs with creative ideas and inspiration that align with the brand’s strategy. These ideas are further developed by the creative team and ultimately transformed into content for Nestle’s websites.
While generative AI has enormous potential, there are concerns about security, copyright risks, and unintended biases in the data used to train the models. Companies like Unilever are actively working to prevent the reproduction of human biases in their generative AI technology. They want to ensure that the models provide an unbiased view of the world and are committed to upholding security and privacy standards.
Overall, generative AI is transforming the advertising landscape, offering a cost-effective and efficient way for brands to create engaging content. As technology continues to advance, advertisers will likely embrace this powerful tool to stay ahead in the ever-evolving world of marketing.
– Source 1: Reuters – Generative AI: Advertisers’ Key to Boosting Productivity and Cutting Costs
– Source 2: Analytics India Magazine – ChatGPT May Go Bankrupt by the End of Next Year: Report