emarketer webinar: artificial intelligence—the future is already here

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© 2016 eMarketer Inc. Made possible by Artificial Intelligence for Marketers: The Future is Already Here Victoria Petrock Principal Analyst, Industries October 27, 2016

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  • 2016 eMarketer Inc.

    Made possible by

    Artificial Intelligence for Marketers:The Future is Already Here

    Victoria PetrockPrincipal Analyst, Industries

    October 27, 2016

  • 2016 eMarketer Inc.

    What Exactly is AI?

  • 2016 eMarketer Inc.

    Hollywood has done some dramatic portrayals

    Image credits: Cryteria/Wikimedia Commons, Stephen Bowler/Wikimedia Commons, Helloclaire/Wikia.com

    #eMwebinar

    HAL 9000 Terminator Robots Samaritan

  • 2016 eMarketer Inc.

    AI means different things to different people

    The most common definition involves the simulation of human intelligence and decision-making

    #eMwebinar

  • 2016 eMarketer Inc.

    There is a lot of confusing terminology!

    Some terms represent specific technologies, others are used interchangeably

    #eMwebinar

  • 2016 eMarketer Inc.

    AI comprises several core technologies, but is often known by different names

    Machine learning Neural networks Deep learning Expert systems

    Computer vision Machine translation Natural language processing Natural language generation Chatbots Virtual digital assistants Computational linguistics Recommender systems Predictive analytics

    Cognitive computing Augmented intelligence Man-machine learning Algorithmic assistance Cognitive augmentation Intelligence amplification

    #eMwebinar

    Core Technologies

    Major Applications

    Other Names

  • 2016 eMarketer Inc.

    AI has had a long and difficult history

    Artificial intelligence as a name was reserved for mysterious stuff that was beyond the state of the art.

    Mark Torrance, Chief Technology Officer, Rocket Fuel

    A lot of early researchers overpromised on AI, giving it a bad rap

    As new technologies based on AI became mainstream, they were renamed other things

    Computing power has recently advanced to support more of AIs full potential

    #eMwebinar

  • 2016 eMarketer Inc.

    Some AI isnt always called AI

    We prefer to think of machine learning as algorithmic assistance.

    Mike Paquette, Head of Security Strategy, Elastic

    We call it machine learning, because I think [artificial intelligence] sometimes can spooksome folks.

    Mahesh Tyagarajan, Chief Product Officer, RichRelevance

    #eMwebinar

  • 2016 eMarketer Inc.

    And many businesspeople are using AI without even knowing it

    #eMwebinar

    Source: Narrative Science, 2016

    37%Businesspeople who say they are using AI technologies in the workplace

    88%Businesspeople who are actually using technologies that rely on AI

  • 2016 eMarketer Inc.

    There is more awareness of newer technologies, though many are AI-based

    #eMwebinarImage Credit: Narrative Science

  • 2016 eMarketer Inc.

    So what are we really talking about?

    Neural Networks: Machine learning algorithms trained with specific sets of data points, which they use to guess at an answer to a query. The networks guess is then compared with the correct answer for each data point. If errors occur, the neurons are tweaked and the process repeats itself until the error levels decrease.

    Deep Learning: A branch of machine learning concerned with building and training neural networks with multiple layers. Each layer of a network can find patterns in the output of the layer above it. Deep networks excel at sorting and classifying data and identifying anomalies in data patterns.

    #eMwebinar

    Machine Learning: The branch of AI computing that involves training algorithms to perform tasks by learning from previous data and examples rather than explicit commands programmed by humans.

  • 2016 eMarketer Inc.

    AI is already a part of everyday life

    Self-Driving Cars Fraud Detection Digital Assistants

    Image credits: Michael Shick/Wikimedia Commons, Pixabay, Tej3478/Wikimedia Commons

    #eMwebinar

  • 2016 eMarketer Inc.

    Global estimates for the AI market are disparate, reflecting the markets relative immaturity

    $5B by 2020Source: MarketsandMarkets, February 2016

    $15B by 2021Source: BCC Research, March 2016

    $37B by 2025Source: Tractica, August 2016

    #eMwebinar

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    Why now? Several factors are driving adoption

    Image credits: Pixabay

    Successful use cases

    Collaborative academic

    community

    The internet of things (IoT) and data overload

    More powerful, yet smaller and less expensive

    computing power

    Tech giants with deep pockets

    Innovative startups

    #eMwebinar

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    Tech giants are among the biggest AI investors

    #eMwebinar

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    Since 2011, nearly $2.4 billion has been invested globally in AI startups, over 397 deals

    Source: CB Insights, June 2016

    #eMwebinar

    Chart1

    29267

    415131

    757196

    2177307

    2388397

    1685255

    Amount invested (millions)

    Number of deals

    307

    Sheet1

    Column1Amount invested (millions)Number of deals

    2011$29267

    2012$415131

    2013$757196

    2014$2,177307

    2015$2,388397

    2016 (H1 only)$1,685255

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    Businesses across industries are taking different routes to developing their AI capabilities

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    Leveraging AI for Marketing and Advertising

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    The many faces of AI for marketing

    Image Credits: Pixabay, The Weather Company

    MarketingIntelligence

    Lead Generation

    Call-Center Technology

    Bots and Virtual Assistants

    Smarter Search

    Interfaces

    RecommenderSystems ContentCreation

    BrandBuilding

    AI-Driven Advertising

    Campaign Optimization

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    Marketing Intelligence

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    Marketing intelligence is a top use for AI

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    Turner Broadcasting uses IBM Watson technology to uncover insights for advertisers

    Watson ingests first- and third-party, structured and unstructured data

    Makes automated recommendations to help optimize TV campaigns

    Combined with predictive analytics from Neustars MarketShare product

    #eMwebinar

  • 2016 eMarketer Inc.

    BBC uses Thoughtlys Ellipse to identify themes in its worldwide content

    Analyzes unstructured program descriptions and viewing data

    Identifies overrepresented and underrepresented themes in programming

    Helps match programs with most appropriate audiences

    Image Credits: BBC Worldwide, Thoughtly

    #eMwebinar

  • 2016 eMarketer Inc.

    Lead Generation and Customer Acquisition

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    Some AI companies specialize in lead and demand generation

    Conversica uses AI to contact, qualify and nurture sales leads

    #eMwebinar

    Mariana uses AI-based social targeting to identify and convert sales prospects

    Image credit: Mariana Image credit: Conversica

  • 2016 eMarketer Inc.

    The Weather Company is rolling out interactive cognitive ads

    First advertising application for IBM Watson

    Will enable consumers to have voice- or text-based conversations with brands

    The Campbell Soup Co., GSK Consumer Healthcare and Unilever will be among the first to try them out

    Image Credits: IBM, The Weather Company

    #eMwebinar

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    Marketing Optimization

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    AI is particularly adept at optimizing and measuring marketing campaigns

    #eMwebinar

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    Rocket Fuel uses moment scoring to buy and optimize programmatic advertising Platform learns from

    customer interaction to optimize media spend

    Assigns scores to each moment based on the goal

    Moments are determined by demographics, behaviors and/or contexts

    Image Credits: Rocket Fuel

    #eMwebinar

  • 2016 eMarketer Inc.

    Harley-Davidson NYC is using Adgorithms Albert to build lookalike models

    Currently, we attribute 40% of Harley-Davidson New York motorcycle sales to Albert. Albert not only determines when and where we should display content, but also provides feedback on how that content is performing.

    Asaf Jacobi, President, Harley-Davidson of New York City

    Image Credits: Harley Davidson of NYC, Adgorithms

    #eMwebinar

  • 2016 eMarketer Inc.

    Smarter Search Interfaces

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    Google uses RankBrain to help with every search

    Machine learning assists with vague and ambiguous queries

    AI is the third-highest signal (out of more than 200) contributing to a search query result

    Will affect how content is created going forward

    Source: Google; Image Credit: Pixabay

    #eMwebinar

  • 2016 eMarketer Inc.

    LHW works with WayBlazer to improve the hotel research and booking process First Watson application

    in travel industry

    Can highlight unique features of hotels for specific customers

    Trip Discovery tool enables searches by concepts (beaches, family, etc.) and pulls up personalized images

    Image Credit: WayBlazer

    #eMwebinar

  • 2016 eMarketer Inc.

    Recommender Systems

  • 2016 eMarketer Inc.

    Recommender systems are getting better

    Pandora uses content-based filtering based on user preferences to suggest songs similar to ones liked

    Amazon uses collaborative filtering to customize users searching and browsing experiences based on what similar others have liked

    #eMwebinar

  • 2016 eMarketer Inc.

    Stitch Fix has used recommendation algorithms since 2012

    Augments human stylists with machine learning

    Uses hundreds of algorithms to match clothing and accessories to tastes and budgets

    AI most salient aspect of company

    Image Credit: Stitch Fix

    #eMwebinar

  • 2016 eMarketer Inc.

    Bots and Virtual Assistants

  • 2016 eMarketer Inc.

    Swedbank uses Nina to communicate with customers and free up reps to sell

    Uses natural language processing technology from Nuance Communications

    Answers routine questions from customers and frees up service reps to do more selling

    Handles almost 40,000 conversations a month

    Image Credit: Swedbank

    #eMwebinar

  • 2016 eMarketer Inc.

    1-800-Flowers and HealthTap use Facebooks Messenger bot

    #eMwebinar

    Finds answers to previously posted questions or connects users with doctors

    Takes orders or connectscustomers with human reps

  • 2016 eMarketer Inc.

    And of course there are physical robots!

    Image credits: (c) 2016 Hilton Worldwide, SoftBank

    #eMwebinar

    Hiltons Connie robot concierge answers guests questions about local attractions and services

    SoftBanks Pepper robot can read human emotions and change its behavior accordingly

  • 2016 eMarketer Inc.

    Content Creation

  • 2016 eMarketer Inc.

    About 5% of US businesses using AI are doing automated reporting or communications

    Data Source: Narrative Science, May 2015

    #eMwebinar

  • 2016 eMarketer Inc.

    Wordsmith generates more than 1.5 billion pieces of content per year for 42 industries

    [We] generated more content than any company in the world last year everything from AdWords reporting to ecommerce product descriptions, real estate listings and everything in between.

    Robbie Allen, Founder and CEO, Automated Insights

    Image Credits: Automated Insights, Yahoo

    #eMwebinar

  • 2016 eMarketer Inc.

    Brand Building

  • 2016 eMarketer Inc.

    Kia worked with Influential and Watson to amplify its campaign for Super Bowl 50

    Image Credit: Kia Motors America

    Analyzed Facebook, Twitter and Instagram posts to pick top 100 social media influencers based on personality traits

    Sent colorful socks to influencers and asked them to post with hashtag #AddPizzazz

    #eMwebinar

  • 2016 eMarketer Inc.#eMwebinar

    TD Ameritrade worked with Havas Cognitive and IBM Watson on Most Confident Fans Campaign

    It allowed us to test AI with minimal risk and delivered learnings that are being applied to benefit other areas of the business.

    Dedra DeLilli, Director, Social Media and Corporate Sponsorships, TD Ameritrade

    Image Credit: TD Ameritrade

  • 2016 eMarketer Inc.

    AI for marketing continues to evolve

    Image Credit: Fonytas/Wikimedia Commons

  • 2016 eMarketer Inc.

    Experimentation and patience are key to success

    The most important thing is to allow freedom to experiment, because nobody within organizations really understands very well how an AI should work or what to expect. And theres no clear format that will fit all the different situations.

    Alberto Rey Villaverde, Head of Data Science, easyJet

    Be patient and understand that AI takes time to learn the marketplace. AI is an opportunity for growth, and if you have at least the content or something right, data will get you there.

    Asaf Jacobi, President, Harley-Davidson of New York City

  • 2016 eMarketer Inc.

    And experts have other advice, too

    Have a plan: Define an end goal for what you want to accomplish or a business problem you want to solve.

    Be flexible and open to discovering new things along the way; be as nimble and agile as possible.

    Dont jump into anything too overwhelming all at once.

    Do small pilots to test the solution with limited risk.

    Test and learn in stages; work the kinks out before launching at full scale.

    Be honest about success and failure, and learn from both.

    #eMwebinar

  • 2016 eMarketer Inc.

    Where Does This Leave Marketers?

  • 2016 eMarketer Inc.

    A sizable number of workers are suspicious about AI and worry about losing their jobs because of the technology

    #eMwebinar

  • 2016 eMarketer Inc.

    Their fears are not without merit

    #eMwebinar

    Image Credit: Pixabay

    Forrester Research predicts robots and other AI technologies will replace 16% of the US jobs currently done by humans by 2025

    ?

  • 2016 eMarketer Inc.

    But it may not be as dire as they think

    #eMwebinar

    Image Credit: Pixabay

    The same study found that AI-related technologies would create 8.9 million new US jobs in the same timeframe

  • 2016 eMarketer Inc.

    AI has potential to benefit human workers in important ways

    [AI lets] the machine do things it can do very well, but then allows the human to bridge that gap. Its the human understanding what the machine is trying to do and then saying Im going to help nudge you so you can do a better job.

    Mahesh Tyagarajan, Chief Product Officer, RichRelevance

    Were liberating the marketers back to the place where they can drive the marketing with creativity, with ideas, and not just by changing bids and Google AdWords or scheduling email campaigns. These are not jobs for humans. Theres too much work to be done.

    Or Shani, Founder and CEO, Adgorithms

  • 2016 eMarketer Inc.

    Key takeaways

    After years of false starts, conditions are finally right for mainstream AI adoption. Forecasts vary widely, but all agree that the market is growing.

    AIs use in marketing is still in early stages, but nearly all industries are experimenting.

    Marketing intelligence, campaign optimization, content creation, customer experience and brand building are just a few applications of AI in marketing.

    The jury is still out on the long-term effects AI will have on marketing jobs, but many experts believe it will free up humans to do more high-value work.

  • 2016 eMarketer Inc.

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  • 2016 eMarketer Inc.

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    Victoria Petrock

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    Slide Number 1Slide Number 2Hollywood has done some dramatic portrayalsAI means different things to different peopleThere is a lot of confusing terminology!Some terms represent specific technologies, others are used interchangeablyAI comprises several core technologies, but is often known by different namesAI has had a long and difficult historySome AI isnt always called AIAnd many businesspeople are using AI without even knowing itThere is more awareness of newer technologies, though many are AI-basedSo what are we really talking about?AI is already a part of everyday lifeGlobal estimates for the AI market are disparate, reflecting the markets relative immaturityWhy now? Several factors are driving adoptionTech giants are among the biggest AI investorsSince 2011, nearly $2.4 billion has been invested globally in AI startups, over 397 dealsBusinesses across industries are taking different routes to developing their AI capabilitiesSlide Number 18The many faces of AI for marketingSlide Number 20Marketing intelligence is a top use for AITurner Broadcasting uses IBM Watson technology to uncover insights for advertisersBBC uses Thoughtlys Ellipse to identify themes in its worldwide contentSlide Number 24Some AI companies specialize in lead and demand generationThe Weather Company is rolling out interactive cognitive adsSlide Number 27AI is particularly adept at optimizing and measuring marketing campaignsRocket Fuel uses moment scoring to buy and optimize programmatic advertisingSlide Number 30Slide Number 31Google uses RankBrain to help with every searchLHW works with WayBlazer to improve the hotel research and booking processSlide Number 34Recommender systems are getting betterStitch Fix has used recommendation algorithms since 2012Slide Number 37Swedbank uses Nina to communicate with customers and free up reps to sell1-800-Flowers and HealthTap use Facebooks Messenger botAnd of course there are physical robots!Slide Number 41About 5% of US businesses using AI are doing automated reporting or communicationsWordsmith generates more than 1.5 billion pieces of content per year for 42 industriesSlide Number 44Kia worked with Influential and Watson to amplify its campaign for Super Bowl 50TD Ameritrade worked with Havas Cognitive and IBM Watson on Most Confident Fans CampaignAI for marketing continues to evolveExperimentation and patience are key to successAnd experts have other advice, tooSlide Number 50A sizable number of workers are suspicious about AI and worry about losing their jobs because of the technologyTheir fears are not without meritBut it may not be as dire as they thinkAI has potential to benefit human workers in important waysKey takeawaysSlide Number 56Slide Number 57Slide Number 58Slide Number 59Slide Number 60Slide Number 61