How AI technology will change the way we treat advertising in 2020

By Ivan Guzenko, January 16th, 2020​

Breaking news: Advertising — as we’ve known it — has died to clear the path for the new generation’s experiential advertising. What is the essence of human experience? It is hard to tell, yet it is something that defines every one of us. We are wandering from screen to screen, place to place and career to career to capture this sense of the first experience.

When you look at commercials and banners that brands have been producing over the past decade, you will recognize a simple pattern. Advertising wanted us to be part of something complete and pre-defined — “We know how you should look, how you should feel about it and where you can buy it.” That’s what has shaped what critics call the mass consumer culture of the past decade.

There would be nothing wrong with this kind of experience if it weren’t so passive and forgettable. In the new marketing realms, customers will influence brands. Yes, technologies have already changed standard brand-customer interactions, and technologies will remain the main driver of customer experience 10 years from now. Still, brands will have to deepen their personalization options drastically to keep up with the competition — because the future has just begun.

AR and the future of product placement

More than 53% of viewers don’t watch any live TV ads; meanwhile, 70% of millennials claim to be among those who completely ignore all TV commercials.

What if there were no ad breaks on channels, and the advertising fit right into the TV show or movie? This idea was demonstrated in the 1927 movie Wings, which featured a Hershey’s chocolate bar in one scene.

Soon after, the world embraced the idea of product placement. It’s not uncommon to see a movie or TV show character use a well-known product or see that a company’s logo is featured somewhere on the screen. The trick doesn’t sell the product directly, but subconsciously, customers remember that moment, and when they get the need, they may buy the product featured. This industry has grown to the point that the James Bond film Skyfall boasted $45 million in product placement ads.

This product placement is now making its way into virtual reality and film. With these capabilities, advertisers could change product placements based on market specifics, perhaps touting Taco Bell for American audiences and a European chain for British viewers.

The largest Chinese video hosting platform, Tencent, has recently partnered with Mirriad AI to test this brand-new, real-time advertising placement mechanism. Banners, ads and corporate logos will appear in videos by request. If an actor drinks coffee, you’ll see a personalized ad on his cup, relevant only to you. This feature was demonstrated on Twitter. In the future, such technologies may become a gateway to ultimate branding opportunities, especially when it comes to addressing multi-screen millennials and most tech-savvy Generation Z members.

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