November 11, 2016 | Written by: David Kulczar
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Brands are spending more on native advertising than ever before — a lot more — to create targeted, minimally invasive online advertising experiences for consumers.
Business Insider Intelligence reports that native advertising, which assumes the look and feel of content that surrounds it, is the fastest-growing digital advertising category. The same report also projects that spending on native advertising will grow to $21 billion in 2018, up from $4.7 billion in 2013.
The real game-changer for brands that want to make a meaningful connection with audiences in digital channels will be the future marriage of artificial intelligence and native advertising in video content. In this future — likely only two to three years away — dynamic and highly personalized advertising takes on an entirely new meaning.
Advertising’s giant leap toward science
IBM Watson’s cognitive capabilities, once incorporated into advertisers’ video platforms, will enable advertisers to personalize marketing messages across channels, even within the video stream. The key is the ability to accumulate data about a specific viewer’s preferences and integrate that data from external sources, such as social media and advertisers’ other marketing tools.
If Watson knows a consumer recently bought a refrigerator, for instance, then it wouldn’t show that consumer advertising for refrigerators. Instead, Watson might serve up an ad for a product to put in the new fridge, such as soda. And because Watson could determine — based on purchase history — loyalty to a certain soda brand, so the consumer won’t see any rivals’ ads. Watson will be able to dynamically swap in a product they love — such as Coke for Pepsi — into the video the consumer is watching to create a powerful, personalized brand experience.
For brands, the value of such a scenario is clear: they can be seamlessly front-and-center in a consumer’s entertainment experience, facilitating a positive and lasting association between brand and content. Media and entertainment companies will benefit, too, because consumers will feel more personally connected to the video content they create.
360-degree user profiles
The ability to deliver highly-targeted online video advertising is here. Brands can already use Watson analytics tools and intelligence to enable this for any business and campaign, creating direct advertising that will resonate with customers. Watson intelligence can also be integrated with other digital marketing tools, such as email or text, to deliver personalized advertising and marketing messages.
Many brands are already experimenting with Watson’s cognitive capabilities — facial recognition, audio recognition, tone analytics, personality insights and more — to better understand the needs and perceptions of consumers. Chevrolet recently tapped Watson for a “global positivity system” campaign to analyze people’s social media feeds, for example. The North Face is among a growing list of retailers using Watson AI capabilities to make product recommendations. Video providers are now exploring ways to use Watson’s intelligence to deliver more relevant content to viewers.
Through these efforts, brands are starting to develop 360-degree profiles of users that will help them better understand what their customers say, how they feel and how they interact with the company and its products. These comprehensive profiles are essential to making the dynamic and highly personalized advertising of the future a reality in all digital channels, including video.
Learn more about IBM Cloud Video.