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Global IOT Guide For Cmo 2018
Global IOT Guide For Cmo 2018
Global IOT Guide For Cmo 2018
Rise of AI in marketing..................................................................................................................09
Section 3: AI in the Wild: How companies currently measure ROI from AI......................16
Section 5: Closing..........................................................................................................20
Sources............................................................................................................................................21
INTRODUCTION
“
Welcome to the gold rush phase of artificial intelligence marketing. Three years ago, only a
handful of companies possessed AI capabilities within their marketing stack. Three years
from now, AI will permeate every aspect of technology.
Right now, every vendor is talking about AI and the only thing bigger than the hype is the
skepticism.
86% of enterprises 86% of enterprises are investigating AI marketing, but only 12% have implemented.
are investigating
As the category matures, companies rightly are cautious about how to proceed. In these
early days, some will gain competitive advantages through early investments in AI, while
others will waste time and money on technologies that don’t work or can’t deliver the
AI marketing, but
promised impact.
Many companies will stay on the sidelines with a wait-and-see approach which puts them at
In a recent report, McKinsey found that companies with executive support for AI initiatives
”
implemented any
and infrastructure achieve up to 15% higher profit margin, with the majority of respondents
expecting margins to increase by 5% points in the next year.
into production.
Whether you’re already exploring AI marketing solutions or considering adoption in 2018,
this guide is designed to help the enterprise B2C marketer answer these essential questions:
+ What is AI?
+ Which AI technologies are ready for marketers to use now?
+ Which AI technologies can have the biggest impact on my business and my
customers?
+ How should I evaluate vendors and solutions?
It’s critical for brands to find the right answers to these questions to deliver better
customer experiences—before their competitors do.
WHAT IS AI?
Machines perform millions of complex tasks. What is the difference between
computation and cognition? Here’s a simple way to think about it: if a computer is solving
a problem or answering a question without being given an explicit set of instructions to
do so, then it’s probably AI.
Sarah Fay of Glasswing Ventures (an investment firm focused on AI) says: “Artificial
intelligence exists when software can make decisions outside of the data strategy and
rules set by humans, to form new solutions.”
Meanwhile, popular culture has created an impression that AI is about creating self-
aware, simulated humans, or even more powerful minds. While it’s an aspirational goal,
it doesn’t really represent most of what’s happening in the field. It may not even be the
most useful application of the technology. After all, we already have seven billion humans,
most of whom are adept at performing human-like tasks.
Although human simulations are provocative and mostly hypothetical, applied AI takes an
entirely different approach. While you wouldn’t consider it a fully synthetic being, applied
AI can do things humans don’t do naturally or quickly, like crunching large sets of data to
find patterns.
As marketers already know, we have more data than ever before avilable. In fact, 90% of
the data in the history of the world has been created in the last two years.
While humans have a biological limit on the amount of data we can process, AI answers
questions at a scale that’s beyond humanly possible. And, for marketers looking to take
action on the vast volume of customer data being captured, AI represents a whole new
era of customer engagement.
WHICH PREDICTIVE
TECHNOLOGIES
ANALYTICS
Predictive Analytics
Deep Learning
Examples:
“
+ Personal Assistants (Alexa, Cortana)
+ First level customer support
+ Google Translate
+ Chatbots
”
and hours of work by
when implemented as part of a platform where it drives actions automatically, Machine
learning can be considered a true intelligence, capable of making unsupervised
decisions and delivering powerful results.
Today, certain machine learning algorithms are a commodity, automatically built into
applications and scripting language libraries. The value of applying machine learning to
a specific application comes in choosing and shaping the data to create a useful model.
data scientists...
Most useful models answer a specific question at a specific point in time. To address a
new question, you must construct a new specific model.
Examples:
+ Naïve Bayes Classifier Algorithm: “Does this thing belong to a set or doesn’t it?”
Example application: Spam filtering: Is this message spam or is it not spam?
Examples (continued):
+ K Means Cluster Algorithm
Example application: Clustering of search results for multiple meanings of a word (car
keys versus piano keys versus cryptographic keys)
+ Support Vector Algorithm
Example application: Stock market forecasting
+ Decision Tree Algorithm:
Example application: Loan applicant qualification
+ Random Forest Algorithm
Example application: Regression tasks, like multivariate testing or patient disease
prediction
Predictive analytics
Using data mining, statistics and machine learning, predictive analytics aims to take historical
data to find trends and patterns in order to make predictions about the future.
Examples:
+ Lead scoring based on current customers,
+ Customer Lifetime Value (CLV)
+ Next-Best-Action (NBA) and
+ Product or related content recommendation engines.
Deep Learning
Another offshoot of machine learning, deep learning, uses an artificial neural network, which is a
computer system designed to function in some ways like a biological brain. Unsupervised, it can
build complicated learnings out of simple ones. This requires a tremendous amount of data and
processing power, but can yield surprising results. The ability for a machine to learn new things in
an unsupervised way has tremendous potential in areas such as cyber security, image recognition,
and fraud detection.
RISE OF AI IN
“
MARKETING
The rise of AI Across industries, increased investment in artificial intelligence signifies a sea change
in the application of cognitive technology within enterprises. No longer relegated to
reflects key MIT grads and sci-fi iconoclasts, AI is a proven force within consumer industries. What
was once a theory of market disruption is rapidly evolving into a cornerstone of market
changes in
survival.
The rise of AI reflects key changes in consumer behavior and data proliferation, as
customers fluidly interact with brands across channels, industries and devices—all
consumer behavior in real-time. As marketers increasingly seek to deliver personalized, highly contextual
experiences, they struggle to close the gap between the vortex of available data, new
”
and data
channels, and ever-evolving customer behavior.
This exact challenge of delivering 1:1 consumer experiences at scale has led to a boon in
AI-powered marketing technology solutions.
Marketing/sales 46%
Logistics 13%
Finance 12%
“
EVALUATING AIM
Marketers evaluating artificial intelligence marketing (AIM) solutions are
faced with a market so filled with sales hype and opaque, proprietary data
science, that wading through the waters is a tough proposition for even
the most savvy enterprise buyer.
The emerging AI
In the context of consumer behavior, AI is often used as a catch-all term
referring to technology that carries out tasks in conjunction with human
market is so chock-
efforts. For example, to generate automated decisions about everything
from product offerings to geo-location mapping. full of sales hype and
While the market is filled with rules-based or ad hoc, bolt-on solutions
masquerading as AI, true AI-powered martech, according to Forrester’s
Joe Stanhope, requires the following three critical capabilities:
opaque proprietary
+ Sense: Ingest Data and Context data science that
+ Think: Deploy Self-Learning Models
+ Act: Take Action
wading through the
SENSE: INGEST DATA AND CONTEXT.
According to Stanhope, much of AI’s advantage over traditional systems
waters is a tough
of insight and engagement is its built-in ability to consume data from a
propopsition for
”
broad range of customer, behavior, and content sources, at scale and
real-time speed.
By connecting to nearly any data feed with the ability to rapidly ingest
event-level data and enriched data sets, emerging AIM platforms act as
even the most savvy
a layer of intelligence between data environment(s) and systems of
engagement. enterprise buyer.
“The algorithms employed by AI systems are not static, they constantly test
themselves against marketing KPIs and dynamically retrain their models to
improve performance,” said Stanhope.
AIM solutions plug into a variety of engagement channels, ranging from site and
mobile experiences to email, SMS, and paid media.
DATA CUSTOMER
SENSE THINK ACT EXPERIENCE
SOURCES
LEARN
THE LIMITATIONS OF
“
RULES-BASED MARKETING
How AI solves for marketing automation scalability issues
In order to get the The challenge with traditional marketing automation or customer journey orchestration solutions
is that they are only as scalable or as intelligent as the marketers running them. While such
desired targeting solutions have shown the ability to automate marketing execution for specific “if/then” scenarios
and to address the challenges of orchestrating cross-channel interactions, these solutions fall
granularity, marketers
short when trying to apply them broadly across a large B2C enterprise for three key reasons:
In order to get the desired targeting granularity, marketers have to write and maintain dozens
1
2 All of the targeting rules have to be set in advance of ever having run the campaign, so
maintain dozens of
initial success relies solely on the experience and “best guess” capabilities of the marketer
configuring the campaign
if/then rules 3 Running A/B/N tests to optimize campaign efficacy remains a very manual, labor-intensive
process, often requiring a data scientist to get involved and spend weeks doing uplift or
”
propensity modeling, only to come up with a recommendation for improvement that, while
across hundreds of helpful, only positively impacts a small portion of a marketer’s total audience.
As a result of these challenges, marketers spend their time programming campaign rules,
campaigns. managing holdout groups and analyzing test results instead of being strategic or creative.
While it’s critical for today’s marketers to be “data-driven,” the pendulum has swung too far:
automated and programmatic campaigns have become so focused on improving short-term
opens and clicks that they overlook opportunities to optimize longer-term KPIs that directly impact
customer lifetime value metrics, such as average revenue per user and retention.
“
SHIFTING THE
As marketing BURDEN OF LABOR
automation technology It’s no secret. Today’s marketers are mired in the manual processes of building
role of the CMO has creativity that sparked interest for a career in the field. Likewise, other highly paid and
highly skilled analytics and data science team members are spending much of their
to technologist and and even data scientists are spending much of their time pulling reports versus the
advanced analysis, marketing campaign strategy, or deep-dive insights that they’re
statistician—leaving
paid to do.
Data scientists, according to New York Times estimates, spend from 50% to 80% of
their time mired in the mundane labor of collecting and preparing unruly digital data.
little, if any, time for the Likewise, a recent Forbes article put the number at 80% based on survey results.
It’s repetitive, uncreative work done by highly paid, highly skilled people.
creativity that sparked While the prevailing thinking around AI focuses on job replacement, early adopting
orgs are experiencing a massive scale-up in velocity on their teams, while neither
CUSTOMER EXPERIENCE
EBITDA: $2.5+ B
Region: North America
Within 10 months of launching their AIM platform, Sprint saw a dramatic increase in AIM RESULTS:
Unique marketing experiments
marketing velocity. Simultaneously running 75 cross-channel campaign strategies with
more than 255,550 unique marketing experiments, their AIM innovation initiative yielded 255K running simultaneously
an ROI of more than 6.5X in terms of incremental revenue.
Testable permutations based on
Meanwhile, Sprint’s customer experience transformed from messaging based 2^886 customer attributes
on static segmentation and pre-conceived marketing rules, to adaptive, highly
contextual experiences based on each customer’s constantly evolving 6.5X 6.5X ROI
behaviors and profile data.
OVERVIEW:
GAMING EVOLVES Leading gaming publisher
“
ecosystems. through multiple channels (push,
email, and interstitial).
Optimizing the use of customer data to drive meaningful 1:1 player interactions is key RESULTS
to increasing engagement in the gaming industry.
9,700 Unique marketing experiments
running simultaneously
Using the Amplero AIM platform, we’re running more than 9,700 unique marketing
experiments based on thousands of data points each day. This gives us the ability to
provide each player an optimal experience and map a dramatic rise in the 2^231 Testable permutations based on
customer attibutes
percentage of incremental revenue directly attributed to our marketing efforts.
— Chief Marketing Officer 4.3X Return on investment
Incremental revenue
7% lift of 7% and rising
How To Hire a Machine – 18
AI IN THE WILD
Contact info@amplero.com to
schedule an AIM consultation.
[12] Amplero welcomes former Pandora CEO Brian McAndrews and former Salesforce Marketing Cloud CEO
Scott McCorkle to Board