AI in Advertising: AI - The most pressing challenge to the future of our industry
AI is about to change everything we do and every way we do it. This goes well beyond the ad industry, but it certainly includes it. We cannot overestimate the scale of the impact these clever and complex algorithms are going to have on our work and our ability to earn revenue.
While AI is not the only challenge to the future of our industry, it is in many ways the most pressing.
And so, we are launching this monthly bulletin to highlight the latest advances in AI, thoughts on how agencies should engage with it, and notable work from our agencies who are at the forefront.
We believe, as an organisation, in the power of creativity and the ability of marketing to drive business results.
Our departure point is that we believe AI is an enabler. It lets us work faster, be more responsive and be more accurate. It optimises the workflow so that the adage of "time, money, quality – pick two" is no longer a constraint. It lets us create things that we could dream of before, or which were completely unaffordable.
And it provides a viable way to fight the burnout imposed by declining budgets and margins.
Industry collaboration required
But unlocking these benefits requires industry collaboration.
We need to inform ourselves as to what this technology does and how to integrate it into our businesses.
We need to collectively negotiate with procurement teams and pitch consultants so that we don't simply become victims of these new efficiencies.
And we need to retrain our people so that we are ready to embrace these new tools.
The scale of the challenge is beyond what any one agency can do. If we turn the AI topic into an arms race and contradict each other in the market the only winner will be those wanting to use it to further erode our value.
AI in Advertising
Winning with AI
Failing with AI
AI on AI
AinA – AI in Advertising
The role of the ACA is to uplift the entire industry so that the advertising and communications field remains a key partner to our clients’ businesses. We must stand up for the human touch.
And we must back ourselves and our people as vital parts of the marketing industry.
This would have sounded obvious three years ago. Today it requires deliberate action.It is possible – some would say inevitable – that AI will replace 80% of the jobs in our businesses.
But if early adoption of these tools has taught us anything it's that it won't do that tomorrow.
For the time being these systems require training and shepherding, and our clients need our help in transforming how they work in this new world.
AinA – AI in Advertising – is the ACA stepping up to offer insight, support and collectivism so that we can all emerge from this stronger than before.
Winning with AI
- Mars petfood brand Pedigree has created Adoptable, a generative AI platform that uses simple source images of the dogs available for adoption paired with an AI tool to create high-quality images which are then targeted in media at prospective dog owners.
What we love about this: This clever use of AI solves a real problem with fluctuating photo quality that would take humans hundreds of hours to solve. Plus, it's all about dogs so, ahhh cute.
Find out more here (via Matthew Arnold).
Night Market is a new embedded AI tool that measures retail media in real-time.
According to the press release this platform aims "to provide marketers a single platform to plan, measure, and optimise retail media investments".
The AI works in the background here to recommend retail media investment as well as to process the results data across a wide variety of retail outlets. (It's worth saying that many media planning platforms now use AI in this same way.)
What we love about it: This is a good example of AI working in the background to make sense of huge data sets so that marketers and planners can focus on the strategic goal.
Find out more: here (via Musa Kalenga).
Showmax (part of MultiChoice) collaborated with Broadbrand, Birthmark and Newsroom AI to promote Showmax. The team used AI to automate ad creation and to test advertising creative.
According to Showmax, the success was "AI's remarkable ability to slash production time by a staggering 70%.
This reduction empowered creative teams to redirect their efforts towards higher-value activities, such as refining the narrative and exploring innovative ideas.
The use of AI to generate ads from pre-approved creative and copy significantly streamlined the quality assurance process, maintaining high standards while reducing the resources typically required".
What we love about it:This is a real-world example of how AI is changing the business and workflow of advertising, all with a view to achieving better results for marketers without destroying creativity. Bravo MultiChoice.
Failing with AI
ToysRUs recently debuted an ad created entirely using OpenAI's Sora video generation platform.
While some have praised the courage to use a nascent technology this boldly others, like X user Todd Morey, disagreed. Morey said, "As someone who's followed & worked in advertising for a long time, this is a crime scene. This is brand murder.”
What we don't like: This is a classic case of letting technology overwhelm the creative. As a tech case study it's impressive. As an ad it's just pretty horrible and creepy.
Google's Olympics ad to promote their Gemini AI has drawn criticism for suggesting that a young girl needs Gemini to help craft a letter to her sporting hero. This campaign has been called lots of names, but you be the judge.
What we don't like: AI is not a replacement for humanity and suggesting it can perform tasks that require emotion and authenticity perhaps isn't the best route to take.
A bit off-topic but this piece about using AI for investment banking gives a useful overview of the limits for turning to ChatGPT for investment advice.
What we don't like: Anyone using GPT for stock recommendations is probably not smart enough to be using it. Step away from the keyboard.
Find out more here.
AI on AI
The following piece is generated by a bespoke GPT setup by Antonio Petra at VML
Prompt: What should Agency CEOs be focusing on in terms of AI in the next couple of years?
The Strategic Imperative for agency CEOs: Persistence in AI adoption
As AI continues to reshape industries, agency CEOs must adopt a strategic, long-term perspective. Scott Galloway, a noted business thinker, emphasises that true market leaders are often those who persist in emerging trends, even after the initial hype fades. This was exemplified in the mobile-first era, where companies that invested in mobile strategies during uncertain times eventually dominated the market.
Today, AI is experiencing a similar trajectory. Initially, there is a surge of enthusiasm, followed by potential periods of disillusionment as challenges arise—be it technical difficulties, ethical concerns, or regulatory hurdles. However, it is during these periods that persistence can yield the greatest rewards.”
AI-driven customer engagement and operational efficiency
AI offers unparalleled opportunities for enhancing customer engagement through hyper-personalisation and seamless omnichannel integration. Agencies that continue to invest in AI-driven customer insights, even when enthusiasm cools, will build a competitive edge. Additionally, AI's ability to automate routine tasks and provide advanced data analytics can significantly boost operational efficiency, freeing teams to focus on strategic and creative work.
Navigating ethical and regulatory challenges
As AI adoption grows, ethical considerations such as bias, fairness, and transparency become critical. Agency CEOs must lead by establishing clear guidelines and practices to mitigate these risks. Staying ahead of evolving AI regulations and ensuring compliance with data privacy laws like GDPR and CCPA will also be essential.
Building a future-ready workforce
Investing in talent and skills development is crucial. By upskilling your team and attracting AI specialists, your agency can stay at the cutting edge. However, resistance to new technologies like AI is common, with employees often falling into different adoption categories, from eager innovators to hesitant laggards.
This resistance can slow down AI implementation and lead to underutilisation of its potential. To overcome these challenges, foster a culture of continuous learning and open communication.
Clearly communicate how AI will enhance roles, offer tailored training, and involve employees in the AI integration process to build confidence and reduce fears.
By doing so, your agency will be better equipped to thrive, even during periods of broader market hesitation.
The path forward: Strategic persistence
In my considered opinion, the most strategic course of action for your agency is to commit to a long-term AI strategy. By pushing through challenges and continuing to innovate, your agency will be well-positioned to lead when AI becomes a central pillar of the industry. This persistence will ensure that your agency is not just a participant in the AI revolution, but a pioneer.
About the ACA
We are the official industry body for advertising agencies and professionals in South Africa, counting most major agencies among our members.
Find out more about the ACA
*ACA Future Industry committee comprises Jarred Cinman, Vincent Maher, Musa Kalenga, Haydn Townsend, Matthew Arnold and Antonio Petra.
