The Disruption of Advertising
Here’s a thought for you. How is your advertising going to change when Artificial Intelligence is making the buying decisions for your customers?
If that statement has made your head spin then you’re not alone. Let me share with you how the future of advertising is going to look so you can start to think about how it will affect you and your business.
This year alone, the advertising industry is projected to surpass £425 billion. Its quite difficult put that figure into context but when I tell you that Google and Facebook account for 25% that figure, its easy to see how powerful digital marketing has become as the preferred choice of Advertising in todays world. In fact Google’s valuation is upwards of £550 billion and Facebook is upwards of $£400 billion.
Not bad hey?
But here’s the thing… All that is about to change. And by change I mean disappear and collapse.
How is that possible?
Well think about it this way, nearly all advertising is directed at convincing people to buy something through logical and emotional reasons. If you can be convinced that you would be better off in some way by purchasing my product, there is a high chance that you will buy it.
But what would happen if people were no longer making the buying decision. What would happen is Artificial intelligence was making the buying decisions for humans.
Lets dive into the history of advertising and get some perspective.
Have you every watched the TV show Mad Men which fictionalises the classic 1960’s Madison Avenue advertising agency, where print, TV and radio ruled the roost and defined how companies pushed their products to the consuming public.
This is how it worked for many years and then along came the dot-com revolution and changed all that. But few at the time really understood the disruptive impact the technology would have on the world and advertising.
In a short 12 years, virtually the entire advertising industry has transformed into digitised social media marketing, fuelled by open-source, e-commerce platforms, mobile devices, and breakthroughs in digital payment infrastructure.
But this is going to change… In the future, your AI, Not You, will buy your things for you.
So how would the technology work?
Well, imagine having your own personal version of JARVIS from Iron Man. Imagine a future where you simply say to Jarvis:
“I need more soap” And JARVIS automatically orders it.
But does Jarvis go trawling through advertisements looking for the best one?
No…of course not
Is JARVIS susceptible to buying based on emotions and the belief that the purchase will raise their perceived self-image in some way?
No… of course not.
So how will JARVIS make its buying decision?
In a nanosecond, it will consider the molecular formulation of all options, the pricing, the published client satisfaction reports and finally, perhaps it will also evaluate your genome to understand exactly which soap is best for your skin and molecular cell structure.
Once it has done this it will go ahead and purchase.
Realistically, in the future, you will never even have to ask your AI will be monitoring your supply of regularly consumed items, from soap to butter and will be able to auto order them before you even know you need them.
But what if you were purchasing something new.
For example, lets say that your son or daughter wants and new bike for their birthday for under £100. Your AI will simply conduct its own research and choses the best one for you.
We are all heading towards a future where, regardless of the product or service category, your AI will be able to make the majority of your buying decisions and this Paradigm shift poses a tremendous threat to traditional advertisers and how businesses operate.
Right now we are experiencing the dematerialization and demonetisation of advertising thanks to the power of artificial intelligence and the prominence of social networks.
Maybe, this is the beginning of companies being dismissed by the consumer who will delegate most of their purchasing decisions to Artificial Intelligence.
A sobering thought, or perhaps one that needs some thinking about over the festive period.
Enjoy the Christmas break and for now…
Create your Future