What does Artificial Intelligence mean for human judgment? How do consumers learn through online reviews? When is retargeting more effective and less annoying?
These were just some of the questions addressed on the first day of the NYU conference on digital, mobile marketing and social media analytics (http://www.stern.nyu.edu/experience-stern/about/departments-centers-initiatives/academic-departments/marketing/events/conferences/big-data-conference-2017)
Here are my one-sentence take-aways for managers:
- As Artificial Intelligence becomes cheaper and better at predicting, other inputs into decision making become more valuable, such as judgment on the reward structure
- Display advertisers overestimate click-through but then learn to adjust: publisher sites would earn a lot less money if advertisers got it right the first time
- Company revenues are driven more by search than display ads, but profits (Tobin’s Q) more by display ads than by search ads, while offline ads come last in both.
- Retargeting is only effective when done after 12 hours and when it provides seller information (instead of just a discount): inform more and annoy less online!
- Surveys imply Fanta is closer to other soft drinks, but a machine learning analysis of consumer uploaded pictures shows they see it closer to Snapple and water brands.
- Matching one player with a stronger one is only a good idea if the player has medium skill: noobs get discouraged while skillful players get upset they are not acing the game
- Gender bias is subtle in algorithms: as women are typically worth more to advertisers, public service ads (e.g. on STEM opportunities) get outbid by commercial ones.
- Sunshine increases and hastens consumer purchase from mobile apps, but prevention focus messages (‘Do NOT miss the opportunity’) perform well in the rain
- Microsoft consumers (Windows 10, Xbox,…) search more post-purchase and look for different stuff than pre-purchase, so you should target them differently.
- One out of 7 celebrity tweets are due to competition with other celebrities
Which of these are news to you? Which jive and which do not agree with your experience? Do let us know in the comments!
Stay tuned for the second day insights on social media, Kickstarter and Facebook ad sponsoring!