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What Advertisers Need to Know

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What Advertisers Need to Know

With over nine million marketplace sellers across Amazon, it’s becoming increasingly difficult for brands to stand out—even as today’s consumers shop online more every day. And if you’re not actively engaging and re-engaging your potential customers, your competitors will be.

The good news? Advertising to the audiences available within the Amazon Demand-Side Platform (DSP) can help increase your brand awareness both on and off Amazon, reaching new and existing audiences. Through Amazon’s DSP, you can keep your brand messaging consistent with a full-funnel strategy. And its capabilities are only amplified when leveraging it in conjunction with Amazon Marketing Cloud.
 

In this article, we’ll cover:

 

 
Amazon DSP — also known as the Amazon Demand-Side Platform — enables advertisers to programmatically buy video, audio, and display ad placements, using available data to target consumers on and off of Amazon.

Advertisers are increasing investment in Amazon DSP, which allows brands to use Amazon’s incredible targeting capabilities in showing ads not only on Amazon owned-and-operated web properties, but also those that it does not control.

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Source: https://content-na1.emarketer.com/programmatic-advertiser-explainer

You can use Amazon DSP to reach audiences on:

  • Amazon website
  • Fire TV
  • IMDb
  • Freedive (IMDb Streaming)
  • Kindle
  • Apps
  • Published Partners
  • Twitch
  • Third Party Exchanges
  • Digital Signage Ads

Looking at recent data from Tinuiti’s Q3 2022 Amazon Ads Benchmark Report, investment in DSP was on the rise QoQ thanks in part to the video capabilities of DSP, and an overall investment increase to boost Prime Day sales.

Line chart showing Amazon DSP Spend and Impressions rising in 2022 while CPM decreases

Source: https://tinuiti.com/content/research/amazon-ads-benchmark-report-q3-2022/

The report found:

 

New & Notable Updates to Amazon DSP—Twitch Display Inventory

As with all things Amazon, they are continually working to improve and expand the options for the DSP. Although Twitch audiences have been available within the AMZ DSP for a while, Twitch display inventory is a more recent addition that just dropped in December 2022.

Screenshots of Amazon DSP ads on Twitch Stream and Twitch search results page

Source: https://advertising.amazon.com/resources/whats-new/twitch-display-inventory-amazon-dsp

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As noted in Amazon’s announcement, “advertisers can incorporate Twitch into their web display campaigns as non-guaranteed open auction inventory,” which includes Twitch’s Stream Display and Standard Display ad inventory.

  • Stream Display: These 728×90 ad creative units display below Twitch’s video player
  • Standard Display: These 728×90 and 300×250 ad units are served on Twitch browse pages

Twitch content and usage is only continuing to grow, meaning there is a large and expanding audience available to target. Audiences can be built within the AMZ DSP from Twitch streaming content to engage with users based on channels, genres, and games with a 30-day lookback window.

As Stuart Dooley, Sr. Manager, Marketplaces at Tinuiti shared in his top takeaways from Amazon unBoxed 2022:

“Amazon continues to grow the Twitch audience—and the reach that Twitch has—making it an important avenue to consider adding to your marketing mix, helping ensure the right advertisers are being served to the right audience at the right time and location.”

 

Amazon DSP vs. Sponsored Display

Most brands using Amazon DSP are also running full-funnel Sponsored Ads campaigns, to include Sponsored Products, Sponsored Brands, and Sponsored Display. While DSP and Sponsored Display share some similarities, they function differently, and can help in achieving complementary goals.

Key similarities and differences include:

  • Placements: Both DSP and Sponsored Display ads can reach prospective customers through display advertising, on and off Amazon. Where DSP gains an edge is in its more advanced custom creative capabilities and available placements. In addition to display ads, video and audio placements are also part of DSP, helping you reach the widest potential audience
  •  

  • Pricing Model: Amazon DSP ad costs are based on a CPM model (cost per 1K impressions). While CPM is an option for Sponsored Display ads, these are typically run on a cost-per-click (CPC) model. This makes sense considering many DSP ads (ie. audio ads) aren’t clickable, but serve an important role in building awareness
  •  

  • Availability: Amazon DSP can be used by brands selling on Amazon, as well as brands who aren’t selling on Amazon, but who want to leverage Amazon insights in their targeting. Sponsored Display ads are only available to Amazon sellers and vendors. That said, SD presents an incredible opportunity for advertisers to access Amazon’s valuable display inventory without the higher requirements of DSP
  •  

  • Where Ads Direct Shoppers: Sponsored Display ads can only be set to direct to pages on Amazon.com. DSP ads, however, can lead prospective customers to pages on Amazon.com, or their own brand website

 

 
Amazon DSP is available as a managed or self-service option, with ad costs varying by ad format and placement. As noted by Amazon, the managed DSP option, which is handled by Amazon’s internal team, “typically requires a minimum spend of $50,000 USD.” With this minimum in mind, many advertisers choose the self-service DSP route.
 

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Self-Service DSP Requires an Agency Partner

It’s important to note that unlike Sponsored Products, Sponsored Brands, or Sponsored Display ads, leveraging DSP requires that you work with an Amazon Ads Agency Partner like Tinuiti. This makes them less fully self-service than other ad types that brands can opt to run on their own or through an agency, but doesn’t require the hefty minimum spend of having Amazon manage your DSP campaigns.

 

 

Image showing one of the potential placement locations for a DSP display ad on Amazon's website

Source: Amazon.com

Amazon DSP is available to brands who sell products on Amazon (vendors and third-party sellers), as well as those who don’t sell on the platform. It is currently available in more than a dozen countries, including the US, Canada, and Mexico in North America.

Amazon DSP is best for brands who want to:

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  • Programmatically buy display, audio & video ads at scale
  •  

  • Expand their customer reach beyond by utilizing Amazon audiences and placements
  •  

  • Leverage Amazon Audiences, but cannot sell their product through Amazon

 

 
It’s becoming increasingly difficult to have any marketing conversation without a primary topic being first-party data. By now, we all understand the importance and value of privacy-compliant 1P data, and are always looking for new ways to both collect and leverage it. And as for which retailers have the largest quality and sheer quantity of first-party data to work with, Amazon is very high on the list.

‘Amazon Shoppers’ is probably as close to ‘everyone’ as it gets in advertising.

DSP enables advertisers to reliably reach their desired audience among Amazon shoppers—both on Amazon, and off—thanks to Amazon’s wealth of shopper data and targeting features. Advertisers can target Amazon shoppers based on key demographics, interests, shopping behaviors, specific geos, and more. Who is included in ‘Amazon’s shoppers?’ Just about everyone reading this.

According to stats shared by Amazon, they have 300+ million active customer accounts, and “Amazon Advertising reaches 96% of all U.S. adults ages 25-54 every month.”
 

 
Amazon offers audience insights to help advertisers understand their audience based on:

  • Demographic trends
  • Temporal trends
  • Brand engagement

With this information, you can add demographic targeting into your upper-funnel strategies, such as targeting a specific age group. This can be especially helpful if you have a limited budget and need to limit your audience reach.
 

Prospecting with DSP audiences

There are two different ways to use audiences on DSP:

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1. Advertiser Audience (aka using your company’s first-party data)

This is a great choice if you already have a lot of data on your customers and prospects. By using pixels, DMP audience transfers, and/or CRM data, you can reach Amazon customers who have already engaged with your brand.

For example, you can:

  1. Upload a list of customer or prospect emails into DSP and run a targeting strategy off of that audience
  2. If you place a pixel on your site for retargeting, you can also create a lookalike audience based off of that pixel

2. Amazon Audiences

Amazon’s Audience Solutions let you target audiences based on demographic information—including age, income, or education level—as well as their interests and behaviors.

Image titled “Behavioral Targeting: Unique Amazon Audiences” containing Lifecycle segments (upper funnel), in-market segments (middle funnel), and Retargeting (bottom funnel)

Source: https://tinuiti.com/content/webinars/a-performance-based-approach-to-amazon-dsp/

For behavioral targeting campaigns, Amazon Audiences segments include:

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  1. Lifestyle segments that reflect broad interest groups (such as homeowners)
  2.  

  3. In-market segments based on what customers have recently searched for or browsed
  4.  

  5. Retargeting segments made up of Amazon shoppers who have viewed but not purchased your products

Conquesting campaigns can even be leveraged by targeting customers looking at competitor ASINs/products.

example of conquesting AMZ Display Evenflo ad on a Graco PDP

Source: Amazon.com

Amazon Audiences is one of the biggest benefits of using Amazon’s DSP. Using audience insights helps you understand how and when your audience shops, which in turn makes it easier for you to build out retargeting campaigns based on your audience’s data and behavior.

Amazon DSP enables brands to target a wider range of potential customers referred to as “in-market” or “lifestyle” shoppers.

In-market Audiences are leveraged to reach customers who are most likely to take action or make a purchase based on their search, browse, or purchase behavior in the past 30 days.

Examples might include shoppers who recently perused or purchased:

  • “Nutrition Bars”
  • “Baby Apparel”
  • “Headphones”

Lifestyle audiences reflect broader interest groups. Advertisers can reach lifestyle audiences to plant their brand in the minds of shoppers who have regularly shopped for related products in the past year.

Examples might include targeting:

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  • “Foodies”
  • “Harry Potter Fans”
  • “Pet Lovers”

 

Custom Audience Building

The ability to build custom audiences in DSP is another major distinguishing factor from Sponsored Display. Advertisers can target an array of unique audiences based on available shopper data. This can include audiences based on how shoppers have interacted with your brand, or their behavior in regard to products related to yours on Amazon.

DSP also gives advertisers the opportunity to reach audiences based on very specific behavior. For example, in October 2021, Amazon DSP launched the ability to Create custom-built audiences using Store interactions. And in November 2021, Amazon Ads launched their first “physical store signal” in the DSP, enabling US advertisers to Create custom-built audiences using Whole Foods Market physical store purchases. Think of how these audiences might benefit your brand, and what ASINs you’d want to include in campaigns for each.

Creating custom audiences gives advertisers a chance to really dive into the data, and strategically experiment with new audiences based on their findings. This is where experience and expertise come into play, helping to spot opportunities and unique angles to approach them.
 

Retargeting

Brands can use DSP to re-engage shoppers that have high purchase intent for your products in a few ways, retargeting shoppers who:

  • Pixel-based – Visit your brand’s site
  • Product view remarketing – Viewed a product detail page of selected ASINs
  • Product purchase remarketing – Purchased selected product(s)
  • Similar product remarketing – Browse products similar to yours
  • Subscribe and Save – Targeting consumers who have active subscribe and save for selected product(s)

 

 
Through Amazon DSP, you can programmatically reach your audiences across both Amazon’s own sites and apps (like IMDb) and leading publishers’ sites. Here’s how Amazon ads fit throughout the funnel:

Marketing funnel illustration with Amazon DSP providing awareness, consideration, purchase intent, and purchase experience

Ad Console campaigns mostly cover the mid- to low portion of the funnel. These campaigns work towards driving purchases, while DSP works throughout the whole advertising funnel from awareness to purchase. Having the capability to retarget customers through DSP keeps your brand top-of-mind for prospects and previous customers.

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In this post, we’ll focus specifically on the mid-and upper-funnel advertising strategy: the consideration and awareness buckets. The targeting strategies we’ll cover work for businesses that sell both on and off Amazon. These upper-funnel campaigns will ultimately help you fill your retargeting campaigns and grow the number of people you target at the bottom of the funnel.

“When advertisers see a retargeting ROAS that has plateaued, we often recommend considering a full-funnel Amazon strategy. This allows for increased scale, reaching consumers who are interested or “in-market” but not necessarily dedicated to a specific brand. Those consumers are then led down the funnel to help fuel the audience pool for future retargeting efforts.” 

Portrait of Natalie SamsonNatalie Samson, Marketplaces DSP Senior Manager at Tinuiti
 

 
Now that you know how to target the right audience, it’s time to create some ads. Here are four main ad types available to your brand through DSP.
 

1. Responsive eCommerce Creative (REC)

Responsive eCommerce Creative first became available to all advertisers on Amazon DSP in January 2021, and has grown to be a very popular ad type. When creating an REC, advertisers can place up to 20 different ASINs into the build, and choose up to 10 different supported ad sizes that will auto-populate based on line item goal type and ad format.

These ads allow for easy ad creation and machine learning optimization. If a product goes out-of-stock, RECs will automatically pause that ASIN in the list and auto-populate based on the other listed ASINs.

Product listing for illy Coffee on Amazon.com

Source: Amazon.com

Note: Dynamic eCommerce Ads (DEA) are no longer supported and have been replaced by Responsive eCommerce Creative (REC).
 

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2. Static ads

R+Co static ad on Amazon

Source: Amazon.com

Static ads don’t have any dynamic elements, so they need specific calls-to-action, like “Shop Now.” We recommend using these ads as mid- and upper-funnel tactics to draw shoppers in and help grow brand awareness. These ads lead back to an Amazon storefront, product detail page, or custom landing page.
 

3. Video ads through DSP

Video is a great way to tell your brand story and create an emotional connection with your audience. Video ads through DSP can run within video content (in-stream video) or as part of a display ad (out-stream video). You can link your video ads through DSP to a product detail page on Amazon or to your own site. Creating video ads through DSP also means you can leverage Amazon’s audiences to target the right shoppers.
 

4. Over-the-top video ads (OTT)

Amazon’s OTT ads also run on the DSP platform. These non-skippable, full-screen ads are a great way to reach millions of people on connected TV sources (like the Amazon Fire TV Stick). You can target specific Amazon audiences, but keep in mind that these ads are not clickable.
 

 
illustration of upper funnel marketing labeled awareness and consideration

Before you dive into the upper-funnel strategies, make sure that your product is retail-ready, ensuring your:

We also recommend running Ad Console campaigns for branded searches at the same time. If your DSP efforts work, and you increase your brand awareness, you will also see an increase in branded searches.

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Not every product has a budget for a full-funnel approach and not every product makes sense to run year-round, full-funnel strategy. That said, you need to make sure you have an always-on approach to retargeting, then layer in mid- to upper-funnel efforts as needed.
 

 

Bar chart titled “Areas Where US Agencies/Media Owners Expect to Increase Expenditure, May 2022” with measurement and DSP services in the top three

Source: https://chart-na1.emarketer.com/257725/areas-where-us-agenciesmedia-owners-expect-increase-expenditure-may-2022-of-respondents

Amazon Marketing Cloud—Amazon’s data clean room solution—provides advertisers with a wealth of data they can leverage in building their strategies and scaling their campaigns. AMC gives you everything you need to see success—once you take the time to learn how to really use it to help in uncovering the insights that would otherwise be unavailable.

As we all know, Amazon offers full-funnel advertising options, but before Amazon Marketing Cloud was launched, it wasn’t easy to understand (and act upon) the ways in which all those options were working together, and influencing each other’s performance. AMC helps advertisers analyze the full picture of their Amazon performance across all marketing avenues.

As a privacy-safe repository for all available data—including your own uploaded data (CRM data, in-store sales, etc.), DSP data, and data from your Sponsored Products, Sponsored Brands, and/or Sponsored Display campaigns—AMC provides that much-needed holistic understanding of what is working, what isn’t, and what the next steps should be.

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AMC offers:

  • Performance Insights
  • Journey Analysis
  • Audience Insights
  • Media Analysis

As Maddie Barton, Director of Marketplace Programmatic at Tinuiti, shared in a recent interview for Amazon’s blog

“You are better positioned to tap into the full potential of AMC if you use sponsored ads as well as Amazon DSP. You can use the signals in AMC to bridge those ad types and develop an insight-backed narrative to shed light on connections between the two.”

How Amazon Marketing Cloud Works infographic

Aly Fields and Mike Cooper also shed a bright light on the topic in a recent webinar—A Performance-Based Approach to Amazon DSP.

Aly Fields and Mike Cooper lead Amazon DSP webinar

Some key takeaways from their information-packed webinar include:

  • AMC is the answer to, “How is everything working together?” The measurement issue has historically been that Amazon Seller Central and Amazon DSP are separate platforms, and data is not shared between them. This meant that when running both Search and DSP ads, a clear understanding into how the two were working together wasn’t available pre-AMC
  •  

  • AMC helps determine if things are working as intended so you can adjust when and where necessary. AMC brings a richer understanding of your media mix performance, helping you answer those simple questions that matter most, like whether your awareness campaigns are actually resulting in consideration further down the funnel
  •  

  • AMC helps answer previously unanswerable questions…with the right query as its prompt. When seeking an answer from AMC, you must first start with a digestible query. AMC offers a pre-loaded query library to choose from, but custom queries can also be created. For examples of custom queries we’ve created for our clients—and the results those queries helped us achieve—see our comprehensive guide to the Amazon Marketing Cloud. You’ll also find more information there about the custom AMC reports Tinuiti teams are able to create for clients, including our Media Mix Analysis, Tentpole Event Analysis, and New-to-Brand reports

 
Want more information on AMC? Check out the below:

Amazon Marketing Cloud 101: How to Revolutionize Your Marketplace Capabilities
Demystifying Amazon Marketing Cloud’s Attribution Model
Behind the Numbers podcast episode with Nirish Parsad and Aly Fields
 

 
When R+Co first launched on Amazon their products quickly flew off the shelves. They were operationally healthy and had amazing reviews, but things began to slow down a bit over time.

The Tinuiti and R+Co teams had to go back to the drawing board and ask themselves:

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  • What is it that we’re not doing?
  • What should we be folding into our advertising strategy to continue to see this growth on Amazon?

The answers to those questions led to investing more heavily in R+Co’s branding to take full advantage of the real estate on Amazon where they could showcase their creativity and brand story. With Amazon Stores being microsites that allow brands to create a customized experience within Amazon, the next steps were clear, and the Tinuiti team began designing and building out R+Co’s Amazon Store.

amazon dsp

R+Co already had high brand awareness from selling across other platforms, but wanted to make sure they showed up for relevant searches within Amazon — whether a shopper included their brand name or not.

With that buttoned-up, R+Co worked with Tinuiti to layer in a more full-funnel Amazon DSP strategy. Once fully implemented, R+Co saw the following performance increases:

  • Detail page views by 85%
  • Units sold by 70%
  • Total sales by 48%
  • Return on ad spend (ROAS) by 36%

 

 

Tinuiti and Poppi Amazon case study

Source: https://tinuiti.com/case-study/retail-media-case-study-poppi/

When Poppi started working with Tinuiti, they already had one of the most essential components for success working in their favor: a high-quality, enjoyable product that fills a very real gap in the CPG space. Understanding consumers’ love of the sparkling, sugary sweetness that keeps them sipping traditional soda brands, Poppi set out to create a prebiotic-packed alternative that satisfied palates without the empty calories or chemicals.

Among Poppi’s priorities was better understanding the impact their Amazon media was having across the full marketing landscape—particularly, the in-store impact at Whole Foods stores.

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Here’s how we approached their strategy, and answering that question:

  • Build Awareness: Capitalizing on the “new year, new you” trend popular amongst advertisers at year-end, Tinuiti leveraged Streaming TV and video assets to introduce new customers to the Poppi brand at a time when many folks are preparing to make health-focused updates to their diet. Awareness strategies continued into the new year, nurtured by repeated exposure with Amazon DSP and Sponsored Products ads, helping increase brand familiarity and trust
  •  

  • Track Key Metrics: AMC enabled Tinuiti to track certain metrics, including in-store sales, that were previously untrackable. With these insights available, we could see how many Whole Foods purchases were supported through Amazon media exposure
  •  

  • Building Loyalty from the First Sip – One Can at a Time: Remember that delicious product that Poppi offers? As it turns out, once people are aware of it and try it, they’re big fans! One month after being exposed to Poppi’s Amazon media campaign, Whole Foods customers converted over 1,100%

“Amazon’s Marketing Cloud (AMC) is providing new signals that help Poppi see a longer string of attribution across a complex multitouch media system. We love seeing a more complete picture of what ultimately drives customer acquisition and Tinuiti has been an incredible partner in not only understanding all AMC capabilities, but also how to put those insights into action.”

Graham Goeppert, VP of Digital Commerce & Media, Poppi

Poppi’s Amazon media campaign resulted in (January 2022 – July 2022):

  • 1,640% increase in new-to-brand customers
  • 4,730% increase in Whole Foods attributed purchases
  • 1,100% increase in Whole Foods customers converted after 1st month

 

Conclusion

Now you’re ready to start using Amazon DSP to fill your marketing funnel and improve your customer acquisition.

As a reminder, here’s your order of operations:

  1. Set goals for your DSP ads
  2. Identify your audiences
  3. Choose strategic placements
  4. Build out and execute your campaign
  5. Analyze and optimize
  6. Do it all again!

 
Interested in learning more about Amazon DSP? Contact us today for more information, and be sure to register for our 2-day 2023 Commerce Summit, with info-packed sessions on Wednesday, February 15, 2023 and Wednesday, February 22, 2023.
 

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Should Your Brand Shout Its AI and Marketing Plan to the World?

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Should Your Brand Shout Its AI and Marketing Plan to the World?

To use AI or not to use AI, that is the question.

Let’s hope things work out better for you than they did for Shakespeare’s mad Danish prince with daddy issues.

But let’s add a twist to that existential question.

CMI’s chief strategy officer, Robert Rose, shares what marketers should really contemplate. Watch the video or read on to discover what he says:

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Should you not use AI and be proud of not using it? Dove Beauty did that last week.

Should you use it but keep it a secret? Sports Illustrated did that last year.

Should you use AI and be vocal about using it? Agency giant Brandtech Group picked up the all-in vibe.

Should you not use it but tell everybody you are? The new term “AI washing” is hitting everywhere.

What’s the best option? Let’s explore.

Dove tells all it won’t use AI

Last week, Dove, the beauty brand celebrating 20 years of its Campaign for Real Beauty, pledged it would NEVER use AI in visual communication to portray real people.

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In the announcement, they said they will create “Real Beauty Prompt Guidelines” that people can use to create images representing all types of physical beauty through popular generative AI programs. The prompt they picked for the launch video? “The most beautiful woman in the world, according to Dove.”

I applaud them for the powerful ad. But I’m perplexed by Dove issuing a statement saying it won’t use AI for images of real beauty and then sharing a branded prompt for doing exactly that. Isn’t it like me saying, “Don’t think of a parrot eating pizza. Don’t think about a parrot eating pizza,” and you can’t help but think about a parrot eating pizza right now?

Brandtech Group says it’s all in on AI

Now, Brandtech Group, a conglomerate ad agency, is going the other way. It’s going all-in on AI and telling everybody.

This week, Ad Age featured a press release — oops, I mean an article (subscription required) — with the details of how Brandtech is leaning into the takeaway from OpenAI’s Sam Altman, who says 95% of marketing work today can be done by AI.

A Brandtech representative talked about how they pitch big brands with two people instead of 20. They boast about how proud they are that its lean 7,000 staffers compete with 100,000-person teams. (To be clear, showing up to a pitch with 20 people has never been a good thing, but I digress.)

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OK, that’s a differentiated approach. They’re all in. Ad Age certainly seemed to like it enough to promote it. Oops, I mean report about it.

False claims of using AI and not using AI

Offshoots of the all-in and never-will approaches also exist.

The term “AI washing” is de rigueur to describe companies claiming to use AI for something that really isn’t AI.  The US Securities and Exchange Commission just fined two companies for using misleading statements about their use of AI in their business model. I know one startup technology organization faced so much pressure from their board and investors to “do something with AI” that they put a simple chatbot on their website — a glorified search engine — while they figured out what they wanted to do.

Lastly and perhaps most interestingly, companies have and will use AI for much of what they create but remain quiet about it or desire to keep it a secret. A recent notable example is the deepfake ad of a woman in a car professing the need for people to use a particular body wipe to get rid of body odor. It was purported to be real, but sharp-eyed viewers suspected the fake and called out the company, which then admitted it. Or was that the brand’s intent all along — the AI-use outrage would bring more attention?

To yell or not to yell about your brand’s AI decision

Should a brand yell from a mountaintop that they use AI to differentiate themselves a la Brandtech? Or should a brand yell they’re never going to use AI to differentiate themselves a la Dove? Or should a brand use it and not yell anything? (I think it’s clear that a brand should not use AI and lie and say it is. That’s the worst of all choices.)

I lean far into not-yelling-from-mountaintop camp.

When I see a CEO proudly exclaim that they laid off 90% of their support workforce because of AI, I’m not surprised a little later when the value of their service is reduced, and the business is failing.

I’m not surprised when I hear “AI made us do it” to rationalize the latest big tech company latest rounds of layoffs. Or when a big consulting firm announces it’s going all-in on using AI to replace its creative and strategic resources.

I see all those things as desperate attempts for short-term attention or a distraction from the real challenge. They may get responses like, “Of course, you had to lay all those people off; AI is so disruptive,” or “Amazing. You’re so out in front of the rest of the pack by leveraging AI to create efficiency, let me cover your story.” Perhaps they get this response, “Your company deserves a bump in stock price because you’re already using this fancy new technology.”

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But what happens if the AI doesn’t deliver as promoted? What happens the next time you need to lay off people? What happens the next time you need to prove your technologically forward-leaning?

Yelling out that you’re all in on a disruptive innovation, especially one the public doesn’t yet trust a lot is (at best) a business sugar high. That short-term burst of attention may or may not foul your long-term brand value.

Interestingly, the same scenarios can manifest when your brand proclaims loudly it is all out of AI, as Dove did. The sugar high may not last and now Dove has itself into a messaging box. One slip could cause distrust among its customers. And what if AI gets good at demonstrating diversity in beauty?

I tried Dove’s instructions and prompted ChatGPT for a picture of “the most beautiful woman in the world according to the Dove Real Beauty ad.”

It gave me this. Then this. And this. And finally, this.

She’s absolutely beautiful, but she doesn’t capture the many facets of diversity Dove has demonstrated in its Real Beauty campaigns. To be clear, Dove doesn’t have any control over generating the image. Maybe the prompt worked well for Dove, but it didn’t for me. Neither Dove nor you can know how the AI tool will behave.

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To use AI or not to use AI?

When brands grab a microphone to answer that question, they work from an existential fear about the disruption’s meaning. They do not exhibit the confidence in their actions to deal with it.

Let’s return to Hamlet’s soliloquy:

Thus conscience doth make cowards of us all;

And thus the native hue of resolution

Is sicklied o’er with the pale cast of thought,

And enterprises of great pith and moment

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With this regard their currents turn awry

And lose the name of action.

In other words, Hamlet says everybody is afraid to take real action because they fear the unknown outcome. You could act to mitigate or solve some challenges, but you don’t because you don’t trust yourself.

If I’m a brand marketer for any business (and I am), I’m going to take action on AI for my business. But until I see how I’m going to generate value with AI, I’m going to be circumspect about yelling or proselytizing how my business’ future is better.

Want more content marketing tips, insights, and examples? Subscribe to workday or weekly emails from CMI.

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Cover image by Joseph Kalinowski/Content Marketing Institute

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How to Use AI For a More Effective Social Media Strategy, According to Ross Simmonds

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How to Use AI For a More Effective Social Media Strategy, According to Ross Simmonds

Welcome to Creator Columns, where we bring expert HubSpot Creator voices to the Blogs that inspire and help you grow better.

It’s the age of AI, and our job as marketers is to keep up.

My team at Foundation Marketing recently conducted an AI Marketing study surveying hundreds of marketers, and more than 84% of all leaders, managers, SEO experts, and specialists confirmed that they used AI in the workplace.

AI in the workplace data graphic, Foundation Labs

If you can overlook the fear-inducing headlines, this technology is making social media marketers more efficient and effective than ever. Translation: AI is good news for social media marketers.

Download Now: The 2024 State of Social Media Trends [Free Report]

In fact, I predict that the marketers not using AI in their workplace will be using it before the end of this year, and that number will move closer and closer to 100%.

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Social media and AI are two of the most revolutionizing technologies of the last few decades. Social media has changed the way we live, and AI is changing the way we work.

So, I’m going to condense and share the data, research, tools, and strategies that the Foundation Marketing Team and I have been working on over the last year to help you better wield the collective power of AI and social media.

Let’s jump into it.

What’s the role of AI in social marketing strategy?

In a recent episode of my podcast, Create Like The Greats, we dove into some fascinating findings about the impact of AI on marketers and social media professionals. Take a listen here:

Let’s dive a bit deeper into the benefits of this technology:

Benefits of AI in Social Media Strategy

AI is to social media what a conductor is to an orchestra — it brings everything together with precision and purpose. The applications of AI in a social media strategy are vast, but the virtuosos are few who can wield its potential to its fullest.

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AI to Conduct Customer Research

Imagine you’re a modern-day Indiana Jones, not dodging boulders or battling snakes, but rather navigating the vast, wild terrain of consumer preferences, trends, and feedback.

This is where AI thrives.

Using social media data, from posts on X to comments and shares, AI can take this information and turn it into insights surrounding your business and industry. Let’s say for example you’re a business that has 2,000 customer reviews on Google, Yelp, or a software review site like Capterra.

Leveraging AI you can now have all 2,000 of these customer reviews analyzed and summarized into an insightful report in a matter of minutes. You simply need to download all of them into a doc and then upload them to your favorite Generative Pre-trained Transformer (GPT) to get the insights and data you need.

But that’s not all.

You can become a Prompt Engineer and write ChatGPT asking it to help you better understand your audience. For example, if you’re trying to come up with a persona for people who enjoy marathons but also love kombucha you could write a prompt like this to ChatGPT:

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ChatGPT prompt example

The response that ChatGPT provided back is quite good:

GPT response example

Below this it went even deeper by including a lot of valuable customer research data:

  • Demographics
  • Psychographics
  • Consumer behaviors
  • Needs and preferences

And best of all…

It also included marketing recommendations.

The power of AI is unbelievable.

Social Media Content Using AI

AI’s helping hand can be unburdening for the creative spirit.

Instead of marketers having to come up with new copy every single month for posts, AI Social Caption generators are making it easier than ever to craft catchy status updates in the matter of seconds.

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Tools like HubSpot make it as easy as clicking a button and telling the AI tool what you’re looking to create a post about:

AI social media caption generator step 1

The best part of these AI tools is that they’re not limited to one channel.

Your AI social media content assistant can help you with LinkedIn content, X content, Facebook content, and even the captions that support your post on Instagram.

It can also help you navigate hashtags:

AI social media hashtags generator example, HubSpot

With AI social media tools that generate content ideas or even write posts, it’s not about robots replacing humans. It’s about making sure that the human creators on your team are focused on what really matters — adding that irreplaceable human touch.

Enhanced Personalization

You know that feeling when a brand gets you, like, really gets you?

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AI makes that possible through targeted content that’s tailored with a level of personalization you’d think was fortune-telling if the data didn’t paint a starker, more rational picture.

What do I mean?

Brands can engage more quickly with AI than ever before. In the early 2000s, a lot of brands spent millions of dollars to create social media listening rooms where they would hire social media managers to find and engage with any conversation happening online.

Thanks to AI, brands now have the ability to do this at scale with much fewer people all while still delivering quality engagement with the recipient.

Analytics and Insights

Tapping into AI to dissect the data gives you a CSI-like precision to figure out what works, what doesn’t, and what makes your audience tick. It’s the difference between guessing and knowing.

The best part about AI is that it can give you almost any expert at your fingertips.

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If you run a report surrounding the results of your social media content strategy directly from a site like LinkedIn, AI can review the top posts you’ve shared and give you clear feedback on what type of content is performing, why you should create more of it, and what days of the week your content is performing best.

This type of insight that would typically take hours to understand.

Now …

Thanks to the power of AI you can upload a spreadsheet filled with rows and columns of data just to be met with a handful of valuable insights a few minutes later.

Improved Customer Service

Want 24/7 support for your customers?

It’s now possible without human touch.

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Chatbots powered by AI are taking the lead on direct messaging experiences for brands on Facebook and other Meta properties to offer round-the-clock assistance.

The fact that AI can be trained on past customer queries and data to inform future queries and problems is a powerful development for social media managers.

Advertising on Social Media with AI

The majority of ad networks have used some variation of AI to manage their bidding system for years. Now, thanks to AI and its ability to be incorporated in more tools, brands are now able to use AI to create better and more interesting ad campaigns than ever before.

Brands can use AI to create images using tools like Midjourney and DALL-E in seconds.

Brands can use AI to create better copy for their social media ads.

Brands can use AI tools to support their bidding strategies.

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The power of AI and social media is continuing to evolve daily and it’s not exclusively found in the organic side of the coin. Paid media on social media is being shaken up due to AI just the same.

How to Implement AI into Your Social Media Strategy

Ready to hit “Go” on your AI-powered social media revolution?

Don’t just start the engine and hope for the best. Remember the importance of building a strategy first. In this video, you can learn some of the most important factors ranging from (but not limited to) SMART goals and leveraging influencers in your day-to-day work:

The following seven steps are crucial to building a social media strategy:

  1. Identify Your AI and Social Media Goals
  2. Validate Your AI-Related Assumptions
  3. Conduct Persona and Audience Research
  4. Select the Right Social Channels
  5. Identify Key Metrics and KPIs
  6. Choose the Right AI Tools
  7. Evaluate and Refine Your Social Media and AI Strategy

Keep reading, roll up your sleeves, and follow this roadmap:

1. Identify Your AI and Social Media Goals

If you’re just dipping your toes into the AI sea, start by defining clear objectives.

Is it to boost engagement? Streamline your content creation? Or simply understand your audience better? It’s important that you spend time understanding what you want to achieve.

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For example, say you’re a content marketing agency like Foundation and you’re trying to increase your presence on LinkedIn. The specificity of this goal will help you understand the initiatives you want to achieve and determine which AI tools could help you make that happen.

Are there AI tools that will help you create content more efficiently? Are there AI tools that will help you optimize LinkedIn Ads? Are there AI tools that can help with content repurposing? All of these things are possible and having a goal clearly identified will help maximize the impact. Learn more in this Foundation Marketing piece on incorporating AI into your content workflow.

Once you have identified your goals, it’s time to get your team on board and assess what tools are available in the market.

Recommended Resources:

2. Validate Your AI-Related Assumptions

Assumptions are dangerous — especially when it comes to implementing new tech.

Don’t assume AI is going to fix all your problems.

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Instead, start with small experiments and track their progress carefully.

3. Conduct Persona and Audience Research

Social media isn’t something that you can just jump into.

You need to understand your audience and ideal customers. AI can help with this, but you’ll need to be familiar with best practices. If you need a primer, this will help:

Once you understand the basics, consider ways in which AI can augment your approach.

4. Select the Right Social Channels

Not every social media channel is the same.

It’s important that you understand what channel is right for you and embrace it.

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The way you use AI for X is going to be different from the way you use AI for LinkedIn. On X, you might use AI to help you develop a long-form thread that is filled with facts and figures. On LinkedIn however, you might use AI to repurpose a blog post and turn it into a carousel PDF. The content that works on X and that AI can facilitate creating is different from the content that you can create and use on LinkedIn.

The audiences are different.

The content formats are different.

So operate and create a plan accordingly.

Recommended Tools and Resources:

5. Identify Key Metrics and KPIs

What metrics are you trying to influence the most?

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Spend time understanding the social media metrics that matter to your business and make sure that they’re prioritized as you think about the ways in which you use AI.

These are a few that matter most:

  • Reach: Post reach signifies the count of unique users who viewed your post. How much of your content truly makes its way to users’ feeds?
  • Clicks: This refers to the number of clicks on your content or account. Monitoring clicks per campaign is crucial for grasping what sparks curiosity or motivates people to make a purchase.
  • Engagement: The total social interactions divided by the number of impressions. This metric reveals how effectively your audience perceives you and their readiness to engage.

Of course, it’s going to depend greatly on your business.

But with this information, you can ensure that your AI social media strategy is rooted in goals.

6. Choose the Right AI Tools

The AI landscape is filled with trash and treasure.

Pick AI tools that are most likely to align with your needs and your level of tech-savviness.

For example, if you’re a blogger creating content about pizza recipes, you can use HubSpot’s AI social caption generator to write the message on your behalf:

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AI social media generator example

The benefit of an AI tool like HubSpot and the caption generator is that what at one point took 30-40 minutes to come up with — you can now have it at your fingertips in seconds. The HubSpot AI caption generator is trained on tons of data around social media content and makes it easy for you to get inspiration or final drafts on what can be used to create great content.

Consider your budget, the learning curve, and what kind of support the tool offers.

7. Evaluate and Refine Your Social Media and AI Strategy

AI isn’t a magic wand; it’s a set of complex tools and technology.

You need to be willing to pivot as things come to fruition.

If you notice that a certain activity is falling flat, consider how AI can support that process.

Did you notice that your engagement isn’t where you want it to be? Consider using an AI tool to assist with crafting more engaging social media posts.

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Make AI Work for You — Now and in the Future

AI has the power to revolutionize your social media strategy in ways you may have never thought possible. With its ability to conduct customer research, create personalized content, and so much more, thinking about the future of social media is fascinating.

We’re going through one of the most interesting times in history.

Stay equipped to ride the way of AI and ensure that you’re embracing the best practices outlined in this piece to get the most out of the technology.

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MARKETING

Advertising in local markets: A playbook for success

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Advertising in local markets: A playbook for success

Many brands, such as those in the home services industry or a local grocery chain, market to specific locations, cities or regions. There are also national brands that want to expand in specific local markets. 

Regardless of the company or purpose, advertising on a local scale has different tactics than on a national scale. Brands need to connect their messaging directly with the specific communities they serve and media to their target demo. Here’s a playbook to help your company succeed when marketing on a local scale.  

1. Understand local vs. national campaigns

Local advertising differs from national campaigns in several ways: 

  • Audience specificity: By zooming in on precise geographic areas, brands can tailor messaging to align with local communities’ customs, preferences and nuances. This precision targeting ensures that your message resonates with the right target audience.
  • Budget friendliness: Local advertising is often more accessible for small businesses. Local campaign costs are lower, enabling brands to invest strategically within targeted locales. This budget-friendly nature does not diminish the need for strategic planning; instead, it emphasizes allocating resources wisely to maximize returns. As a result, testing budgets can be allocated across multiple markets to maximize learnings for further market expansion.
  • Channel selection: Selecting the correct channels is vital for effective local advertising. Local newspapers, radio stations, digital platforms and community events each offer advantages. The key lies in understanding where your target audience spends time and focusing efforts to ensure optimal engagement.
  • Flexibility and agility: Local campaigns can be adjusted more swiftly in response to market feedback or changes, allowing brands to stay relevant and responsive. 

Maintaining brand consistency across local touchpoints reinforces brand identity and builds a strong, recognizable brand across markets. 

2. Leverage customized audience segmentation 

Customized audience segmentation is the process of dividing a market into distinct groups based on specific demographic criteria. This marketing segmentation supports the development of targeted messaging and media plans for local markets. 

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For example, a coffee chain might cater to two distinct segments: young professionals and retirees. After identifying these segments, the chain can craft messages, offers and media strategies relating to each group’s preferences and lifestyle.

To reach young professionals in downtown areas, the chain might focus on convenience, quality coffee and a vibrant atmosphere that is conducive to work and socializing. Targeted advertising on Facebook, Instagram or Connected TV, along with digital signage near office complexes, could capture the attention of this demographic, emphasizing quick service and premium blends.

Conversely, for retirees in residential areas, the chain could highlight a cozy ambiance, friendly service and promotions such as senior discounts. Advertisements in local print publications, community newsletters, radio stations and events like senior coffee mornings would foster a sense of community and belonging.

Dig deeper: Niche advertising: 7 actionable tactics for targeted marketing

3. Adapt to local market dynamics

Various factors influence local market dynamics. Brands that navigate changes effectively maintain a strong audience connection and stay ahead in the market. Here’s how consumer sentiment and behavior may evolve within a local market and the corresponding adjustments brands can make. 

  • Cultural shifts, such as changes in demographics or societal norms, can alter consumer preferences within a local community. For example, a neighborhood experiencing gentrification may see demand rise for specific products or services.
    • Respond by updating your messaging to reflect the evolving cultural landscape, ensuring it resonates with the new demographic profile.
  • Economic conditions are crucial. For example, during downturns, consumers often prioritize value and practicality.
    • Highlight affordable options or emphasize the practical benefits of your offerings to ensure messaging aligns with consumers’ financial priorities. The impact is unique to each market and the marketing message must also be dynamic.
  • Seasonal trends impact consumer behavior.
    • Align your promotions and creative content with changing seasons or local events to make your offerings timely and relevant.
  • New competitors. The competitive landscape demands vigilance because new entrants or innovative competitor campaigns can shift consumer preferences.
    • Differentiate by focusing on your unique selling propositions, such as quality, customer service or community involvement, to retain consumer interest and loyalty.

4. Apply data and predictive analytics 

Data and predictive analytics are indispensable tools for successfully reaching local target markets. These technologies provide consumer behavior insights, enabling you to anticipate market trends and adjust strategies proactively. 

  • Price optimization: By analyzing consumer demand, competitor pricing and market conditions, data analytics enables you to set prices that attract customers while ensuring profitability.
  • Competitor analysis: Through analysis, brands can understand their positioning within the local market landscape and identify opportunities and threats. Predictive analytics offer foresight into competitors’ potential moves, allowing you to strategize effectively to maintain a competitive edge.
  • Consumer behavior: Forecasting consumer behavior allows your brand to tailor offerings and marketing messages to meet evolving consumer needs and enhance engagement.
  • Marketing effectiveness: Analytics track the success of advertising campaigns, providing insights into which strategies drive conversions and sales. This feedback loop enables continuous optimization of marketing efforts for maximum impact.
  • Inventory management: In supply chain management, data analytics predict demand fluctuations, ensuring inventory levels align with market needs. This efficiency prevents stockouts or excess inventory, optimizing operational costs and meeting consumer expectations.

Dig deeper: Why you should add predictive modeling to your marketing mix

5. Counter external market influences

Consider a clothing retailer preparing for a spring collection launch. By analyzing historical weather data and using predictive analytics, the brand forecasts an unseasonably cool start to spring. Anticipating this, the retailer adjusts its campaign to highlight transitional pieces suitable for cooler weather, ensuring relevance despite an unexpected chill.

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Simultaneously, predictive models signal an upcoming spike in local media advertising rates due to increased market demand. Retailers respond by reallocating a portion of advertising budgets to digital channels, which offer more flexibility and lower costs than traditional media. This shift enables brands to maintain visibility and engagement without exceeding budget, mitigating the impact of external forces on advertising.

6. Build consumer confidence with messaging

Localized messaging and tailored customer service enhance consumer confidence by demonstrating your brand’s understanding of the community. For instance, a grocery store that curates cooking classes featuring local cuisine or sponsors community events shows commitment to local culture and consumer interests. 

Similarly, a bookstore highlighting local authors or topics relevant to the community resonates with local customers. Additionally, providing service that addresses local needs — such as bilingual service and local event support — reinforces the brand’s values and response to the community. 

Through these localized approaches, brands can build trust and loyalty, bridging the gap between corporate presence and local relevance.

7. Dominate with local advertising 

To dominate local markets, brands must:

  • Harness hyper-targeted segmentation and geo-targeted advertising to reach and engage precise audiences.
  • Create localized content that reflects community values, engage in community events, optimize campaigns for mobile and track results.
  • Fine-tune strategies, outperform competitors and foster lasting relationships with customers.

These strategies will enable your message to resonate with local consumers, differentiate you in competitive markets and ensure you become a major player in your specific area. 



Dig deeper: The 5 critical elements for local marketing success

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Opinions expressed in this article are those of the guest author and not necessarily MarTech. Staff authors are listed here.

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