Will AI enhance consumer experience in FMCG market?
Marketers can use a live match score, weather and other dynamic elements to change the way ads are being showcased to potential users, say industry experts
Artificial Intelligence (AI) and programmatic advertising can prove to be great tools for FMCG brands in garnering better customer engagement.
With the use of programmatic data, brands can generate personalised content for consumers. Unlike before, with programmatic data one can also generate real-time data with respect to a consumer’s walks into the store. AI will also instantly allow the brand to understand market trends which lead to better customer personalization.
We at exchange4media got in touch with marketing leaders and brands to get their perspective on how the FMCG sector can leverage from AI and programmatic advertising.
According to Magnesh Panditrao, CEO, Co-founder, Shoptimize, till date the FMCG sector has been dependent on surveys and representative data to make most of its decisions. “The cost of making a wrong decision has been extremely high. Digital and machine learning allows brands to learn about newer products even before they are launched based purely on digital content. This information can help in developing products for specific TGs and programmatic data can ensure that marketing dollars are efficiently spent in building sales growth,” Panditrao added.
Programmatic Advertising and Technology is being upgraded constantly. Audience Managers, third-party data with insights about consumer engagement and right measurement framework for measuring engagement with brands allow advertisers today to collect and organise data. This will allow advertisers to know about their existing and potential consumers efficiently.
Talking about targeting and personalisation, Prashant Deorah, Managing Director, Puretech Digital says, “Simple Re-targeting of the yester generation is today replaced by dynamic remarketing, personalization of creatives based on interest, affinity & recent events. Today, marketers can use a live match score, weather and other dynamic elements to change the way ads are being showcased to their potential users. This type of advertising is called Moment-Marketing.”
FMCG brands can make use of a lot of such moments to capture attention and engage with the audiences. There are interesting ways wherein it has been done successfully. For example, advertising about Hot Noodles, when it is raining outside and a cloud burst is predicted. Weather is an everyday conversation and resonates very well with the audiences especially on days when it tends to be extreme, say experts.
Deorah shares, “Resembling with the surroundings and the latest news/trends information can be used very smartly by brands across industries. Especially in the FMCG sector to deliver relatable experiences to consumers. AI is most definitely used to identify newer audiences or understand the existing audience segments better as there are so many variables which contribute to decision making. Brands can use all of them to cull out the right audiences. Across these thousands of parameters can be used to identify the right user in the right moment. But identifying the correct one requires learning and testing, both of which can be intelligently done through successful AI implementation.”
To impress and engage consumers in the right moment, the confluence of Real-Time Information Technology to translate it into actionable learning through AI is a must. This is what enables brands to successfully do moment marketing and create the value of their advertising spends.
Lastly, Sabyasachi Mitter, Managing Director, Fulcro says the use of emerging Tech like AI, Programmatic and machine learning is immense for all brands, including FMCG brands.
“On the B2C side, for example, an Olay could deploy a FaceApp type digital mirror where users can be shown how their skin can improve with time by using the brand. Fashion brands could use image pattern recommendations to give intelligent clothes recommendations. A Pepsi could use emotion detection to engage users at college fests by dispending free drinks”, remarks Mitter.
There is also a tremendous scope of deploying AI and ML-based solutions for Analytics in the trade and distribution side of the FMCG business as well. From predicting and arresting trade partner churn to being able to predict the demand over time.
Mitter adds, “FMCG marketing is about talking to consumers based on their interests and affinity. These consumers may not be searching or researching for a Gillette or Pepsi for example. FMCG marketers, therefore, need to deploy their campaigns to the right audience and programmatic is a great way to achieve this with the least spill-over. Merging first party and a third party through a Data Management Platform powdered by AI could further help FMCG brands deploy powerful, personalised campaigns at scale.”
According to Koshy George, Chief Marketing Officer, Marico Limited says: "Digital influence is much bigger than just online buying, which means that our consumers are increasingly being influenced on digital channels like YouTube, Google, Facebook and Instagram, instead of TV and Print, while buying products online or offline. In such a scenario, programmatic advertising helps us to segment, target, position and communicate with our consumers by creating very sharp cohorts like hyper-local geography down to street level consumer profile and channel-specific advertising."
"The use of AI and big data enables us to spot emerging and future consumer trends, and to identify consumer behaviours through self-learning algorithms, run AB experiments and realign media spends in real-time so that our consumers get the most relevant and highly personalized communication,” he added.
AI will help FMCG brands garner more profitability. Going forward if FMCG brands are looking forward to adopt AI-based solutions they will need to remember to provide an omnichannel experience and understand the needs of their target consumer.
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