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- 🤖 The economics of A.I. and the future of advertising
Good morning and welcome to the latest edition of neonpulse!
Here's what we have for you today:
The economics of A.I.
Bing has gone mobile
And the future of advertising
A.I. costs are starting to add up
While executives at OpenAI and Google are thrilled at the rapid adoption of their blockbuster chatbot products, there’s one thing they aren’t thrilled about…
The massive cost to run the service.
Because of the increased computing required to power these A.I. models, the costs for this type of search are an order of magnitude higher than the cost of traditional search results…
Which is making a serious dent in the profit margins of Google and OpenAI.
Chart with all sorts of interesting numbers
Analysts at Morgan Stanley are predicting that if 50% of Google searches were handled by A.I. models, that the company’s annual cost of serving search results would increase by $6 billion dollars.
And while Microsoft Chief Financial Officer Amy Hood told analysts that the increase in the number of users from these services outweighs the expenses of running them in the short term, in the long term Google and OpenAI are going to need to find ways to cut costs dramatically in order for these services to be profitable.
"These models are very expensive, and so the next level of invention is going to be reducing the cost of both training these models and inference so that we can use it in every application," said one tech executive that wished to remain anonymous in recent Reuters interview.
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Bing’s new A.I. mobile app
The Bing mobile app for iOS and Android was announced this week, bringing the A.I. powered assistant to phones around the world.
Microsoft also released a new Skype integration (I didn’t realize that people still used Skype, but apparently they have 36 million daily users), allowing you to access Bing’s A.I. functionality in your text and group messages.
Bing’s new Skype integration
The new app also allows for voice search, meaning that you can ask Bing questions and the built in text-to-speech technology will read the answers back to you.
And if you enjoy being the first to try out the latest and greatest versions of A.I. tools, the Bing app is a must have, as users that install the app will be given priority access to new features.
Eliminating wasted ad spend
If you’ve ever seen an ad for a product that you would never consider buying, whether its an ad diapers when you have no children or an ad for a next-generation fighter jet when you’re quite happy with your current weapons systems, these are examples of wasted ad spend.
The ultimate impulse purchase?
And while in the past it’s been difficult to target your ads at the prospects most interested in your products (meaning that it was guaranteed that a certain percentage of your advertising would be served to indifferent audiences) a company named Clinch is looking to fix that.
Using proprietary A.I. technology, Clinch allows companies to deliver “hyper-personalized” ads across a variety of platforms, including web, social, and mobile, boosting a companies return on advertising spend and reducing cost per lead by up to 65%.
“In a time in which brands can no longer effectively communicate with a few mass messages, and when consumers expect and deserve respect for their time and relevance to their needs, the world needs a company that enables advertisers to easily personalize their content, in every touchpoint with their consumers,” stated a company representative.
Brands can use Clinch’s platform to execute all stages of an ad campaign, from strategy, to personalization, to smart ad serving, meaning that companies are able to get the right message, in front of the right person, at the right time.
Recognizing the importance of personalized advertising, a number of large brands have already signed on with the service, including Samsung, Nespresso, and Anheuser-Buch InBev.
“As we move into a data-driven, omnichannel future, ABI needed a partner able to get us there today. Clinch has enabled us to drive hard into personalization, which has become a significant and growing component of our global strategy.“ said Cleber Dantas, Global MarTech director of Anheuser-Buch InBev.
Sounds like I’ll be getting an ad for that latex body suit I’ve been wanting any minute now…
And now your moment of zen
That’s all for today folks!
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