D2C brands lead the way in AI adoption in marketing: Kantar’s Soumya Mohanty

Marketers are early adopters of AI(artificial intelligence) in India. Especially the ones operating in spaces that have access to first party data. Like the D2C (direct-to-consumer) brands or the digital first brands. The next step however is to make AI more efficient and ROI focussed.

Soumya Mohanty, Managing Director and Chief Client Officer- South Asia, Insights Division, Kantar speaks to Storyboard18 on their latest tool LINK AI and how it is helping marketers that the evaluate the creative effectiveness of their ads.

Mohanty talks about humanising AI to innovate successfully, how marketers are testing their ads with AI, is it cost effective, does one size fit all when it comes to these tests and more.

Edited excerpts

AI and its usage in marketing has been evolving at a rapid pace. What are the trends that you are seeing in the space?

So, first and foremost, I believe leveraging AI technologies, particularly in image enhancement and camera applications, needs to be emphasised. This rapidly growing field will be a crucial way for marketers to create engaging experiences. Additionally, I foresee a significant increase in the use of virtual assistants over the next few years. These assistants will help brands reach consumers and ensure their messages and presence are part of the recommended sets within the virtual assistants consumers rely on.

Overall, AI is not just a trend for young people. It cuts across demographics – older age cohorts are using it just as much as younger people. Anyone active on the internet leverages AI features for various efficiency and productivity tasks.

I'd like to add AI-generated video production to the mix. It offers not only increased efficiency but also significant cost savings. Marketers will undoubtedly utilise AI more extensively in content creation, particularly video advertising content, and this trend is only likely to accelerate. Predictive analytics is another major use case. AI allows for real-time predictions, making it an invaluable tool.

Lastly, voice search optimisation presents a vast and exciting opportunity. I expect to see significant developments in this area as voice search continues to gain traction.

What are the kind of companies using it? Is it only the modern marketers or traditional brands too?

Obviously, D2C or digital-first brands are adopting AI faster. They inherently need it more because they operate online and have the wealth of first-party data readily available. This data advantage allows them to leverage AI extensively, though effectiveness remains a separate discussion. Similarly, companies with robust first-party data, like telecom and banking institutions (even beyond purely digital players), will be prime candidates for AI adoption. However, the data landscape for traditional FMCG companies differs. Their data comes from fragmented sources like distribution and sales channels, unlike the more streamlined data flow of a telecom company. While the desire to leverage AI for efficiency and cost savings is universal, the adoption challenges will vary significantly between these two types of organisations.

Coming to Kantar’s new tool Link AI, what is it exactly? And how is it helping marketers?

The first thing to understand here is how Link works. Link, our 30-year-old ad ad testing tool in India, boasts a massive database. We've tested over 30,000 ads domestically and an estimated 120,000 globally. Link AI leverages this data – consumer responses gathered through primary research (showing them ads and gauging their reactions) – to predict an ad's market performance. Essentially, we've trained an algorithm on consumer data, allowing you to test your ad and predict its success in just 10-15 minutes.

However, it's important to remember that AI is a powerful but imperfect tool. While Link AI is excellent for testing campaigns it shouldn't replace all consumer research. For completely new ad concepts or high-budget campaigns, traditional consumer feedback remains crucial. Link is best suited for situations where time is limited and you're testing variations on existing concepts. After all AI is as good as the pattern of the past.

Since you mentioned not replacing traditional consumer research with AI, according to you how is the right balance maintained between human intelligence and AI?

To explain it with our product, I’d say Use Link AI when you're confident that historical data is a strong predictor of future performance. This applies to ads that follow established formats. For instance, if we've tested 100 ads for your business and your new ad adheres to similar patterns – perhaps with refreshed characters or a portfolio update – Link AI is a great option.

It's especially valuable for digital advertising where testing is often neglected compared to costlier mediums like television. While traditional testing involves pre-production costs, digital ads often launch untested. Link AI bridges this gap – it's faster than traditional methods like A/B testing and introduces you to the power of data-driven ad optimisation.

Remember, Link AI is ideal for iterative testing within established campaign structures. For completely new ad concepts or high-budget campaigns, consider traditional consumer research alongside Link AI's insights.

For how long has Link AI been in the market? Can you explain with an example how it has helped any client of yours?

Link AI was launched last year and we have multiple clients using it. While we cannot name any of them I can explain how we help clients with an example.

For a major food and beverage client, we created a customised creative playbook. We analysed advertising within their competitive landscape to identify trends and effective ad formats. This playbook serves as a valuable resource, guiding them towards ad types that historically perform well in their category.

In addition to these types of playbooks, we offer subscription packages. These subscriptions cater to various needs. For example, you might have an existing ad you want to test or optimise. Our AI can analyse it and recommend the most impactful 30-second edit.

By now we are familiar with some advantages of AI especially in marketing but is it also cost effective?

Of course. It is fraction of the traditional cost. While there are reasons behind this lower price point, it's important to remember that we also provide significant consulting expertise alongside the tool itself. When you factor in both the cost savings and the consulting support, Link AI easily becomes more affordable option compared to traditional methods.

However, speed might be the even bigger advantage. Link AI delivers results significantly faster, making it a valuable asset in today's fast-paced marketing environment.

Do you think these smart tools will replace human resources in organisations especially in marketing functions?

The impact of AI on marketing jobs depends on how you define the job. At its core, marketing revolves around understanding consumer behaviour, which is a strength of human marketers. We possess a deep and nuanced understanding that AI can't easily replicate.

Ideally, marketers will be the ones shaping the algorithms. Our expertise in consumer behaviour is crucial to ensure algorithms are designed correctly and deliver accurate insights. If the data fed into the algorithm is flawed, the results will be misleading.

Having said that AI will likely automate repetitive tasks like writing basic marketing briefs. This shift will free up marketers to focus on more strategic initiatives, like developing creative concepts and building stronger customer relationships. The repetitive, less-skilled roles may face greater impact from AI, not just in marketing but across various industries.