AI for Local Online Advertising - Presented by William Ammerman EVP of Digital Media, Engaged Media Inc - Borrell Associates

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AI for Local Online Advertising - Presented by William Ammerman EVP of Digital Media, Engaged Media Inc - Borrell Associates
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            AI for Local Online Advertising
                              Presented by William Ammerman
                              EVP of Digital Media, Engaged Media Inc.
                                   Author of The Invisible Brand
AI for Local Online Advertising - Presented by William Ammerman EVP of Digital Media, Engaged Media Inc - Borrell Associates
AI for Local Online Advertising                                       2

                                        “In 25 years, this man
                                      selling used books online
                                      will be the richest person
                                               on earth.”
                                                   -said no one in 1994

Presentation by William Ammerman
AI for Local Online Advertising - Presented by William Ammerman EVP of Digital Media, Engaged Media Inc - Borrell Associates
AI for Local Online Advertising                                            3

              1       Can’t predict the future              Local SMBs can’t
                                                            keep up with AI
              2       Lack technical knowledge about AI

              3       Stretched for resources

              4       Don’t have time to apply new skills

Presentation by William Ammerman
AI for Local Online Advertising - Presented by William Ammerman EVP of Digital Media, Engaged Media Inc - Borrell Associates
AI for Local Online Advertising                                   4

                                      Prediction:
                                      Voice Commerce will reach
                                      $80 billion worldwide by
                                      2023.
                                                 -Juniper, February 2019

Presentation by William Ammerman
AI for Local Online Advertising - Presented by William Ammerman EVP of Digital Media, Engaged Media Inc - Borrell Associates
AI for Local Online Advertising                                                               5

                            Growth of Voice Assistants
                                             Voice Assistants in Use (billions)
                                      9
                                                                                      8.01
                                      8
                                      7                                6.41
                                      6
                                                             5.11
                                      5
                                                   4.08
                                      4   3.25
                                      3
                                      2
                                      1
                                      0
                                          2019     2020      2021      2022           2023
                                                                       Source: Juniper Research 2019

Presentation by William Ammerman
AI for Local Online Advertising - Presented by William Ammerman EVP of Digital Media, Engaged Media Inc - Borrell Associates
Artificial Intelligence enables Voice
    AI for Local Online Advertising                            6

                           Commerce

                                      Voice represents a new
                                      challenge and huge
                                      opportunity for local
                                      online advertisers.

Presentation by William Ammerman
AI for Local Online Advertising - Presented by William Ammerman EVP of Digital Media, Engaged Media Inc - Borrell Associates
AI for Local Online Advertising                                          7

                         Most Valuable Global Brands

                                                   Source: TheRankngs 2019

Presentation by William Ammerman
AI for Local Online Advertising - Presented by William Ammerman EVP of Digital Media, Engaged Media Inc - Borrell Associates
AI for Local Online Advertising                                 8

                      Most Popular Voice Assistants
                  APPLE               GOOGLE   AMAZON   MICROSOFT

Presentation by William Ammerman
AI for Local Online Advertising - Presented by William Ammerman EVP of Digital Media, Engaged Media Inc - Borrell Associates
AI for Local Online Advertising                                       9

               Global Voice Assistant Install Base

                                             Source: Voicebot.ai, January 2019

Presentation by William Ammerman
AI for Local Online Advertising - Presented by William Ammerman EVP of Digital Media, Engaged Media Inc - Borrell Associates
AI for Local Online Advertising                                10

                                      Key Takeaway

        The Voice User Interface (VUI)
        is the consumer-facing edge of               Tap to Talk
        artificial intelligence at the
        world’s most valuable brands.

Presentation by William Ammerman
AI for Local Online Advertising                                                                                                  11

               Natural Language Processing (NLP)
                 Audio Signal Processing                              Natural Language Processing

                    Analog to                            Compare                                                                 Spoken
                                        Feature                            Interpret    Prepare      Linguistic   Wave Form
Human Speech         Digital                            Features to                                                           Response from
                                       Extraction                            Result    Response     Composition   Generator
                   Conversion                             Library                                                               Computer

                                                                                                    Library of
                                                    Library of audio                              components:
                                                      fingerprints                                   Phasing
                                                                                                   Intonation
                                                                                                    Duration

Presentation by William Ammerman
AI for Local Online Advertising           12

                                      Video

Presentation by William Ammerman
AI for Local Online Advertising                                                                  13

                             What You Need to Do Now
                                         By 2021, early adopter
                                         brands that redesign
                                         their websites to
                                         support voice search
                                         will increase digital
                                         commerce revenue by
                                         30%.

                                             Source: Gartner Top Strategic Predictions for 2018 and Beyond

Presentation by William Ammerman
AI for Local Online Advertising                                                     14

                   Voice-Enabled Path to Purchase
1. Consumers                          2.Devices   3. Voice Assistants   4. Businesses

Presentation by William Ammerman
Step 1: Understand Your Customer’s Use of
    AI for Local Online Advertising                                                       15

                   Voice
                                      • Male (63%)
                                      • 18-29 Years Old (2x more likely)
                                      • While Driving (62%)
                                      • Apple Siri (44%)
                                      • General Search (52.7%)
                                      • Getting Directions (47.4%)
                                      • Finding a Restaurant (28.8%)
                                                           Source: Voicebot.ai Various Articles

Presentation by William Ammerman
AI for Local Online Advertising                                                                                        16

                         Consumer Adoption of Voice
          90.1 Million                       44%                  62%                         57.8 Million

         90.1 Million                  Apple Siri is the      Driving is the                 57.8 Million
        U.S. Adults Use                Most Commonly         Most Common                   U.S. Adults Own
       Voice Assistants                  Used Voice         Use Case for Voice             a Smart Speaker
       on Smartphones                   Assistant on        Assistants (62% of              (about 23% of
           Monthly                    Smartphones with        Respondents)                   population)
                                         44% Share
       Half as many use                                      Relaxing at home              (As of September
       voice assistants               Google Assistant is   was the second                 2018…not
       on smart                       second with 30%       most common                    including Q4
       speakers (45.7                 and Amazon Alexa      answer at 38%                  sales)
       million)                       is third with 17%
                                                                    Source: Voice Assistant Consumer Adoption Report, November 201

Presentation by William Ammerman
AI for Local Online Advertising                                                                                                  17

1 in 5 Consumers Have Shopped Using Voice
                                              What Voice Shoppers Are Buying
                    Household Items                                                                        25.11%
    Entertainment, Music, Movies                                                               21.15%
                               Apparel                                                         21.15%
                                Games                                                   18.94%
              Consumer Electronics                                        14.54%
                             Groceries                               11.89%
                                 Travel                              11.89%
                             Furniture                       9.25%
                           Appliances                      8.37%
           Prepared Meal or Drink                        7.05%

                                      0.00%      5.00%     10.00%       15.00%         20.00%         25.00%         30.00%
                                                                                 Source: Voice Shopping Consumer Adoption Report, June 2018

Presentation by William Ammerman
AI for Local Online Advertising                                       18

              1      Getting Directions to a Business   Additional Use
                                                        Cases for Voice
              2       Choosing a Restaurant

              3       Researching a Product

              4      Checking Balances / Moving Money

Presentation by William Ammerman
AI for Local Online Advertising                            19

              1         Checking Inventory     B2B Use Cases
                                               for Voice
              2         Scheduling Meetings

              3         Placing Orders

              4         Fulfillment Tracking

Presentation by William Ammerman
AI for Local Online Advertising                                20

    Step 2: Understand the Devices They Use

                                      Source: Voicebot.ai September 2018

Presentation by William Ammerman
AI for Local Online Advertising                                                                                            21

                                        Smart Speakers
                                                      Millions of Smart Speakers Sold

                                      Q4 2018                    13.7                       11.5

               Amazon Echo
                                      Q4 2017              9.7               6.7

                                      Q4 2016       4.1   0.4

                                                0           5           10         15         20           25             30
               Google Home                                               Amazon    Google          Source: Strategy Analytics 2019

Presentation by William Ammerman
AI for Local Online Advertising                                                                     22

           U.S. Smartphone Shipments Q4 2018
                                                        Other
                                                            13%

                                      Motorola
                                                   6%

                                                                        Apple
                                                                  47%

                                      LG     12%

                                                          22%
                                           Samsung
                                                                                Source: Counterpoint, 2019

Presentation by William Ammerman
AI for Local Online Advertising                                                 23

                    Cars are Voice-Enabled Devices

                                        The number of vehicles
                                        equipped with voice-recognition
                                        systems is expected to reach
                                        120 million in 2019, triple the
                                        number in 2018.

                                                 Source: Fortune Magazine, February 2019

Presentation by William Ammerman
AI for Local Online Advertising                                                  24

    Your Next Smart Speaker will be your TV

                                      Samsung, and other major
                                      manufacturers, announced at CES
                                      that new models of smart TVs will
                                      be equipped with voice
                                      recognition.

                                                     Source: Variety, January 2019

Presentation by William Ammerman
Step 3: Learn the Differences between
    AI for Local Online Advertising                                                                                                              25

                        Assistants
               Apple Siri                  Google Assistant                     Amazon Alexa                       Microsoft Cortana

        Dominant mobile interface.       Native to Android, Google      Dominant voice assistant for smart     Native to Windows 10 and Xbox
         Works on Apple devices         Home, Chrome OS and Wear        speakers including Echo and Echo      One, and runs on Android and iOS
          including Apple TV and        OS by Google. Second most        Dot. Powerful ecommerce tool.         8. Dominant PC voice assistant.
        AirPods. Uses Google for       popular mobile interface. Uses   Learns Alexa Skills. Default search   Can be enabled on mobile. Search
        search. Siri Shortcuts learn     Google for search. Learns      is Bing but has the Google Search                  is Bing.
               user behavior.                 Google Actions.                          Skill.

             Macs and iPhones                  Google Home                        Amazon Echo                        PCs and Xbox One

Presentation by William Ammerman
AI for Local Online Advertising                                                                                       26

Voice Assistant Usage Share for Smartphones
                                                           Other
                                           Microsoft Cortana
                                      Samsung Bixby              4.88%

                                                         6.23%

                             Amazon Alexa      13.20%

                                                                         45.64%

                                                                                  Apple Siri

                                                        28.70%

                                      Google Assistant                                         Source: Voysis, May 2018

Presentation by William Ammerman
AI for Local Online Advertising                                                                     27

                    Voice Search is not Text Search
                       Voice flattens search.
         Results are brief and often pull from Google’s
         featured snippet (position zero) or from the
         knowledge graph to the right of results.
         Using structured data and schema mark-up
         helps your data become part of the knowledge
         graphs.
         Optimizing for voice search means
         anticipating the questions consumers ask and
         adding those questions to your FAQ and even
         your H2.
           Common voice questions begin:                  Ask Siri, “What is Grand Central Station,”
                                                            and it responds with details from the
           • Who…                                          knowledge graph on the Google results
           • How…                                                            page.
           • byWhen…
Presentation   William Ammerman
AI for Local Online Advertising                                                                           28

                   Harness the power of “Near Me”
                                        58% of consumers used voice
                                      search for local products in 2018.
                                      Update your Google Business and Bing Places Listings:
                                      • Verify name, address, phone number
                                      • Summary (400 characters) about your offerings
                                      • Place your business in the right categories
                                      • Include your hours of operation
                                      • Use only professional photos
                                      Update your listings with apps that users may search:
                                      • Yelp
                                      • Angie’s List
                                      • Thumbtack
                                      • Whitepages
                                      • Yahoo Local
                                      • Porch                         Source: BrightLocal Voice Search Study, 2018

Presentation by William Ammerman
AI for Local Online Advertising                                    29

                              Skills, Actions & Shortcuts
        There are now over 70,000 Alexa Skills
       Voice Assistants are evolving. Siri is adding shortcuts,
       Google is adding actions, and Alexa is adding skills to help
       users.
       You can connect Alexa with UPS using the Alexa UPS Skill in
       the Skills Store. With the UPS Skill, Alexa can track your
       packages and provide updates on delivery schedules.
       Consider whether your business could benefit from
       integration with a voice assistant. Then, use social media to
       spread the word that consumers can talk to your brand.

Presentation by William Ammerman
AI for Local Online Advertising                                                        30

                              Recommendation Engines

                                             Alexa’s algorithm makes
                                            product recommendations
                                          Testing published by Forbes indicates
                                          Alexa’s algorithm makes product
                                          recommendations based on (in order of
                                          importance):
                                          1] Products with the “Amazon’s Choice”
                                          badge
                                          2] Products available for Prime delivery
                                          3] Products from the user’s purchase history
                                          4] The first product in the Bing search result

Presentation by William Ammerman
AI for Local Online Advertising                                                      31

Step 4: Are Your Products Ready for Voice?

                                      Once you’ve considered how your prospective
                                      customers use devices and voice assistants, it’s
                                      time to start testing.
                                      Try to find yourself using voice.
                                      Try to learn about your products using voice.
                                      Try to buy your products using voice.
                                      Share the results with your team and
                                      brainstorm opportunities for improvement.
                                      Then put a plan into action.

Presentation by William Ammerman
AI for Local Online Advertising                       32

                   Brainstorming
             Can voice
       improve in-store        Locate a product

             shopping?         Find a coupon or deal

                                       Compare products

                                       Get help

                                       Self checkout

Presentation by William Ammerman
Thank you!

Feb   Mar   Apr   May         Jun      Jan     Feb     Mar     Apr    May       Jun   Jan    Feb   Mar   Apr   May

                                    wammerman@engagedmediainc.com

                                             The Invisible Brand:
                        Marketing in the Age of Automation, Big Data, and Machine Learning
                                       Published by McGraw-Hill, May 24, 2019
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