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Machine Learning in Marketing - Jim Sterne @ Digital Analytics Forum 2018

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How are AI and Machine Learning reinventing marketing strategies? And how can marketers tangibly make the most of the latest innovations in Data Science?

In his keynote on "Machine Learning in Marketing", Jim shows how emerging technologies are impacting marketing strategies. He provides the keys for both marketers and analysts to making the most of the latest innovations in data science.

Jim Sterne is a prominent expert and true pioneer in digital analytics, Jim founded international events like the eMetrics Summit and the Media Analytics Summit and was named one of the 50 most influential people in digital marketing by Revolution (the UK’s premier interactive marketing magazine).

More info https://www.digital-analytics-forum.com/en/ and https://www.atinternet.com

Published in: Data & Analytics
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Machine Learning in Marketing - Jim Sterne @ Digital Analytics Forum 2018

  1. 1. Intro to Artificial Intelligence for Marketing jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Jim Sterne
  2. 2. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Jim Sterne Intro to Artificial Intelligence for Marketing
  3. 3. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne IS NOT for data scientists How to be a data scientist Cool algorithms Statistical tips and tricks How to build a bot Latest start-ups Quantum computing Intro to AI & Machine Learning How some methods differ How to talk to data scientists Where AI/ML is used in marketing How to bring AI/ML into your org How to keep your job IS for marketers
  4. 4. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Why Artificial Intelligence Now? 50 years of study Cheap storage of Big Data Massively parallel processing (GPUs) Open Source
  5. 5. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne What is it? How does it work? What is it good at? How is it useful? Intro to Artificial Intelligence for Marketing
  6. 6. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne As Seen on TV AI: Anything computers can’t SciFi: Anything AI can’t “General AI” – thinks and acts human Sentience “Narrow AI” – task specific Functional
  7. 7. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Artificial Intelligence Natural Language Processing Speech recognition Speech to text Text to meaning Sentiment analysis "Wreck a nice beach"
  8. 8. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Artificial Intelligence Computer Vision
  9. 9. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne
  10. 10. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Facial Recognition
  11. 11. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Self-Driving Cars!
  12. 12. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Artificial Intelligence Robots
  13. 13. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Artificial Intelligence Natural Language Understanding Conversation Bots Computer Vision Self-Driving Cars & Robots Machine Learning
  14. 14. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Software Grows Up Specific Logic Mathematical Model Do this, then this, then this If this happens, do that If confused, report error Statistical Model Machine Learning {A:13,BUTTON:0,CHECKBOX:32,COMBOBOX:13,GRIDCELL:13,LINK:13,LISTBOX:13,MENU:0,MENUBAR:0,MENUITEM:0,MENUITEMCHEC KBOX:0,MENUITEMRADIO:0,OPTION:0,RADIO:32,RADIOGROUP:32,RESET:0,SUBMIT:0,SWITCH:32,TAB:0,TREE:13,TREEITEM:13},G =function(a){return(a.getAttribute("type")||a.tagName).toUpperCase()in ba},H=function(a){return (a.getAttribute("type")||a.tagName).toUpperCase()in ca},ba={CHECKBOX:!0,OPTION:!0,RADIO:!0},ca={COLOR:!0, DATE:!0,DATETIME:!0,"DATETIME-LOCAL":!0,EMAIL:!0,MONTH:!0,NUMBER:!0,PASSWORD:!0,RANGE:!0,SEARCH:!0,TEL:!0, TEXT:!0,TEXTAREA:!0,TIME:!0,URL:!0,WEEK:!0},da={A:!0,AREA:!0,BUTTON:!0,DIALOG:!0,IMG:!0,INPUT:!0,LINK:!0,MENU: !0,OPTGROUP:!0,OPTION:!0,PROGRESS:!0,SELECT:!0,TEXTAREA:!0};var I=function(){this.i=this.g=null}
  15. 15. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne
  16. 16. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Software Grows Up Specific Logic Mathematical Model Do this, then this, then this If this happens, do that If confused, report error Statistical Model Machine Learning
  17. 17. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Software Grows Up Specific Logic Mathematical Model Do this, then this, then this Describe numerical relationships If this happens, do that Calculate alternatives If confused, report error Human compares results & iterates Statistical Model Machine Learning
  18. 18. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Software Grows Up Specific Logic Mathematical Model Do this, then this, then this Describe numerical relationships If this happens, do that Calculate alternatives If confused, report error Human compares results & iterates Statistical Model Machine Learning Calculate probabilities Project likelihoods Human compares & iterates
  19. 19. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Software Grows Up Specific Logic Mathematical Model Do this, then this, then this Describe numerical relationships If this happens, do that Calculate alternatives If confused, report error Human compares results & iterates Statistical Model Machine Learning Calculate probabilities Uses examples to figure it out Project likelihoods and changes it's mind Human compares & iterates
  20. 20. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne
  21. 21. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne What is it? How does it work? What is it good at? How is it useful? Intro to Artificial Intelligence for Marketing
  22. 22. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Machine Learning Supervised Unsupervised Reinforcement
  23. 23. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Machine Learning Supervised You know the right answer needs many examples of labeled data Dog: Yes Cat: No Tag a friend?
  24. 24. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Machine Learning Supervised cat cat cat cat You know the right answer needs many examples of labeled data
  25. 25. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Machine Learning Supervised You know the right answer needs many examples of labeled data
  26. 26. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Machine Learning Supervised You know the right answer needs many examples of labeled data
  27. 27. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Machine Learning Supervised You know the right answer needs many examples of labeled data
  28. 28. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Machine Learning Supervised You know the right answer needs many examples of labeled data
  29. 29. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Machine Learning Unsupervised Online buying goes up when the weather is bad Ice cream causes drowning Shoes cause headaches Nicolas Cage is a monster You don't know the right answer Machine finds patterns in unlabeled data may or may not be useful (correlation/causation)
  30. 30. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne
  31. 31. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Machine Learning Supervised You know the right answer needs many examples of labeled data Unsupervised You don't know the right answer finds patterns in unlabeled data may or may not be useful (correlation/causation)
  32. 32. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Machine Learning Reinforcement There is no absolute right answer some answers are better "rewards" based on results optimizes over time Photo by Marek Szturc on Unsplash
  33. 33. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne 3 Needs for 3 Deeds of Machine Learning Data Detect Goal Decide Control Revise Needs Deeds
  34. 34. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne What is it? How does it work? What's it good at? How is it useful? Intro to Artificial Intelligence for Marketing
  35. 35. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Learning Machine Learning High Dimensionality High Cardinality What's it good at?
  36. 36. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Dimensionality = Attributes per Object Cardinality = Options per Attribute
  37. 37. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Dimensionality = Attributes per Object Cardinality = Options per Attribute Person Objects Attributes billions of permutations
  38. 38. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne What is it? How does it work? What's it good at? How is it useful? Intro to Artificial Intelligence for Marketing
  39. 39. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Robots!
  40. 40. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne In-Store Robots
  41. 41. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne
  42. 42. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne
  43. 43. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Augmented Reality
  44. 44. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Augmented Reality
  45. 45. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Facial Recognition
  46. 46. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Facial Recognition
  47. 47. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Artificial Intelligence Natural Language Speech to text Conversation Bots Text to meaning
  48. 48. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne
  49. 49. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne
  50. 50. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Automating Response
  51. 51. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Artificial Intelligence Natural Language Speech to text This means that Repeated correction Taught over time Conversation Bots Text to meaning Concept & emotion imitation Repeated correction Taught over time Lenovo Unified Customer Intelligence
  52. 52. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne
  53. 53. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Artificial Intelligence Natural Language Speech to text This means that Repeated correction Taught over time Conversation Bots Text to meaning Concept & emotion imitation Repeated correction Taught over time Lenovo Unified Customer Intelligence
  54. 54. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Artificial Intelligence Natural Language Speech to text This means that Repeated correction Taught over time Conversation Bots Text to meaning Concept & emotion imitation Repeated correction Taught over time
  55. 55. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne
  56. 56. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Bringing AI Into Your Organization Look what followed me home! Can we keep him?
  57. 57. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne AI Onboarding Tips
  58. 58. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne AI Onboarding Tips Clearly identified goals Raise Revenue Lower Costs Improve Customer Satisfaction Introduce a New Competency Raise Awareness Improve Attitude Influence Influence Inspire Interaction Generate Sales Drive Endorsements
  59. 59. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne AI Onboarding Tips Clearly identified goals
  60. 60. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne AI Onboarding Tips Clearly identified goals Optimize Customer Retention
  61. 61. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Machine Learning Bump Humans Machines
  62. 62. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne AI Onboarding Tips Clearly identified goals Know Your Data Would I advise my uncle? Would I stake my reputation? Would I risk my own money? Would I bet my job?
  63. 63. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne AI Onboarding Tips Clearly identified goals Know Your Data Clean, Consistent, Reliable
  64. 64. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne AI Onboarding Tips Clearly identified goals Know Your Data Clean, Consistent, Reliable Server Outage Missing Tag Broken Tag Corrupted Data Broken ETL Enrichment Error Integration Error Ad Blocker Etc., etc....
  65. 65. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne AI Onboarding Tips Clearly identified goals Know Your Data Clean, Consistent, Reliable Web Analytics, Customer Service, Customer Relationship Management, Sales Force Automation, Campaign Analysis, Social Media, Email Marketing, Mobile, Wearables, Surveys, Facebook, Aggregators, App Data, Behavioral Data, Accounting, Video Views, API's, Enrichment, etc., etc....
  66. 66. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne AI Onboarding Tips Clearly identified goals Know Your Data Web Analytics, Customer Service, Customer Relationship Management, Sales Force Automation, Campaign Analysis, Social Media, Email Marketing, Mobile, Wearables, Surveys, Facebook, Aggregators, App Data, Behavioral Data, Accounting, Video Views, API's, Enrichment, etc., etc.... Clean, Consistent, Reliable
  67. 67. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne AI Onboarding Tips Clearly identified goals Know Your Data Clean, Consistent, Reliable
  68. 68. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne AI Onboarding Tips Clearly identified goals Know Your Data Data Lake Clean, Consistent, Reliable
  69. 69. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne AI Onboarding Tips Clearly identified goals Know Your Data Data Lake Clean, Consistent, Reliable
  70. 70. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne AI Onboarding Tips Clearly identified goals Know Your Data
  71. 71. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne AI Onboarding Tips Clearly identified goals Know Your Data Start with repetitive, high volume, taxing tasks Ranking Sorting Finding patterns Finding look-alikes Anomaly detection
  72. 72. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne AI Onboarding Tips Clearly identified goals Know Your Data
  73. 73. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Correlations people with this attribute have that attribute Segmentation these people form a group Clustering there are X number of groups Anomalies these people are unique Are results interesting? Useful? Worthy of further study? What Can ML Do Better?
  74. 74. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne AI Onboarding Tips Clearly identified goals Know Your Data Start with repetitive, high volume, taxing tasks Buy vs. Build
  75. 75. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Business Stakeholder
  76. 76. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Business Stakeholder domain knowledge usesIndustry Market Company Products Customers Competition Price of tea in China Which way the wind is blowing The airspeed velocity of an unladen African swallow
  77. 77. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne BUSINESS GOALS Business Stakeholder domain knowledge uses to set
  78. 78. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne uses to set BUSINESS GOALS domain knowledge Business Stakeholder BUSINESS PROBLEMS to identify
  79. 79. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne uses to set BUSINESS GOALS domain knowledge Business Stakeholder BUSINESS DECISIONS to make to identify BUSINESS PROBLEMS
  80. 80. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne uses to set BUSINESS GOALS domain knowledge Business Stakeholder to identify BUSINESS PROBLEMS BUSINESS DECISIONS to make informed by Analyst insight
  81. 81. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne uses to set BUSINESS GOALS domain knowledge Business Stakeholder to identify BUSINESS PROBLEMS BUSINESS DECISIONS to make informed by Analyst insight Analyst
  82. 82. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne uses to set BUSINESS GOALS domain knowledge Business Stakeholder to identify BUSINESS PROBLEMS BUSINESS DECISIONS to make informed by Analyst insight Analyst appreciates and considers
  83. 83. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne to craft to test uses to set BUSINESS GOALS domain knowledge Business Stakeholder to identify BUSINESS PROBLEMS BUSINESS DECISIONS to make informed by Analyst insight appreciates and considers Analyst HYPOTHESES
  84. 84. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsternejsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne
  85. 85. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Analyst Business Stakeholder
  86. 86. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne determines accounts for most revealing data cognitive bias Analyst innate bias to ensure SOUND ADVICE Business Stakeholder
  87. 87. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne determines accounts for most revealing data cognitive bias Analyst innate bias to ensure uses to convey SOUND ADVICE visualization and storytelling Business Stakeholder
  88. 88. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne builds chooses Analyst depends on Data Scientist METHODS MODELS Data Engineer depends on collects cleans integrates monitors manages pipelines operationalize s DATA QUALITY to improve give feedback Data Business StakeholderBusiness Stakeholder
  89. 89. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne builds chooses Analyst depends on Data Scientist METHODS MODELS Data Engineer depends on collects cleans integrates monitors manages pipelines operationalize s DATA QUALITY to improve give feedback Data to ensure quality of Business Stakeholder
  90. 90. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Data Engineer Data Scientist Analyst Business Stakeholder
  91. 91. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Data Engineer Data Scientist Analyst Business Stakeholder Licorne
  92. 92. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne give feedback Data Engineer Data Scientist Analyst Outsource if you can Business Stakeholder
  93. 93. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne AI Onboarding Tips Clearly identified goals Know Your Data Start with repetitive, high volume, taxing tasks Buy vs. Build Buy!
  94. 94. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne AI Onboarding Tips Clearly identified goals Know Your Data Start with repetitive, high volume, taxing tasks Buy vs. Build Determine which data sets are useful
  95. 95. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne AI Onboarding Tips Clearly identified goals Know Your Data Start with repetitive, high volume, taxing tasks Buy vs. Build Determine which data sets are useful Too much = noise Too little = overfitting Just right = insight
  96. 96. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne AI Onboarding Tips Clearly identified goals Know Your Data Start with repetitive, high volume, taxing tasks Buy vs. Build Determine which data sets are useful Become proficient at the Smell Test
  97. 97. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne The Smell Test
  98. 98. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne AI Onboarding Tips Clearly identified goals Know Your Data Start with repetitive, high volume, taxing tasks Buy vs. Build Determine which data sets are useful Become proficient at the Smell Test Be Human
  99. 99. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Amount of data Speed of correlation Repetition minus ennui Accuracy Cost Zero attitude Machine Advantages Your Advantages Reason Common sense Emotion Empathy Experience Integrated cognition Be Human
  100. 100. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Press Your Advantage Recognizing the problem Onboarding new ideas Relating non-related data Relating non-related experience Collaboration & Diversity Empathy Imagination
  101. 101. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Man and Machine
  102. 102. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne AI Onboarding Tips Clearly identified goals Know Your Data Start with repetitive, high volume, taxing tasks Buy vs. Build Determine which data sets are useful Become proficient at the Smell Test Be Human
  103. 103. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Be Prepared: Marketing is About to Get Weird
  104. 104. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Be Prepared: Marketing is About to Get Weird
  105. 105. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Harness the Power for Yourself Take advantage of the tools Build systems to talk to customers' systems Build your brand
  106. 106. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne What is your next step??
  107. 107. jsterne@targeting.com – Marketing Evolution Experience.com – @jimsternejsterne@targeting.com – Marketing Evolution Experience.com – @jimsterne Jim Sterne Intro to Artificial Intelligence for Marketing

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