Data Driven Marketing. May 18th 2018 - Data Driven Innovation 2018. Engineering Department, University of Roma Tre

1. Alan Advantage | © 2017 | Confidential
DATA DRIVEN INNOVATION
“Marketing augmented by AI”
Boston, USA / Rome, Italy

2. Alan Advantage | © 2017 | Confidential
AI is the current hot topic
• Artificial intelligence (AI) seems to
be the current business hot topic,
including in marketing.
• It seems nearly impossible for any
kind of marketing/advertising
industry event or conference to
not have at least one (or likely
more!) session or panel discussion
on the subject.
• Are we at "peak AI" or is this trend
of great interest in the topic set to
continue? Probably the latter, and
rightly so.

3. Alan Advantage | © 2017 | Confidential
Almost everyone is talking about AI
The AI revolution in marketing has been spurred by:
• the influx of affordable and accessible advanced data
analytics tools (typically based on
machine learning methods),
• the availability of increasingly rich and extensive
datasets,
• and a growing acceptance among marketers of the
potential power of data-driven approaches to
marketing decision making.
The winds have been blowing in this direction for some
time, so this is not a new phenomenon.
However, it seems that now we are at the point where
almost everyone is talking about it and (hopefully) thinking
hard about how AI can and will change how they do things.

4. Alan Advantage | © 2017 | Confidential
AI is needed to help integrate across tools, datasets and platforms
• Of course, data are never perfect and marketers'
interpretations of patterns found in data by machine learning
and AI analytics systems are still subject to bias and could
mislead. However, we have never had so many opportunities
for truly data-driven marketing.
• The difficulty, though, is that there are now so many tools and
data sources and analytics packages and marketing technology
software services available.
• Integrating insights across all of these tools is not easy, even if
the various types of software and datasets play nicely with each
other (which is often not the case).
• In the current marketing technology landscape, tools tend to be
single purpose and sit in silos. This will change, and AI can help
power these changes.
Marketers have more insights-related tools at their disposal that facilitate true data-driven decision
making, but AI is needed to help integrate across tools, datasets and platforms

5. Alan Advantage | © 2017 | Confidential
Analytics on analytics
"Analytics on analytics is a great idea, in
which AI-powered analytics tools can be
used to take in the outputs of all the tools,
platforms and datasets to identify new
patterns that can give managers an even
better, and importantly, integrated, view of
things.
In the world of science, we call this a
"meta analysis" (an integrative analysis of
results from multiple studies), and it is a
great idea for marketing analytics and AI
can be very helpful on this front.

6. Alan Advantage | © 2017 | Confidential
The incredible mess of
Marketing Technologies
More of 7.000 as of April 2018
Source: ChiefMartec.com – Marketing Landscape

7. Alan Advantage | © 2017 | Confidential
Applications of Artificial Intelligence in Marketing

8. Alan Advantage | © 2017 | Confidential
THE MOST WELL-FUNDED AI COMPANIES IN ADS, SALES,
AND MARKETING
Company TotalFunding($M) Description
Predictive sales analytics platform.
Predictive marketing and sales software.
Cognitive content generation platform.
Content marketing platform.
$199M
$70M
$66M
$59M
$58M Marketing and communication automation for mobile.

9. Alan Advantage | © 2017 | Confidential
Where
machines could
replace humans
—and where
they can’t (yet)
Automation potential of each Sector
by activity type

10. Alan Advantage | © 2017 | Confidential
Start-ups
Alan Advantage Portfolio – first tier
Entando MegaRide Filo kpi6 Oreegano Mnemonica Summ.AI
lcDataLab INNAAS GreenVulcano
Technologies
Tutored Dynamitick Rulex YHOP
Deeply involved in Marketing augmented by AI

11. Alan Advantage | © 2017 | Confidential
More free valuable executive time
• Prescriptive AI (i.e., AI tools that can "make" decisions based
on learning and sets of preconfigured rules in an automatic,
or semi-automatic, manner) will be a boon for decision-
making executives because time will be freed up
• There is indeed a lot of promise in prescriptive applications
of AI (as opposed to simply those that describe the past or
predict the future without taking action)
• There are, naturally, some situations in which managers
would choose to not automate tasks and decisions, and that
is fine
• But it is true that AI-powered marketing organizations should
find themselves with more time once the simpler, repetitive
tasks have been intelligently automated
The nature of marketing work is changing, but not necessarily becoming completely technical and
focused on data science. Instead, the infusion of AI into marketing work can aid decision making and
automation can free up valuable executive time

12. Alan Advantage | © 2017 | Confidential
More time for human interactions with customers and for creativity
• From a work standpoint, this means that more time can be allocated
to areas where human input and focus is needed the most.
• The tough, complex and difficult challenges faced by marketers in
today's world aren't going away, so more time to put into these
challenges seems like a good thing.
• Also, as consumers become even more digital and themselves
automate more things using smart AI-powered tools and devices,
the human part of a firm's relationship with a customer will become
even more important.
• More time for marketing teams to spend on human interactions
with customers, thus, seems valuable.
• Lastly, increased time resources for marketers can be devoted to the
creative side of marketing. This might actually lead to overall
improvements in the quality of creative work in advertising, which is
an interesting prospect.
Probably the most interesting way in which AI will shape the future of marketing work is to
give us all more time to focus on the decisions that need human input, creative thinking
and on building more meaningful and deeper relationships with customers

13. Alan Advantage | © 2017 | Confidential
AI will automate certain consumer decisions
One of the challenges on the consumer side is that most of us are
still not fully comfortable handing over human agency, i.e., our
need to make decisions, to machines.
Consumers are changing due to AI-powered tools and devices being involved in consumer search,
choice set construction and purchase decision making, and as this becomes more widespread and
feels normal to consumers, AI will start to automate certain consumer decisions.
But we already do that, perhaps not noticing.
• As consumer-facing AI-powered systems for things like product
recommendations become more reliable and powerful, we'll all
start to "outsource" more of our consumer search and choice set
construction tasks to AI.
• Why spend hours searching for the right hotel for a vacation and
compiling a list of alternatives from which to make a choice when
a piece of software that knows ALL of your preferences can do it
for you?

14. Alan Advantage | © 2017 | Confidential
The role of marketing in persuading and informing consumers
changes
For marketers, this has implications ranging from how to
advertise to how to handle customer relationships and after-
sales support.
• How do you advertise to what is, essentially, an algorithm?
(You probably don't, but maybe you pay to "persuade" the
algorithm to give your brand more weight in any
recommendations it generates)
• How do you have a relationship with a customer if the
transaction is intermediated by a series of software bots?
These are important questions, and there are many more that
arise when thinking about consumer use of AI as part of the
customer journey.
• Where do traditional marketing touch points come in?

15. Alan Advantage | © 2017 | Confidential
A growing wave of
Expert Automation
& Augmentation
Software (EAAS)
platforms will usher
in a new era of AI-
enhanced
productivity
The market map highlights some of
the EAAS startups across number
of professions ranging from
lawyers to journalists to wealth
managers, and more.
Source: CB Insights

16. Alan Advantage | © 2017 | Confidential
For the past number of
years, Emotional
Intelligence has been a
centerpiece in discussions
of leadership.
• What qualities does
Emotional Intelligence
comprise?
• And how can marketers
use it in the fast-paced
world of display
advertising, social
media, and email
marketing?

17. Alan Advantage | © 2017 | Confidential
Ready to the AI-powered future of Marketing?
• All in all, a lot is happening in marketing with respect to AI and
it is not only on the data analytics side of the industry.
• Marketing leaders need to be out ahead of this, and must
ensure that the technology doesn't get ahead of the business
and consumer needs.
• Like any technology that comes into marketing, we often find
executives succumb to the "shiny new toy syndrome" and put
technology innovation ahead of value-creation, purpose-based
and customer-driven innovation that can be facilitated by new
technologies.
Visionary marketing leaders need to understand AI and how it impacts both marketers and
consumers. Moreover, they must think broadly and creatively about the AI-powered future of
marketing and take proactive steps to ready themselves and their organizations for the future that
they (and their customers) are creating

18. Alan Advantage | © 2017 | Confidential
In many jobs, humans are the O-rings
In high performing systems, powered by AI, the importance of human problem
solving and relational skills increases

19. Alan Advantage | © 2017 | Confidential
Conclusions
Understanding Artificial Intelligence and its
powerful potential to shape marketing is
critical
Even more critical is thinking about what the
future should look like in a world where
marketers' and consumers' thoughts and
behaviors are influenced by, or even completely
managed, by intelligent, data-hungry and
analytics-based software applications
Our Vision
We have to go towards Marketing augmented by
AI and not towards Marketing depending on AI.

20. Alan Advantage | © 2017 | Confidential
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