While it shouldn’t be a shock to anyone that generative AI will one day profoundly impact every business sector, you may not know that it is already starting to revolutionize digital marketing.
Industry titans like Meta and Google are deploying their proprietary generative AI tools designed to enhance ad relevance and efficiency. These tools enable advertisements tailored to individual user preferences, thereby driving increased user engagement and conversion rates.
Retail media isn’t just talking about generative AI – it’s making it an integral part of its strategy. Companies like Amazon are deploying AI chatbots for more personalized ads and an improved customer journey. At the same time, Microsoft has rolled out an API to deliver ads through chat across their retail media network. These investments signify their commitment to staying competitive and meeting rapidly evolving consumer expectations.
However, as AI permeates various industries, advertisers are tasked with distinguishing genuinely valuable AI tools from overhyped tech. Identifying the true value and application of AI is crucial to ensuring that their investments yield meaningful returns.
The State of Retail Media 2023 provides a valuable snapshot of the current thinking and challenges that are on the minds of today’s marketing decision-makers.
Download your copy today!
Companies are investing billions in retail media. It’s the fastest-growing channel in advertising, but it’s also the least mature. This means there are so many new challenges—distinct performance metrics and fragmented data sources to understand, a proliferation of new retailer networks to allocate budgets properly, and how best to optimize a media mix of evolving native ad formats.
Thus, the potential for AI to help take this blossoming channel to the next level is incredibly high. Retail Media marketers seek solutions to their issues and ways to optimize their performance.
Of course, AI is on their minds as they evaluate their tech partners.
However, for all its buzz, AI is only as valuable as its performance enhancements. At Skai, we’ve spent 17 years stress-testing our unique AI optimization capabilities. This rigorous process ensures the best-in-class ROI for our clients, outperforming all competitors in the space.
We believe it’s not just about adopting AI but effectively leveraging it.
AI Dayparting with Skai
We’ve developed a unique feature—AI Dayparting—on top of Amazon Stream. This feature allows advertisers to set ad bidding with a chart highlighting hourly insights and AI-based recommendations, ensuring optimal budget utilization while delivering timely, relevant ads.
With hourly attribution insights integrated directly into the ad scheduling tool and enhanced bid scheduling to improve your bid modifiers, you’re given precise insights on bid modifiers based on machine learning algorithms. These insights help you maximize ad runs during the most effective conversion times and scale back during less optimal times.
In other words, AI Dayparting is the tool you need if you’re looking for recommendations on the best times for conversions, optimizing your bidding, or eliminating wasteful spending. The benefits are twofold: firstly, you can reach your target audience exactly when they’re most likely to make a purchase. Secondly, you ensure your money goes to ads running during peak shopping times, not when your target consumers are offline. You make the most of your ad budget by aligning your ads with your audience’s online activity and maximizing conversions.
Our clients have already seen tremendous success with this feature. For instance, a Fortune 500 pharma client aimed to improve the ROI on their existing Amazon search ads, drive better ROAS, and reduce ad spend waste. After leveraging AI Dayparting for just six weeks, they saw a 22% increase in ROAS and a 49% increase in ad revenue compared to the previous period, clearly illustrating the power of Skai’s AI-powered bidding strategy.
AI Optimization at Skai
Of course, performance is at the heart of what every marketer wants from their technology partners. This is where Skai shines as our nearly two-decades-long history of helping search and social advertisers maximize their investments with a suite of capabilities that squeeze every bit of ROAS from the budget.
We use our unique AI to provide robust optimization capabilities, scalable marketing strategies, and optimization tools on top of Amazon’s existing offerings for commerce marketers. This is why we outperform our competitors in the space, despite their skepticism about the power of machine learning.
A case in point is Rakuten Advertising, a Skai agency client. By utilizing our budget optimization tools, they increased their client Taschen’s Amazon ROAS by an impressive 28% in just one month. This success was powered by our advanced algorithms and predictive statistical modeling, which enabled easy-to-use budget testing across five different Amazon marketplaces, resulting in streamlined workflows, a 24% increase in revenue, and a 3% reduction in ad costs.
The future of AI in Skai’s retail media vision
Retail media is still media at its core. As the industry evolves, we at Skai continue to place bets on expanding AI optimization. Our focus on media activation and improved performance are what truly drive results for our clients. As we build upon our AI foundation, our commitment to leading the industry in AI optimization remains unwavering.
As articulated by our Chief Product Officer, Guy Cohen, in his insightful recent report, The Next Big Thing: Where Generative AI’s First Areas of Innovation Will Impact Marketing: “By harnessing the power of AI-driven technologies, marketing professionals can streamline their workflows, enabling them to spend more time optimizing strategies and boosting their overall performance and return on investment.”
This quote perfectly captures Skai’s philosophy toward AI. We’re committed to staying at the cutting edge of the industry, continually developing our AI capabilities beyond just Retail Media to deliver increasingly sophisticated solutions.
We are excited about the future of digital marketing and eager to continue leading the charge. If you’re ready to harness the power of AI and leverage its potential for achieving your marketing objectives, Skai’s unique AI Optimization capabilities are the solution.
Welcome to the future of digital marketing with Skai!
Learn more about how Skai can boost your retail media programs with our tried-and-true AI technology. As part of Skai’s omnichannel marketing platform, our Retail Media solution empowers brands to plan, execute, and measure digital campaigns that meet consumers when and where they shop. Equipped with best-in-class automation and optimization capabilities, our unified platform allows you to manage campaigns on 100+ retailers, including Amazon, Walmart, Target, and Instacart, all in one place.
For more information, we invite you to schedule a quick demo at your convenience to see our retail media innovation firsthand.