October 17, 2018
Artificial Intelligence and Marketing
How companies like Netflix, Spotify, Amazon and Coca-Cola are using Artificial Intelligence in their marketing strategy.
When you think of brands that dominate the market, you think of Netflix for entertainment, Spotify for music, Amazon for online shopping and Coca-Cola for that cool, refreshing drink. These brands appear in our consciousness at just the right time. When you need a drink, you choose Coca-Cola over Pepsi, because the Coca-Cola brand thinks ahead of the game with clever marketing strategies that draw you in.
Today, it’s not only video and social media marketing that these brands are leading, but it’s also Artificial Intelligence (AI), and here’s why:
Netflix for content personalization
The online streaming service is on the path to reach 100 million subscribers. To put that into perspective, it’s currently competing with Disney, the largest entertainment company in the world.
To create such an impact, Netflix placed an AI-driven focus on personalization. After six years of collecting viewer data from customer ratings, searches and plays, Netflix developed the award-winning series: House of Cards.
Not only does Netflix use AI to create binge-worthy shows, but it also uses AI to personalize the homepage and display artwork. Netflix provides personalized content for each subscriber, which means that there are millions of unique versions of the platform. Ted Sarandos, Chief Content Officer at Netflix said, “There’s no such thing as a ‘Netflix show.’ Our brand is personalized.”
Spotify for recommendations
With 83 million premium subscribers, Spotify dominates music the way Google does search — and that’s no easy feat when you have a competitor like Apple. Through personalized recommendations, Spotify has created a fan base of loyal listeners. The company has access to millions of user data, and it’s these data points that help drive decisions on music recommendations like the “Discover Weekly” feature.
To curate the perfect playlist for its customers, Spotify uses three main types of recommendation models:
- Collaborative filtering: analyzes your behavior and the behavior of other uses
- Natural language processing: analyzes text
- Audio: analyzes the raw tracks
With the combination of each model and the in-depth knowledge of AI, Spotify takes music outside of the app and into the real world. Based on popular, curated playlists, Spotify has hosted exclusive concerts and playlist merchandise.
Amazon for speech recognition
Today, speech recognition goes beyond understanding the spoken word and can identify a person and their preferences based on their voice. It’s used by the likes of Amazon Echo, Siri and Google Home to convert speech into text and decipher a person’s spoken commands.
According to eMarketer, the number of people who use and rely on virtual assistants will increase from 60.5 million people in 2017 to 62.4 million in 2018 — and this is just in the US. Dominating this market is Amazon, which controls 70 percent of voice-enabled devices.
The marketing strategy behind Amazon’s use of AI has enabled Amazon to rule the industry. The “Alexa Everywhere” strategy saw the company open the voice-powered virtual assistant to third-party companies. Now, manufacturers of smart and wearable devices can embed Alexa capabilities into their products.
Alexa is making companies think of how to incorporate voice into their marketing strategy. Within Alexa, over 13,000 smart home devices from over 2,500 brands use voice recognition to order products, manage their schedule and activate hardware devices in their home and workplace.
Coca-Cola for product customization
Coca-Cola or “Coke” as most people call it, is the world’s largest beverage company with more than 500 brands and nearly 4,000 beverage choices. More than 1.9 billion products of Coke are consumed every day.
Coke has transformed itself from a cocaine-laced drink to one of the most recognized brands around the world. Its success didn’t come overnight and to remain relevant, the company has invested heavily in AI.
By monitoring data from their self-service soft drink fountains, Coke was able to create a new drink: Cherry Sprite. These fountains enabled consumers to mix their own drinks, and data analysis alerted Coke to the most popular combination. To take this a step further, Coke is now developing an AI bot that will live within the machines and help consumers customize their drink and diversify their choice.
But Coke doesn’t just stop there. With a host of other drinks including orange juice, the company has expanded into more natural, healthier options. To produce a consistent and pleasant tasting orange juice, Coke analyzes data from satellite images, weather, crops, global pricing and tasting ratings. Using the collected data, Coke can determine the right ingredients to create a drink sold at the right local price, all with a taste the satisfies and may even addict its consumers.
For marketing that helps global brands dominate the market, try Autopilot. Learn more about how Autopilot helps you personalize your marketing and dive into actionable insights, not endless data.