Interactive Advertising Bureau
31 May 2023

Member Guest Post with Petal Ads: AI May Be the Big Winner at OMR Festival 2023 but Only Few Have the Capacity to Make it Work Right Now

This week's member guest blog post is from Maria Ramiro, Head of Business Development EU at Pteal Ads, Huawei Mobile Services Europe, who discusses her experience at OMR Festival 2023, and the prominence of AI as a topic at the event. She explores the future of AI marketing and the core elements required in order to make it thrive now. 

It was an eventful time at this year’s OMR Festival 2023 and one thing is for sure, AI innovation was the talk of the town. When OMR polled the Festival’s participants about their favourite topics at the masterclasses, they unanimously agreed. AI-focused presentations got the highest average experience scores outshining traditional themes such as content, email or even new work. For me, it became abundantly clear that AI is no longer a buzzword. Virtually everyone now fully agrees on its boundless potential, and the natural progression forward.

The Future of AI Marketing

Over the course of this year, we have witnessed first-hand how AI is transforming the mobile marketing landscape, including new ways of reaching audiences across borders. Elvin Altun, Country Director at Mobile Marketing Association (MMA) in Germany, shared some practical examples of how AI is being used in mobile marketing already. At the OMR masterclass held by Petal Ads, she explained how marketers have adopted the use of AI generators to create distinctive visuals capable of serving multiple scenarios. She also pointed out that AI capabilities are further optimising the way we advertise by providing helpful suggestions on methods and tools we can use.

But for AI to thrive we believe that three core elements need to come together: Computing Power, Data and Algorithms. Without these three components, AI will simply not work as it should. Based on our predicted analysis, detailed in Huawei's Intelligent World 2030 report, we strongly believe that these core elements will play a pivotal role in driving the success of future AI marketing solutions. Allow me to provide you with some explanation, as well as insight into how Huawei addresses each of these core elements:

1/ Computing Power

With the advancement of technology, the computing power of devices has increased significantly, with a predicted 105 ZetaFLOPS (1021 Floating Point Operations per Second) of computing power, marking a 500x increase since 2020. This computing power is solely dedicated to processing AI applications and algorithms for connected devices. In anticipation of such processing needs, Huawei has actively focused on the development of AI infrastructure, including chipsets, processors, and servers, to ensure the provision of abundant computing power necessary to drive AI algorithms. This ability to analyse vast amounts of data in real-time will empower advertisers to optimize their campaigns and enhance engagement.

2/ Data
The volume of connected devices has witnessed a substantial increase in recent years, accompanied by advancements in connectivity, notably the emergence of 5G capabilities. Our projections indicate that the number of smart devices is expected to reach 200 billion by 2030. This surge in connected devices is set to generate a significant accumulation of data, resulting in the expansion of storage capacity by 23x since 2020, equivalent to 1 Yottabyte or one million trillion megabytes. Recognizing the potential value of such vast data, Huawei adopts a comprehensive approach, utilizing both hardware and software aspects to effectively collect and harness it.

3/ Algorithms
Given the vast amounts of data available, it is fundamental to leverage machine learning and deep learning techniques to gain insights and effectively target your audience. Huawei capitalizes on this by incorporating advanced algorithms within our Petal Ads platform. This empowers us to elevate on-device advertising to unparalleled heights of effectiveness and efficiency, allowing for precise audience targeting and enhanced advertising outcomes.

Harnessing On-Device AI Advertising to Reach Chinese Shoppers

AI capabilities and recent breakthroughs in how AI is being applied have inspired us at Petal Ads to explore mobile ad solutions targeting China’s growing outbound travel and tourism market.

Over the past six months, we have witnessed more than 2.5 million Huawei device users from China venturing into the EU, and this figure is expected to rise to reach two-thirds of the 2019 level when 13 million Chinese tourists came to the EU¹. What's more, is that over 70% of these travellers heavily rely on smartphones to get around.

As these Chinese travellers eagerly anticipate the opportunity to purchase tax-refundable goods, there is a strong expectation of a surge in demand for such products. To cater to the needs and preferences of these typically high-value consumers, we’re currently working with several multinationals in the luxury retail, automotive and travel industry. Specifically, these brands are trialling Petal Ads' capabilities to target and segment Chinese users travelling to Europe or particular countries. To enhance targeting effectiveness, Petal Ads customises campaigns to be either specifically tailored for overseas platforms or precisely catered to Chinese platforms, or both depending on campaign goals.

To make any significant impact targeting Chinese consumers it is crucial to use the right advertising strategy. Whilst that’s always been a challenge in itself, I’m encouraged by the fact that AI’s integration into mobile marketing is real and happening as we speak. Moreover, it has coincided with the advertising sector in China projected to reach 6.3% growth in 2023² and a promising outlook forecasting 30% increase in international travel among Chinese consumers³.


¹Eurostat ING Research, Oxford Economics 2023

²GroupM advertising forecast for China; March 8, 2023

³Tourism Economics, March 2023

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