Advertisers must navigate the fine line between using consumer data for personalization & respecting user privacy: Harsh Shah, Wunderman Thompson

A recent report has revealed that technologies, including generative AI and machine learning, are expected to significantly impact the Indian digital advertising industry, which is valued at approximately US $8 billion (₹66,142 crore).

It has also been predicted that AI and operational machine learning will have a transformative effect on advertising, public relations, and content creation. 

Moreover, a study by Botco.ai shows that nearly 73% of marketing professionals use AI to create content. Whether it is using AI tools like DALL.E to effectively build brand recall for Heinz Ketchup or standing up for Iranian women by addressing the pressing socio-political issues in Iran by giving a dystopian glimpse into their horrifying future, advertising professionals globally have been experimenting with the technology and fuelling their creativity. 

These examples of campaigns were crafted and executed by the agency Wunderman Thompson. Harsh Shah, Chief Digital Officer at Wunderman Thompson South Asia, provides us with insights into the emerging trends in the usage of AI that can be leveraged by advertisers while keeping personalization and data privacy in mind.

Edited Excerpts:

Globally, one of Wunderman Thompson's inspiring use cases of AI was when they used it to write a dystopian book about Iran, aiming to catalyze change. How do you think AI should be leveraged in India to foster creativity?

We have always spoken about India being made of many Indias. Imagine an accelerated, customized and hyper-hyper local communication delivering the same message in the context that works for the market - however big or small. AI will also play a significant role in predictive analysis and automation.

Imagine the power of AI being applied to platforms like ONDC. It will bring the power of marketing tech to all small and big players alike.

What are some of the trends you are expecting to see in the advertising industry with the emergence of AI?

Here are a few trends that I believe will change the way we market to this very smart and ever-evolving consumer.

Hyper Personalisation: At whatever level we are customizing our communication, it is time we think a level deeper. Geo-targeting is a passe; think pin codes. Cohorts basis demographics is a passe; think behavioral cohorts.

Predictive analysis: AI-powered predictive analytics are becoming essential tools for advertisers. By analyzing historical data, AI can predict future trends, enabling advertisers to optimize their campaigns for maximum impact. This not only enhances targeting accuracy but also minimizes the wastage of resources on ineffective strategies.

Content Generation and Curation: This is a no-brainer. We are already seeing a lot of models shaping up. 

Emotional Intelligence in Advertising: AI is increasingly being used to gauge consumer emotions and sentiments. 

Advertisers can analyze social media and online interactions to understand how consumers feel about their brand and products. 

This emotional intelligence can guide advertisers in crafting messages that resonate emotionally with their target audience.

In today's digital landscape, what are the most significant opportunities and challenges for advertisers in leveraging technology to deliver effective and engaging campaigns?

Zero-party data and First-party data will prove to be the most significant opportunity that all brands should harness and leverage. 

It will directly affect a brand’s top line and bottom line. It will help a brand deliver great experiences and hence convert better. 

With the increasing use of AI in advertising, ethical concerns related to data privacy and transparency have come to the forefront. 

Advertisers must navigate the fine line between using consumer data for personalization and respecting user privacy. 

Transparent communication about data usage and opting for ethical AI practices will be crucial.

How does Wunderman Thompson use different digital channels to create integrated and seamless brand experiences for consumers across various touchpoints?

There is only one way to do this. When you own all the service lines. That’s what Wunderman Thompson is actively doing. 

How do you see the relationship between data privacy and personalization evolving in the future, and how will it shape the way advertisers engage with audiences?

The capabilities of AI continue to expand, and the delicate balance between data privacy and personalization stands as a critical juncture in the relationship between advertisers and their audiences. The future holds promising possibilities but also demands careful consideration of ethical practices and user trust. 

Granular Consent and Transparent Data Practices: The evolution of data privacy regulations will lead to more granular consent mechanisms and transparent data practices. 

Advertisers will need to communicate clearly how user data will be collected, processed, and used. 

Users will have the autonomy to choose the level of personalization they are comfortable with, thereby fostering a sense of control and trust.

Algorithmic Transparency and Explainability: Advertisers will be compelled to adopt AI models that are transparent and explainable. Users will demand to know why they are seeing certain ads or recommendations. Advertisers who can provide insights into the decision-making process of their AI systems will build stronger relationships based on trust.

Anonymized and Aggregated Insights:

Advertisers will focus on deriving insights from aggregated and anonymized data, rather than individual user profiles. 

This approach allows for the extraction of trends and patterns without compromising individual privacy. Advertisers can create campaigns that resonate with larger audience segments without delving into personal details.

Dynamic Privacy Controls: User preferences regarding data sharing and personalisation will evolve. Advertisers will offer dynamic privacy controls that enable users to modify their preferences as their comfort levels change. This adaptability ensures that engagement remains personalized without sacrificing user comfort.

How do you foster a culture of innovation within the agency to encourage experimentation with new technologies and approaches?

It is as simple as it can get. Democratize creative thinking. 

Time and again we have noticed great creative ideas coming in from unexpected sources. However, they eventually end up in the graveyard due to a lack of execution knowledge or capabilities. We make that information accessible to everyone. Whether it is within the Wunderman Thompson group or the WPP group.