New Artificial Intelligence Technology Only Delivers Ads that "Change Consumer Opinion"

Aug 23, 2016

Mobile video platform LoopMe has announced new optimization and reporting technology, PurchaseLoop. The new self-learning technology will use AI to continuously optimize mobile video campaigns toward brand metrics such as purchase intent, brand affinity, or product recall, helping deliver ads to the users most likely to change opinion and move along the path to purchase.

While the performance of digital campaigns has traditionally been measured by views and clicks, the impact CTR has on brand metrics such as purchase intent, and subsequently on consumer purchase behavior and ultimately brand revenues, has been called into question. Research by Nielsen, which examined the link between clicks and offline purchase behavior, suggested there is no correlation between CTR and sales. 

In a survey of 1,000 mobile users conducted this week, close to half (45%) said that they had never watched a mobile video ad and subsequently been driven to make an offline or online purchase. When asked why this was the case 51% stated they were not in market for the product at that time and 29% said the adverts were not relevant. These statistics show that advertising is often not being delivered at the correct point in the purchase funnel or to users who are likely to change their minds, ultimately wasting marketer's budgets.

LoopMe says its AI has been used across a variety of campaigns, for brands including Samsung, Unilever, Mattel, Comcast, Macy's, Renault, Oracle, Cartier and Verizon, delivering uplifts in brand consideration of 68% and purchase intent of 40%. The new way of delivering campaigns is to combine LoopMe's AI with third party brand research from Nielsen and On Device, to expressly target users who have shown the greatest likelihood of moving along the purchase funnel. Throughout each campaign a sample of users will be surveyed to determine its ongoing performance against brand metrics like brand awareness, favorability, or purchase intent.

The results of these surveys are fed into the AI engine which undergoes a full update on its assumption set every 20 minutes to act based on the survey. This allows the campaign to be upweighted to users displaying a higher propensity to move along the brand consideration scale, reducing the number of ads shown to users who display little likelihood of being swayed by the ad and improving user experience.

This technology also means users can be targeted with campaigns which complement their point in their purchase funnel, with different messaging delivered to users who are moving from awareness to favorability to those who are brand loyalists.