Media Agencies Investing in AI: Why, How, and What's Next

Problems Faced by Media Agencies

Media agencies are the intermediaries between advertisers and publishers, who plan, buy, and execute advertising campaigns across various media channels, such as TV, radio, print, digital, and social. Media agencies are facing several pressures and disruptions in the digital age, such as:

🚩 Changing consumer behavior: Consumers are becoming more empowered, informed, and demanding, and they expect personalized, relevant, and engaging advertising experiences across multiple devices and platforms.

🚩 Increasing competition: Media agencies are competing with various players, such as tech giants, platforms, publishers, and in-house teams, who have access to more data, technology, and inventory, and who can offer more efficiency, transparency, and accountability.

🚩 Evolving regulation: Media agencies are subject to various regulations and standards, such as GDPR, CCPA, and COPPA, that aim to protect the privacy, security, and rights of consumers, and that impose restrictions and obligations on the collection, use, and sharing of data.

🚩 Emerging risks: Media agencies are exposed to various risks and threats, such as fraud, brand safety, and measurement, that can affect the quality, performance, and reputation of their advertising campaigns.

To overcome these pressures and disruptions, and to create and deliver value for their clients and partners, media agencies are increasingly investing in AI. AI can help media agencies achieve various objectives, such as:

✅ Enhance creativity and innovation: AI can help media agencies generate and optimize creative ideas, content, and formats, that can capture the attention, interest, and emotion of consumers. AI can also help media agencies discover and explore new and untapped audiences, markets, and channels, that can offer new and unique value propositions and opportunities.

✅ Improve efficiency and productivity: AI can help media agencies automate and streamline various processes and tasks, such as data analysis, media planning, media buying, campaign management, and reporting. AI can also help media agencies enhance their speed, accuracy, and quality, by reducing human errors, costs, and delays.

✅ Optimize performance and outcomes: AI can help media agencies measure and evaluate the impact and value of their advertising campaigns, by using advanced analytics, such as attribution, optimization, and prediction. AI can also help media agencies improve and adjust their strategies and actions, by using feedback and learning, to maximize their return on investment (ROI) and return on ad spend (ROAS).

✅ Reduce risks and challenges: AI can help media agencies detect and prevent various risks and challenges, such as fraud, brand safety, and measurement, by using anomaly detection, pattern recognition, and verification. AI can also help media agencies comply and adapt to various regulations and standards, by using natural language processing, sentiment analysis, and explainable AI.

Top 3 Media Agencies Investing in AI

Media agencies investing in AI is not a futuristic vision, but a present reality. According to a report by Digiday, 80% of media agencies are using AI in some form, and 50% of media agencies are planning to increase their AI spending in 2024.

The leading media agencies that are investing in AI are:

• GroupM
• Horizon Media
• WPP

GroupM

GroupM is the world's largest media investment group, with over $60 billion in annual billings. GroupM has been investing in AI for various purposes, such as enhancing data capabilities, improving media planning and buying, and creating personalized and dynamic creative. For example, GroupM has partnered with Google to use its AI platform, called Google Marketing Platform, to access and analyze data from various sources, such as Google Ads, YouTube, and Google Analytics, and to optimize and execute media campaigns across various channels, such as search, display, and video.

Horizon Media

Horizon Media is the largest independent media agency in the US, with over $9 billion in annual billings. Horizon Media has been investing in AI for various purposes, such as improving audience insights, enhancing media performance, and delivering business outcomes. For example, Horizon Media has developed its own AI platform, called HorizonAI, which uses machine learning, deep learning, and natural language processing, to provide real-time and predictive insights into consumer behavior, media consumption, and media effectiveness, and to optimize and personalize media strategies and tactics.

WPP

WPP is the world's largest advertising and marketing services group, with over $16 billion in annual revenue. WPP has been investing in AI for various purposes, such as accelerating innovation, increasing efficiency, and driving growth. For example, WPP has partnered with Nvidia, a leading AI company, to use its AI platform, called Nvidia Omniverse, to create and render realistic and immersive 3D content and environments, that can enhance the creative and interactive capabilities of advertising campaigns.

Possible Trends And Scenarios For The Future Of Media Agencies Investing In AI

Media agencies investing in AI is not a static phenomenon, but a dynamic and evolving one. Media agencies will continue to invest in AI, as the technology advances, the data increases, and the regulation adapts. Media agencies will also face new opportunities and challenges, as the consumer demands, the market conditions, and the social impacts change.

The possible trends and scenarios for the future of media agencies investing in AI are:

• AI-powered platforms and ecosystems
• AI-driven personalization and engagement
• AI-enabled creativity and innovation
• AI-responsible governance and ethics

🔆 AI-powered platforms and ecosystems: Media agencies will leverage AI-powered platforms and ecosystems, that can integrate and connect various data sources, technologies, and partners, and that can offer end-to-end solutions and services, from data to delivery, for advertising campaigns. Media agencies will also collaborate and compete with various players, such as tech giants, platforms, publishers, and in-house teams, who have access to more data, technology, and inventory, and who can offer more efficiency, transparency, and accountability.

🔆 AI-driven personalization and engagement: Media agencies will use AI to deliver personalized and engaging advertising experiences, that can match the preferences, needs, and goals of consumers, across multiple devices and platforms. Media agencies will also use AI to create conversational and interactive interfaces, such as chatbots, voice assistants, and virtual agents, that can provide 24/7 customer service, support, and guidance.

🔆 AI-enabled creativity and innovation: Media agencies will use AI to generate and optimize creative ideas, content, and formats, that can capture the attention, interest, and emotion of consumers. Media agencies will also use AI to discover and explore new and untapped audiences, markets, and channels, that can offer new and unique value propositions and opportunities.

🔆 AI-responsible governance and ethics: Media agencies will use AI to comply and adapt to various regulations and standards, that aim to protect the privacy, security, and rights of consumers, and that impose restrictions and obligations on the collection, use, and sharing of data. Media agencies will also use AI to ensure the transparency, accountability, and fairness of their AI solutions, and to address and mitigate the potential risks and challenges of AI, such as bias, discrimination, privacy, security, and explainability.

Media agencies investing in AI is a huge opportunity and a competitive necessity. Media agencies that invest in AI will be able to create and deliver value for their clients and partners, by enhancing creativity and innovation, improving efficiency and productivity, optimizing performance and outcomes, and reducing risks and challenges. Media agencies that ignore or lag behind in AI will risk losing their market share, profitability, and relevance. Therefore, media agencies need to act now and transform themselves into AI-first organizations, and become the media agencies of the future.

How to Choose a Media Agency that Invests in Artificial Intelligence Technology

Choosing a media agency that invests in AI can be a daunting task, as there are many factors to consider, such as:

Expertise: You should look for a media agency that has expertise and experience in AI, and that can demonstrate their AI capabilities and achievements. You should also look for a media agency that has expertise and experience in your industry, and that can understand your business objectives and challenges.

Strategy: You should look for a media agency that has a clear and coherent AI strategy, and that can align it with your marketing goals and needs. You should also look for a media agency that can offer a holistic and integrated AI solution, and that can cover the entire advertising value chain, from data to delivery.

Technology: You should look for a media agency that has access to and uses the best and latest AI technology, and that can leverage the power and potential of AI platforms and ecosystems. You should also look for a media agency that has a robust and secure data and technology infrastructure, and that can ensure the quality, availability, and scalability of their AI solutions.

Talent: You should look for a media agency that has a skilled and agile AI workforce, and that can attract and retain AI talent and skills. You should also look for a media agency that has a culture of innovation and collaboration, and that can foster a community of AI practitioners and enthusiasts.

Ethics: You should look for a media agency that has a sound and responsible AI governance and ethics framework, and that can ensure the transparency, accountability, and fairness of their AI solutions. You should also look for a media agency that can address and mitigate the potential risks and challenges of AI, such as bias, discrimination, privacy, security, and explainability.

How to Learn More About AI in Media Agencies

If you are interested in learning more about AI in media agencies, and how you can benefit from it, here are some resources and tips that you can use:

💡 Read: You can read various articles, reports, and books that cover the topic of AI in media agencies, and that provide insights, examples, and best practices. For example, you can read the Agency AI guide for marketers by Google, the How Digital Agencies Can Adapt To An AI-Driven Industry by Forbes, or the AI for Marketing and Product Innovation by A.K. Pradeep, Stan Sthanunathan, and Jim Lecinski.

💡 Watch: You can watch various videos, webinars, and podcasts that feature the topic of AI in media agencies, and that showcase the experiences, opinions, and advice of experts, practitioners, and influencers. For example, you can watch the How AI is transforming the media industry by IBM, the How AI is changing the future of media agencies by The Drum, or the AI in Media and Marketing by Paul Roetzer.

💡 Learn: You can learn various skills, tools, and platforms that are relevant and useful for AI in media agencies, and that can help you create and implement AI solutions for your own media campaigns. For example, you can learn the AI for Marketing course by Udemy, the AI Marketing Essentials course by HubSpot, or the Google Marketing Platform course by Google.

💡 Network: You can network with various people, organizations, and communities that are involved and interested in AI in media agencies, and that can offer you opportunities, support, and feedback. For example, you can network with the AI in Marketing Network, the AI Marketing Association, or the AI Media Group.

Final Thoughts

AI is transforming the media industry, and media agencies need to adapt and embrace it to stay relevant and competitive. AI can help media agencies enhance creativity and innovation, improve efficiency and productivity, optimize performance and outcomes, and reduce risks and challenges. However, AI also requires a clear vision and strategy, a robust data and technology infrastructure, a skilled and agile workforce, and a sound governance and ethics framework. Therefore, media agencies need to act now and transform themselves into AI-first organizations, and become the media agencies of the future.

FAQ about Media Agencies Investing In AI

How media agencies are using AI?

Media agencies are using AI to enhance their creativity, efficiency, performance, and ethics in the advertising industry. AI can help media agencies generate and optimize creative ideas and content, automate and streamline various processes and tasks, measure and evaluate the impact and value of their campaigns, and detect and prevent various risks and challenges. Media agencies are also investing in AI platforms, tools, and skills, and collaborating with various partners, to create and deliver value for their clients and consumers.

What is the world's biggest ad agency going all in on AI?

The world's biggest ad agency going all in on AI is WPP, which has teamed up with Nvidia to use its AI platform, called Nvidia Omniverse, to create and render realistic and immersive 3D content and environments for advertising campaigns. WPP has also been investing in AI for various purposes, such as enhancing data capabilities, improving media planning and buying, and creating personalized and dynamic creative. WPP aims to transform the way that brands create content and product experiences, and to drive innovation and growth in the digital advertising industry.

How will AI change the media industry?

AI will change the media industry by creating new opportunities, challenges, and value propositions for media agencies, advertisers, publishers, and consumers. AI will enable media agencies to enhance their creativity, efficiency, performance, and ethics in the advertising industry, by using advanced analytics, automation, personalization, and innovation. AI will also enable media consumers to enjoy more personalized, relevant, and engaging advertising experiences, across multiple devices and platforms.