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Machine Learning: Revolutionize Experiential Marketing

Machine Learning: Revolutionize Experiential Marketing

Momentum Worldwide, an experiential agency within Interpublic Group (IPG), believes that artificial intelligence (AI) and machine learning (ML) hold the key to delivering more personalized experiences and better measuring the success of experiential marketing efforts. 

The agency announced that it has secured three patents for using ML to manage and activate experiences, making it the first in its category to do so. Clients such as Coca-Cola and Walmart have already tested these innovative solutions.

Keep reading to find out why this is something you need to pay attention to.

Connecting the Dots Across Experiences

As experiential marketing grows more complex and multichannel, marketers face the challenge of being deliberate in their budgets and planning. Today's campaigns not only blend digital and mobile elements to cater to a smartphone-first world but also increasingly incorporate generative AI, as exemplified by Coca-Cola's recent Coke Studio promotion. Visitors to the studio at music festivals could create original tracks, album covers, and videos with the help of ChatGPT and other AI software.

"Having these capabilities means brands can finally connect the dots across experiences for the first time," said Elena Klau, chief strategy and product officer at Momentum Worldwide. "We are at an important inflection point where the technology and data investments we made years ago to secure these patents are finally being actualized for clients."

Navigating the Complexities of Modern Marketing

Jason Alan Snyder, global chief technology officer at Momentum Worldwide, emphasized the need for a comprehensive approach to modern marketing. "You have augmented reality, mixed reality, virtual reality, and you have what's happening in the Web3 space. All of those things have to be connected in modern marketing," he said in a statement. "What we needed to do was devise a methodology or a tool or a system in order to be able to do it. What is embodied in these three patents are the apparatuses, the methods, and the systems that enable that."

Momentum's initial focus lies in bringing a deeper level of personalization and precision to branded events like Coke Studio. However, the patents are also expected to provide valuable insights into how physical experiences affect sales – a long-standing point of interest for CMOs who want to prove that their creative efforts drive tangible results.

The Golden Goose: Measuring ROI in Experiential Marketing

Snyder highlighted the importance of measuring the ROI of experiential marketing, calling it the "golden goose" for the industry. "The ability to say, what's the value of this? If I do these things, what's the ROI?" he said. "It doesn't necessarily work like traditional media."

Momentum began exploring AI and ML applications in 2016 and filed the initial patents a year later, well before the recent ChatGPT craze brought AI to the forefront of marketing discussions.

The agency previously collaborated with IBM's Watson, an early mover in AI, and is currently developing partnerships with sister agency Acxiom and third parties like Palantir, Google, and Microsoft.

The Power of MLIUI: Multidimensional Machine Learning Data and User Interface Segment Tagging Engine

The three patents work together as a system called Multidimensional Machine Learning Data and User Interface Segment Tagging Engine Apparatuses, Methods, and Systems, or MLIUI. 

Rather than being a standalone product, MLIUI enhances Momentum's existing solutions under its Total Brand Experience. IPG's recent ventures complement this ML investment into quantum computing with partner D-Wave to solve data-intensive problems more efficiently.

MLIUI addresses five key areas for experiential marketers:

  1. Ingesting a high volume of data from different sources
  2. Processing that information
  3. Recognizing patterns in the data
  4. Designing predictive models
  5. Offering real-time adaptation

Snyder likened the process to watching a "multi-layered movie," where brands must keep track of various plots and characters, understand how they interrelate, and present a full picture that represents broader market trends and behaviors.

Positive Brand Response and Future Aspirations

While Snyder couldn't disclose much about the outcomes of the early experiments with MLIUI, he said that the brand response has been positive so far. Looking ahead, the executive shares the same hopes as many others in the AI field: that the technology will soon emulate the human touch more closely.

"We wanted a machine that would think and reason more like a human analyst that would provide not just data but meaning for answers and insights," said Snyder. "Not just telling you it's going to rain, which is data, but why it's going to rain."

The Future of Experiential Marketing

As experiential marketing continues to evolve and embrace new technologies, agencies like Momentum Worldwide are at the forefront of driving innovation and delivering more personalized, measurable experiences. By harnessing the power of AI and ML, marketers can gain valuable insights into consumer behavior, create predictive models, and adapt their strategies in real time.

The integration of generative AI, as seen in Coca-Cola's Coke Studio promotion, showcases the potential for these technologies to revolutionize how brands engage with their audiences. As more companies adopt these cutting-edge tools, experiential marketing is poised to become an even more powerful and effective channel for building brand loyalty and driving sales.

However, the success of these initiatives will depend on the ability of agencies and brands to measure and communicate the ROI of experiential marketing efforts effectively. By leveraging the capabilities of MLIUI and similar systems, marketers can finally connect the dots across experiences and demonstrate the tangible impact of their creative endeavors.

As Momentum Worldwide and other agencies continue to push the boundaries of what's possible with AI and ML, the future of experiential marketing looks bright. By staying ahead of the curve and investing in these transformative technologies, brands can create more engaging, personalized, and measurable experiences that resonate with consumers and drive business growth.

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