What is Generative AI ?

The concept of Generative AI is hot from beginning of 2023. The technical industry becomes excited than ever before. The technical giants all around the world have started arm race on the generative AI products. Generative AI refers to the AI model that can be used to generate content based on what it has learned. It has begun to save work load dramatically in the daily r routine. Chat-GPT, Midjourney, Mircosoft designer, etc. All of them have been starting to replace the roles of repetitive work. Nowadays, generative AI models are used to compose product descriptions, write articles, design product posters, generate marketing assets, etc. More and more cases are coming out. As a veteran of online advertisement, I’m cautiously optimistic on how generative AI can change the world of online advertisement.

What does data mean for marketing

Along with the development of digital marketing, audience data becomes more critical for the campaigns. Nevertheless, how much can data help in the marketing campaigns ? No one can measure that so far like what was happening more than a century ago. Data plays a very sophisticated role in the online marketing for now, not only for marketers but also for the media providers/publishers as well.Obviously, data is not magic spell. Learning from many campaings, I found many failures were caused by mis-configured data. Moreover , marketers should not take audience targeting data as the only factor of successful campaigns. Meanwhile, publishers , in some cases may try to convince marketers to rely more on audience data that they can maximize outcome of limited amount of inventory.

What does Meta live with

Meta which was previously called Facebook, is a traditional social media company. Facebook is obviously their product once shocking the world. It brought brandnew social communication approach to the public. However, as all the other internet companies, it had headache on how to monetize what they have. By checking Meta’s earning report of 2021 and 2022, Advertisement took 99% of it’s income. It seems internet industry can’t find a monetization solution better than advertisement. Online advertisement is eventually a model of demand and supply. Apparently, Meta is on the supply side. Meta advertisement inventory can be devided into two categories, which are O&O inventory and 3rd party traffic. Meta now is monetizing Facebook, Instagram and Whatsapp. These apps are owned and operated by Meta. The other set is the traffic on the Facebook Audience Network. According to experience of other similar Ad platforms. O&O traffic and 3rd party traffic are taking different position within an online advertising company. Mostly, O&O traffic plays the role of profit generator, while 3rd party traffic plays the role of scale expander.Two types of traffic are working like gears matching and running the whole machine. Without O&O traffic, companies don’t have capability to build Ad networks from scratch. Withouth extenral 3rd party traffic, O&O traffic will be priced higher and higher and it will result in performance downgrade and advertiser leaving.