Read The Times Australia

Daily Bulletin

Embracing the bots: how direct to consumer advertising is about to change forever

  • Written by: Kate Letheren, Postdoctoral Research Fellow, Queensland University of Technology
image

The tech revolution is coming to advertising. Chatbots are replacing humans, big data threatens our privacy, and the blockchain is linking it all together. In our series on tech and advertising, we’re taking a look at how the industry is being reshaped.

Soon, advanced computers won’t just be driving you to work, they’ll be selling you stuff as well. We can already see this in the form of chatbots.

Chatbots are artificially intelligent pieces of software, capable of maintaining a conversation with a human. While they aren’t perfect yet, they have markedly improved in recent years, leading some to claim 2017 will be the year that we finally see mass adoption.

Chatbots can already do some incredible things, such as operating a medical helpline, helping you plan your vacation, and even talking with you when you can’t sleep.

In the world of advertising, this represents a huge step. Chatbots are personalised, to the point, and all knowing, thanks to consumer tracking, big data, and machine learning. With the likes of Facebook jumping aboard, all of this is right in your pocket.

The rise of chatbots

According to American research firm Gartner, 85% of customer interactions will be managed without a human by 2020. Given this, businesses are beginning to invest and experiment in the space. Their bots have the capacity to do a great many things - provide personalised support for many customers at once (not just VIPs), recommend products and services, and assist during and after a sale. All without the need for humans.

The strength of bots is their ability to have tailored conversations, give personalised offers, and offer convenient purchases. Armed with data and serious computing, they can analyse patterns in our speech to decide when and what to advertise. They can also increase engagement and bring your brand personality to life.

In addition to all of that, bots are novel and a little bit human. This means we are less likely to get distracted than we would be with other digital options, like banner ads.

Personal assistant or sales assistant?

“Hey, I see you’re going to Gary’s party on Saturday. Need any help?”

What sounds like a conversation is the future of direct to consumer advertising. Chatbots won’t just remind me about Gary’s party, but accept his invitation, order a gift based on Gary’s preferences, arrange an Uber to the party, and maybe even move around tomorrow’s appointments for me.

Is this a personal assistant or advertising? The potential of chatbots is that they will be both: advertising will be intelligent, help will be on-demand, and it will feel like we’re being assisted rather than sold to.

The bots will recognise patterns, learn from us, and their suggestions will be there at exactly the right time. And unlike the personalised suggestions already provided online courtesy of consumer tracking, this advertisement will have a human touch and embrace natural conversation - the new wave of advertising will allow us to upscale personal selling in a way we’ve never seen before.

But they’re not there just yet

One thing standing in the way of widespread chatbot adoption is that they are a little creepy. This cause of this creepiness is two-fold.

First, there’s the uncanny valley. This is the phenomena, where we perceive a non-human as creepy because it is almost (but not quite) human. Some suggest that the answer here lies in not asking the bot to “act” human, rather, just let it be a bot.

A second source of “creepiness” is a feeling of invasiveness that might arise if the bot appears to know something that you haven’t told it. It is a delicate balance for bots: they should know enough to be helpful, but not enough to give consumers a sense of invaded privacy. They must use the information responsibly to build trust, and aim to provide a valuable service.

But the technology isn’t mature yet. This manifested spectacularly last year when a Microsoft chatbot named Tay started sending out offensive tweets. Even the CEO of a virtual assistant company has warned of the damage of a “low-IQ” bot. If advertisers exploit this technology before it’s ready, bots could become just another thing to be ignored when the “ads are on”.

This isn’t about the transaction, it’s about the relationship.

Looking forward

Artificial intelligence is constantly progressing, spurred on in part by competitions like the Loebner prize. With enough data and time, chatbots could become very convincing. In addition to seeing our bots become more seamless and eloquent, we could also see them more integrated across different technologies and functions: already users of virtual assistants can utilise them across loads of devices.

Likewise, bots can talk to other bots, coordinating a valuable experience for the consumer behind the scenes. Imagine how much more important these interactions will become as we enter our increasingly connected future. In addition to knowing what Gary wants for his birthday, will our bot also lock the house behind us and drive us to the party? If on the way home the bot reminds us to stop and get milk and some antacids (maybe that second slice of cake wasn’t a great idea), will we think of this as advertising or just thoughtful?

It’s a call we will all be making soon, as these bots increasingly enter our home and work lives.

In many ways, they are already here.

Authors: Kate Letheren, Postdoctoral Research Fellow, Queensland University of Technology

Read more http://theconversation.com/embracing-the-bots-how-direct-to-consumer-advertising-is-about-to-change-forever-70592

Business News

How Businesses Can Prepare for Unexpected Power Outages

Power failures can occur quickly. The supply may be interrupted by bad weather, issues with the electricity network, damaged equipment or local construction work. This can be just a hassle for a fam...

Daily Bulletin - avatar Daily Bulletin

How Chatswood Tutoring Can Fit Into a Student’s Weekly Routine

Create a Predictable Weekly Structure A consistent weekly routine can make study easier to manage when students are balancing several subjects. Chatswood tutoring can provide a fixed learning point a...

Daily Bulletin - avatar Daily Bulletin

The Rise of Digital Marketplaces in the Australian Trade Sector

For decades, the Australian trade and construction sector operated almost entirely on word-of-mouth recommendations and local community networks. Small business owners typically relied on local newspa...

Daily Bulletin - avatar Daily Bulletin

How Immigration Lawyers Can Help

Introduction Visa decisions can shape employment, family life, study plans, travel, and future residence. A small omission can lead to delay, added expense, or refusal. Immigration lawyers assess l...

Daily Bulletin - avatar Daily Bulletin

How Industrial Drying Equipment Supports Efficient Processing

Many industrial processes require moisture to be removed from compressed air, products or process materials before they move to the next stage. Excess moisture can affect equipment performance, produc...

Daily Bulletin - avatar Daily Bulletin

Practical Ways a Whiteboard Can Improve Workplace Communication

Effective communication helps teams stay organised, share ideas and keep track of important information. While digital tools are now common in many workplaces, a whiteboard continues to provide a simp...

Daily Bulletin - avatar Daily Bulletin

Designing Eco-Friendly Custom Water Bottles for Your Next Event

The Evolution of Sustainable Event Merchandise Event planning has undergone a massive transformation over the last decade. Gone are the days when organizers could hand out cheap, single use plastic...

Daily Bulletin - avatar Daily Bulletin

Why Choosing a Professional Florist Melbourne Makes Flower Delivery Impactful

Flowers have a great power to speak when humans cannot express their feelings with right words. Flowers are the best gifts when you are celebrating a birthday or welcoming a newborn child into your fa...

Daily Bulletin - avatar Daily Bulletin

The Business Case for Choosing Australian Fabricators Over Imported Alternatives

For a long time, you might have defaulted to overseas suppliers when sourcing fabricated metal components for a project. The unit price was lower on paper, and the maths seemed straightforward. That...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

How to Fix Poor Subfloor Ventilation in Older Homes

Older homes have character, but many were built before today's ideas about moisture and airflow were...

Early Engagement on Instagram: What Those First Reactions Really Tell You

The first few hours after an Instagram post goes live are worth paying close attention to. A massi...

Why Preventive Care Matters for Heavy-Duty Equipment

Heavy-duty equipment is designed to operate reliably under demanding conditions and over extended ...

7 Natural Tips to Restore Shine and Softness to Dull Hair

Healthy, lustrous hair often feels like an unattainable dream when you are dealing with dry, brittle...

Buying Property with Someone else? Settle these Questions First

Buying a home with a partner, a sibling or a friend can make a purchase possible that neither of you...

How to Handle a Blocked Drain in Bribie Island Before Starting Deck Repairs

Planning an outdoor upgrade brings excitement, but building a beautiful timber deck requires caref...

What to Look For When Selecting an Installation Specialist for Gas Stoves and Water Filters in Brisbane

Upgrading your kitchen or improving your home's water quality requires specialised skills. When mana...

What to Consider Before Cleaning Your Exterior: Deck Pressure Cleaning, Pressure Cleaning, and How Much Does It Cost to Pressure Wash a House?

Maintaining a home's exterior in coastal Sydney requires regular attention to combat salt spray, mou...

Signs Your Trailer Needs Professional Repair Before Its Next Long Haul

A long road trip can put considerable strain on a trailer, particularly when it is carrying heavy ...