#32. Rome is Burning
AI is lighting up marketing budgets. Who will be the first Klarna copycat?
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Greetings all.
We are beginning to see a few seismic precedents. And within these challenges may lie opportunities that will require agencies to dig deep to determine the favorable circumstances that may be presenting themselves. With this thought in mind …
1. AI helps Klarna cut marketing agency spend by 25% and run more campaigns.
May 28, 2024 – Klarna, the AI-powered global payments network and shopping assistant, in a daring move that defies convention, has slashed its sales and marketing expenditure by a staggering 11% in Q1 2024. Yet, this noteworthy cost-cutting measure belies an audacious strategy - a masterful leveraging of artificial intelligence to unleash a torrent of campaigns and marketing collateral updates.
From Klarna —
"AI is helping us become leaner, faster and more responsive to what our customers care about, leading to a much, much better experience," says David Sandström, CMO at Klarna. "And we’re actually driving more marketing activity while saving tens of millions of dollars a year."
He continues - “Traditionally, it would have been very costly to cater to these occasions with bespoke imagery but with AI that is no longer an issue and we can create relevant imagery to support practically any event. Essentially, we have removed the need for stock imagery.”
The following trifecta of AI-driven efficiencies has upended traditional marketing norms:
External Agency Cataclysm: With a merciless 25% reduction in external supplier costs, spanning translation, production, CRM, and social media agencies, Klarna has exacted a efficient $4 million in annualized savings.
Image Production Paradigm Shift: Harnessing the boundless creativity of generative AI behemoths like Midjourney, DALL-E, and Firefly, Klarna has orchestrated a seismic $6 million reduction in image production costs. This feat is all the more remarkable given the company's unprecedented surge in campaign volumes and sheer image output.
Turbo-Charged Efficiency & Creativity: In a feat reminiscent of marketing alchemy, Klarna conjured over 1,000 AI-generated images in the first quarter of 2024 alone. This has compressed the image development cycle from a sluggish six weeks to a blistering seven days - a temporal warp that ensures brand consistency, image quality, and legal compliance with unflinching vigilance.
From Klarna —
Klarna has a close partnership with OpenAI. Klarna employees across the company have built over 300 GPTs for internal use. There are more than a dozen AI driven projects within marketing alone, and over 100 across the organization.
As the marketing universe stares at a distance at this audacious AI-fueled renaissance, one truth resonates: In the realm of Klarna, artificial intelligence has not merely optimized processes - it has rewritten the fundamental laws of marketing possibility.
Holy cr-p.
One side note: As efficiencies grow and channels continue to fragment, we will need more creative, more assets, more stuff. Also, experiential and shopper could experience a technology boom more fun than expandable banners. From just-in-time supply chain upgrades to sci-fi engaging retail experiences. Just a hunch. One long-term approach I would look for is that brands won’t be looking to bank marketing dollars as much as make those dollars (and their agencies) work harder and/or go farther.
2. Agencies need an AI ad campaign or PR plan to keep employees from losing their … you know what.
I wrote this prior to the Klarna headline, so please allow me to temper this entry by stating you might want to hide the above story from some, as it is a bit over-the-top. Okay - let’s begin.
An Ad Age opinion piece - AI Job Fears—How Employers Can Ease Workplace Anxiety and Embrace Innovation. May 24, 2024.
Let your employees know what the plan is. So have a plan, communicate it, and anxiety levels go down. That’s the essence of the story.
According to Gartner, employers can ease anxiety by articulating a vision for how AI will make their lives better. This is crucial because businesses risk their employees becoming stagnant and the company falling behind if they fail to embrace AI.
A great example - office chairs. Before replacing ALL of them, you might want to circulate a memo stating your vision for future-proofing seating comfort. A schedule would be great. A contact person if you have concerns regarding new furniture.
Over communicate. Common sense. In the case of AI, you might want to kick in a town hall. Go here If you want the long form of the above.
And meanwhile Rome is burning.
3. You love PowerPoint. You know you do.
Sooooooooooo I collect things. My Evernote account has become a dumping ground of all things AI-related. It is with the best of intentions that I hang onto these things; hoping I can find time to diagnose and learn whatever it is.
Since PowerPoint is the life’s blood of advertising I thought I’d unload some AI power tools to make your preso’s less sh-tty. And with that, I pass along to you:
Top 10 12 Less ###### Presentations (untested) AI Power Tools.
✳️ Beautiful.ai
Create stunning presentations with one click. AI-powered design elements ensure a consistent, professional look.
✳️ Simplified's AI Presentation Maker - simplified.com
Craft on-brand presentations in minutes. This tool promises user-friendly AI assistance to bring your vision to life.
✳️ Slidebean - slidebean.com
Tailored for startups and founders, Slidebean helps you create winning pitch decks with a focus on clarity and persuasion.
✳️ Sendsteps AI at SENDSTEPS.COM
Sendsteps is the first AI-powered presentation tool that creates presentations 10x faster than traditional methods.
✳️ Designs.ai
Streamline presentations with a comprehensive platform. Use AI to create layouts, visuals, and full slides based on text.
✳️ Pitch.com
Storytelling and audience engagement are key features. Leverage AI for impactful visuals and a memorable narrative.
✳️ Presentations.AI
Stand out with AI-powered voiceover narration. Breathe life into your presentations and keep your audience captivated.
✳️ Gamma - located at gamma.app
Gamma's AI-powered templates offer versatility. Tool offers features like "Enhanced Content Engagement" for maximum impact.
✳️ Kroma.AI
Kroma's presentation features include design, content creation, and analytics. Visualize and interact with data using AI.
✳️ Decktopus.com
Users can customize slides for specific target audiences and objectives with Decktopus AI's personalized presentations.
✳️ Tome.app
Improve your workflow with Tome's AI integrations. Create presentations with unique features like Text-to-Image AI.
✳️ DeckRobot.com
DeckRobot handles the heavy lifting for you. Upload your content and let AI generate a complete presentation.
I added two extra apps. These are un-tested so feedback and no blame to theadstack@adverstuff.com or in the comments below.
4. TikTok
TikTok One, is a hub that gives advertisers access to creators, creative tools, agency partners and measurement
TikTok Symphony, serves as an umbrella for the platform’s AI-powered tools, which includes support for scriptwriting, video production and asset optimization.
For brands, the company debuted two new tools: Interactive Add-Ons for TopView, which lets advertisers add pop-out elements and countdown stickers, and Duet with Branded Mission, which lets advertisers participate in duets alongside creators.
TikTok also launched Unified Lift, a tool that combines conversion and brand data to give a more comprehensive view of a campaign’s impact.
5. Be Gone Fraudsters and Your Card Skimming.
Direct from Mastercard - Mastercard is using generative AI to cut down on fraudulent use of stolen credit cards. Preferably prior to usage by the bad guys.
Thank you for the read.
Feel free to share comments below. If you enjoyed this read and you’re not lame, please smash the heart icon …
…at the top or bottom of the page so others can find this article. Re-stacking is great too (that’s the green thingie on the right).