AI is apparently whetting appetites for more than creative exploration. Yum Brands, which owns Taco Bell, KFC and Pizza Hut, says its new AI-driven marketing campaigns are driving more customers into stores, increasing purchases and reducing churn. Trials with “personalized marketing campaigns” that leverage artificial intelligence to produce are leading to strong results, according to the company. Meanwhile, Coca-Cola has revamped its circa 1995 “Holidays Are Coming” TV ad with the help of artificial intelligence and production studio Secret Level, though the critical and customer reaction to that has reportedly been mixed. Continue reading Small to Super-Sized Businesses Are Getting a Boost from AI

A new study by Roku and National Research Group found that streaming may be a more effective marketing tool for theatrical exhibition than social media or television. According to the research, 44 percent of what the survey categorizes as “moviegoing streamers” claim a trailer on a streaming service would increase their interest in seeing a film in a theater while 43 percent indicate the same of trailers on social media. These numbers slightly edged out the 41 percent who say ads on broadcast or cable TV would encourage them to visit a theater. However, it’s worth noting that the survey also suggests 72 percent pay more attention to TV commercials than ads on social platforms. Continue reading Roku and NRG Study Finds Streaming Benefits Theater-Going

Toys R Us is the first company to use OpenAI’s generative video platform Sora to produce a commercial, or what is being described as a “brand film.” With a running time of 1:06, the spot depicts company founder Charles Lazurus as a young boy, “envisioning his dreams” for the toy store and mascot Geoffrey the Giraffe. It was co-produced and directed by Los Angeles creative agency Native Foreign co-founder Nik Kleverov, who has alpha access to the pre-release Sora. Toys R Us says that from concept to completed video, the project came together in just a few weeks to premiere at the 2024 Cannes Lions International Festival of Creativity. Continue reading Toys R Us and Native Foreign Create Ad Using OpenAI’s Sora

Instagram is testing unskippable ads that will appear in users’ feeds. Screenshots of the new ad unit, which users can’t scroll through, began circulating on sites like Reddit and X, prompting general outrage, followed by confirmation that the test is underway. The ads include a countdown timer like those used in some streaming shows that prevent the ability to fast forward and also lock users onto the message without the ability to browse elsewhere on the site until the ad plays through. The approach is similar to the YouTube model for ads that appear before and midway through videos. Continue reading Instagram Users Angered by Test of ‘Unskippable’ Video Ads

Roku has applied for a patent on technology that is said to be able to display ads over any device plugged into your television. According to reports, the patent application describes a system that interacts with devices connected to TVs via HDMI, which could include everything from cable boxes, DVD or Blu-ray players, game consoles, PCs or other video-streaming devices. The patent, filed by Roku in August 2023, was published three months later, but still hasn’t been granted. The idea is to have even more ways to display ads when consumers aren’t actively streaming content. Roku already does so on its screensaver and home screen. Continue reading Roku Unveils Tech to Show Ads on All TV Connected Devices

Amazon this week began serving advertising to Prime Video customers who did not elect to pay an additional $2.99 per month in addition to the basic annual Prime membership of $139 per year or $14.99 per month. Adding commercials is estimated to potentially bring in more than $3 billion a year for Amazon, which is expected to have 2023 revenue of around $567 billion. The surplus will come in handy to pay out $1 billion a year over 11 years for the rights to NFL’s “Thursday Night Football.” The ad-supported Prime Video service launches in the U.S., Canada, UK and Germany, with Mexico, France, Italy, Spain and Australia following later in the year. Continue reading Amazon Stands to Gain $3 Billion a Year from Prime Video Ads

Audiences are migrating from broadcasting to streaming, and Google just announced its decision to phase out third-party cookies. What’s a marketer to do? At CES, Disney, Pfizer and GroupM marketers discussed how they plan to evolve in a changing landscape. The Walt Disney Company’s Lisa Valentino emphasized the need for interoperability of data across platforms, with the consumer at the center. GroupM debuted its Ad Innovation Accelerator to “strategize and create scalable ad formats that are designed to be ubiquitous across ad-supported streaming environments.” Partners include BrightLine, Disney, KERV, NBCUniversal, Roku, Telly and YouTube. Continue reading CES: Marketers Shift Tactics in Streaming, Post-Cookie World

As the pressure ratchets up for AI companies to go beyond the wow factor and make money, Stability AI has formalized three subscription tiers as it seeks to expand commercial use of its open-source, multimodal core models. The Stability AI Membership offerings include a free tier for personal and research (i.e., non-commercial) use, a professional tier that costs $20 a month, and a custom-priced enterprise tier for large outfits. The company says that with the three tiers it is “striking a balance between fostering competitiveness and maintaining openness in AI technologies.” Continue reading Stability AI Is Offering Paid Membership for Commercial Users

Amazon Prime Video plans to introduce commercial breaks to its popular streaming service early next year, following top platforms such as Disney+, Netflix and Warner Bros. Discovery’s Max, which already offer ad-supported tiers. The company indicates it will run fewer ads than traditional linear TV broadcasters and broadband rivals but has yet to specify numbers. Subscribers in the U.S. who want to keep the streaming service ad-free have the option of paying an additional $2.99 per month. Amazon explained that its strategy to include ads would help it “continue investing in compelling content and keep increasing that investment over a long period of time.” Continue reading Amazon Prime Video to Run TV Commercials Early Next Year

YouTube is increasingly popular among connected TV (CTV) viewers who no longer turn to the social video service only for music videos or one-off skits. YouTube says that in the U.S., 65 percent of CTV watch time is on content that is 21 minutes or longer. The shift has prompted the Google-owned platform to change its approach to display advertising. The company is experimenting with longer but fewer ad breaks and limiting creator control with regard to ad placement on new videos. A new countdown timer more prominently displays the time until an ad ends or can be skipped. Continue reading YouTube Connected TV Popularity Prompts Ad Break Testing

Google-backed AI startup Runway has released Gen-2, an early entry among commercially available text-to-video models. Previously waitlisted in limited release, the commercial availability is impactful, since text-to-video is predicted as the next big bump in artificial intelligence, following the explosion of AI use generating text and images. While Runway’s solution may not be ready to serve as a professional video tool, this is the next step in development of tech expected to impact media and entertainment. Filmmaker Joe Russo recently predicted that within the next two years, AI may have the ability to create feature films. Continue reading Runway Makes Next Advance in Consumer Text-to-Video AI

At its Brandcast Upfront event, YouTube introduced the concept of 30-second unskippable ads for top-performing YouTube content on TVs, drawing comparisons to the linear commercials of old. The company is also starting to test “Pause Experiences,” which are commercials that play on TV screens when viewers pause content. YouTube touted its massive television reach, citing December Nielsen data indicating more than 150 million unique viewers of YouTube and YouTube TV on television sets in the U.S. That data allowed YouTube to claim title to America’s No. 1 most-watched streaming service on TVs. Continue reading YouTube Unveils ‘Unskippable’ 30-Second TV Ads at Upfront

Stability AI has released StableLM, an open source language model that will compete with OpenAI’s GPT-4 to create apps like ChatGPT. The Alpha version of StableLM is available in 3 billion and 7 billion parameters, and the company promises 15 billion to 65 billion parameter models to come. “With the launch of the StableLM suite of models, Stability AI is continuing to make foundational AI technology accessible to all,” the London-based company said. The StableLM models can generate text and code to power various downstream applications with appropriate training. Continue reading Stability AI Debuts Open Source StableLM Foundation Model

The business-oriented Magic Leap 2 AR headsets will debut in three models on September 30 in global territories including the U.S., Canada, France, Germany, Italy, Spain, the UK and Saudi Arabia. The Magic Leap 2 Base starts at $3,299. There is a midrange Magic Leap 2 Developer Pro, working up to the Magic Leap 2 Enterprise, which sells for $4,999. Smaller and lighter than its 2018 predecessor, Magic Leap 2 comes with a hip-worn AMD processor, offers a wide field of view, and has a dimmer that can be applied to background visuals to make virtual objects pop. In the U.S., Magic Leap 2 will be available through IT solutions reseller Insight.  Continue reading Magic Leap Will Target the B2B Market with New AR Headset

Burger King released a TV ad in which an actor activates the Google Home digital assistant to describe the ingredients in the Whopper sandwich. Prompted by the actor, Google Home searches Wikipedia for the Whopper and lists the makings of the sandwich. Within hours of the ad’s release, however, both The Verge and BuzzFeed discovered that the commercial no longer activated the device. Burger King did not work with Google to create this marketing approach, and Google reacted by stymying it. Continue reading Google Blocks Burger King Ad From Activating Google Home