Conversational Advertising
Conversational advertising uses a type of ad format where the user is able to directly communicate or interact with the ad in real time, as opposed to clicking through to a different site.[1] Each interaction is then dependent on the user and keeps that user on the same site throughout the interaction.
How it works[edit]
The technology behind conversational advertisement can be constructed from chat bots, which learn and generate relevant responses, but is more often supported by preassigned answers constructed by writers. They construct multiple paths for the conversation to follow, like a tree diagram.
The digital ads appear online as clickable and interactive content that changes in real time; displaying a pre-scripted message to a specific customer in the hopes that it will provoke interaction for further information.[2]
The customer will then be able to select from predefined buttons or type in questions about the product from within the ad unit, which will subsequently be addressed using the same sorts of language science and sometimes artificial intelligence. It may also include additional incentives, such as a newsletter sign-up or the opportunity to try out the product.[3]
The unit can also provide the customer with a customised connection to a web page that is almost always more directly related to the customer's stated interests than the more generic ones connected from standard display advertisements, which generally need even more clicks to obtain the necessary information.
Once created, these ad formats can appear in the same locations as regular advertisement, including on publisher sites, websites and social media.
Usage[edit]
The purpose of conversational advertising is to enable consumers to notice and engage with the content from an advertiser. Secondly, conversational advertisement aims to help advertisers understand consumer interests. Beyond the engagement itself, conversational AdTech companies provide advertisers with the data to understand the degree to which the consumer is interested in their service or product. Successful conversational advertising will deduce what the consumer wants to see and provide that information.[4]
The unit can also provide the customer with a customised connection to a web page that is almost always more directly related to the customer's stated interests than the more generic ones connected from standard display advertisements, which generally need even more clicks to obtain the necessary information.[5]
Examples of types of engagement are: discussing product features, booking an appointment or buying a product through the interface.[6]
History[edit]
Domino’s Pizza launched their delivery order bot via SMS in 2016, quickly followed by the likes of Taco Bell on Slack and 1-800 Flowers through Facebook Messenger. [7] These early movers sparked an arms race for consumer brands dashing to exploit with this new frontier of automated customer interaction. Since then the tech has moved into ad formats.
Effects[edit]
Using conversational advertising can sometimes drive customer engagement, develop customer loyalty, grow customer bases and drive revenue.[8][9][10] It can also be used to collect data on consumer behaviour to be used in intent marketing.
Marketers and media buyers gather data to help them improve campaigns by determining which channels and placements provide the most meaningful interactions. They also gather relevant information about clients' wants and requirements, which they may use to fine-tune campaigns and even pass on to development teams.
See also[edit]
References[edit]
- ↑ Rapisardi,D., Tian, B. & Fatnani, A. (2018) 'Messaging Continuity and Lead Generation Using Conversational Ads', Technical Disclosure Commons. (Accessed 28 September 2021).
- ↑ "Conversational Advertising: The Definitive Guide [2019]". 25 February 2021.
- ↑ Rapisardi,D., Tian, B. & Fatnani, A. (2018) 'Messaging Continuity and Lead Generation Using Conversational Ads', Technical Disclosure Commons. (Accessed 28 September 2021).
- ↑ Grossberg, K. A. (2011) ‘2011 Conversational Marketing Summit in New York’, Strategy & Leadership, 39(6), pp. 48–50. doi: 10.1108/10878571111176637.(Accessed: 26 November 2020).
- ↑ Rapisardi,D., Tian, B. & Fatnani, A. (2018) 'Messaging Continuity and Lead Generation Using Conversational Ads', Technical Disclosure Commons. (Accessed 28 September 2021).
- ↑ Konstanta, S., 2020. The effects of anthropomorphism and personalization in the context of conversational advertising (Doctoral dissertation, Copenhagen Business School). pp. 2.
- ↑ Holani, A. (2019) Conversational Marketing and its Importance for Lead Generation, Engage Bay. Available at: https://www.engagebay.com/blog/conversational-marketing/ (Accessed 28 September 2021)
- ↑ Shacklett, M. (2019) ‘CONVERSATIONAL MARKETING: Ads with Instant Results: CHAT-INFUSED ADVERTISING IS DIGITAL MARKETING WITHOUT THE WAIT. (cover story)’, CRM Magazine, 23(5), pp. 21. (Accessed: 26 November 2020).
- ↑ Konstanta, S., 2020. The effects of athropomorphism and personalization in the context of conversational advertising (Doctoral dissertation, Copenhagen Business School), pp. 8.
- ↑ Liang, T. P., Lai, H. J. and Ku, Y. I. (2006), ‘Personalized content recommendation and user satisfaction: Theoretical synthesis and empirical findings’, Journal of Management Information Systems 23(3), 45–70.
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