Alexa, Turn off the Microphone (What about Artificial Intelligence?)

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1 Alexa, Turn off the Microphone (What about Artificial Intelligence?) Alex Cheng, Vice President, Baidu Search and CTO, Baidu USA Matthew Groner, Vice President, Head of Product, AdTheorent; AI Committee Co-Chair Jordan Bitterman, Chief Marketing Officer, The Weather Company, an IBM Business; AI Committee Co-Chair Susan Borst, Deputy Director, Mobile, IAB

2 Artificial Intelligence New Engine for China Digital Marketing Alex Cheng Vice President, Baidu Search CTO

3 Enormous Internet Population in China Internet Penetration (Million) CHINA 710 INDIA 460 USA 290 Source: BCG Research & Baidu Internal Data

4 Great Potential for China Internet Penetration Internet Penetration Developed Countries 85% China 52% Source: BCG Research & Baidu Internal Data

5 Massive Spending in Chinese Digital Economy Spending in Digital Economy ( Billion) $ 967 bn $ 1133 bn Source: BCG Research & Baidu Internal Data

6 Rapid Growth of China Internet CAGR 25% CAGR 32% Internet Users ( ) Spending in Digital Economy ( ) Source: BCG Research & Baidu Internal Data

7 Younger Internet Demographic in China Average Age of Internet Users Age - 42 Age - 28 Age < 25 Internet Users in China Source: BCG Research & Baidu Internal Data = U.S. Population

8 Rapid Tech Adoption in China China vs. U.S.: Time to Reach 50% User Penetration E-commerce Online Video 14 Years 9 Years Yet to reach 50% 6 Years Mobile Payment 4 Years Yet to reach 50% Ride-Sharing Yet to reach 50% 3 Years Source: BCG Research & Baidu Internal Data

9 Thriving Digital Marketing in China Total Ad Spending (Billion) 49% 51% 66% 34% Traditional Ad Spending Digital Ad Spending Traditional Ad Spending Digital Ad Spending $ 81.1 bn $ 199 bn Source: emarketer 2016 & Baidu Internal Data

10 Rapid Adoption of AI in China Traditional Media Era PC Era Mobile Era AI Era 1960s 1990s

11 Baidu Leads AI Revolution in China #1 Chinese Search Engine By #Search queries 2016 total revenue #1 Fastest Growing App in China By Y-o-Y DAU Growth Rate (15.6%) 78% Mobile Search Market Share #1 Video Platform By Time Spent on PC & Mobile (Billion Minutes) $10.2 bn 124:66 (#2) 383:267 (#2) Source: Quest Mobile 2017; iresearch, based on N=400K samples, Jun. 2017

12 Baidu AI Drives Information Access 2.0 Search User to Information User Feed Information to User Information Search 1.0 Search+Feed 2.0

13 Baidu AI: Recognized as Technology Leader Baidu`s speech recognition technology listed as one of the top 10 breakthrough technologies of 2016 by MIT Technology Review Baidu s autonomous driving technology ranked #1 on 4 out of 6 indicators on KITTI in 2016 MIT Technology Review lists facial recognition technology as one of the top 10 breakthrough technologies in 2017, singling out Baidu as a key player Baidu's Little Fish smart speaker was named one the 14 coolest products at CES 2017 by CNN MIT Technology Review ranked Baidu second on its annual list of world s smartest companies In 2016 Baidu s Duer OS was awarded 2017 Product with the Most potential at the Geek Park Innovation Festival

14 Baidu Brain: Disruptive Technology Voice Technology Natural Language Image Technology K Knowledge Graph Video Technology Augmented Reality Data Intelligence Deep Learning

15 Baidu AI Powers the Future of Marketing User Insight Cross Media Reach Smart Interactions In-Market User Profiling Knowledge Graph Intent Engine Search Feed Smart Screen Image Technology Voice Technology AR/VR Technology

16 User Insight Cross Media Reach Smart Interaction

17 Extensive User Profile via Millions of Tags Vertical Profile Industrial Application Finance Education Retail Travel Real Estate FMCG General Profile Personal Application Demographic Location Interest Intention App Preference Dynamic Study of 400 Million DAU by 10 Million Tags

18 User Intention based Knowledge Graph Baby Food Registration newborn Mother Baby Growth Personal Health Child Education Baby Health Baby Care Covering 32 Industries, 127 sub-industries

19 User Insight Cross Media Reach Smart Interaction

20 Online to Offline Cross Media Tracking Time Locatio n 博物馆剧院 情侣约会 文艺 餐厅 球场 餐饮 亲子互动 电影院 购物 地铁站 Personal Screen Brand Re-search User Profile 桌游吧 读书 棋牌室 同学聚会 运动 Interests Offline Scenarios 休闲 朋友聚餐 购物中心 娱乐 机场 Demographi c Public Screen Scenario Planning for Marketing Multi-dimension Tracking Ad Tracking & Insight Cross Screen Tracking

21 Interlinking Consumer Decision Journey 产后瑜伽咨询流 观看产后瑜伽视频 搜索奶粉排行榜 百度知道浏览内容 S 美赞臣奶粉咨询流 F 搜索美赞臣奶粉 S Baby Food F Fitness S 搜索西直门附近瑜伽馆 前往青鸟瑜伽西直门店 Smart screen Mobile Phone 进入天猫雅培官方旗舰店 看到雅培信息流广告 F 通过品牌专区广告进入美赞臣官网 Healthy Food 前往西直门凯德 mall 店 收到百度糯米优惠信息推送 App Outdoor Screen 购买百度糯米牛市牛优惠券 进入百度糯米查找附近美食 New Born Mother Online to Offline Consumer Decision Journey Cross Media Reach

22 User Insight Cross Media Reach Smart Interaction

23 AI Robots: Lead Generation and Customer Interaction

24 视频页

25 2017 Cannes Lions Festival of Creativity Silver Winner

26 视频页

27 Baidu AI in Marketing: Consumer Insight Cross Media Reach Smart Interaction AND WHAT S MORE?

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29 Content Marketing is here to stay Source: Content Marketing Institute 29

30 IAB Content Studio Showcase 2017 Presenters 30

31 IAB Content Studio Showcase 2017 Presenters 31

32 IAB Content Studio Showcase Registered Brands 32

33 IAB Content Studio Showcase Key Themes 1. Publishers know their audience best and can prepare content in a way that they know will resonate with their audiences. 2. Publishers are in the content business. They have top notch creative access to execute with excellence. 3. Publishers are adept at distributing content on both their owned and operated properties, as well as on paid distribution platforms, usually on social media sites. 33

34 IAB Content Studio Showcase Best Practices Resist the urge to sell. Brand/publisher collaboration is key to success. 34

35 IAB Content Studio Showcase Special Guest Speaker 35

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