Problem: Recently, Rex Woodbury wrote about the AI-Generated Internet in his latest blog post on Digital Native. In it he talked about Barbie’s extremely expansive, 100-brand collaboration and campaign.
Barbie's marketing campaign is one of the more ingenious (and one of the more inescapable) in recent memory.
Barbie has over 100 (!) brand collaborations in market, ranging from Crocs to Pinkberry, Burger King to Xbox. The internet is papered in Barbie ads.
Watching Barbie succeed at breaking through the noise of the internet, again and again, reminded me how tall a task that is in 2023. There’s a glut of advertising content online; digital advertising is a ~$670B market and now accounts for over 66% of the total global ads market. Attention is finite, and we’re inundated with an ever-expanding sea of content. The average person sees 4,000 to 10,000 ads a day (!).
And we’re about to see *a lot* more ad content online, powered by AI.
A study last week estimated that by 2025 to 2030, 99% to 99.9% of the internet’s content will be AI-generated. Advertising won't be spared.
The intersection of advertising & AI is one of the most interesting spaces to watch. We're seeing early signs of innovation. Treat, for instance, uses AI to generate creative for CPG brands. The goal is to find the best product images that drive conversion. Shopify, for its part, launched Shopify Magic to generate product descriptions for product detail pages. Maybe it becomes easier for ads to break through the noise when ads are hyper-personalized, generated just for you.
By 2030, I expect that a good portion of the product images, banner ads, and even YouTube pre-roll ads we see are generated by AI.
Another interesting space: the intersection of UGC and AI. User-generated content is the lifeblood of the web; soon, user-generated *generative* content (UGGC?) might take its place. Creative tools are already amplifying people's creative abilities—Runway (video), Alpaca (photoshop), ElevenLabs (voice). More online content will shift to UGGC over time.
And as AI bleeds into content, likeness rights will be interesting to watch. The actors' strike right now highlights this issue: shouldn't actors, not studios, own their likeness? What happens when studios can create films starring Tom Cruise or Margot Robbie, without even needing the actors present?
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Solution: This business is written by ChatGPT:
One idea for a billion-dollar startup in light of the post is to develop an AI-powered platform that creates highly personalized and engaging advertisements, aiming to cut through the noise of the crowded digital ads market. The platform could generate ad content specifically tailored to individual users based on their preferences, past behaviors, and real-time interactions with the internet.
Let's call it AdGenie.
AdGenie would take the concept of personalized marketing to new heights by using advanced machine learning algorithms to understand users' tastes and preferences in real-time and generate hyper-personalized ads. Unlike the general AI-generated ads, which might not resonate with everyone, AdGenie's personalized AI-generated ads will ensure a higher chance of conversions because they are directly relevant to the user's interests.
AdGenie would create a synergistic relationship between User-Generated Generative Content (UGGC) and AI. It could include an innovative feature where users have the option to engage and co-create their ads with the platform's AI, potentially increasing user satisfaction and ad effectiveness. This engagement could foster a community around the product, encouraging users to interact more with the platform.
AdGenie can leverage existing technologies like deepfake and voice cloning to create realistic, lifelike ads featuring favorite celebrities or influencers. This could be done in a way that respects and protects likeness rights, for instance, by obtaining proper licenses from actors or influencers to use their likeness for ad creation.
Furthermore, AdGenie could expand into other verticals like content marketing, social media marketing, etc., creating personalized content for various platforms. The content could range from blog posts to social media posts, email marketing, video ads, etc., all generated in real-time and based on individual user data.
To ensure ethical use of AI, AdGenie could have built-in privacy features to anonymize user data and provide a clear opt-in/opt-out choice to its users. By combining AI, personalization, and respect for user privacy, AdGenie could pave the way for the future of advertising, reshaping the ~$670 billion digital ads market.
This idea presents a blue ocean of opportunities and has the potential to become a billion-dollar startup by tackling some of the key pain points in the digital advertising industry.
Contributed by: Michael Bervell (Billion Dollar Startup Ideas)