Currently, the digital media is in a transitional phase, where the format of the medium is changing from text-based to one with visuals. Due to this significant shift, advertising has to play catch up, to stay up-to-date with the latest trends the industry. On top of that, the marketing industry has to deal with ad-blockers, which blocks out intrusive advertisements. According to a study done by PageFair, there are at least 615 million devices that use Adblock regularly. As you can imagine, getting through these ad-blockers is an uphill task, because they keep disruptive advertisements at bay.
Luckily for marketers, there is a solution at hand- GumGum, an artificial intelligence company. To help marketers find a solution to the current problems in advertisements, GumGum uses image recognition.
What is image recognition?
Image recognition is a subgroup of Artificial intelligence, where computers use complex programming to understand and differentiate visual media. Out of all the types of artificial intelligence available to us at the moment, we shall focus on Computer Vision.
What exactly is computer vision? It is a variant of artificial intelligence that allows computers to receive, process, and scrutinize visual data. For computers, to be able to break down and understand this type of data is challenging because visual sources are extremely complex. As computers don’t possess pre-defined knowledge like humans, they don’t have a proper way to go through visual data.
Computers understand that pixels make up images, but they don’t know how to identify an object from them. To be able to do this, computers need to know the different types of patterns and shapes which form objects. As you can imagine, this is a huge learning curve for computers.
To teach computers how to recognize the various elements in visual data, complex programs are required. Thanks to machine learning, computers are able to go through millions of data on a regular basis. Over time, computers can recognize patterns and identify how different combinations make objects.
How does GumGum use image recognition?
GumGum uses image recognition technology to go through all the videos, images, and other types of content from millions of web pages. Thanks to its artificial intelligence, GumGum can identify the publisher of the articles. It is also able to pick up the keywords and the object of importance in the article.
After going through tons of data, GumGum places advertisements on the image in such a way that it ensures that consumers pay attention to them. For example, Ripple Foods decided to partner up with GumGum to market their product which is milk that uses peas as its base. GumGum was able to go through a large number of non-dairy, fitness, organic living, and health-related images from a plethora of publishing websites from around the world. By analyzing these images meticulously, GumGum started placing advertisements for Ripple Foods at the bottom of all the web pages and images.
Let’s take a look at another example; Placed, where the objective of GumGum was to try to come up with a solution that has a positive impact on attracting consumers to go to resorts and hotels when they were traveling. First, GumGum started going through a variety of premium websites for health, lifestyle, and travel. After breaking down the data, GumGum was able to find out the ideal demographic, and which day and time engagement rates were high. With these types of data, GumGum started placing ads in such a way that the right consumers get the message at the perfect time.
Impact of GumGum on online advertisement
Thanks to GumGum’s artificial intelligence working with Placed, 148,000 guests chose to stay in resorts and hotels. The return on advertisement spending (ROAS) was a mindblowing 4777%. The engagement rates rose by 3.14 times the industry average. The cost per acquisition with Google Search averages at $60.31. For Google Display, the cost per acquisition ranges around $45.28. However, with GumGum’s artificial intelligence, the cost per acquisition went down to an astonishing $4.73.
The Click Through Rate (CTR) of GumGum’s advertisements rose by 2.47%, which is twenty times more than the standard advertisements. Viewability increased 77.3%, which is 24.5% higher than the average in the industry. Lastly, brand recall with GumGum is 50% higher than traditional display advertisements.
Similarly, working with brands such as Fleischmann’s Yeast, Mazola, and Garmin, GumGum has been able to improve the quality of attention, engagement, and CTR considerably.
GumGum has made a significant impact on online advertisement because of its ability to target specific consumers. Companies such as McDonald’s, BMW, Bank of America, HBO, LG, and L’Oréal are some of their clients.
Growth of GumGum
After being in the market for 10 years, GumGum is in the perfect position to make sense of all the visual content online. In 2017, the revenue of GumGum increased from $72 million to an astounding $110 million, which is a remarkable 53% growth.
For the past six years, the compound annual growth rate (CAGR) of GumGum has hovered around 99.4%. Thanks to its phenomenal success in Australia, Japan, and the UK, GumGum has witnessed more than 400% growth in revenue.
GumGum will continue to see incredible growth as its impact is outstanding!