Author name: Shubranshu Singh

AI AI Oh

A tiger lives as long as its teeth. Likewise, AI feeds and lives off data. Chat GPT feeds on 1trn words and the more they feed the more ravenous they get. With such computing power at hand, the data sources within the present internet seem manageably finite and are near exhausted. [siteorigin_widget class=”SiteOrigin_Widget_Image_Widget”][/siteorigin_widget] In the oceanic proportions of Big Tech, generative artificial intelligence has been like a Tsunami. Launched in November 2022, ChatGPT had racked up 100m users within 60 days. The hottest ticket in tech investment, it pulled $40bn in venture capital in the first six months of the fiscal. But the novelty is wearing off. ChatGPT use has declined and search volume for “artificial intelligence” and “AI” has declined. But consumer exposure and interest are not the real metric for its progress and traction. A boosted-up AI ecosystem is taking shape driven by computing power. Hence the commercialisation of AI will be dependent on Microsoft and Google leading the way. Open-source models are coming into the world of generative AI. Hugging Face, an AI establishment, estimates nearly 1,500 versions of such models. A tiger lives as long as its teeth. Likewise, AI feeds and lives off data. Chat GPT feeds on 1trn words and the more they feed the more ravenous they get. With such computing power at hand, the data sources within the present internet seem manageably finite and are near exhausted. One quest is to get the force multiplying network effects so prized in tech. Meta hopes that llama will gain a loyal community of programmers. Abu Dhabi plans to establish a company to help commercialise far and wide applications of Falcon, its open source AI model. Who will emerge victorious? Openai , with its vast number of users has an edge. Google has the advantage of data structure expertise and vast monetary resources. The prize will go to the efficient model-builder that has a core capability to produce and weld together data and that takes an early lead in branding. The prize is world mastery. No wonder that President Biden has issued an executive order with an aim to regulate how U.S. companies develop AI and how regulators oversee it. The order will create standards for American companies and public agencies. Invoking the ‘Defense Production Act’, authorizes the American President to mobilize U.S. industry to support national defence. The US aims to remain the global leader in regulating the fast-growing tech, with the British government hosting an international summit meeting on A.I. safety this week. The order requires content created by A.I. systems to be labelled to minimize the effect of “deep fakes” a concern shared across democracies which see it as a potential systemic risk. Yesterday, more than 100 world leaders, tech honchos, global power hitters including Elon Musk started a two-day “safety summit” on artificial intelligence, hosted by Britain’s government. Bletchley Park , the historic site of Britain’s secret code-breaking unit during the second world war is the meeting venue. It is thought that these discussions may lead to a possible quasi-governmental institutional arrangement like the Intergovernmental Panel on Climate Change. The “AI Safety Summit” is an effort to rein in potentially damaging AI. The European Union’s aiming at an ambitious AI act within the calendar year. China, party to the meet in London has already unveiled a “Global AI Governance Initiative” earlier in October. Traditionally Big Tech, in fact all tech, opposed regulation but the world and its ways have changed and now giants such as Google and Microsoft are keen on it. This is because entry barriers are low, and iterations can go from being on a laptop to a global storm within days. Imagine an AI model revealing details on nuclear and bioweapons. The concept of truth and facts can also be shredded. But regulatory requirements are viscous and intrusive rules slow everything down. Thus far, non-binding codes of conduct have been preferred. Britain’s existing “Frontier AI Taskforce” may be the first off the block but without American and Chinese participation nothing will crystallise. The race to regulate AI has started across power corridors in those world capitals that matter. Link: https://brandequity.economictimes.indiatimes.com/news/digital/ai-ai-oh/104901608

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A brand is a live memory – remember that

Brands are made from memory. Memory is made of stimulus. Memory is brand building. [siteorigin_widget class=”SiteOrigin_Widget_Image_Widget”][/siteorigin_widget] The modernist, playwright, memoirist, philosopher, psychologist, novelist and nonfiction writer Elias Canetti won the Nobel Prize in Literature in 1981. He was profoundly interested in the question of the individual versus the collective. He wrote “Of all the words in all languages know to me, the greatest concentration is in the English word I.” What is this ‘I’? When we open our eyes in the morning, is there some boot file that kicks in and suffuses our being with this sense of ‘I’ ? Is it an act of retrieval of memory? If my memory is wiped out, I cease to be me to myself but I am still alive in the collective memory of others. It brings up many questions critical for brand building. How do we remember things? Why are some things memorable and not others? Do we retain everything we live through even if we can’t actively recall it ? Why are childhood’s first memories often unfaded till the end of our lives but we forget the number of the hotel room where we stayed only two days ago? All these questions are not well understood or evidenced. But we know more than ever before. Memory is not about the profound or the perfunctory. Familiarity does not breed contempt. It builds memory. Evolution honed the ability to learn quickly aided by memory development. Where do we get the ability to determine what is important and what is trivial? Many argue that brands associated with a few things really distinguish themselves in the minds of consumers as against those with but one differentiator. The essence of the argument is that ‘distinctiveness matters, differentiation doesn’t’. Often treated synonymously -differentiation and distinctiveness – how must they be defined when considered in terms of memory formation and retrieval? Differentiation is a benefit or ‘reason to buy’ for the consumer. Distinctiveness is a brand looking like itself. Distinctiveness is thus the essence of ‘being a brand’ and is legally defensible, while differentiation is not. Distinctiveness is in the body of the tangible offering or service. Differentiation is in the mind. The truth is you need to differentiate and be distinctive. You can’t do one without doing the other.  A brand’s locus standi is to differentiate one supplier from another. That is why we have trademark law against imitation or counterfeiting by another. Any aspect of the brand’s identity or expression: the name, logo, tagline, the colours, the imagery, the packaging shape, the copylines etc. comes into play because it is remembered and recalled. Consideration is always a subset of awareness. We can all think of brands that we recognize and thus are able to differentiate purely on their logo alone. Often we don’t even need to see the whole logo – one letter or one half of the logo will give us the clue we need. The third rule of differentiation would be what we would call the ‘meaningful’ differentiation, the reason you buy or prefer a brand because of something that they do which particularly appeals to you. Being better or at least being perceived to be better is a differentiator. The fact is people know what is distinctive, familiar and recognizable about their Cola, shampoo, online retailer, airline or automobile. Todd Horowitz and Jeremy Wolfe, two researchers at the Harvard Medical School, showed that no memory is employed during certain types of visual searches. When dealing with the truly trivial, the brain does not evidently bother to learn anything. When you drive home from work, you are in a flow aided by landmarks and unbothered about the visual stimuli elsewhere. This is true when you walk down a store aisle packed with competing brands. It follows that if everything encountered in life is not stored away somewhere in the brain then retrieval is not the real challenge. Rather, it is the construction of the memories in the first place that is of critical importance to brand marketers. Memory -short-term, intermediate and long-term – is distinguished by different biochemical activities within nerve cells. Only in the case of long-term memory are entirely new groups of proteins produced changing the physical structure of the brain by stimulating the formation of new connections between nerve cells. Memory researchers know that memory is minted in the hippocampus. People who suffer hippocampal damage are unable to form new long-term memories. The hippocampus is in the middle of the brain. But these patients recalled significant earlier memories from before the damage. It means the brain can store memory elsewhere into a long-term storage site. That archive is in the neocortex-the most recently evolved part of the brain. When we encounter anything new by way of environment, groups of nerve cells in its hippocampus start firing off electrical signals. Then, the neocortex and hippocampus fire in synch at night and transfer happens. This was researched in the case of mice by Matthew Wilson, at the Massachusetts Institute of Technology, and Bruce McNaughton, at the University of Arizona. When asked to think of a brand, very often we -at first – go to the visual identities, colour schemes and the tagline. The experience and associations come later to mind. It is so because these distinctive elements are encountered most frequently. Advertising changes but these remain the same. Thomas Carew, a neuroscientist at Yale University, found that most reliable way to build a long-term memory is through repeated exposure. He studied the effects of exposing nerve cells to a molecule called serotonin; a neurotransmitter responsible for carrying signals from one nerve cell to another across synapses. The takeaway from research was that if a nerve cell is exposed to the same amount of serotonin, but it is delivered not in one long pulse but as a series of short pulses with intervals then the retained memory span lengthens. Hence incidence and frequency may make the even the mundane memorable. But before closing,

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Digital Payments: A Revolution Of Consequence

In a cash-hoarding culture, it has been evidenced that money itself has no commodity value but rather its value emerges based on how it allows credit to originate, get transacted, recorded and settled, writes Shubhranshu Singh [siteorigin_widget class=”SiteOrigin_Widget_Image_Widget”][/siteorigin_widget] In my opinion, the Unified Payments Interface (UPI) is as defining and significant for India as a universal adult franchise or the green revolution. It has strengthened our society, polity, democracy, economy and global standing. It has shown us again that money is a social technology. In a cash-hoarding culture, it has been evidenced that money itself has no commodity value but rather its value emerges based on how it allows credit to originate, get transacted, recorded and settled. It is this social technology of transferable credit which is a primal force called money, or finance. In India, UPI is revolutionising it. Within no time, it has transformed the Indian digital payment landscape and emerged as the default choice for money transfers, particularly smaller transactions. Consequentially, India has emerged as a global leader in payments, thanks to its next-generation real-time payment systems. Factors such as the proliferation of smartphones and widespread internet access have catalysed this transformation. According to RBI data, UPI transactions have witnessed a 428 per cent surge, soaring from Rs 2.9 lakh crore in July 2020 to 15.33 lakh crore in July 2023. UPI transactions breached the Rs 1,000-crore mark in a single month for the first time in August 2023. India has topped the list for digital payments. Our payment volume is more than the sum of all digital payments made in the next four leading countries. Of all real-time payments made worldwide in 2022, nearly half were made in India. The “digital public infrastructure” as it is termed, is India’s low-cost, tech-based provision of identity, payments and data management. In hindsight, the foundational importance of Aadhar is now manifest. The near-universal coverage allowed the basis for the Unified Payments Interface. Launched in 2016, it accounted for nearly 80 per cent of all non-cash retail payments in India now. The third pillar involves data management facilitated via Digilocker. The repository and the key is the ubiquitous cell phone. This combination of financial access, ease and inclusion has proven itself a game changer, a ‘win-win’ for all concerned that has aided velocity, volume and profitability. Almost every government scheme – central or state is run with ‘direct benefit transfers’ straight to Aadhaar-linked bank accounts. What makes it even more impressive is the demonstrated ability to scale and the complexity it has managed to harness in delivering it. Its enabling digital ecosystem includes government agencies, regulators, tech firms, public corporations, NGOs and universities working together effectively in real-time. This is also a fabulous example of tri-sector collaboration involving the public -social and private sectors with key players seamlessly operating across boundaries. Now, India has an opportunity to do a Made in India for ‘Paid in India’.  With India’s support the third world can leapfrog beyond where the West is at present. These digital building blocks can be used modularly to enable global transformation. India is offering its technologies and platforms for free hence the expectation is that Indian-made digital systems can become the widely accepted infrastructure. We also have the software services muscle to help with implementation and maintenance. With scale, India’s self-sufficiency in domestic payments can scale up to cross-border payments and remittances as well. UPI apps are free of charge- to consumers or businesses- unlike the vastly profitable duopoly of Visa and MasterCard. I would term the QR code as a ‘Quiet Revolution’. It is a mark of new India with the ability to connect a billion people in an instant payment system. That a homegrown digital network has made bigger strides than any in the developed West is a source of pride but more importantly, it has the power to bring all transactions into the formal economy thus shaping it. The scan-and-pay system is the bedrock “digital public infrastructure,” that allowed an unprecedented channel for instantaneous benefits transfer and fiscal transactions. We are a unique country where physical infra is chasing digital infra. Equally significantly, it is a public-private model that positions India as a provider, guide and facilitator for the world’s poorer nations. Truly revealing is its composition – more than half the digital payments are small or micropayments. That is a significant behavioural shift in what has long been a cash-driven economy. I was Director Marketing for South Asia at Visa between 2011 and 2014 when some of the most significant advances were begun that redefined India’s digital payment ecosystem. UIDAI began the work then for basic pillars of the digital infrastructure — the identity number which eventually led to bank accounts and mobile phone apps and made it easier to deliver services. I did a campaign called ‘Dream To Advance’ to publicise the use of Visa Debit online. We had made an ambitious plan to make banking correspondents at every street corner by biometrically enabling this infra. I met Nandan Nilekani a few times back then and came away energised on every occasion. It was clear the ambition, plan and consequences were game-changing. Back then nothing but cards and net banking existed. Independent payment processors were just beginning to come into play, principally through mobile bill payment facilitation. Nilekani had a clear vision of where we ought to be. Thanks to consistent governmental backing, today we have reached the first horizon. The UIDAI, NPCI, Jan Dhan and UPI all have built one atop another. In markets where digital payments have taken hold, the converted do not regress to earlier methods. Making voice-based and offline digital payments as an expansion of the current infrastructure will bridge the gap between rural and urban areas. The rural penetration has been hampered by sparse internet access and lower levels of literacy. ‘Conversational payments’ will address this gap and UPI users will be able to make verbal transfer instructions on their phones which will be processed using AI-based speech recognition to

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Shubhranshu Singh Envisions Growth In India’s Marketing Landscape

Generative tech does not threaten marketers but enhances their capabilities, says Subhranshu Singh, Chief Marketing Officer – CVBU, Tata Motors [siteorigin_widget class=”SiteOrigin_Widget_Image_Widget”][/siteorigin_widget] For Shubhranshu Singh, marketing wasn’t just a career choice but a calling. His entry into the world of marketing was driven by a desire for unending curiosity and creative challenges. He looks at marketing as a discipline that intertwines with virtually every aspect of the world, from finance to sociology or entertainment to consumer trends. The Marketing Scenario With India’s robust economic growth and an increasing consumer base, Singh predicts a significant upswing in marketing budgets. He envisions ad spends increasing by 13-15 per cent in the upcoming year. He notes that established industry leaders often drive ad spend growth, but newer sectors such as ecommerce and edtech may exhibit more caution in the short term. In the age of digital dominance, the debate between digital and traditional media rages on. Singh emphasises that both have their roles to play in the marketing mix. While digital media has witnessed tremendous growth and has become a part of daily life, traditional media, especially television, remains a significant and effective medium. In regional markets where language plays a crucial role, traditional media holds its ground. Events such as the ICC World Cup continue to draw viewership to television, indicating that it’s far from losing its relevance. Marketer’s Role in AI Age The rise of generative technologies has raised questions about the future of marketers. Singh believes that the rise of artificial intelligence (AI) does not threaten the existence of marketers but enhances their capabilities. “AI’s ability to simulate human-like interactions and enhance personalisation is valuable, but it does not diminish the significance of marketers,” he says. Singh believes that marketing inherently involves creativity, empathy and an understanding of human behaviour. AI can assist in the creative process but cannot replicate the depth of human insight. As regulations surrounding data privacy and security become more stringent, Singh views these developments as positive for marketing. Stronger data protection norms will increase consumers’ trust in brands. “Brands that earn consumer’s trust will have greater permission to use first-party data and provide more personalised and valuable experiences,” he says. Marketers who respect data privacy and use data responsibly will earn consumer trust and deliver more personalised and relevant experiences. Data is an asset, but its ethical and responsible use is paramount. “Marketing is about creating value and enriching lives,” states Singh. His advice for budding marketers is around the importance of curiosity, honesty and a balance between analytical and creative thinking.   Link: https://www.businessworld.in/article/Shubhranshu-Singh-Envisions-Growth-In-India-s-Marketing-Landscape-/16-09-2023-491581/

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The problem of being Big: Big Tech will run out of ways to keep up its scintillating growth and profits

With developments such as generative AI, Big Tech may be at a point of inflection. [siteorigin_widget class=”SiteOrigin_Widget_Image_Widget”][/siteorigin_widget] Tech has never been bigger. Alphabet, Amazon, Apple, Meta and Microsoft, put together, are almost a third of the S&P 500 market capitalisation. Last year, their total capital spending was $360 billion. That alone is more than the GDP of Pakistan. With developments such as generative AI, Big Tech may be at a point of inflection. For the incumbents, their bigness may become their biggest challenge in staying ahead. To be sure, ‘big’ in the case of tech is truly awesome. Be it revenue, profitability, consumer contact, community, ubiquitousness, Google’s holding company—Alphabet—would qualify as the all-time, most successful combination of brand, business and technology in the history of the world. But what if big were to prove an eventual challenge? Google search, the Android mobile operating system, the Chrome browser, Google Play Store for apps, Workspace productivity tools and YouTube each has more than 2 billion users per month. Add Google Maps, Translate, Google mail and more. The Economist reported that “humans collectively spend 22 billion hours a day on Alphabet’s platforms.” What does Google sell and who are the buyers? It sells attention and engagement to advertisers. Revenues have grown at an average annual rate of 28% since its IPO in 2004 and almost 80% of inflows are for online ads. Never sliding back in any quarter, Alphabet has generated $460 billion of cash. Its share price has risen 50-fold, making it the world’s fourth-most-valuable company. Isn’t this enough, one would ask. Not quite. Alphabet’s ‘bread and butter’ digital-ads business is maturing. Data is the new oil, attention the oil wells, and the internet its refinery. With a base of $300 billion in annual revenues, new oil wells are not throwing up the gushers and growth is a challenge. Enough has been said about the end of third-party cookies and resulting impact, but given what’s at stake, there isn’t clarity—forget consensus—on available new means to reach, target and engage. It will impact measurements of effectiveness and its consequential monetisation. It seems bizarre, given the context of Alphabet’s awe-inspiring success, that now its investors want cost efficiency and capital discipline. Insider Intelligence expects the annual increase in global digital ads sales to stay within 10% or less in the next few years, down from a rate of 20% or so in the past decade. Hence, the anxiety is legitimate. For a total pie of about $700 billion, further share gain on part of Google will invite scrutiny from regulators. Sundar Pichai may be no Rockefeller, but there are enough concerns in the US concerning its search monopoly such as its arrangement with Apple and others, whereby it pays a reported $10 billion a year to be the default search engine. This may be one area which ironically brings the liberals and the conservatives together as each suspects such scrutiny is manipulated by ‘the other’. Action has ensued. Although search remains immensely lucrative, with operating margins of nearly 50%, its pathways are mutating. Now direct video search on YouTube, TikTok, Instagram counts high up among the options. The flip side is that video doesn’t monetise in equally profitable ways. As chatbots and other “generative” AIs have seen burgeoning presence, based on the appeal of a likeness to human-generated content, Pichai’s insistence that Alphabet is an “AI-native” company may ring true. That said, will its scale matter? Alphabet shares trade at a lower price relative to earnings than Apple or Microsoft, and not much higher than the S&P 500 index of big American firms. This is a tell-tale data point. Apple transformed itself from a desktop brand to a mobile-phone powerhouse. Microsoft matured from a desktop OS player to a cloud-computing ace. Investors and analysts may have demolished Mark Zuckerberg’s bet on the metaverse, but let us remember that Apple and Microsoft spent years in the cold too. Specifically on the metaverse, Gartner is still hopeful. According to its analysis, the metaverse is still in its early stages of development, but it is rapidly gaining traction. Gartner predicts that by end 2023, it will reach a tipping point where it will become a mainstream platform for social interaction, commerce, and entertainment. The year 2022 may have been Big Tech’s annus horribilis, but the firms are back in the circus. Artificial intelligence (AI) going mainstream will boost the fortunes of Big Tech and challenge them at the same time. These giants—Alphabet, Amazon, Apple, Meta and Microsoft—have been growing revenues and profits in double-digits for 10 years and counting. That is unprecedented in the history of business of that size. But that may also be the undoing. Big Tech will run out of ways to keep up its scintillating growth and profits. This is the reason that at the first signs of slowdown, the markets punished these giants severely. Except Apple, each one has had multiple rounds of layoffs. The count is as high as 70,000 workers altogether. Ambition will lead to tech cannibalism. All the big players operate in overlapping areas such as cloud computing, advertising, gadgets, new services. Of course, like the traditional big corporations with sputtering growths, new-age tech giants may also look to purchase growth. Microsoft cut a $69-billion deal to buy growth via the acquisition of Activision, which has revenues of $8 billion per annum. Margins will be strained. Growth will stall. Upstarts will bring new technologies to market. Then, Big Tech will start to shrink till incumbents give way to new players or effectively reinvent themselves. This all may seem fantastical and highly unlikely now, but will come within half a decade. The future arrives in stealthy ways, especially to topple the ‘Big’. Shubhranshu Singh, Vice president, marketing (domestic & international business), Tata Motors. Views are personal.   Link: https://www.financialexpress.com//opinion/the-problem-of-being-big-big-tech-will-run-out-of-ways-to-keep-up-its-scintillating-growth-and-profits/3248792/lite/

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Simply Speaking: The T20-fication of content; TikTok and the fame to flame story

The idea of bringing advertising closer to entertainment and pop culture was always a theoretical no brainer but never a practical choice of the mainstream players. [siteorigin_widget class=”SiteOrigin_Widget_Image_Widget”][/siteorigin_widget] TikTok’s rise is meteoric. Yes, it’s creating a new generation of celebrities – many of whom are younger than the YouTubers who came before them. But the rise of TikTok has wider ramifications, arising from the fact that it was made by, and is still owned by, a Chinese company. (Representational image by Alice Donovan Rouse via Unsplash) Physicist Michael Goldhaber coined a term in 1997 to describe how he believed the world economic order would change in the internet age. He noted that the present world economy is often characterized as an information economy. However, economies get built on underlying scarcity, whereas information is truly more abundant than ever. What is scarce is people’s attention. Therefore, he predicted correctly that “seeking attention” would become a core activity of the digital age. He called it the “attention economy” where attention is not only a resource but a currency: users pay for a service with their attention. Goldhaber wrote that the global economy is shifting from a material-based economy to one based on the capacity of human attention. All consumer decisions are meditated even when seemingly impulsive. Hence we must ask: Is influence proportional to fame? Is media exposure as a driver of celebrity sustainable even if effective? Why does public attention lead to sell-ebrity ? Has public visibility as a means for personal branding become a free for all in the age of the all-pervasive internet? Is the notion of authenticity central to evaluations of content or is it more a worthy mention than an honest concern? As brands worked to build themselves out into social media personalities, individuals on social media worked to simplify and distil their personalities into easily understandable personal brands. At an exhibition in Stockholm in 1968, the American pop art pioneer Andy Warhol wrote: ‘In the future, everyone will be world-famous for 15 minutes.’ Back then it was an inconceivable, outrageous idea but now reality has caught up. There are no socially acknowledged benchmarks for fame. Virality can propel anyone to instant fame in a blaze of glory. Then, the next dud video takes the star back to relative anonymity. Now, a run of successful self-shot videos can propel an individual to the orbit of a celebrity creator multi-millionaire. In Warhol’s time, fame was awarded to a few by a small set of gatekeepers -editors, publishers, culture builders, public relations folks. You had to be admitted. Achievement led to admission. And admission, in turn, led to achievement. There was no way to storm the gates. Today, a single, super-fast, ever-mutating social media app with Chinese ownership with an inscrutable algorithm is the biggest fame engine. The science of fame building in terms of network has been very sharply summarised by Albert-László Barabási  in his book The Formula: The Universal Laws of Success. “A few years ago, physicist César Hidalgo and his team devised a way to rank the most famous people of all time. The criterion used for the Pantheon project was the number of languages a person’s Wikipedia pages appear in. The most famous musician? Jimi Hendrix. The most famous American? Martin Luther King Jr. Perhaps inevitably, the classical Greek philosopher Aristotle heads the entire list. Among celebrities, reality-television star Kim Kardashian comes 14th, although her fame clearly outweighs any recorded achievement “ wrote Mark Buchanan in his review in  Nature, the leading science journal Barabási claims that such paradoxes are reflective of deep social laws that can be understood through science. Success and recognition in many realms may have only a tenuous link to effort, skill or inherent excellence. We need to test how influence and attention flows through social networks. TikTok is not charmed by prior celebrity stature. Anyone has the potential to go viral on TikTok. Its algorithm works on what’s called a ‘content graph’, looking at what folks previously engaged with, rather than a ‘social graph’ – based on followership. That makes it possible for a video to go super-viral from very ordinary origins. TikTok’s rise is meteoric. Yes, it’s creating a new generation of celebrities – many of whom are younger than the YouTubers who came before them. But the rise of TikTok has wider ramifications, arising from the fact that it was made by, and is still owned by, a Chinese company. The way we consume content is closely linked to our lifestyles. Today, we live in an on-demand economy. When we care, we share. Mobility is on demand be it Uber, Lyft or Grab. Tinder, Bumble, Raya help us date. Music on demand is a rage be it Spotify or Apple Music. We eat on demand with Uber Eats, Deliveroo, Swiggy or Zomato. We watch content on demand and YouTube is a universe of its own. But there is also Netflix and Amazon Prime Video. We rate services and value experiences. This consumer pays for exactly what he wants and when he wants it. This is consumption maximisation and not demand minimalism. The new ‘on demand’ consumer refuses to pay for anything not needed. We increasingly cut the cord from cable TV companies and use ad blockers. Therefore, the idea of bringing advertising closer to entertainment and pop culture was always a theoretical no brainer but never a practical choice of the mainstream players. The big spenders invested in branded content as a fad. Through till Y2K, the global mainline agencies carried the mental baggage of the golden era of print and television. There is no denying that, following the success of campaigns such as BMW Films many similar attempts by brands and talented creatives resulted in failure. Meanwhile Facebook and then Instagram grew at a never before seen pace. Then, into such a playing field walked in TikTok. In Jan 2013, about a year after Zhang Yiming founded ByteDance , a video sharing platform Vine, that was TikTok’s spiritual forefather, came into existence.

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Simply Speaking: All about the Olympics of creativity

Attending Cannes Lions makes you think like a marketer, create like an entertainer, deploy like a tech platform, writes Shubhranshu Singh. [siteorigin_widget class=”SiteOrigin_Widget_Image_Widget”][/siteorigin_widget] Tech, diversity and inclusion was pretty much at the heart of the agenda and not something auxiliary, novel or exotic. The biggest headline from Cannes was ‘The arrival of AI’. The mainstage takeaways were broadly positive qualifying it as a developing but vast area which will be a means and an end at the same time. (Image sourced from Cannes Lions website)   Firstly, I sensed like there were two parts to the entire Olympics of creativity – One that spoke of the message and the other that was all about the means. The bigness and the buzz aside, I wish for Cannes to get even more revitalized as the apex festival of creativity rather than an expo of digital plumbing and ad tech. Kraft Heinz would be a perfect Ad for Cannes itself, swinging back like a pendulum from 3G Capital’s mandated zero-based budgeting to being a big winner for creativity. Its partnership with with Gut, the agency made headlines this year. That’s acute business sense feeding into a renewed culture of creativity. Anheuser-Busch InBev (AB InBev) as Creative Marketer of the Year for a second year in a row arrived with all the effervescence and the froth it deserved. I sensed that creativity is being seen through the lens of effectiveness and results. Brands have over purposed themselves to excuse creative license. Business needs payback. I was head of Jury for the APAC Effies this year, and every time I had to remind myself and the jury that results and effectiveness was above all other criteria. That great results were garnered using creatively enriching ways was a clincher or a bonus. The Cannes weightage is the other way around. The end list is equally credible. Tech, diversity and inclusion was pretty much at the heart of the agenda and not something auxiliary, novel or exotic. The biggest headline from Cannes was ‘The arrival of AI’. The mainstage takeaways were broadly positive qualifying it as a developing but vast area which will be a means and an end at the same time. There were no awards for AI-generated campaigns, yet but I saw AI and machine inspired creative expressions being generated and shared. It was good to see the absence of doom and gloom but no votes were cast for whether generative AI is a force for good or evil. I imagine in its day, a Xerox machine, a graphics software package and the internet itself could have been qualified as bigger and more imminent disruptions or tools. And I am serious. The marketing fraternity’s self-convened leadership has an adoration of the icing more than the cake. The younger talent may have a more balanced response, I suppose. I heard Sir Martin Sorrell say he feels there is no case for 10,000 media planners in the world and that an algorithm will always do a better job than a 25 year old media planner. I agree and I sense he knows this is already a ‘pending past due date’ reality. Clay Shirky said something along the lines that society changes when it adopts new tools, not when it invents them. I think we must keep our focus on the technology adoption cycle. Hype hurts developments more than it hurts corporations. Look at Meta and look at Metaverse. Nobody talks about trains that arrive on time, so therefore they’re all late! If our ancestors had assumed the pose of Rodin’s The Thinker every time they had to decide whether to flee a predator or an enemy, humanity would have become extinct a long time ago. Urgency of assimilation is more important than urgency of innovation. So, can any man who buys a salon kit be a stylist? There is no entry barrier to harnessing generative AI to build creative assets, iterate and ideate, refine audiences, measure outcomes and engineer relevance into every prospect and customer interaction. That YouTube, Google, Amazon and TikTok were the biggest destination pavilions acknowledged that we are living in a digital advertising world but programmatic spending was under discussion. Wasted ad spends, programmatic transparency, inclusion lists and bright-listing of publications were spotlighted. Given where the world spends its digital money, I think a hard look at made-for-advertising sites based on the quality of the user experience and the ad to edit ratio is much required. The media agencies can seem like the pied piper leading both clients and platforms to a lower payoff. I am not being alarmist, just mindful. There is an acute need for advertisers to tap into unduplicated reach through whichever publishers in digital, video and audio deliver it. Trusted news sources are top of the list. More and more brands are dedicating budgets toward minority owned media outlets and taking a more thoughtful approach to media spend. This is an excellent step forward in creating a fairer environment and will only go farther as the industry adopts new standards for identifying these outlets and scaling campaigns. The separation between editorial and advertising must be reclaimed for journalistic purity’s sake. But, we must think of the world where as advertorials fade, so would many of the storied publications. I felt the entire discussion on digital in a world of enforced privacy was a bit muted. It isn’t about the regulatory environment, privacy expectations or auditability. It’s about rebuilding the tech stack with a privacy-and-compliance-first mindset across all consumer touch points. Marketing in the post-cookie world will take cross-industry collaboration. The principle of advertising as an unavoidable interruption of the content experience rose from the ashes stronger than ever with the growth of digital media. Publishers will scramble to leverage first-party data. Brand advertisers will need an understanding of the right audiences. There will be a new marketplace of first- and second-party data vendors set to change the future of buying. Apple is cracking down on tracking on Safari and

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Simply Speaking: Velvet rope – the tightrope between longing and belonging

Broadly the quest for status via consumption is an intended outcome of prestige brand consumption. It signals that we have access, to something exciting, enriching and more fun. [siteorigin_widget class=”SiteOrigin_Widget_Image_Widget”][/siteorigin_widget] To make bonds, connections and emotive associations is the nature of social man but all the while he craves the halo of singularity. Indeed, we are unified in our hunger for exclusivity. (Image: Andrik Langfield via Unsplash) Building reach is the start of all glory in marketing. Reach before you preach. Get famous before you try to persuade. Facts feed narratives that in turn get woven into stories. These stories create a reputation, and a brand is nothing but a ‘reputation of reputations’. This is taken as sine qua non across categories. When it comes to prestige and luxury, the essence holds but mutates in form. In this world, the knowing must invoke the craving not the having. It is important for luxury to remain accessible at a stretch. Those who desire desperately often never end up deserving, that’s the cruel reality. This need to belong to the ‘in crowd’ is what fuels the fire of desire.Reach many but be accessible to a few. A velvet rope has become the very hard boundary between the in and the out crowd. The red carpet lies beyond this red rope. A ‘velvet rope’ is used literally of course, but even more so figuratively. It marks the barrier which may be only a foot or two off the ground yet it may take a lifetime or even generations to cross over. The velvet rope is credited to George and Louise Boldt when they opened the first Waldorf hotel, later to become The Waldorf Astoria, on 33rd Street and 5th Avenue in New York City in 1894. But it was at another New York legend, Studio 54, in the year 1977 that Ian Schrager and Steve Rubell, made it a high symbol of ‘admission restricted’ as the marker of status and cool. The dance club ran for four short years, but it burned into collective memory the desire is to make it past that velvet rope and belong to the select few. Jean-Paul Sartre’s famous, existentialist dictum ‘L’enfer c’est les autres’ – ‘Hell is other people’ can be a benchmark for successful modern ‘prestige roping’. Make no mistake, the ultimate goal for all prestige brands is maximization of revenue but being rare and scarce builds and protect a brand’s equity. Traditional mass marketing is about serving needs, prestige brand building is the business of creating desire. Their job is to keep us wanting …to stand and shine above and beyond their competition, creating an allure that goes beyond reason. The desperation should be such that the response can only be a rush to splurge and indulge. The one major defining conflict -largely subconscious- is that between individualists and collectivists. A modern prestige powerhouse brand relieves this contradiction by only staying slightly out of reach, balancing inclusivity with exclusivity. You are never permanently in but never out forever either. Forever longing for a sense of belonging. How is this balance between inviting proximity and maintaining distance made possible? The brand expansion is always done top-down. The showcase targets are very aspirational to the volume targets. Immense care is taken to nurture and foster relationships with a small base of tastemakers and trendsetters. Growth is best when gradual, carrying along original fans as continuous proof of their superiority and desirability as well as advocates/evangelists to help them target and convert the broader market. The entire approach must preserve a sense of rarity, a feeling of exclusivity strategically controlling supply to foster demand. Underlying it all is a simple outpricing of some consumers to give the rest a feeling of being in. Broadly the quest for status via consumption is an intended outcome of prestige brand consumption. It signals that we have access, to something exciting, enriching and more fun. Man is pulled by two contradictions the need to belong and the need to stand out. The urge for exclusivity assumes that the others will know of it. Even when exceptional, man wants recognition of the envious collective. To make bonds, connections and emotive associations is the nature of social man but all the while he craves the halo of singularity. Indeed, we are unified in our hunger for exclusivity. The MINI brand is a great example of this act particularly since its re-launch in 2001, with the BMW group, A classic case on how to market without over-marketing. They built desirability and equity while growing at double digit rates, all the while adhering to a rule of ambiguity that folks buy into the lifestyle with the MINI, but they need a lifetime to belong. When it launched in the US, it deliberately limited sales to 25,000 cars of the 200,000 that were then produced annually. Of course, they wanted to conquer this most important market of all, but they wanted to build and protect their elusive-exclusive equity at the same time. A tightrope indeed, and quite a gamble, but it paid off. Playing hard to get and yet, or rather because of it, making it all the way to the top. They created a sense of scarcity and exclusivity of belonging to a certain aspirational elite of creative and cultured sophisticates. Evolutionary psychologist Geoffrey Miller describes this as ‘the two audiences’ in his seminal work Spent. Advertisements for accessible luxury goods typically find themselves in magazines with broad circulation. The brand can reasonably assume that most people reading that magazine are unlikely to make a purchase, but widespread advertising serves the goal of informing wider social circles of a brand’s lofty status. Everyone knows that BMW is the “ultimate driving machine” even though less than 1% of us has ever driven one. “The advertising of luxury brands educates the general population to help elevate the status of those -and only those – who can afford their products” points out Miller. This broad, socially widespread, acculturation is necessary for signalling

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Simply Speaking: The incessant whirlpool of internet as brand medium

Social media is a show cabinet for the individual. Jonathan Haidt, a social psychologist claims that the way the Instagram works is changing how teenagers think. The need for approval of how they look and what they say and what they’re doing, is forever increasing. The view of self is now constructed from online evaluation of others. [siteorigin_widget class=”SiteOrigin_Widget_Image_Widget”][/siteorigin_widget] Everything is measured in terms of likes and shares. The power a social network brings to politics is, by itself, something worthwhile. (Representative image by George Kedenburg III via Unsplash)   “In modern thought, (if not in fact) Nothing is that doesn’t act, So that is reckoned wisdom which Describes the scratch but not the itch.” – Anonymous Stanza referenced in Marshall McLuhan, Understanding Media: The Extensions of Man when mentioning Shakespeare’s ‘Troilus and Cressida’ Our lives, careers, reputations and identities are now essentially digital constructs. We must understand this well whether it attracts or repels us. The internet is impacting our methods and capacities for concentration, attention, interpretation, assimilation etc. Our monkey brains are now distracted by a hundred lit screens and links. Social media has folded inside out from being a circle of friends to an always on performance of manicured imagery on a stage. Its cadence is faster, its content shorter. It is now enabled through learning which humans cannot match. This is not a Luddite scare. It is a well rationalised body of knowledge. We must appreciate it to be able to use it well. As early as 2011, Nicholas Carr’s “The Shallows: What the Internet Is Doing to Our Brains”, a finalist for a Pulitzer Prize, painted a dire picture of the effect of the Internet on our mind. Since then, smartphones and cheap bandwidth has made the internet truly ubiquitous. It is the phone screen that has become the canvas of our lives. I have been a student and practitioner of communication. I have read many of the 20th- century media theorists and thinkers namely — Theodore Adorno, Max Horkheimer Marshall McLuhan, Umberto Eco, Walter Ong, Noam Chomsky, Neil Postman, Shoshana Zuboff. All of them foretold or saw this reality. Zuboff’s termed it ‘The Age Of Surveillance Capitalism’ in her eponymously titled book. “We become what we behold. We shape our tools and afterwards our tools shape us” said Marshall McLuhan and his axiom that “the medium is the message” is fully manifest. McLuhan’s view is that mediums matter more than content. Media is impacting its own matter. Mediums are not neutral, and content is anything but king. An oral culture is distinct from a written culture. Television turned everything into entertainment, and social media taught us to think with the crowd. Do not imagine that exceptions will make the rule. It is the common rules that govern all creation and consumption across a medium that change people and society. Eventually the medium acquires a vice like grip over content. Switch on any news channel and keep aside the search for ideological neutrality, objectivity etc. Just see the format – the look, tone, temperament of the anchors, the graphics, the conflict, the decibel levels, the absence of depth, the sensationalism. This is true across the world, in varying degrees. Why? Simply because it is a business. The news content is assessed for return via ratings in every minute of its existence. In his deeply impactful book, “Amusing Ourselves to Death,” published in 1985, Postman argued that junk television is the belief system that every subject in the world is a branch of entertainment. And there is no biz like show biz. “Our politics, religion, news, athletics, education and commerce have been transformed into congenial adjuncts of show business, largely without protest or even much popular notice. The result is that we are a people on the verge of amusing ourselves to death.” said Postman, in an aggrieved, moralising tone. Entertainment subsumes our expectations for everything. Viable candidates in all fields of life must be able to capture the screen. Media platforms now algorithmically obsess the world with the same narrow spectrum of topics and sameness is now ingrained. In the recent past, be it on account of the rise of radicalism, post-truth narratives, the absence of facts or the growth of manipulation – the mood turned against Silicon Valley. Henry Kissinger, no less, wrote a book on Artificial Intelligence. Elon Musk warned of its dire consequences. But for the most part, the spotlight has been on successful billionaires, corporations and methods. It has not been on the development and direction of technology itself. The pace of development is such that anyone armed with only facts becomes outdated soon. A generic, fact-based critique is attacked as Luddite. The furore on privacy is a bit passe. Generative AI is only accelerating the mode of compliant dullness. Where is the freedom to choose? Social media is a show cabinet for the individual. Jonathan Haidt, a social psychologist claims that the way the Instagram works is changing how teenagers think. The need for approval of how they look and what they say and what they’re doing, is forever increasing. The view of self is now constructed from online evaluation of others. Twitter compressed ideas to a finite set of alphabets. You originate but more often you join a discussion. How others react and respond decides your idea’s worth. In 1970s for the first time, it became manifest that it’s attention not money that is our most precious commodity and a threatened resource. Economists Thomas Davenport and John Beck called it the driving force of our society and termed it ‘the attention economy’. Jenny Odell’s book – “How to Do Nothing: Resisting the Attention Economy” was published in 2019. She explains how attention becomes driven by norm. You are compelled to pay attention to what others pay attention to. Traditionally, fetching and retaining attention was the job of advertising agencies and media. Today, attention wielding is an essential life skill. In the past, the patent solution for breaking through noise

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AI shadow on IPR

AI companies are covered by a “fair use” doctrine for content generation—they reap without sowing [siteorigin_widget class=”SiteOrigin_Widget_Image_Widget”][/siteorigin_widget] It is well-appreciated that a new technology can deeply impact the world in permanent ways. In this case, the pace and trajectory will be like that of a crazy ball. (IE) By Shubhranshu Singh ChatGPT has caused huge excitement and great anxiety. It will change the way we engage with the internet. Searching for information and processing it have been disrupted. It will upend the model that runs the tech marketplace today and change its underlying economics. Many of today’s leaders will be pauperised whereas parvenu operators will grow into giants in record time. It is well-appreciated that a new technology can deeply impact the world in permanent ways. In this case, the pace and trajectory will be like that of a crazy ball. The shifts will be even more significant on the second and third bounces. Cloud computing companies, social platforms, search engines, e-commerce giants, and many more will have to find ways to change and survive. The now-commercialised AI systems could disrupt $100 billion in cloud spending, $500 billion in digital advertising, and $5.4 trillion in e-commerce sales, per IDC, a market research firm, and GroupM, a media agency. Google makes almost $200 billion on display ads, the most on the planet. Now, this search audience may go away. What should do a website or publisher do if the relationship is not reciprocal? If chatbots lift information but send few visitors, how does that adverse equation get compensated? How can AI companies be prevented from taking content without hampering search rankings? Microsoft, Amazon, and Google are rushing to be the engine behind the AI chatbots. Google introduced its chatbot, Bard, last month. Microsoft, through its acquisition of OpenAI lab, may pioneer sale of technology to others who look to have a play in the space. The origin and authorship of content—words, sounds, images, concepts, ideas—is now suspicious. The very concept of ‘original’ is questionable. Where does the content you get from a chatbot come from? Is it ‘fair trade’ in the digital sense? Getty Images has taken Stability AI, the start-up behind the art generator tool Stable Diffusion, to court. It has thrown open the question or copying and originality. AI companies have the cover of the “fair use” doctrine for content generation—they reap without sowing. AI-generated images from Stable Diffusion are impossible to tell apart stylistically from the original artist. AI works out patterns, styles, and relationships by examining billions of images on the internet. AI text-to-image generators such as Stable Diffusion, Midjourney, and DALL-E exploded onto the scene this year and, within months, have become widely-used. Stable Diffusion alone has more than 10 million daily users. These AI products are built on collections of images known as data sets, from which a detailed map of their contents, the model, is formed by finding the connections among images and between images and words. Images and text are linked in the data set, so the model learns how to associate words with images. It can then make a new image based on the words you type in. Stability AI recently raised $101 million from investors, and is now valued at well over $1 billion. The data set for Stable Diffusion is called LAION 5b and was built by collecting around 6 billion images from the internet in a practice called data scraping. LAION was able to scour what seems like the entire internet because it deems itself a non-profit organisation engaging in academic research. While it was funded at least in part by Stability AI, the company that created Stable Diffusion is technically a separate entity. Stability AI then used its non-profit research arm to create AI generators first via Stable Diffusion and then commercialised it in a new model called DreamStudio. AI generators were built on the backs of copyrighted work, and through a legal loophole, they were able to produce copies with varying levels of sophistication. Artists posting new art feed an ever-hungry engine that becomes more and more like them. Since origination is de novo, the copyright doesn’t quite come into play. Its not a copy, it’s a stylistic inspiration. Emad Mostaque, the founder of the Stable Diffusion image generator, was a fund manager before he turned into a tech disruptor. He claims it is one of the ultimate tools for freedom of expression. The defenders say AI is an extension of the human usage of tools, only faster, better. It isn’t a tool that makes things by itself, rather, it is the intention of the end user. Thus, there’s nothing that you can make with Stable Diffusion that you can’t make with Photoshop—it’s just become a bit easier. An algorithm can make cannon fodder of a lifetime worth of work. These algorithms are learning like a human brain, only billions of times faster, more powerful and untiring. This is the future of content. Will it be man with a multiplier or man vs monster? The writer is vice president, marketing-domestic & international business, Tata Motors Views are personal   Link: https://www.financialexpress.com/opinion/ai-shadow-on-ipr/3047562/?utm_source=Whatsapp

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