Lab Weekly - 08/16/2024
Gemini Live's rollout & its impact; New Floor 9 episode; Plus, the latest news about AI drive thru, Amazon’s new ad partnerships, Instagram’s new map feature, and more
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Gemini Live & Its Impact on the AI Assistant Race
The competition circles back to the Android vs. iOS mobile duopoly again
In case you missed it…
The Future of Real Estate
As people have adapted to new ways of living in this post-COVID era, their expectations and preferences for housing have also evolved. In tandem with broader economic changes, such as the end of Zero Interest Rate Policies (ZIRP) and shifts in mortgage rates, these evolving consumer trends are driving significant changes in the real estate market.
The Crucial Differentiator in the AI Search War
The burgeoning AI search war carries far-ranging implications for the future of the web and digital advertising. Everyone needs the latest news content to keep their AI search engines up-to-date, and access to quality content has become an increasingly important differentiation point.
What’s Next for the Entertainment Industry?
This summer has been one of turmoil and reorganization for Hollywood. Still recovering from the historical double-strikes that put the industry on pause last summer, the entertainment industry is trying to realign its streaming-led business model with the post-streaming-wars market reality. The streaming services are all in on ads, yet Hollywood needs to look both outward and inward to find its future.
Episode 160: How Brands Can Avoid Being Commoditized by AI
This week on Floor 9, the Lab’s managing director Adam Simon welcomes two senior UM executives, Dan Chapman, Global Chief Strategy Officer, and Andy Littlewood, Global Chief Product Officer, to Floor 9 for an insightful discussion on the impact of the overreliance on AI within the media landscape, how agencies can work with clients to avoid becoming “bland brands” and lead the Renaissance of Media.
If you enjoyed the episode, please consider giving us a five-star review on Apple Podcast. Follow the Lab on LinkedIn and on Medium for our latest insights. Thanks for listening!
Taco Bell To Roll Out AI Drive-Thru Ordering In Hundreds Of Locations [CNBC]
It’s interesting to see Taco Bell joining the likes of Wendy’s and White Castle to roll out AI-powered voice ordering systems at drive thru locations. Following McDonald’s decision in June to end its trial of Automated Order Taker, which it developed and tested in partnership with IBM, some analysts took that as a sign that AI-powered drive thru’s were not ready to be scaled nationwide yet. But now with more restaurant brands still gradually implementing the tech to reduce labor costs and improve speed of service, it seems that McDonald’s just realized that IBM’s AI tech is just not good enough, and decided to seek other vendors.
If successful, Taco Bell’s integration of AI could serve as both a new benchmark and a catalyst for broader AI adoption across the QSR industry. On a broader picture, the rapid adoption of AI by large chains like Taco Bell and Wendy’s could create challenges for smaller or independent restaurants, which might not have the resources to implement such technology at scale. So instead, they will have to compete on customer experience, investing instead in things like personalized service, unique menu offerings, and local community engagement, all of which help add a human touch to the dining experience.
Related: Target debuts new AI tool for store employees [Retail Dive]; JPMorgan launches AI assistant for 60,000 employees [Investopedia]
Amazon Enlists TikTok, Pinterest in Quest to Sell Everywhere [The Information]
Expanding on existing deals with Meta and Snap, Amazon has reportedly partnered with TikTok and Pinterest to let users buy items from Amazon ads without leaving the social media apps. This move is part of Amazon's Project Handshake, which aims to expand its presence in social commerce. Amazon is also enhancing ad designs to make them more interactive, aiming to increase user engagement and diversify its ad revenue.
By enabling in-app purchases, Amazon taps into the impulse-buying behavior that social media platforms foster, potentially increasing conversion rates. However, this also introduces some interesting competitions between platform-native shopping features (such as TikTok Shop) and external ecommerce giants like Amazon that customers will need to click out for.
The trend of Amazon integrating with more social platforms also prompts a reevaluation of ad creative strategies. With Amazon's enhanced ad formats, such as interactive carousels, advertisers must now focus on creating visually engaging and interactive content that can capture attention in a crowded social media environment.
Related: TikTok is offering steep discounts on goods to US users who invite friends to the app [The Information]; Amazon ranks as top brand on TikTok by earned media value [Retail Dive]
Instagram Is Testing Its Own Take On Snap Map [The Verge]
The homogenization of social media apps continues! Basically, Instagram is now testing a Snap Maps-like feature that lets users post text and video updates to a map that can be shared with friends. It is meant to encourage more social-driven local discoveries. For example, if several friends of yours are visiting the same cafe or attending an event, you might feel more inclined to check it out.
The feature could enable users to create posts and stories tied to specific locations, contributing to a richer set of content on Instagram that highlight experiences and places, extending its influence into the offline world. Businesses or influencers could use this feature to track popular spots or trending locations, providing insights into where people are spending their time and what experiences are resonating with users.
Related: Twitch rolls out ephemeral video stories [TechCrunch]; Snapchat rolls out new ad products and AR upgrades [PYMNTS]
Situational Awareness:
Opera has released its AI-powered Opera One browser for iOS [MacRumors]
Another week, another AI-powered browser. After adding Google’s Gemini to its browsers, Opera has released a new iOS browser app that comes with an Aria AI assistant that can help users conduct voice search, note-taking, or generate images via Google’s Imagen2 model — all low-hanging fruits without significantly differentiating itself.
Musk's Grok bot generates AI images with few limits [Axios]
Well, this unfiltered, extremely brand-unsafe AI image generator, powered by tech from a new Germany-based startup called Black Forest Labs, is certainly not going to win back any ad dollars, and it is certainly not going to help Elon’s lawsuit against advertisers. In related news, Google’s AI image generator, Imagen 3, is now available to all US users.
Disney and Epic’s big Fortnite deal Is starting with a lot of skins [Gizmodo]
Last week, Disney teased that it will be announcing news inside Fortnite. Turns out, the first foray into Disney and Epic's $1.5 billion investment deal involved an empty digital theater and a lot of upcoming Fortnite skins, which are the lowest hanging fruits in this regard.
Waymo fixes honking issue waking up SF neighbors [Axios]
Glad Waymo fixed it, but I’m mainly including this to let you know that some San Francisco resident has been livestreaming a noisy parking lot that houses Waymo vehicles honking at each other during downtime, complete with relaxing LoFi study beats. Now that’s human ingenuity!
The cable business is crumbling, Axios reports. Paramount Global on Thursday took a $6 billion write-down on its cable TV business, the day after Warner Bros. Discovery did the same for $9 billion. While cable is challenged, analysts believe there will be a loyal set of pay-TV customers — around 50 million households — for the foreseeable future.
Perplexity says its AI search engine answered about 250 million queries in the past month vs. 500 million in the entire year of 2023; Perplexity recently raised $250 million at a $3 billion valuation, Financial Times reports.
Kentucky has the highest concentration of people with weight-loss drug prescriptions in the country, according to data from PurpleLab, which tracks most scripts covered by insurance companies, Bloomberg reports. In Bowling Green and its surrounding area, at least 4% of residents have received prescriptions to take one of these medications in the past year or so—putting it ahead of other major population centers in the state. For comparison, prescription rates in Brooklyn, New York, and the Miami area are closer to 1%.
If you find our insights valuable and would like to have a deeper conversation on technology and media innovations, or need to sound smarter in a client meeting or a pitch, please feel free to reach out to Chelsea Freitas, our VP of Strategy, at chelsea@ipglab.com.
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