Improvement and market insertion of a monitoring and prediction platform based on artificial intelligence to monetize advertising campaigns

• Grant number: 22/01687-9
• Support Opportunities: Research Grants - Innovative Research in Small Business - PIPE
• Start date: July 01, 2022
• End date: December 31, 2023
• Field of knowledge: Applied Social Sciences - Administration - Business Administration
• Agreement: FINEP - PIPE/PAPPE Grant
• Principal Investigator: Claudio Luis Cruz de Oliveira
• Grantee: Claudio Luis Cruz de Oliveira
• Company: Cognitive Consultoria em Tecnologia da Informação e Marketing Ltda
• CNAE: Tratamento de dados, provedores de serviços de aplicação e serviços de hospedagem na internet ; Agências de publicidade ; Pesquisas de mercado e de opinião pública
• Associated researchers: Carolina Toledo Ferraz ; Cassia Aparecida Pizani ; KELLEN DAYELLE ENDLER

Abstract

In 2020, Brazilian brands invested BRL 49 billion in advertising campaigns (KANTAR IBOPE MEDIA, 2021). However, the waste of advertising money can reach more than half of the total invested (CHAIT, 2015; FOU, 2020; THINKBOX, 2018). This is an old problem in advertising, John Wanamaker, founder of the first American department store, said that "half the investment in advertising is wasted; the problem is that I don't know which half it is" (CHAIT, 2015). This waste can occur due to several problems such as: Dispersion of the message, message to the wrong audience; Saturation, which occurs when the same ad appears to the consumer more frequently than necessary; Inadequacy of the message, when the message is not well received by the target audience; And more recently, losses due to digital platforms that mediate. The contribution of advertising to the Brazilian economy was BRL 418.8 billion in 2020, it generated 196 thousand direct jobs and 239 thousand indirect jobs. Every BRL 1.00 invested in advertising generated a growth of BRL 8.54 in the national GDP (DELOITTE, 2021). Research indicates that advertising improves the competitiveness of the economy, as it encourages differentiation through innovation, promotes competition for quality and price, and stimulates market growth (ABAP 2015). Therefore, the optimization of advertising budget is essential for the growth of our economy .Of the 49 billion invested in media (KANTAR IBOPE MEDIA, 2021), only 14 billion, 28.6%, were monitored by the Executive Council of Standard Norms (CENP) that monitors advertising investments in Brazil. This is because only 217 agencies have technology that allows media billing to be monitored (CENP, 2021). This leads us to believe that the vast majority of the 138,000 brands that invest in advertising (KANTAR IBOPE MEDIA, 2021) do not have media intelligence solutions, and they are precisely the brands that suffer the most from waste. Existing media optimization solutions are either too expensive for small and medium businesses, or they only focus on digital marketing. Cognitive developed the Sigmaflow media intelligence platform (https://sigmaflow.com.br/) that optimizes offline and digital media, it is used by major brands such as BMW, Elma Chips and Suvinil and was the winner of the Distrito Awards for best advertising technology startup in 2021 (ORÉFICE, 2021). Sigmaflow's monthly fees range from R$800.00 to R$24,500.00, comfortable values for a large advertiser, but not viable for a small company. To reduce the price, it is necessary to completely automate the platform and offer only the services that SME demand. These problems will be addressed in this project that involves market research with SMEs, model selection and artificial intelligence methods for media optimization, automation of platform implementation activities through web services, launch of the new platform at fairs relevant to the target audience and preparation of scientific articles for the dissemination of knowledge. (AU)