| | Friday reading
The reality of TikTok’s ad model starts to annoy users
At the beginning of this year we asked some experts about what 2024 might bring for social media, and Tamara Littleton from The Social Element highlighted grumblings amongst users about TikTok’s evolving ad platform:
“TikTok shop fatigue is… emerging amongst users, as a result of TikTok over-saturating streaming spaces with its shop videos and ads. TikTokers are even starting to create content calling this out – TikTok needs to strike a better balance and adjust their algorithm.”
Well, Littleton seems to have been on the money, because Vox.com, which recently covered these same gripes, spoke to a tech analyst at Tech Buzz China who claims there are reports that Douyin (TikTok’s name in China) believes that 8-10% of the app experience can be commerce related.
Whilst 1in 10 posts being shop related doesn’t sound too bad, Vox ponders if Chinese users are more tolerant of this kind of content.
However users feel about it, it’s surely a reality of the platform now. Suddenly the ‘For You’ feed doesn’t feel quite as personal as it once did.
Goldman Sachs questions the benefits of AI
Goldman Sachs has questioned whether generative AI is "too much spend" for "too little benefit" in a recently-released report that has caused a stir among those keeping tabs on the world of AI.
The investment firm pointed out that "The promise of generative AI technology ... is leading tech giants and beyond to spend an estimated ~$1tn on capex in coming years, including significant investments in data centers, chips, other AI infrastructure, and the power grid. But this spending has little to show for it so far."
In many places, the report makes for sobering reading, at least for anyone who is bullish about the transformative potential of generative AI. While some of Goldman Sachs' interviewees express optimism for the future of generative AI and its profitability, most also strike notes of caution and doubt.
Daron Acemoglu, Institute Professor at MIT, believes that "the number of tasks that AI will impact in the short run [will] not be massive", and his calculations (based on multiple studies about the impact of AI and labour cost savings) indicate that "productivity effects within the next decade should be no more than 0.66%" - which translates into less than 1% impact on GDP.
Meanwhile, Jim Covello, Head of Global Equity Research at Goldman Sachs, argues that to earn sufficient return on its high costs, AI "must solve extremely complex and important problems", but casts doubt on whether this is possible. "AI bulls seem to just trust that use cases will proliferate as the technology evolves. But eighteen months after the introduction of generative AI to the world, not one truly transformative—let alone cost-effective—application has been found," he says, succinctly.
Covello also believes that "the tech world is too complacent in its assumption that AI costs will decline substantially over time". And Brian Janous, Co-Founder of Cloverleaf Infrastructure, warns that US utility companies and the underlying power infrastructure aren't equipped to meet the rapid surge in power demand from generative AI improvements.
These findings haven't stopped Goldman Sachs from investing in a generative AI tool of its own, called the GS AI platform, which is designed for code generation. However, Goldman Sachs' own experiments with AI are part of what informs the scepticism of the report: Jim Covello reveals that the firm found "AI can update historical data in our company models more quickly than doing so manually" but crucially, "at six times the cost".
Given that a previous article published by Goldman Sachs in May assessed that AI was "showing ‘very positive’ signs of eventually boosting GDP and productivity", it appears that the firm may be moderating its stance over time as more findings about the technology's true impact emerge.
Digital transformation rejig in UK Government
Anyone who has followed the trailblazing Government Digital Service (GDS) since its inception in 2011 will be interested to read of the next stage in its journey as digital, data and AI experts are brought under the roof of the Department for Science, Innovation and Technology (DSIT).
DSIT is adding folks from GDS, the Central Digital and Data Office (CDDO) and the Incubator for AI (i.AI) which was formed last year.
Digital transformation of public services continues in this one department, with an announcement stating that “This move will drive forward the digital changes needed to overhaul the British public’s experience of interacting with the government, so it becomes personalised, convenient, and timesaving – for example, by providing people with just one way to login and prove who they are so they can quickly access the government services they need. It will also help remove roadblocks to sharing data across the public sector.”
Representative sampling and the terror of the telephone
Anyone in market research will surely nod along if they read this piece from Slate which lays out why representative sampling is harder to achieve now that many people are so averse to answering the telephone.
The repercussions for research are likely that barely plausible survey findings (and no doubt plausible but unrepresentative findings, too) get parroted around in the press. |
Fast Track to Digital Marketing: Next intake, September 17th
Fast Track to Digital Marketing is an 8-week training course covering the key digital marketing topics every marketer should understand. Your team will come away armed with the latest techniques to drive growth and be able to: understand key issues, frameworks and strategies; communicate confidently with stakeholders; and benefit from practical skills that can be immediately actioned . |
|
|
|
|
|
| Digital Shift: AI in commerce and the latest from the martech landscape
July 25th, 9am & 4pm GMT
Join industry expert Neil Perkin as he looks at the latest brand examples of applying AI in the digital commerce journey in ways that drive value and conversion. |
The Marketing Capability Leaders Forum
September 26th, Waterloo, London, 9am GMT
At Econsultancy HQ, we’ll be hosting our Q3 meet-up for senior leaders in marketing and ecommerce. You’ll hear from a panel of marketing leaders as they reveal how they have navigated transformation, placing capability at the heart of their strategies.
Please note, the forum is invite-only, so registrations are subject to approval. |
|
|
|
|
Omnichannel Ecommerce: Planning and Customer Acquisition (6 courses)
Before we can convert and retain ecommerce customers, we need to have the right sales model and acquisition tactics to attract them.
Course 1: Introduction to Omnichannel Ecommerce
Course 2: Unlocking the Ecommerce Formula
Course 3: Ecommerce Business Models
Course 4: Acquiring Traffic – Social, Offline and Partnerships
Course 5: Acquiring Traffic – Paid Search, Shopping Ads and Targeting
Course 6: Integrating Ecommerce and the Wider Business |
|
|
|
|
Econsultancy London
Floor 14, 10 York road,
London, SE1 7ND, UK
+44 20 7970 4322 | | Econsultancy New York
205 Hudson Street, 7th Floor
New York 10013, United States
929 577 9564 |
|
|
|
|
| Econsultancy Pulse is a round up of the latest action in the world of marketing and ecommerce. |
You are receiving this email to [email protected] as you are opted in to receive the Econsultancy Pulse. You can change your email settings or unsubscribe from the Econsultancy Pulse.
Econsultancy is part of Xeim Limited, part of the Centaur Media plc group
Registered in England and Wales with number 5243851
Registered office at Floor 14, 10 York road, London, SE1 7ND
Copyright © 2024 Centaur Media plc and / or its subsidiaries and licensors. All rights reserved. |
|
|
|
| | |
|
