AdChat is shaking up display ads with innovation in creativity and engagement that have until now been sorely lacking, according to Michael Gramlow, co-founder of the Toronto company.
“There has been innovation in the underlying technology that powers an ad buy, the targeting or inventory supply, but we’ve always thought the creative experience has been left to the side. We wanted to build a platform that would drive higher engagement,” he says.
AdChat is an AI technology platform developed for multi-channel conversational advertising and ecommerce. Think chat bot functionality in a display ad format.
AdChat provides a messaging-like experience that’s simple, intuitive and familiar to anyone with a smartphone. It supports touch, and text conversations between brands and consumers, powered by machine learning and natural language processing. It powers display ads programmatically on major SSP exchanges via any DSP of choice.
It’s a one-to-one conversation via an intuitive messaging interface. Conversational AI instantly gives consumers the specific info they’re looking for, keeping them engaged and increasing the likelihood of them taking action. It’s a personalized alternative to the “one size fits all” approach of standard banner ads and videos.
Case in point: Oreo turned to AdChat for a recent Ramadan-themed campaign in Morocco. The brand wanted to show consumers the many ways its cookies could be included in desserts.
The ad kicked off the conversation by asking users if they wanted a sweet treat for iftar – the evening meal that breaks the daily fast. It then suggested six quick Oreo-based desserts, such as a lava cake or cookie-stuffed donuts. Each recipe provided a direct link to the Glovo delivery app, making ingredient-buying simple. Shoppers also had the option to explore more recipes on Oreo’s Moroccan website or start the ad again.
The conversational ad campaign reached 1.5 million unique users in two weeks, seeing an average interaction time of 50 seconds – an engagement rate ten times higher than the benchmark for the CPG industry. And 92% of consumers who engaged with the conversational ad also clicked on the CTA, demonstrating the effectiveness of chat in driving consideration.
BMW, meanwhile, turned to AdChat for an awareness campaign for the launch of its 4 Series in seven Middle Eastern markets in two languages. The effort saw an average of 97 seconds of active engagement, including 37,620 conversations generated. Although this was an awareness/top-of-funnel campaign, AdChat also built a “book a test drive” form into the ad that delivered a 40% increase in bookings, plus an additional 14% lift from retargeting tactics. BMW returned for two more launches and campaigns.
AdChat has worked with domestic clients including the Government of Canada, Telus, Liberté yogurt, General Mills, and iTrade, as well as other international brands Audi, Mercedes-Benz, Volkswagen, HP, Hershey, Cadbury and their media agencies.
The service is appealing because it delivers deep insights. While none of the data is personally identifiable, AdChat allows brands to better understand their target audiences, optimize campaigns and enrich first-party data. The platform tracks every moment of consumer engagement – with one of the most important metrics being active attention/time spent, broken down into 15-second increments.
“We see incredible amounts of time spent once people get engaged,” says Gramlow. “A lot of that comes back to the design and that messaging. It’s familiar. It’s what people are used to, and it’s how they chat with people in their messaging apps. Once they start engaging, they stick around.
“For time spent, 30 seconds and up is not uncommon. A typical display ad just gets a click. You’re not really getting any measurement beyond impression, click and maybe a conversion event. That time spent engaging is a key metric.”
AdChat fully manages the build without requiring new creative assets. The goal, says Gramlow, is to make the marketer’s experience as simple as possible with what he describes as a “fully managed service.” The first BMW campaign used only existing website elements.
“There was no heavy lifting on their side,” he recalls. “We used all the imagery, video and language from their website and just reformatted it to work with our platform and experience.”
AdChat also helps brands and agencies deliver on sustainability and carbon-offset goals. When combined with the Google Marketing Platform and premium inventory through an OpenX Deal ID, campaigns are carbon neutral from end-to-end.
“For marketers seeking better results from an engagement perspective, getting consumer attention is essential – and what we offer is a great way to do that,” Gramlow sums. “It’s a highly engaging ad format that delivers great results and insights. It all translates into media dollars working harder.”
