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⛓️McKinsey on Generative AI & The Value Chain

+ recent pod about offshoring
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GM nerds,
Welcome back to the newsletter that appeals to all types of digital marketing people:
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the ones who make the predictions, the ones who go out of their way to avoid them, and the ones who eat that content up.

How do I do it?
Read the newsletter to learn for yourself 💅
So, what’s good this week?
→ Thrive or Flop: YouTube in its Shorts Era ✨
→ McKinsey on Generative AI & The Value Chain ⛓️
→ TikTok Ramps Up Monetization Incentives (Again) 📈
→ AI-Powered Optimization’s Effect on Digital Marketing 🤖
→ "Hidden Gems" & Google’s Helpful Content Update 👀
→ more, obviously ‼️
AI Insight 🦾🤖
→ This piece looks at Personalization, Content Creation, Consumer Behaviour, Chatbots, Influencers, Cost, and Customer Satisfaction from the lens of how AI-Powered optimization is already shaping digital marketing. Basically, developments in AI have led to marketers having more information about customers, potential customers, and the efficacy of their methods in turning the latter into the former. Finely-tuned, well-focused campaigns may very well result in the proper use of this information, and AI-powered optimization tools help us in doing so. The change, as you probably already know (but this report once again confirms), is drastic.

→ McKinsey’s report on opportunities for value creation utilizing generative AI suggests that prospects are decent re: offering Generative AI-Powered Services, Model Hubs and MLOps; there’s slightly less expected value in Foundation Models on which generative AI apps can be built; and way less opportunity for value in both Computer Hardware and Cloud Platforms to provide access to computer hardware; but the clearly superior opportunity lies in building B2B or B2C apps that use already-existing foundation models (whether this requires fine-tuning the model to a particular use case or just using largely as is).

According to the McKinsey report, 90% of commercial leaders consulted are expecting to use AI tech at least "often" in the coming 2 years, while those who are already doing so are seeing early returns to the tune of a 3-15% uplift in revenue.

→ This 90% number is echoed by a Gartner Survey suggesting "80% of Executives Think Automation Can Be Applied to Any Business Decision."

→ With all the hype in our circles, it’s easy to forget that AI might need some better PR among the general public. 61% of Americans think it’s an existential threat to America’s future.
Social Media Round-up 📲
→ Along with introducing a new "bespoke" typeface, TikTok continues to expand its top-tier funding opportunities for creators with the introduction of the "Creator Effects" funding program (for AR creators) and the "Effect Creator Rewards initiative," which will pay creators $700USD for every effect used in 500K unique videos within 90 days of being published.

This is leading some to suggest that TikTok is ramping up its efforts in the "Creator Wars," with conventional wisdom suggesting the app is already well ahead despite its controversial 2023.

→ YouTube Studio is now offering more in-depth analytics, including the content formats that are thriving and flopping for you with your viewers.
Andrew Hutchinson put it this way: "The idea is that by showing you just how many of your viewers are engaging with Shorts, that’ll prompt you to try the same, which will then increase the amount of Shorts content YouTube has to show users."

YouTube is in its Shorts Era FR.

→ Twitter stays on the prowl, acquiring the job-matching platform "Laskie." With LinkedIn having shot its shot at being the new Twitter, could the tables be turning?

→ Not only has Meta Verified officially launched in the UK, but Meta’s new Professional Dashboard aims to help Facebook creators with practical guidance re: improving Reels, avoiding engagement mistakes, monetizing content, and understanding distribution— among other performance-boosting tips. All of this aside, Meta’s biggest move may be a simpler one: finally allowing third-party apps to publish Instagram stories.
What’s Good @ Google: Helpful Content Update 🛟
→ The major takeaway from the Google Helpful Content Update is that the system can now promote what it identifies as helpful content in Search results— the focus here is apparently on finding "hidden gems" to showcase.

Likewise, it can demote what it deems to not be helpful, or merely purporting to be helpful, ensuring such content will not perform well.
🔌 Speaking of Google.. Interested in working with us on SEO? Schedule a call and see what we’ve done for brands like Thrasio, Sotheby’s, Medtronic, and hundreds of others!
and don’t forget… This Week’s Pod 🗣️🎙️
This week, Joe Davies from FatJoe dropped in to talk shop on growth strategies re: Amazon FBA, niche sites, the birth of OptimoAI, and the role of AI in digital marketing. If you’re reading this newsletter, you’re interested in digital marketing strategies and growing your agency— which means this is a must-listen. Tune in.
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