A Change on the horizon.
Volkswagen is no longer just looking to make its cars more automated — it’s making its ad buying decisions automated, too. The automaker recently announced that it was using artificial intelligence (AI) to make Volkswagen ad buying decisions, and it’s proving more effective than its media agency.
Currently, the brand has been taking recommendations from two agencies — Blackwood Seven, a Danish agency that uses AI and predictive analytics to forecast ad spend decisions, and its usual media agency. The brand has found that when it follows Blackwood Seven’s recommendations, it sells more cars.
Between September and December 2016, when Volkswagen first began using the Danish agency, the brand saw a 14% rise in orders during a campaign for its up! The model compared to the campaign that was run based on the non-AI-focused agency’s recommendations. In other campaigns, the difference between the two recommendations has been as high as 20% — a number that we here at Sierra Volkswagen find impressive.
Blackwood Sevens stands apart from the other agencies Volkswagen uses because the AI platform is able to process a significant amount of data at any one time. This means the algorithm can better predict what the brand’s media investments will do, leading the German carmaker to be able to invest less and see more profit in return.
Learn More at Sierra Volkswagen today!