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What Is Category Design in Marketing (And Why Is It an Important Strategy)?
In the age of digital disruption and rapid innovation, category design is the ultimate business strategy that allows a company to create and develop entirely new categories of products and services.
We’ll show you how to implement category design later, but for now, you can get a better idea of how this strategy works by considering these famous use cases: Clarence Birdseye had a tough audience to crack in the 1920s.
However, once Clarence convinced people of the benefits of having frozen food when no crops could grow in winter, as well as the superior quality of food that is frozen quickly, the company sales skyrocketed.
Having saved customers $750 million and counting, the Honey app works as a browser plugin, instantly scouring the web to find discount codes whenever you reach the checkout of an online store: Blockbuster, a brick-and-mortar video rental store, had been the go-to spot for renting movies for decades.
Before long, Netflix executed category design to perfect effect, crushing Blockbuster with its streaming-media platform that could offer people instant cinematic gratification without leaving their homes:
Harvard Business Review recently reported how the CEO of SAP cited this statistic after the company spent $8 billion on the online research firm Qualtrics – 14 times the projected annual sales of SAP.
By offering people a new way of doing things, you're solving problems that they didn’t know they had – and thus creating loyal product believers and brand ambassadors.
Just as Blockbuster was too slow to corner the mail-service and online movie rental market, many entrepreneurs have lost out because they didn’t follow up their initial category design idea with a solid strategy that kept them ahead of the competitors.
When you’re not trying to topple an established incumbent or enter a crowded and competitive market, a lot of what you have to go is based on assumptions you’ve made about the need for your product.”
When you’re trying to change how people think, sell a product they’ve never considered, and compete with established brands who already have a viable solution, the risk of failure is high.
Learn More: 10 Lessons New Entrepreneurs Can Learn from Steve Chou’s Multiple Six-Figure Successes Okay, now that you’ve got your head around the definition of category design, seen a few examples and learned the drawbacks and benefits of category design in marketing, let’s show you how it’s done:
After pinpointing some issues with taxi services, Uber appealed to the masses by making vehicles-for-hire easy to book, quick to arrive and convenient to pay for whenever and wherever you needed it.
With this map and a category blueprint that explains how you will solve this massive problem in the market, you can take charge of the space, fostering brand loyalty around your brand and its unique products and services.
Benioff and his partners were early pioneers of the software-as-a-service (SaaS) industry, helping bring cloud-based systems into the mainstream to change the way software developers, providers, businesses and consumers interact.
Its 2019, direct offering valued the company north of $18B, and while it hasn’t killed email yet, Slack has convinced a lot of people that its model is the future of business communications.
By that, we mean business leaders must prepare their employees, as well as the technology and practices they use, for digital transformation. Category design is a byproduct of digital transformation, and mobilization – organizing and encouraging your company to work together in pursuit of a particular objective – is a crucial step in category design.
If you can’t convince your organization to unite behind your brand message, product and business goals, it’s going to be tough to convince anybody else to buy it.
Companies that implement category design in the right way will strike a balance between three core elements: When these elements are in sync, they effectively reinforce each other, helping the company build up a flywheel-like momentum so it can establish itself as the category king:
Amazon is a master of this business strategy, using it to become the category king in several markets, such as making Kindle the synonymous brand in the e-reader market, or Audible the king in the now crowded audiobook space.
42 Digital Marketing Trends You Can’t Ignore in 2020
The robots can read license plates, report suspicious activity, and collect data to report to their owners.” You can rent these R2-D2-like robots for $7 an hour – which is less expensive than a human security guard's wage:
Just a couple years ago, Gartner analysts predicted that by 2020, AI technologies would be pervasive in almost every new software product and service – a prediction that Harvard Business Review seconded earlier in 2019.
According to Techgrabyte: “Artificial intelligence is the biggest commercial opportunity for companies, industries, and nations over the next few decades” and “will increase global GDP by up to 14% between now and 2030,” which means that “AI latecomers will find themselves at a serious competitive disadvantage within the next several years.” Here are the top reasons why organizations are adopting AI in their business:
AI can analyze consumer behavior and search patterns, and use data from social media platforms and blog posts to help businesses understand how customers find their products and services.
Mastercard created a Facebook messenger bot – which uses natural language processing software to decipher what the customer wants and respond as if it were a real person – to automate handling payments:
According to Irina Kovalenko of SmartyAds: “Most search-driven manual advertising campaigns (even those performed with professional tools) take into account three or four targets: the keyword, time of day, and location.
Such tools like programmatic demand-side platforms can use hundreds of targeting signals to individualize the advertisement and even target according to lifestyle or behavior habits when integrated with customer data platforms.” Here’s a quick look at how programmatic advertising works:
Many customers prefer interacting with chatbots as they are responsive 24/7, give answers promptly, accurately recall your entire buying history, and never lose patience.
These virtual assistants offer outstanding customer service by meeting customers’ expectations and automating repetitive tasks – which means that you can focus on more important work.
Unlike traditional strategies, this form of marketing is now available across multiple channels, allowing brands to meet customers on their terms: on the devices, platforms and time schedules that suit the customer best.
As we prepare for the future, it will be more important than ever for businesses to be available across a broad spectrum of channels, and to make sure you’re communicating the way people prefer to communicate.” Ultimately, the primary goal of conversational marketing is to enhance the user experience through a feedback-driven model that fosters higher engagement and greater loyalty.
Consider these personalization stats: Kevin George from EmailMonks asserts that “personalized, triggered emails based on behavior are 3x better than batch-and-blast emails.” When you want to study examples of the power of personalization, it’s hard to overlook Netflix and Amazon, with their tailored recommended products or movie titles.
These numbers show the importance of incorporating video into your digital marketing strategy in 2020: Video is by far the most popular way customers want to learn about new products:
Because influencer marketing is generally more authentic than corporate advertising: For this reason, Iceland, a popular British supermarket chain, switched from ads with celebrities to a campaign that features real-life moms.
It’s helping identify those with better engagement, fewer fake followers, and a higher chance of generating a positive return on investment (ROI). In addition, artificial intelligence is transforming influencer marketing in the following ways:
These statistics show the popularity of social messaging apps, and since people are spending more time messaging each other, it makes sense to market your company’s products and services where your potential customers are hanging out.
In fact: Reasons for your brand to use messaging apps include: Visual search can take the user experience to a totally new level: People can upload an image to conduct a search and get more specific results.
They came out with Lens, a visual search tool that allows users to take a photo of an item to find out where to buy it online, search for similar products or view pinboards of related items.
As Marketing Land puts it, it turns your phone’s camera into a search bar: Since the launch of the beta version, Pinterest's Lens now recognizes 2.5 billion home and fashion objects, has inspired over 600 million searches on Pinterest’s mobile apps and browser extensions, and has seen a 140% uptick from launch day.
Instead of typing queries into a search engine, you can directly search via images to find similar images, price comparisons, local shopping results, etc.
To take advantage of micro-moments in 2020, you need to be where consumers are searching for information in the moment – or, as Google puts it, marketers have to “be there, be useful, be quick.” The growing popularity of micro-moments means that marketers must rethink the linear marketing funnel that follows a set path: awareness, consideration and decision.
This makes the quality, relevance and usefulness of marketing more important than ever.” To get the most out of micro-moments in 2020, you should: The increasing use of voice search has made it important for companies to rethink their digital marketing strategies in 2020.
As Digital Marketing Institute puts it: “Adopting a voice search strategy isn't just about remaining relevant – it’s also about creating a unique and optimized customer experience that will foster relationships and build brand loyalty.” Many brands are already including voice search in their digital marketing strategies to deliver value-based content effectively to their customers: Google Assistant has 2,000 “actions” and Alexa has 30,000 “skills,” which are functions that allow these voice assistants to react very specifically to user commands and queries:
That means that Alexa will tell you the answer to your question along with a “word from her sponsor.” For all voice technology, remember to write in a conversational tone, focus on getting featured snippets on Google, and think about keywords that people will speak rather than type.
The benefits of using social media stories include: Get inspired by some of these ways to use social media stories: Push notifications are on the rise, with 85% of online stores using them in 2019.
As part of the bid to engage users on multiple channels, browser push notifications are something you will see more and more brands adopting in 2020 – and they are getting more sophisticated and personalized.
In fact, using personalized push notifications increases conversions: Notifications triggered by behavior are being used to re-engage people who have shown interest but failed to convert, and in recovering revenue from abandoned shopping carts:
The advice from Google’s John Mueller is that “rather than chase the latest SEO trends, it’s more important to ensure a site has fast speeds, useful links, and well-written content.” In fact, content marketing is so important that 88% of B2B content marketers agree that creating content makes their audience view their organization as a credible and trusted resource:
Platforms like ClickFlow suggest pages with untapped SEO potential — a high-impression count but a low click-through rate (CTR) — which you can then improve to increase traffic, leads and, of course, conversions:
Instagram believes this will make it easier for businesses to reach prospective new customers, as it will effectively shorten the sales funnel, giving consumers the instant access they desire.
To stay ahead, brands must present a seamless, consistent voice and message across all available mediums, including physical storefronts, social media channels, online, in catalogs and anywhere else you can imagine.
Stats show that brands using three or more channels in an automation workflow can generate great results: With ever-more sophisticated SaaS companies providing the tools to manage multiple channels more efficiently, it’s becoming easier to manage an omnichannel strategy, although it can be a challenge.
In terms of digital marketing trends, we will see a lot more of this, as it is being used in advanced lead scoring, as well as for segmentation and individual personalization, which helps marketers reduce churn and improve customer loyalty.
One such example is Amazon Assistant, a Chrome extension from the retail giant that allows users to permit product recommendations from Amazon to extend beyond the website to make personalized offers while they are browsing elsewhere on the web:
Graham, host of the Game-Changers Business podcast, says: “Where predictive analytics uses machine learning to predict what will happen, augmented analytics uses machine intelligence to boost human intelligence with the why, so we can work faster and smarter on ever-larger datasets.” Gartner predicts by 2020 over 40% of data science tasks will be automated, which means that insight into the enormous amounts of big data that businesses are collecting will allow for better and more personalized decision-making and thus increased productivity.
Dive Deeper: While the idea of marketing to people based on their location is nothing new, we do expect an increase in the use of geo-fencing – this market is set to grow to $2.4 billion by 2023 – along with the rise of mobile use:
A target area is defined as, say, within a mile of a restaurant, and when a user enters or leaves this area, they receive a push notification, text message or another form of marketing communication.
They offer the functionality of a native mobile app – fast load times, push notifications, working offline, utilizing device hardware, etc.
In fact, one survey found that 90% of shoppers reported that UGC influenced their decision to purchase more than any other form of advertising, with a whopping 97% of 18-29 year olds saying that it had an “extreme influence.”
UGC can be as basic as blog comments and testimonials or it can take the form of blog posts, images and videos created by users. GoPro's entire YouTube channel is dedicated to UGC, showing high-quality videos produced by its customers using its hardy, portable cameras.
Dive Deeper: 8 Ways to Encourage More User-Generated Content (UGC) As defined by Blockgeeks: “A blockchain is, in the simplest of terms, a time-stamped series of immutable data records that is managed by a cluster of computers not owned by any single entity.
Quantum computers, however, use a new unit of measurement, a single atom known as a qubit (literally ‘quantum bit’), which greatly increases the computational power of a system.” Another way to visualize quantum computing is to imagine a huge library: “While a classic computer would read every book in a library in a linear fashion, a quantum computer would read all the books simultaneously.
Source In 2020, the world’s big data industry will continue to grow exponentially, which is great news for marketers – if you know how to harness the power of big data.
As Neil Patel says: “Marketing will become a more even playing field and you’ll have no choice but to use automation.” Related Reading: With intense competition on social media slowly suffocating organic reach, paid advertising will become a more trusted force in 2020.
Google explains that with Smart Bidding: “Machine learning algorithms train on data at a vast scale to help you make more accurate predictions across your account about how different bid amounts might impact conversions or conversion value.”
This works for any number of PPC goals, including: Smart bidding allows you to use many different signals for your bid optimization, including: The bottom line is that with Smart Bidding running the show, marketers will have more free time to focus on strategy, copywriting, and analytics.
In 2020, at least 30% of all Internet searches will be conducted without a screen, and since 40.7% of all voice search answers come from a featured snippet, if your marketing is strong enough, you could be the one hitting that coveted spot.
Also known as rank zero snippet or position zero, this is the holy grail of modern-day SEO, as it directly answers user search queries without any need for the user to click a link.
If Jimmy’s Medical Blog (not a real site) gives some bad advice that leads to a mom poisoning her child with some amateur advice on home remedies, that’s not good for Jimmy’s brand – or Google’s reputation of delivering quality results.
Neil Patel advises marketers to focus on building their expertise, pointing out that they can bolster their reputation with guest posts on industry-leading blogs, speaking at conferences, and by applying for awards.
Asha Keddy of Intel says: “5G will enable a fully-mobile and connected society — unleashing human and technological possibility, and fuelling business and financial opportunity.” As Adage puts it: “The arrival of 5G may also finally bring millions of rural consumers into the high-speed data lanes where marketers increasingly sell their products.
Of course, this brings up concerns of adverse effects on health and the environment from RF (radio frequency) radiation, the electromagnetic emissions produced by wireless phones, but that is a topic for another article.
Recently, Forbes reported that British Airways was slapped with a £183M fine for a data breach, and the hotel chain, Marriott, got stung for £99M after failing to protect the personal data of 339 million guests.
As Forbes points out: “In the United States, marketers have become so lax in their targeting practices that every one of us has to take several minutes a day to delete from our inbox – both professional and personal – the dozens of emails that are not relevant and clearly not welcome.”
As per QuanticMind: “These days, it’s expected that connected devices and technologies will unobtrusively, and sometimes stealthily, collect data on our vital functions, what we do, where we go, what we share, what we believe, what we buy, who we know, how we move and even what we eat.”
These epic posts are sometimes called 10X content or pillar content, which is basically content that provides a complete answer to any question a user may be searching for on a given topic.
Schema.org is a semantic vocabulary of tags that enables website owners to embed structured data on their web pages so that search engines can clearly understand, interpret and represent the content in response to a search query.
With almost 50% of all global Internet traffic now happening on mobile devices, the competition for these rich results is heating up, so we’ll see a lot of marketers focusing on leveraging structured data in 2020.
That being said, DuckDuckGo – a privacy-focused search engine founded in 2008 that has gained a niche popularity among privacy-minded users – has made some waves recently with its tagline “the search engine that doesn’t track you” because “search engines don’t need to track users to make money.”
But we are subject to the California Consumer Privacy Act (CCPA), which requires at least $25 million in annual revenue, and we are well above that.” In the spirit of online privacy (trend #33 above), while Google has become embroiled in data scandals such as the Cambridge Analytics fiasco, DuckDuckGo has meanwhile seen massive growth as it hit 1 billion searches in the month of January 2019:
Related Reading: How to Create the Ultimate Marketing Funnel (Templates Included) In 2020, we'll see brands tapping more into the potential of video and interactive content on social media to get attention, but they must follow it up by being authentic on their social channels, and by working hard to nurture a community of engaged, loyal followers.
As social media strategy consultant Neal Schaffer puts it: “If your business wants to survive in organic social media in 2020, I believe that this sort of humanization of your brand will be necessary.” This growth is unlikely to falter in the wake of Instagram removing likes from the platform.
From Social Media Today, here are some social media trends to keep an eye on: Dive Deeper: The Beginner’s Guide to Crafting a Highly Effective Social Media Strategy in 2019 Last, but certainly not least, we’ll dip our toes into one of the most wow-inspiring digital marketing trends of 2020: neuromarketing.
It is essentially designing marketing materials (including your website, ads, email campaigns and content) to evoke specific neurological reactions that trigger emotions or responses that are linked to purchasing.
The company combines biometrics, neurometrics and complex algorithms to analyze attention and emotion levels, effectively helping marketers figure out what content to focus on and what to avoid.
It is widely used by investment banks, pension funds, mutual funds, and hedge funds that may need to spread out the execution of a larger order or perform trades too fast for human traders to react to.
HFT strategies utilize computers that make elaborate decisions to initiate orders based on information that is received electronically, before human traders are capable of processing the information they observe.
With the rise of fully electronic markets came the introduction of program trading, which is defined by the New York Stock Exchange as an order to buy or sell 15 or more stocks valued at over US$1 million total.
At about the same time portfolio insurance was designed to create a synthetic put option on a stock portfolio by dynamically trading stock index futures according to a computer model based on the Black–Scholes option pricing model.
Both strategies, often simply lumped together as 'program trading', were blamed by many people (for example by the Brady report) for exacerbating or even starting the 1987 stock market crash.
In the U.S., decimalization changed the minimum tick size from 1/16 of a dollar (US$0.0625) to US$0.01 per share in 2001, and may have encouraged algorithmic trading as it changed the market microstructure by permitting smaller differences between the bid and offer prices, decreasing the market-makers' trading advantage, thus increasing market liquidity.
This increased market liquidity led to institutional traders splitting up orders according to computer algorithms so they could execute orders at a better average price.
This changed the way firms traded with rules such as the Trade Through Rule, which mandates that market orders must be posted and executed electronically at the best available price, thus preventing brokerages from profiting off of the price differences when matching buy and sell orders.
Algorithmic trading and HFT have been the subject of much public debate since the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission said in reports that an algorithmic trade entered by a mutual fund company triggered a wave of selling that led to the 2010 Flash Crash.
(See List of largest daily changes in the Dow Jones Industrial Average.) A July 2011 report by the International Organization of Securities Commissions (IOSCO), an international body of securities regulators, concluded that while 'algorithms and HFT technology have been used by market participants to manage their trading and risk, their usage was also clearly a contributing factor in the flash crash event of May 6, 2010.'
Most retirement savings, such as private pension funds or 401(k) and individual retirement accounts in the US, are invested in mutual funds, the most popular of which are index funds which must periodically 'rebalance' or adjust their portfolio to match the new prices and market capitalization of the underlying securities in the stock or other index that they track.
Pairs trading or pair trading is a long-short, ideally market-neutral strategy enabling traders to profit from transient discrepancies in relative value of close substitutes.
In finance, delta-neutral describes a portfolio of related financial securities, in which the portfolio value remains unchanged due to small changes in the value of the underlying security.
Such a portfolio typically contains options and their corresponding underlying securities such that positive and negative delta components offset, resulting in the portfolio's value being relatively insensitive to changes in the value of the underlying security.
In economics and finance, arbitrage /ˈɑːrbɪtrɑːʒ/ is the practice of taking advantage of a price difference between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices.
The long and short transactions should ideally occur simultaneously to minimize the exposure to market risk, or the risk that prices may change on one market before both transactions are complete.
In practical terms, this is generally only possible with securities and financial products which can be traded electronically, and even then, when first leg(s) of the trade is executed, the prices in the other legs may have worsened, locking in a guaranteed loss.
Such simultaneous execution, if perfect substitutes are involved, minimizes capital requirements, but in practice never creates a 'self-financing' (free) position, as many sources incorrectly assume following the theory.
Mean reversion involves first identifying the trading range for a stock, and then computing the average price using analytical techniques as it relates to assets, earnings, etc.
This procedure allows for profit for so long as price moves are less than this spread and normally involves establishing and liquidating a position quickly, usually within minutes or less.
For example, for a highly liquid stock, matching a certain percentage of the overall orders of stock (called volume inline algorithms) is usually a good strategy, but for a highly illiquid stock, algorithms try to match every order that has a favorable price (called liquidity-seeking algorithms).
Dark pools are alternative trading systems that are private in nature—and thus do not interact with public order flow—and seek instead to provide undisplayed liquidity to large blocks of securities.
Steps taken to reduce the chance of over optimization can include modifying the inputs +/- 10%, schmooing the inputs in large steps, running monte carlo simulations and ensuring slippage and commission is accounted for.
Although there is no single definition of HFT, among its key attributes are highly sophisticated algorithms, specialized order types, co-location, very short-term investment horizons, and high cancellation rates for orders. In
the U.S., high-frequency trading (HFT) firms represent 2% of the approximately 20,000 firms operating today, but account for 73% of all equity trading volume.
There are four key categories of HFT strategies: market-making based on order flow, market-making based on tick data information, event arbitrage and statistical arbitrage.
Market making involves placing a limit order to sell (or offer) above the current market price or a buy limit order (or bid) below the current price on a regular and continuous basis to capture the bid-ask spread.
Another set of HFT strategies in classical arbitrage strategy might involve several securities such as covered interest rate parity in the foreign exchange market which gives a relation between the prices of a domestic bond, a bond denominated in a foreign currency, the spot price of the currency, and the price of a forward contract on the currency.
subset of risk, merger, convertible, or distressed securities arbitrage that counts on a specific event, such as a contract signing, regulatory approval, judicial decision, etc., to change the price or rate relationship of two or more financial instruments and permit the arbitrageur to earn a profit.
It is the act of placing orders to give the impression of wanting to buy or sell shares, without ever having the intention of letting the order execute to temporarily manipulate the market to buy or sell shares at a more favorable price.
Because the best bid price is the investor’s artificial bid, a market maker fills the sale order at $20.10, allowing for a $.10 higher sale price per share.
Quote stuffing is a tactic employed by malicious traders that involves quickly entering and withdrawing large quantities of orders in an attempt to flood the market, thereby gaining an advantage over slower market participants.
The rapidly placed and canceled orders cause market data feeds that ordinary investors rely on to delay price quotes while the stuffing is occurring.
Network-induced latency, a synonym for delay, measured in one-way delay or round-trip time, is normally defined as how much time it takes for a data packet to travel from one point to another.
Low latency trading refers to the algorithmic trading systems and network routes used by financial institutions connecting to stock exchanges and electronic communication networks (ECNs) to rapidly execute financial transactions.
Joel Hasbrouck and Gideon Saar (2013) measure latency based on three components: the time it takes for 1) information to reach the trader, 2) the trader’s algorithms to analyze the information, and 3) the generated action to reach the exchange and get implemented.
In a contemporary electronic market (circa 2009), low latency trade processing time was qualified as under 10 milliseconds, and ultra-low latency as under 1 millisecond.
This is due to the evolutionary nature of algorithmic trading strategies – they must be able to adapt and trade intelligently, regardless of market conditions, which involves being flexible enough to withstand a vast array of market scenarios.
Increasingly, the algorithms used by large brokerages and asset managers are written to the FIX Protocol's Algorithmic Trading Definition Language (FIXatdl), which allows firms receiving orders to specify exactly how their electronic orders should be expressed.
Finance is essentially becoming an industry where machines and humans share the dominant roles – transforming modern finance into what one scholar has called, “cyborg finance.”
At the time, it was the second largest point swing, 1,010.14 points, and the biggest one-day point decline, 998.5 points, on an intraday basis in Dow Jones Industrial Average history.
Some firms are also attempting to automatically assign sentiment (deciding if the news is good or bad) to news stories so that automated trading can work directly on the news story.
'Increasingly, people are looking at all forms of news and building their own indicators around it in a semi-structured way,' as they constantly seek out new trading advantages said Rob Passarella, global director of strategy at Dow Jones Enterprise Media Group.
Passarella also pointed to new academic research being conducted on the degree to which frequent Google searches on various stocks can serve as trading indicators, the potential impact of various phrases and words that may appear in Securities and Exchange Commission statements and the latest wave of online communities devoted to stock trading topics.
An example of the importance of news reporting speed to algorithmic traders was an advertising campaign by Dow Jones (appearances included page W15 of The Wall Street Journal, on March 1, 2008) claiming that their service had beaten other news services by two seconds in reporting an interest rate cut by the Bank of England.
led by Dame Clara Furse, ex-CEO of the London Stock Exchange and in September 2011 the project published its initial findings in the form of a three-chapter working paper available in three languages, along with 16 additional papers that provide supporting evidence.
Released in 2012, the Foresight study acknowledged issues related to periodic illiquidity, new forms of manipulation and potential threats to market stability due to errant algorithms or excessive message traffic.
For example, in June 2007, the London Stock Exchange launched a new system called TradElect that promises an average 10 millisecond turnaround time from placing an order to final confirmation and can process 3,000 orders per second.
They must filter market data to work into their software programming so that there is the lowest latency and highest liquidity at the time for placing stop-losses and/or taking profits.
A trader on one end (the 'buy side') must enable their trading system (often called an 'order management system' or 'execution management system') to understand a constantly proliferating flow of new algorithmic order types.
What was needed was a way that marketers (the 'sell side') could express algo orders electronically such that buy-side traders could just drop the new order types into their system and be ready to trade them without constant coding custom new order entry screens each time.
The FIX language was originally created by Fidelity Investments, and the association Members include virtually all large and many midsized and smaller broker dealers, money center banks, institutional investors, mutual funds, etc.
Artificial Intelligence in Sports – Current and Future Applications
The North American sports industry is a cultural and economic staple generating billions of dollars in revenue each year.
We set out in this article to examine the applications of artificial intelligence in professional sports to help business leaders understand current and emerging trends within the industry.
In this article we will explore the following sub-topics in order: Before exploring the present applications, we’ll begin with background facts and a quick summary of the findings of our research on artificial intelligence in professional sports.
Current applications of AI appear to fall into four major categories: Next, we’ll explore the major areas of current AI applications in professional sports: In June 2016, in partnership with Sapien, a custom bot developer (formerly known as JiffyBots), the Sacramento Kings introduced a chatbot called KAI –
The chatbot operates through the Facebook Messenger platform for the purpose of answering fan inquiries including info about franchise history, current team stats, the team roster, franchise history and details about the Golden 1 Center, the home arena of the Sacramento Kings.
While the franchise is keeping details on the number of users and their strategic goals for the chatbot under wraps for now, Kings CTO Ryan Montoya has stated his “commitment to utilizing technology to enhance the fan experience.” In fact, the franchise claims that the Golden 1 Center is the “world’s most technologically advanced and sustainable arena.” According to a 2016 report published by communications firm Avaya,“a digitally connected fan is becoming a [sports] venue’s biggest online influencer.” “Stadium owners and teams that provide more personalized digital experiences through stadium apps, digital offers direct to mobile phones, and game information on digital boards can increase fan engagement and generate new revenue opportunities.” –
“Thunder Bot” can respond to fans’ questions regarding various topics including specifics about Amalie arena (Tampa Bay Lightning’s home arena), tickets to games and general parking information for game day.
In a published case study, Satisfi Labs describes how it worked with an unnamed “leading sports entertainment franchise” to boost awareness and revenue of premium offerings to ticket buyers through a “native client app.” The company claims that over 50 percent of individuals who saw the Satisfi feature actually used it.
A single race car is estimated at $300,000 (not including repair, maintenance or labor costs) and tires are changed every race with a reported price tag of $500 per tire.
Argo AI/Ford Motor Company has used deep learning to develop self-driving cars and is now expanding its application of deep learning to help improve safety measures in the world of auto racing.
Automated Insights claims that this translates to “3,700 quarterly earnings stories – a 12-fold increase over [AP’s] manual efforts.” AP is one of 200 clients using the Wordsmith platform which generates a reported 1.5 billion pieces of content annually.
PIQ, a French sports robotics startup and Everlast joined forces to develop what is described as the “first AI-powered wearable for combat sports.” Crafted using GAIA Intelligence, (machine learning platform for sports analytics) the startup claims that the platform is capable of tracking and analyzing “microscopic variations in boxing movements” to help maximize the efficiency of workouts and training.
The company is attempting an interconnected approach to its offerings which include “connected sneakers,” fitness trackers and a “stride sensor.” The connected sneakers are designed with a stride sensor which can be synced via bluetooth with the company’s app.
We aimed to provide a high-level view of major applications that emerging from the sports industry, giving readers a sense of technologies that either (a) may become mainstream, or (b) are indicative of an important future trend.
– Alan Fern, a computer science professor at Oregon State University While the ROI on developing virtual assistant coaches may not be readily apparent, the focus is on using deep learning to uncover strategic insights that may not have been previously achievable.
For example, a fan could sit with their family during one match and move to a section with a “louder, more energetic supporters’ section.” This option follows a industry-wide trend of enhancing sports fan’s experience with their favorite teams.
in the match by drawing data from players, fans, and more: IBM claims its technology will support a team of research scientists and consultants, to automatically curate game highlights based on game-specific data such as “analysis of crowd noise, player’s’ movements and match data.” The process of organizing and processing video highlights can normally take hours and IBM aims to significantly accelerate the process.
As in the world of heavy industry and manufacturing (where we covered recently), smart companies may be able to gain a continual edge over the competition by gaining more and more granular data on their equipment –
- On 26. februar 2021
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How Conversational AI Provides Marketing and Sales a Competitive Edge
[35:31] Find out how conversational #AI is making it easier to connect with prospects and customers at scale in this podcast episode of Social Business Engine ...
#222 Building an Artificial Intelligence (AI) Platform
Artificial Intelligence is surrounded by marketing hype, making it difficult to assess what's real and useful. In this episode, we talk with a venture capital investor ...
Artificial Intelligence Full Course | Artificial Intelligence Tutorial for Beginners | Edureka
Machine Learning Engineer Masters Program: This Edureka video on "Artificial ..
Importance of Social Sentiment Index for Marketers
In this session Devdulal Das, Digital Marketing & Strategy leader, IBM India/South Asia will cover how organizations are leveraging Social Sentiment Analytics ...
Christopher Noessel: "Designing Agentive Technology: AI That Works for People" | Talks at Google
About Christopher Noessel: Christopher Noessel is the Global Design Practice Manager for the Travel and Transportation sector with IBM, bringing IBM Design ...