Lexus' AI-fueled campaign for multicultural users drives 1.55% engagement

Brief:

Over the summer, Lexus ran a multi-format campaign aimed at Hispanic, African-American and LGBTQ audiences that used artificial intelligence (AI) to target mobile users who are most likely to buy a car, according to an announcement shared with Mobile Marketer.
The video campaign averaged a 1.55% engagement rate after using "moment marketing" technology from Aki Technologies to place ads at specific, relatable dayparts, such as a coffee break or late night at work. Aki Technologies helped Lexus identify the best times to reach each multicultural audience segment in specific regions and track which video ads had the highest engagement and completion rates.
In Philadelphia, "coffee break" was the top performing moment; in Detroit, it was "weekend brunch, while in Baltimore, the "weekend evenings at home" moment won; and in Houston, the "working late" moment scored the highest engagement among consumers in the area. Aki Technologies' platform also tracks store visits to help determine how the campaign affects the offline behavior of consumers. The Lexus campaign was developed with agency Walton Isaacson.

Insight:

Lexus' video campaign for its ES and RXL models is another indication of how marketers can use mobile user data and AI to target specific audience groups — such as multicultural consumers, in Lexus' case — when they may be most receptive to an ad. For example, video ads are better-suited for "lean back" moments when people have time to engage with a long-form ad. Standard banner ads are more cost-efficient in urging "lean forward" consumers to visit a dealership, according to Aki Technologies.

Audience segmentation and daypart targeting are necessary to cut through ad clutter. Consumer time spent with media, including digital and traditional media formats, is on track to grow 2.1% to an average of 50.9 hours a week in 2018 from a year earlier, according to researcher PQ Media. The growth is especially strong in mobile channels. Time spent with audio, video and book content is forecast to rise by more than 20% in 2018 from last year. Overall digital media usage will increase 8.8% from 2017 to 12.7 hours a week this year, making up 25% of all global media usage, PQ Media estimated.

Lexus has developed a variety of mobile-focused campaigns this year to reach on-the-go audiences. Lexus was among the major brands that sponsored Yahoo Sports' Fantasy Football game during the NFL season in order to reach the majority of participants that play on mobile. Yahoo's parent company Oath said 92% of fantasy sports interactions happen on mobile platforms, a 263% jump since 2016. For the third year in a row, Lexus also sponsored Yahoo Sports' "0-60 Bracket Challenge" mobile game during the NCAA Men's College Basketball Tournament.