Showing posts with label Amazon. Show all posts
Showing posts with label Amazon. Show all posts

Monday, October 9, 2017

How Image Search is Changing Shopping

Since Google Image Search was introduced in 2001 many of us have found it useful in a variety of ways. According to Wikipedia image search results are based on the file name of the image, the link text pointing to the image, and the text adjacent to the image. If you use the Google Images search box, you can drag and drop an image to search and that is kind of fun. Other search engines also offer image search but this post will focus on the impact of image recognition on shopping and how we are getting there.

What is Deep Learning? How is it Affecting Marketing?

Talking about AI-driven advances in image search immediately brings us to the subject of deep learning. Its development is explained in the Nvidia blog as

                       Artificial Intelligence  >>  Machine Learning >>  Deep Learning

Deep Learning layers for dog
Deep Learning Layers

The post explains that what we can do at present falls into the  category of “narrow (specific) AI”. Examples include image classification on Pinterest and facial recognition on Facebook. Machine learning uses massive neural networks, running huge amounts of data through a network until it learns to recognize the item with near perfection. The “layers” shown in the dog recognition graphic are at the heart of deep learning. Speech recognition and image recognition are both products of deep learning technology. The impact of voice technology was discussed in my recent post on voice search. Image recognition is, of course, the enabler of image search.

Image search is interesting in a general sense, but the recent presentation I developed on Social Commerce opened my eyes to some of the ways image search—fueled by AI—could offer new shopping opportunities. That presentation focused on Pinterest, clearly a leader in the social shopping space, and on Facebook whose sheer size makes it impossible to overlook its initiatives in social commerce.

The clear leaders in the image search space are, not surprisingly, the leaders in voice technology—Amazon, Apple, Google and Microsoft. You could probably add Chinese web services firm Baidu to that list, but less is known about the current status of its AI.

Amazon has been in the space for a considerable time, using images as one input in its recommendation engine. Over time, it has added AI/deep learning to its use of images. Amazon recently made news when it opened its deep learning framework DSSTNY to other developers as an open source platform. There was speculation in the trade that Amazon was using this as one way to catch up with the technology of its more recent rivals, especially Google. Facebook also has made its facial recognition software open source. Facebook’s facial recognition services have been a special target for privacy advocates, a subject in itself. Apple is using facial recognition to unlock the iPhone X.

Google is making advances in deep learning AI research on several fronts. In 2011 it introduced Rank Brain (discussed in Chapter 10) as part of its search process. At present, it also uses deep learning in a number of ways:

•    To help categorize images on the web to improve search results. It also allows image enhancement, essentially filling in the blank, when images are missing detail.
•    Google Cloud Video Intelligence allows videos to be segmented and analyzed for content and context with automated summaries provided. It can be used to search for various types of meaning including suspicious content. See a video demo on YouTube.
•    Language recognition technology is essential to Google’s growing line of home assistant devices.
•    Google also uses deep learning to improve recommendations on YouTube, thereby keeping users on the site longer.
•    It is enhancing Google Image Search with Pinterest-like suggestions about related content. For instance, it will highlight when a recipe is available for a particular food image.

Remember—it’s still early days for these technologies. Nevertheless, there are already useful commercial applications. The fashion industry with all its visual content provides some good examples.

How Image Search is Changing Fashion Shopping

Tech CEO Ron Palmeri says the smart phone camera is on its way to becoming “the keyboard” because it can capture so much more information than words alone. Palmeri said he imagines a time when a shopper takes a picture of a desired item and rather than typing in a keyword to find it, they upload the image to a search engine that spits back a number of similar items at a range of price points or even items customized to a specific price point, if the user has integrated financial data into the model.

Palmeri’s firm, Layer, supplies the search technology for Nordstrom’s Trunk Club. The Twitter box describes the service and a posting shows one offer. The postings tend to show accessorized outfits, but a customized tux was the most recent post when I visited. Note that a personal fashion advisor is available on the mobile apps. Trunk Club actually started in 2009 as a service for men who didn’t like to shop but its expansion to women’s fashion and the importance of the smart phone camera is putting the emphasis on mobile.


Trunk Club Offr
Trunk Club Twitter Offer



@TrunkClub
 Trunk Club Twitter Page
















It’s about more than just selling; the importance of the images is influencing design at Nordstrom. “We are trying to understand how one pair of jeans plays out against another pair that was released in another season,” explained Justin Hughes, vp of product development and design at Trunk Club. “We want to get really granular and understand what really works.”

In a related development, Nordstrom is rolling out a line of stores with no inventory. The first store in Los Angeles has no merchandise, but it offers a fascinating array of services. See this post for a picture gallery that would stimulate a lively discussion about the future of retailing in the digital age.

British fashion supplier Apsos finds 80% of its UK traffic coming from mobile and 70% of its orders. Customers average 80 minutes each month on their mobile apps. No wonder Apsos is adding image search to its mobile apps! A customer takes a picture of an item or pulls one in from, say, Instagram for the search. The app returns similar items with reasonable accuracy, according to one reviewer. The results that don’t match so well may actually give customers more shopping ideas she says. There is plenty of room for ideation; Apsos currently has about 85,000 items in its image database.


the Find it on eBay demo
  Play the demo   https://vimeo.com/226972601
We've all probably spent time searching for an item among the multitude available on eBay. Well, eBay will soon have an app for that! The app will allow the user to search not only for products but also for specific features of the product. The user can also choose the color. Play the description from the link in the caption.

Target has taken another route. The retailer is adding Pinterest’s Lens search technology discussed in the Social Commerce presentation) to its mobile app. Users take a picture with their smart phone and the search will find similar items for sale at Target. “The Pinterest partnership quite literally helps us shorten the distance from when our guests have an idea to when they’re ready to make a purchase,” said Rick Gomez, Chief Marketing Officer for Target. He adds that this technology will help understand what customers are looking for and therefore improve their merchandise planning.

What is the Future of Image Search?


There are a number of implications to be drawn from this discussion. As far shopping is concerned, many other visually-oriented categories like food should quickly be active in the space. The technology will continue to grow more powerful because of the players discussed here and other powerful ones, IBM for example, whose activities in deep learning were not discussed.

Brands have choices in terms of how to become a player in image-based shopping. Some will make a quick entry by partnering with a technology firm—Target and Pinterest, for example. Others will carefully build their own back-end processes, Apsos and eBay for example. Burberry is said to have engaged in massive image creation for a trial on Pinterest when it introduced its new Cat Lashes mascara. These activities are already beginning to impact the physical retail space as Nordstrom's new store illustrates.

Finally, search marketers will be pardoned if they emit another long sigh. Image search looks to be another disruptive development in the search space.

Look for all sorts of fascinating developments in the months and years to come!

Related Links

 AI that trains itself
Asos new image search tool
Google ups its visual game
Retailers are experimenting with visual search
Visual search a top tool in 2019

Wednesday, August 9, 2017

Amazon Disrupts Again--This Time the Advertising Industry

Facebook and Google are often referred to as an advertising duopoly because they control such a huge share of digital advertising. Basic data is given in Chapters 6 and 11 but here is an explicit comparison based on recent data from PWC/IAB. The most powerful figure of all is the 10% share of growth for “everyone else.”


 There is, however, a looming challenge to that dominance.  It is not surprising when Amazon disrupts an industry (Chapter 3), but advertising? As early as 2013 Business Insider estimated that Amazon had $835m in advertising revenue. eMarketer forecasted that U.S. ad revenue would be slightly over $1b in 2017.  All figures are estimates because Amazon does not break out its ad revenue. Google’s U.S. ad revenue is expected to be approximately $34b in 2017 while Facebook’s is expected to be more than $15b.

Amazon’s ad business is currently only a fraction of Facebook and Google’s. Why, then, do industry pundits consider it a formidable threat? Consider these recent statistics from the WWP Group:
•    55% of U.S. consumers now begin online product search at Amazon, 20% start on a search engine and 10% begin on a retail site.
•    Amazon.com and Prime Now accounted for 43% of all online sales and 53% of the sales growth in 2016.
•    63% of U.S. households are Amazon Prime members.

Those figures were quoted in a press release announcing a partnership between WWP agencies Mindshare and POSSIBLE that will provide Amazon advertising services to advertisers, joining a growing list of specialty agencies focusing on Amazon. In the U.K. only 38% of searches currently begin on Amazon, but that is enough for L’Oreal (Chapter 12) to shift some of its search budget to Amazon.

Amazon has two advertising platforms:

•    Amazon Marketing Services (with video) is a vendor-only platform that supports the advertising needs of Amazon Affiliates.



•    Amazon Advertising Services (with video) allows advertisers to “reach Amazon customers wherever they are.” Ads can be placed on Amazon itself or on a network of external sites.



https://advertising.amazon.com/ad-specs/en/landing-pages
In addition, Amazon has recently begun to offer its Sponsored Products product on the business marketplace, so it is offering targeted advertising on a third platform, this an e-commerce platform, not an advertising one.

Amazon Advertising Services is a self-service platform that allows any publisher to advertise on Amazon. Formats offered are PPC, Sponsored Products and Product Display Ads. Amazon also offers formats for eCommerce Ads, Non-Standard Media (special formats) and Mobile. The Landing Pages formats illustrated provide an example of the variety of options within each format. Their advertising platform (AAP) offers a large array of display ad formats. The important difference in the AAP is that it also allows the publisher to place ads on non-Amazon sites that create “a brand safe media environment that meets Amazon’s high brand bar and is appropriate for all audiences and ages.”  It also offers ads that appear on Amazon Kindle and Amazon Fire devices. All of this is offered as a premium service to brands and agencies under the umbrella of the Amazon Media Group.

Amazon Business is the new business marketplace launched in 2015. It is believed to be enjoying rapid growth and offers access to Sponsored Products ads and Headline Search Ads. That is the way AMS started, so it seems safe to assume that the business platform will offer more advertising options as time goes on.

This is a rather bewildering array of advertising offerings but when you look at the underlying structure of AMG it makes sense. It also seems to make sense that Amazon’s ad revenue will grow. Whether that will be the result of organic growth or of advertisers diverting some o their advertising budgets to Amazon remains to be seen. For sure, you haven’t heard the last about Amazon advertising.

Related Updates

Amazon strong competitor; can see entire customer journey
How large is Amazon's ad business?
Skills add to Alexa's ability to meet user needs
Ad growth continues
 Revenues continue to climb also in Q2
Growth of sponsored ads on Amazon