Sharm Tank Vol. 31

Happy Friday,

Hold onto your hats because TikTok just dropped a bombshell that’s set to reshape the influencer marketing landscape as we know it. I’ve always believed that the real magic of AI in marketing would manifest in User-Generated Content (UGC), and TikTok has just proved me right with their latest innovation - Symphony Avatars.

@cnbci

@tiktok has launched Symphony Digital Avatars - generative AI avatars of real people. CNBC's Tania Bryer spoke to Blake Chandlee, TikTok's... See more

Now, before we dive into the nitty-gritty, let’s address the elephant in the room. Yes, this move is stirring up quite the controversy, and trust me, the critics are out in full force. But isn’t that always the case with groundbreaking tech?

Here’s what you absolutely need to know👇

Introducing Symphony Avatars on TikTok:

AI-powered UGC is now a reality on TikTok, and it’s available in two fantastic forms:

1. Stock Avatars

   • These are paid actors who have licensed their likenesses for commercial use.

   • Think of the AI stock voices you’ve heard everywhere; now imagine AI stock faces everywhere.

2. Custom Avatars

   • This is where things get truly revolutionary. Creators can now replicate and scale their likenesses, breaking free from the time-consuming process of content creation.

   • Imagine producing UGC in 30 different languages, opening up massive global reach. If a video is killing it in English, why not translate it into Spanish, Mandarin, or Hindi and watch it soar globally? That’s now possible.

Potential Use Cases:

1. Global Campaigns:

   • Brands can now create a single piece of content and localize it for different markets by using AI avatars to dub and translate the message into multiple languages. Imagine launching a product with simultaneous campaigns in North America, Europe, and Asia without additional production costs.

2. Real-Time Engagement:

   • Influencers can generate content on the fly. For instance, during live events or product launches, creators can use their custom avatars to produce instant follow-up content in various languages, keeping their global audience engaged and informed.

3. 24/7 Content Production:

   • With Symphony Avatars, the bottleneck of content creation is effectively removed. Creators can now maintain a constant stream of content even when they’re busy with other projects. This means no more gaps in posting schedules, which keeps audience engagement high.

4. Enhanced Personalization:

   • Brands can create personalized messages for different segments of their audience. For example, a fitness brand could use avatars to deliver tailored workout tips in different languages, making the content more relatable and increasing its impact.

5. Training and Tutorials:

   • Educational content creators can produce multilingual tutorials, making learning accessible to a broader audience. Whether it's cooking, coding, or makeup tutorials, the potential for reach and impact is enormous.

The Controversy:

Nothing shakes things up quite like a bit of controversy, especially when TikTok is involved.

Disclosure is Key: TikTok will clearly mark when content is AI-generated, noting that the new tools are "designed to enhance and amplify human imagination, not replace it."

Ethical Considerations: Is AI UGC ethical? Should it be allowed?

My take: It boils down to informed consent and logic. People trust people. If brands misuse AI to spread wild claims, it’ll backfire spectacularly. Control measures are essential, particularly with Stock Avatars.

For Custom Avatars, I believe there should be:

• Creator Control: Only the creator should be able to generate variations of their content.

• Review Process: Creators must approve the final AI-generated content before it goes live.

Jessy Grossman, founder of the networking group Women in Influencer Marketing, mentioned that AI would allow creators to work faster and at a greater volume without sacrificing creativity. She emphasized that AI tools help set the right track, but creators still need to put their spin on the final product.

However, some experts are cautious. Mara Einstein, a marketing professor and TikTok creator, pointed out that while the technology might improve, current AI-generated avatars still fall short of replicating the human element that makes content relatable and engaging. She noted that the biggest problem with AI is that it builds on what already exists, limiting its creativity.

Content creator Arielle Fodor also expressed excitement about the accessibility potential of this technology but remained wary, especially considering concerns about AI raised during the actors' strike.

Why This Matters:

This innovation is monumental for influencers and social commerce. It’s a big win for both creators and brands. Think of the time saved, the new languages reached, and the overall boost in productivity and creativity.

We’re witnessing a major breakthrough in influencer marketing. It’s an advancement that deserves celebration. There’s a huge upside here for creators and brands alike, but we must tread carefully to avoid misuse.

Now let’s get into some of our bite-sized stories…

Retailers Opt for Subdued Pride Month Marketing Following Last Year's Backlash

In light of the intense protests in 2023, major retailers like Target are taking a step back with their Pride Month marketing. Last year, Target faced significant backlash for its bold Pride displays, leading them to scale back this year, focusing more on online Pride merchandise and less on in-store presence. However, the commitment to the LGBTQ+ community remains strong. Retailers like Target are now channeling their support through internal programs and employee benefits. This strategic shift aims to avoid polarization while continuing advocacy, showing that the essence of their support hasn't wavered, just the visibility.

Elon Musk Seeks to Rebuild Relationships with Advertisers at Cannes Lions

At the Cannes Lions Festival, Elon Musk sat down with WPP CEO Mark Read to address his previous contentious remarks to advertisers and expressed a desire to mend relationships. Musk clarified that his criticism was aimed at those pushing for censorship, reiterating his stance on free speech. Despite last year's fallout, where many advertisers exited the platform, Musk highlighted efforts to enhance ad targeting and brand safety on X. He also shared his optimistic vision for AI, emphasizing its potential to boost creativity while acknowledging the associated risks.

Upscale Brands Flock to the Hamptons to Engage with Elite Consumers

This summer, luxury brands like Jolie, Coterie, and Flamingo Estate are setting their sights on the Hamptons to connect with affluent consumers. These high-end marketers are hosting exclusive events to reach the wealthy 1%, potential investors, and influencers. From Jolie's poolside yoga sessions to Coterie's opulent "Summer Splash" with Goop, these events are all about associating their products with the aspirational Hamptons lifestyle. Despite the high costs, the strategy banks on the influential power of the Hamptons elite to elevate brand prestige and visibility.

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