TRD Issue 45 - Briefing: OpenAI DevDay, AI and Marketing, UK BNPL Use Jumps 10%
OpenAI's DevDay introduced tools promising to revolutionize AI. Tech giants like Meta, Google, and Amazon are leading with AI-driven tools for success. The payments sector is seeing a significant change with BNPL services during inflation.
Good morning,
As we start another bustling Tuesday, let's gear up with the latest insights from TRD Issue 45.
First up, OpenAI's DevDay just ended a couple of hours ago, and it has made a significant impact on the tech industry. The event introduced several tools that promise to revolutionize AI, making it more accessible. Among these tools are a GPT store for custom bots, GPT-4 Turbo, and a new platform for chatbot creation. These developments have the potential to redefine how we interact with technology on a daily basis.
In marketing, tech giants like Meta, Google, and Amazon are not just playing the game but changing the rules. With Meta's Advantage+ Shopping Campaigns, Google’s Demand Gen, and Amazon's full-funnel advertising, they're crafting a narrative that's hard to ignore, one where AI-driven tools are not just optional but essential for success.
And let's not overlook the payments sector, where the BNPL (Buy Now, Pay Later) services are making waves during inflation. Walmart Canada's collaboration with Klarna and Amazon's expansion with Affirm is just the tip of the iceberg in a sea change sweeping across consumer finance.
So, as we sip our morning brew, let's ponder the implications of these developments and strategize on how we can harness them for our growth. Happy reading, and here's to a productive week ahead!
The Retail Direct
About 91APP
Founded in 2013, 91APP is the premier OMO (online-merge-offline) SaaS company, providing one-stop omnichannel retail solutions in Taiwan, Hong Kong, and Malaysia. It offers advanced Commerce Solutions and Marketing Solutions that enable retail brands to penetrate the D2C (Direct-to-Consumer) e-commerce market and drive their operational benefits to their full potential. In 2021, 91APP became the first SaaS company to be listed in Taiwan and has been named one of Taiwan's "NEXT BIG" companies by Startup Island TAIWAN.
For more information about 91APP (TWO: 6741), visit www.91app.com.
AI
All the News From OpenAI’s DevDay Conference
Why it is important
- OpenAI's DevDay announcements signal significant advancements in AI, with implications for developers, businesses, and the broader tech landscape.
What happened
- OpenAI unveiled a GPT store for sharing and selling custom GPT bots, the release of GPT-4 Turbo, and a platform for creating custom chatbots, marking a leap in AI accessibility and capabilities.
Source: The Verge
Elon Musk Releases New AI Chatbot ‘Grok’ in Bid to Take on ChatGPT
Why it is important
- Elon Musk's xAI startup challenges major AI players with 'Grok', a new AI chatbot integrated with social media, potentially reshaping AI interaction norms.
What happened
- xAI, founded by Musk, released 'Grok,' a chatbot with real-time data access and a unique personality, aiming to innovate in the competitive AI market.
Source: FT
Marketing
DTC Briefing: How Meta Got Startups Hooked on its Platform Again with Advantage+ Shopping Campaigns
Why it is important
- Meta's Advantage+ Shopping Campaigns (ASC) are pivotal in regaining DTC brands' ad spend, showcasing the growing reliance on AI-driven marketing tools.
What happened
- Meta's ASC, an AI-automated ad tool, has increased DTC brands' ad investment on the platform, signifying a shift back to Meta post-iOS 14 changes.
Source: Modern Retail
How Generative AI is Powering New Advertising Tools from Platforms Like Google
Why it is important
- Generative AI tools in advertising are streamlining campaign creation, enabling brands to produce diverse and appealing ad content quickly and efficiently.
What happened
- Google and Amazon released AI tools for ad creation, allowing brands to generate varied product imagery, potentially increasing ad conversions and revenue.
Source: Modern Retail
Amazon Briefing: How Amazon is Changing the Narrative Around its Advertising Ecosystem
Why it is important
- Amazon's "full-funnel" advertising approach is pivotal for attracting a broader range of advertisers by demonstrating direct sales impact from brand awareness campaigns.
What happened
- Amazon introduced new ad tools, like Sponsored TV ads with no minimum spend, aiming to prove that its ad ecosystem can drive significant product sales.
Source: Modern Retail
Payments
Amazon and Walmart Square Off Over Buy Now, Pay Later
Why it is important
- Walmart Canada's partnership with Klarna for BNPL options signifies a strategic move to enhance customer payment flexibility, which is crucial for competitive positioning in e-commerce.
What happened
- Walmart Canada introduced a Klarna-powered BNPL service, while Amazon expanded its Affirm partnership to Amazon Business, intensifying the BNPL competition.
Source: PYMNTS
UK BNPL Use Jumps 10% Amid Cost-of-Living Crisis
Why it is important
- The UK's cost-of-living crisis has led to a 10% rise in BNPL usage, highlighting the need for consumer protection in financial services during economic hardship.
What happened
- The FCA reported increased BNPL use in the UK and has implemented new consumer protections, reflecting the growing reliance on alternative payment methods.
Source: PYMNTS
Social
X is Launching Two New Subscription Tiers, Including a ‘Premium+’ Ad-Free Plan
Why it is important
- X's launch of new subscription tiers is a strategic pivot to diversify revenue streams amidst advertising losses, which is crucial for the platform's financial sustainability.
What happened
- X, known before as Twitter, introduced two subscription levels, including a Premium+ ad-free option, to counteract declining ad revenues and enhance user experience.
Source: TechCrunch
Asia
Mitsui Pours $58m into Axiata’s AI Unit
Why it is important
- Mitsui's investment in Axiata's AI unit reflects a significant valuation boost and a strategic move towards achieving unicorn status in the AI and analytics sector.
What happened
- Japan’s Mitsui invested $58 million in ADA, raising its valuation to $550 million and increasing Mitsui's stake, signaling confidence in ADA's growth in digital solutions.
Source: Tech in Asia
FamilyMart Revamps Store Terminals for the First Time in 8 Years, Reducing Workload with Miniaturization
Why it is important
- FamilyMart's system overhaul reflects a broader trend toward digital transformation in retail, aiming to improve efficiency and address labor shortages.
What happened
- FamilyMart updated its store support system, introducing smartphone-sized devices for inventory and ordering, aiming to cut daily work time by 30 minutes per employee.
Source: NIKKEI
