Dynamic AI Agents for Advertising Engagement Automationoad1

1. Dynamic AI agents for Advertising Engagement Automation WHITE PAPER

2. Contents 1. The always ‘on’ and informed consumer 02 2. Reaching the ‘alwayson’ consumer via channels they most use 05 3. Top Global Marketing and Advertising Challenges 08 4. AI-Powered Advertising and Marketing Solutions 09 5. Mobile messaging app platforms 13 17 6. About Yellow.ai

3. The always ‘on’ and informed consumer Enterprises are undergoing a rapid digital transformation. As the world embraces a post-COVID-19 work scenario, companies are innovating their marketing and sales strategies to fit the scene. For any business to jump off the books, the adoption of new technologies is imperative. Conducting employee experience and the customer experience in silos and working in isolation are traditional methods that aren't effective anymore. Companies need to break down silos and allow for seamless interoperability. It is on thought leaders and decision-makers to understand and internalise the concept to think of new, innovative ways of decimating business issues, generating additional streams of revenue and gaining a competitive edge. Enterprises that adapt and adjust their business models to incorporate digital technolo- gies, re-imagine their customer journeys for the current and future needs, and implement AI solutions are the economic Moghuls of tomorrow. Brands should focus on providing meaningful experiences to users through simple content. In a digital survey to check on the sentiment of consumers under COVID-19 conducted by McKinsey&Co, 75% of people using digital channels for the first time show that they will continue to use them when things return to ‘normal’. We have darted five years forward in consumer and business digital adoption in just about eight weeks. Banks have moved to remote sales and service teams and launched digital outreach to customers to make flexible payment arrangements for loans and mortgages. Schools have pivoted to 100% e-learning and digital classrooms. Grocery stores and retailers have transitioned to online sales and marketing using channels such as WhatsApp, Instagram and now, Metaverse. Many brands that have reopened stores have availed an endless aisle capability further enhanced by conversational AI. This conversational com- merce solution saves an enormous amount of inventory and physical store space. Work and leisure-relat- ed behaviour are seeing increased digital activity, as per McKinsey’s research - including high internet usage for gaming and live streaming. At-home services Doctor visits are one of many areas of health and wellness that have shifted largely to home. Another growing at-home health trend in at-home spa treatments. Consumers are now using at-home kits to take spa and skincare routines into their homes. We're also seeing consumers replace their gym with at-home versions. Depending on the category, 40-60% of consumers showed that they intend to stick to new digital products and services adopted during COVID. Certain applications have witnessed a surge in usage, including Netflix, WhatsApp and Instagram. Another example of this trend of staying indoors is the increasing number of searches related to cooking. For example, searches for "air fryer" has increased by 527% over the last five years. 02 www.yellow.ai

4. As people progressively shop online, they expect a wide selection of different payment gateways from online retailers with an increase in the "Buy Now, Pay Later" (BNPL) industry; growing alongside the gen- eral growth in eCommerce as a whole. Shopping occurs whenever and wherever the mood strikes today’s always-on consumers— and this is more so while they are doing something else. 7/10 of consumers surveyed say they shop in these so-called “micro-moments,” and 35% do so at least weekly - IBM Top Grossing Apps Worldwide for Q1 2022 03 www.yellow.ai

5. 81% belong to one of two segments: Value-driven consumers (41%) who want good value and Purpose-driven consumers (40%) who seek products and services aligned with their values. 57% of consumers will change their purchasing habits to help reduce negative environmental impact. 71% of those surveyed showed that traceability is very important and will pay a premium for brands that provide it. 71% of consumers shop in “micro-moments” (shopping while doing something else). Over one in three say they do so at least weekly and up to multiple times daily. Sustainability attitudes are driving brand choice. Over 7 in 10 consumers say it’s at least moderately important that brands offer “clean” “Advertisers and media companies are increasingly looking to maximize the effectiveness of data to drive business outcomes without compromising privacy or security. As a result, we expect data collaboration to be a priority focus for 2022. Historically, tech giants had the majority of data and benefited disproportionately by attracting top analytics talent, improving customer experiences with advanced analytics, and collecting more data to feed the flywheel. As more companies unlock data insights and remove barriers to collaboration, this playing field is leveled. This door opens for all enterprises to unlock new use cases and revenue streams while improving customer touchpoints.” - David Gilmore, Head of Privacy Technology Solutions, LiveRamp. 04 www.yellow.ai

6. Reaching the ‘alwayson’ consumer via channels they most use Nearly half of the enterprise marketers rate mobile messaging as highly important today. They estimated it to be over two-thirds when asked about its importance in the next five years. Enterprise marketers rely more on messaging apps than mobile apps. The capabilities that enterprise marketers look for from these apps are illustrated below. Better metrics and analytics, including read receipts Verified sender information Seamless transactions, such as easy Time-saving suggested actions for URL, Map, Calendar, dialer Rich media Easy replying with suggested replies customized by brands 0% 25% 50% 75% 100% Marketers expect to see the following results from the channels they want to use. Answering customer queries round the clock Improving customer experiences Creating a direct marketing channel Building brand recognition Cultivating customer loyalty Messaging Apps Mobile Apps Distinguishing from the 0% 15% 30% 45% 60% 05 www.yellow.ai

7. Customers love messaging More and more global enterprises are realizing that they need to keep their customers engaged/informed in order to grow their business sustainably. This means winning your customers again; month-on-month. Having a solid engagement strategy means crafting messages that are meaningful. Messages that engage its recipients regularly, creating an exceptional customer experience that exceeds expectations. What are the most under-valued skills that the best marketers excel when to say no to things and what to over-invest in. That's why marketers and advertisers are investing in content marketing heavily. 82% report using content marketing strategy, up from 70% last year. Seeing a year of virtual-first approaches, from school to job interviews to shopping, video reigns supreme in the content space even today. Above all, marketers and advertisers are seeing the importance of messaging and having a conversational approach to generating leads as the primary focus. In a study, that surveyed over 6,000 consumers across 3 continents, including North America, Europe and Asia. They found that mobile messaging is the most popular way consumers communicate worldwide. The average consumer has three messaging apps on their mobile’s home screen and sends an average of three messages per hour. Messaging helps people build trust and feel more connected to businesses People prefer messaging over other communication channels of people across generations prefer to message than call or email more personal than calling 7 in 10 adults surveyed said “I am more likely to do business with/purchase from a company that I can contact via messaging (eg. via chat app, text) than one I cannot” To better reach customers businesses need to adapt to messaging 06 www.yellow.ai

8. across the customer journey message businesses to ask about products or services to make a purchase to get support for a product or service 56% 82% 68% of organizations say their mobile messaging apps (SMS/MMS or advanced mobile messaging apps) perform well for improving customer engagement, compared to 45% of organizations that say their other mobile apps perform well. of organizations say better metrics and analytics data, including read receipts, are the most important capabilities of advanced messaging apps (which don’t include SMS/MMS apps) of companies expect advanced mobile messaging apps to play a highly important role in online consumer marketing within five years. We know that communication is important, but the communication should initiate from the brand to give birth to proactive solutions. This applies to advertising as well. Companies first began leveraging remarketing tactics to track and follow visitors to their landing pages or websites. The challenge that marketers, advertisers, and CMOs face is clear. How do you have personalized conversations at scale? Also, lead generation through reactive measures such as landing pages or static ads, results for high drop-offs. Amongst advertisers, marketers and CMOs, 35% agreed that delivering personalized content is their greatest marketing challenge—the highest rated selection by far. It was a theme that resurfaced presentation after presentation. So how do we address this issue? 07 www.yellow.ai

9. Top Global Marketing and Advertising Challenges You may have checked on costs and schedules for a concert in the metaverse because your investor friends were all over it. Then you saw metaverse ads following you dutifully everywhere you went online. That was only the beginning. Today’s advertising and tracking tools slice and dice visitor activity, tag every possible indicator, create shopper segments, follow shopping sessions and predict consumer behaviour. Google knows more about you than the parents could ever have fathomed. Data is abundant. But not personalization. What doesn’t work for advertisers is being on social media but not being social. Using the platforms to advertise, instead of using them in the way they can best be leveraged, is where advertisers fail. Build real communication, which means looking people in the eye digitally. So what other challenges are advertisers facing? Reducing large drop-offs in the advertising and marketing funnel Funnel drop-offs — when someone abandons a conversion process on a website or mobile application —indicating areas where users are experiencing problems with your process. Finding those drop-offs and fixing the problems that cause them can be a great way to improve your conversion rate. It can be for a number of reasons like slow speeds, too many hoops and errors during lead collection. Generating quality leads that are validated and verifıed In many cases, traditional marketing funnels, channels and leaky bucket where the website is probably slow, or the messaging is inconsistent across the journey creates low and low-quality leads especially if there is no way of verifying the lead that comes in as a potential prospect. 08 www.yellow.ai

10. AI-Powered Advertising and Marketing Solutions 1.Lead Generation The challenge for brands is to cut through the chaos of many others and grab user attention in seconds. Display ads have a limited area to work with when you have to convey information and do so in seconds. These ads used to comprise static images that directed users to a landing page for further information. The additional step of redirecting users to a landing page will always bear the risk of some drop-offs. Besides, the leads captured may not be fully qualified to fall under a sales funnel. Analysts predict having a 50% higher success factor with an accurate database to work on. Yellow.ai’s Conversational advertising can help fill these gaps. Conversational display banner ads Why settle for static banners when you can make your banner dynamic with conversational ad units? Conversational display banners help brands engage with prospects and collect leads on a real-time basis. It helps to - Zero drop-offs: Your conversational banner is not only an advertisement but also an engagement tool where you can capture user details. Speedy execution: Study the interactions on your display ad and instantly change, deploy your campaign to fit your dynamic strategy. Higher conversion: Your banner ad can interact with customers on a real-time basis, ask the right questions and even learn with every interaction to provide a better experience for every campaign. Conversational landing page In a first of its kind implementation, you can now capture 100% of your leads from digital channels and converse with them instantaneously on WhatsApp, a PWA site or a conversational landing page. The user's details including phone numbers are captured and pushed into the CRM. Every user’s interaction is validated and stored as part of our pre-defined conversational AI journey. This means every interaction with the conversational landing page can be captured, analysed and used to tweak future campaigns for better results. Offline to online conversion Converge your customers from print, TV, and digital ads by allowing them to scan a QR Code and engage with your brand on a communication channel of the customer’s choice, on-demand, at scale. 09 www.yellow.ai

11. 2.Intelligent lead qualification Want more information about your website visitors or advertising generated leads? Yellow.ai’s Dynamic AI agents (on text and voice) is an expert lead-qualifier. It can pick up the intent from user conversation and assign detailed values to the leads as per your qualifying attributes. This way, you know your customers, and know your buyers for your next step of lead nurturing. The chatbot not only accurately qualifies the leads for the sales team to further pitch to the prospects but also identifies pain points in your journey in order to increase efficacy and allow optimization. 3.Lead nurturing Yellow.ai’s conversational AI platform allows you to create campaigns across social and traditional channels to foster engagement and point-of-sale—from in-store to mobile, sales, referral, social, and support. 4.Conversational selling The lifetime value of a customer is best actualized by an intelligent and always-on demand virtual assistant that can nurture and fulfil your leads; prospects and customers. Product discovery With brands going omnichannel, it’s hard to unify the customer’s experience of in-store and digital storefronts. Let a virtual assistant help your customer with aiding their product discovery, unifying the brand experience, and keeping customers engaged. Endless aisle is the ability to display, access, and sell inventory enterprise-wide, allowing retailers to meet in-store shoppers' wants by 'stocking' stores with a never-ending supply of SKUs. Mobile-equipped associates, kiosks and smart screens are fast becoming essential for stores of all sizes that want to compete with the online disruptors. 10 www.yellow.ai

12. Omni-channel selling Let AI be your salesman recommending products your customers are more likely to purchase. With push notifications and contextual upselling across channels, you can drive 10X revenue. Conversational commerce Aid product discovery and sales on channels preferred by your customers. With an always-on store on WhatsApp, Alexa, Google Assistant, and more omnichannel sales are closer than you think. Communication channels of interest for ddvertisers Channels used in advertising and marketing. 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Social Website Email Marketing Content Marketing Other Search/ Tradeshows Facebook Messenger Customer community/ user group Whatsapp Social Businesses everywhere now utilise basic Short Message Service (SMS) apps that reach consumers in their native messaging app which is almost always on their phone’s home screen. Over-the-Top (OTT) messaging apps such as Facebook Messenger and WhatsApp offer richer UI than SMS typically provides, but they are not native messaging apps. A successor to SMS, the Rich Communication Services (RCS) platform, is designed to deliver rich functionality in a native, universal messaging app. 11 www.yellow.ai

13. 56% 82% 68% of organisations sat their mobile messaging apps (SMS/MMS or advanced mobile messaging apps) perform well for improving customer engagement, compared to 45% of organisations that's say their other mobile apps perform well. of organisations say better metrics and analytics data, including read receipts, are the most important capabilities of advanced messaging apps (which don't include SMS/MMS apps). if companies expect advanced mobile messaging apps to play a highly important role in online consumer marketing within five years. Source: HBR Business Messages is a conversational channel that combines entry points on Google Maps, Search, and brand websites to create rich, asynchronous messaging experiences. With our chatbot deployed on this channel, anyone who searches for a product/ service that you offer can directly converse with your chatbot on business messages and complete a transaction. From discovery to sales; all in a matter of a few min- utes. Google’s RCS messaging Provide rich conversational experience on traditional messaging platforms. RCS messaging upgrades SMS to provide branded messaging rich with media, interactivity and branding. Apple business chat Apple Business Chat is a way for customers to connect with businesses via Safari, Maps, and Messages. Apple Business Chat supports rich media like images, videos, and documents. People can easily get assistance, schedule appointments, and complete purchases with Apple Pay, right from within Messages. 12 www.yellow.ai

14. Mobile messaging app platforms The low barrier entry for businesses and target audiences makes it easy and also cost-efficient to deploy bots on messaging platforms. If you want to communicate with your customers, advertise to them, and connect with them, building a bot is a lot cheaper than building a mobile app. A Nielsen survey found that people find messaging to be the second-best way to talk to a business. People exchange 2 billion mes- sages with businesses over Facebook Messenger every month, alone. Compare this to the rest of the mobile app market, where 71% of users delete an app within 90 days. Meanwhile, marketing email click-through rates (3.1% on average) haven’t improved in years. Only 30% of marketing emails are opened. Chatbots can help you bypass inbox competition too. Facebook Messenger By 2021, there will be about 3.1 billion Facebook Messenger users globally. Over 20 billion messages are exchanged between businesses and users monthly on Facebook Messenger. Facebook Messenger is one of the leading messaging platforms in the US with over 2 million monthly downloads. Messenger marketing leads to a 70% better open rate than email marketing. While Facebook has 6 million advertisers, there are only 300,000 active chatbots. This is a lot less competition. Zalo Industry wise usage of the app includes - News & Media - 6.53% Computers Electronics & Technology - 5.34% E-commerce & Shopping - 3.80% Science & Education - 3.72% Others - 80.61% Together with other super apps like Go-Viet and Grab, Zalo is the biggest player in the local market, and its global outreach is also expanding. It is the highest used app in Vietnam. The USA is next. 13 www.yellow.ai

15. WhatsApp is the world’s most popular mobile messaging app with 1 billion daily active WhatsApp users. India is the biggest WhatsApp market in the world, with 200 million users (it’s estimated in some quarters that this has increased to 300 million) Next is Brazil with 120 million WhatsApp users. 450 million users of WhatsApp Status, eclipsing Snapchat Stories. We are official partners with WhatsApp and are the first in the world to provide businesses with WhatsApp’s latest interactive features including buttons along with providing verified accounts. Businesses around the globe are rushing to take their businesses to WhatsApp for direct-to-consumer selling. Your leads can land on your WhatsApp page from promotions, make a purchase, pay and get into the funnel, in a matter of minutes. It cuts overhead costs and connects brands with global consumers, effortlessly. WeChat WeChat has 1.17 billion users as of the first quarter, of this year. Over 45 billion messages are exchanged daily. It’s the 5th most used social app in the world. A whopping 46TB of data is consumed on WeChat over 1 minute of the morning rush hour. 400 million monthly players of WeChat mini-games. As of mid-March, 300 million WeChat users used WeChat Health to access pandemic updates, online consultation, and AI-powered self-assessment related to the coronavirus outbreak. 1 billion WeChat Pay commercial transactions per day in Q4 2019. 72 million businesses registered to WeChat Pay in 2019. 50 million monthly active merchants on WeChat Pay in Q4 2019. 100 million users of credit rating system WeChat Payments Score within a year of launch. 820 million users sent or received a Chinese New Year red package over WeChat in 2019. WeChat drove $50 billion into the Chinese economy in 2017. 14 www.yellow.ai

16. Viber Over 1 billion users as of 2020. Viber users regularly interact with products and brands on the network. According to official Viber statistics, an average user views 28 products in a month. 7 million interactions happen every minute on Viber. 1 in 4 customers taps the buy button. 260 million monthly active users as of January 2019. 668 million sticker packs were downloaded in 2017. 13 different product “Likes” per month per customer. Companies using Viber’s messaging technology can send rich content with images, buttons, and up to 1000 text characters in any language. 59% of Southeast Asia's smartphone users have Viber installed. Viber is available in 32 languages. Coca-Cola was able to drive more than 680,000 users to chatbot interactions on Viber, 29,000 “under-the-cap” code redemptions, and a 30% conversion rate. KakaoTalk People in their 40s are the biggest users of Kakao Talk, spending 97% of their time on their phones using the app. Interestingly, the age group with the lowest usage was aged 10-19 with 90%, while Facebook usage was much higher than other demographics at 8%. The firm says that a survey showed that 95% of smartphone users had KakaoTalk installed on their phones. This compared to the Facebook Messenger at 2% and Telegram, Line and WeChat at 1%. Koreans spend the most time on their phones using KakaoTalk than any other app, according to app data company Wiseapps. 15 www.yellow.ai

17. Line According to We Are Social and Hootsuite’s Digital 2019 LINE stats, LINE counted 194 million global users as of the beginning of 2019. The total population of Japan is 126.8 million. With 80 million LINE MAU in Japan LINE has an extremely high level of penetration in Japan. LINE Pay users numbered 7.4 million in Q2 2019 – a 118% year-on-year increase. LINE Starbucks Card, a prepaid digital card for use in the coffee chain attracted 2.5 million users within one month of its launch in April 2019. Users can also sign up for Starbucks Rewards. 78.8% growth in shopping transaction volume year-on-year, with LINE SHOPPING, GO, allowing offline shopping. Food transaction volume has increased 76.3% year-on-year, with LINE Pockeo (a non-delivery takeaway service) released in April 2019. Delivery business LINE Delima reported 118.7% year-on-year growth in Q4 2018. Of the revenue generated in Q2 2019, 55% came from advertising, 32% from communication/content/other, and the remaining 13% from strategic business. Optimise your marketing and advertising strategy to get the most out of your spending. Schedule a demo with us today. References - HBR - mobile messaging survey. Statista. Similar Web. McKinsey and Co. Gartner. BusinessOfApps.com 16 www.yellow.ai

18. About Yellow.ai Yellow.ai is the World’s Leading Total Experience Platform powered by Dynamic AI agents that enables enterprises to have enriching, delightful and personalized interactions with their customers and employees across their preferred choice of channel, language and time. Dynamic AI agents are advanced virtual assistants that automate digital (text), conversational (voice) and unstructured (documents) workflows to deliver a connected experience across all human interactions in real-time, across channels and at scale. The platform is trusted across 50+ countries by 1000+ enterprises, including Domino’s, Sephora, Hyundai, MG Motors, Bajaj Finserv, Food Panda, Bharat Petroleum, Waste Connections US and Tata. Weaving in the best of AI and human intelligence to automate customer and employee experience, the company aims to democratize AI through its no-code/low-code bot builders, omnichannel virtual assistants, and ticketing automation suite. Yellow.ai has raised more than $102M from blue-chip investors and has offices across six countries. Visit www.yellow.ai for more information. Reach us at contact@yellow.ai 17 www.yellow.ai