Zappi is a tech startup that uses artificial intelligence to help businesses evaluate marketing campaigns and product development prior to launch.
This AI-powered consumer insights company just raised $170 million in growth capital, led by Sumeru Equity Partners and a number of other undisclosed investors.
Zappi intends to make it easier for companies to predict consumers’ responses to products or ads, before they’ve even been exposed to them.
It’s not difficult to evaluate these things after the fact. As soon as a company launches a new product or campaign, they are flooded with sales data, customer demographics, and insights into consumer or user trends. Once this data exists, a company can incorporate it into its strategy. But what about before the product launches?
To predict consumer demand, companies traditionally leverage tools like surveys or focus groups, prior to product or campaign launches. These methods are typically slow and expensive. In some cases, the data can even be misleading, or stifling to innovation. Although most companies aren’t likely to admit it, there’s often a heavy reliance on educated guesswork to predict consumer behavior.
This is the problem that Zappi is trying to solve, by analyzing insights from old launches via its AI-based technology to formulate new outlooks. It has already piloted its solution to high profile clients including McDonald’s (MCD) and PepsiCo (PEP).
Accurately predicting consumer interest is a persistent challenge. Venture capitalists have been investing heavily in finding a solution. Investments in AI-enabled market research have recently skyrocketed. In 2022, for the second year in a row, they eclipsed $2 billion.
With this money, companies will ideally be able to predict what consumers want with more accuracy. For businesses, this could mean less money wasted on expensive market research. And, for you, it may mean less time watching boring ads for boring products.
Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.