Auto insurance companies are some of the largest advertisers, with top brands spending upward of $1.5 billion per year, even though they’re household names. When Geico runs another spot featuring its ubiquitous gecko mascot, or Progressive cranks out another Flo ad, are they wasting their money? “That’s where the puzzle starts,” says Navdeep Sahni, a professor of marketing at Stanford Graduate School of Business.
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