The Push for Generative AI in Marketing: Progress and Pitfalls
The emergence of generative AI has been touted as a revolution for the marketing industry, promising to expedite processes and reduce costs. From streamlining media operations to enhancing creative elements, the aspirations were high. Yet, many marketers now express hesitation, citing a significant gap in AI solutions when it comes to brand building. Despite Silicon Valley’s ambitious projections, including Mark Zuckerberg’s vision of fully automated advertising by next year, the reality appears to be much more complex.
The Current State of AI in Marketing
According to insights from marketers interviewed by Digiday, AI and automation tools—such as Google’s Performance Max (PMax) and Meta’s Advantage+—have predominantly found their place in performance marketing campaigns. This is primarily due to the availability of concrete data and clear attribution metrics in performance-based strategies. However, the tools for media buying and marketing automation in brand-focused channels like connected TV (CTV) or digital video have not gained the same traction.
Chris Rigas, VP of media at Markacy, notes that “AI is effective when it’s given clear guidelines and substantial data to digest.” The capabilities of AI shine in data-centric tasks and scalable content creation. However, the notoriously longer feedback loops associated with brand marketing pose a significant challenge. Metrics in brand marketing, such as affinity and awareness, often have fuzzier outcomes compared to the quantifiable KPIs seen in performance marketing, making it difficult to feed actionable data into automated tools.
The Challenges of Brand Marketing Metrics
Marketers have long acknowledged that quantifying brand marketing is more challenging. Metrics like brand lift or awareness don’t offer the immediacy provided by returns on ad spend or direct sales figures. This disparity means that while AI can efficiently manage and optimize campaigns that focus on performance, tools for broader brand marketing remain underdeveloped. As a result, many agencies are compelled to create proprietary solutions to supplement existing technologies.
For instance, Brandtech Group’s Jellyfish agency introduced its Share-of-Model platform, an innovative AI-driven market research tool that harnesses the power of large language models like OpenAI’s ChatGPT. This tool aggregates insights that can influence various campaign aspects, enhancing media targeting and strategy.
Innovations in Predictive Campaigning
Other agencies are also pioneering new methodologies. B2B marketing agency Transmission, for example, employs digital twinning and lookalike audience strategies to improve outcomes in brand campaigns. This involves developing digital models of customers to anticipate the effects of brand initiatives accurately. Alex Beddoe, head of biddable media at Transmission, emphasizes the significance of predictive audiences, which allow for a more contextualized approach to campaigns.
At Markacy, Chris Rigas has observed a shift as clients have begun to pull back from Meta Advantage+ campaigns, suggesting a strategic pivot towards video content to foster brand awareness within larger automated campaigns.
Automated Tools: A Double-Edged Sword
While platforms like Google, Meta, and Amazon promise unparalleled scale and automation, the enthusiasm from brand marketers remains lukewarm. Skepticism looms over the opaque nature of these AI tools, a concern amplified by the rapid pace of technological advancement that often outstrips marketers’ ability to adapt. Some industry veterans have even gone so far as to advise clients to abandon platforms like Google’s PMax due to performance issues.
Despite these challenges, there is a prevailing sentiment among marketers that the evolution of automated tools is inevitable. However, limitations in current capabilities and measurement methodologies keep these tools primarily focused on the lower end of the marketing funnel, where immediate results can be tracked.
A Future Brimming with Potential
Marketers acknowledge that the journey towards fully embracing AI tools and reaping their benefits is still in its infancy. “Clients are beginning to see some advantages from these AI integrations, but a lot remains to be done,” notes Anthony Costanzo, chief analytics officer at Mile Marker independent media agency. The anticipation is palpable; as AI technology continues to refine its efficacy, the potential for creating comprehensive, one-stop marketing solutions could soon materialize. The industry stands on the brink of transformation, where the interplay between human creativity and AI efficiency promises to redefine the marketing landscape.