Generative AI has completely transformed the marketing industry. According to marketers, Media Mix Modelling is still a difficult task only humans can accomplish effectively.
Generative AI has propelled marketing into unknown territory in 2023, thanks to its capacity to develop personalized creatives, assess customer behavior, and deliver real-time data insights.
Businesses are already investing in generative AI for marketing, allocating considerable resources to marketing technology, and seeing this game-changing technology as a catalyst for marketing creativity and innovation.
According to the latest Capgemini Research Institute report, ‘GenAI and the Evolving Role of Marketing: A CMO’s Playbook,’ Indian marketers are investing 62% of MarTech budgets on GenAI tools on average. According to the survey, nearly half of the organizations have already assigned teams to deploy generative AI in various marketing and advertising elements.
According to industry experts, others are in the assessment phase, carefully examining risks and choosing acceptable POCs specific to their situation. There is no way of knowing what course this ecosystem will take in the future.
CMOs’ roles are becoming increasingly vital as the marketing landscape evolves. Reason: For marketers, the human touch is still irreplaceable, especially when it comes to the complicated process of Media Mix Modelling.
Media Mix Modelling is a marketing analysis technique used to calculate the impact of marketing efforts on sales. Traditional advertising outlets such as print, broadcast, TV, social media, and online advertising comprise an organization’s media mix. They optimize their media mix to acquire insights into what they require to properly target their consumers.
Almost all major brands’ Chief Marketing Officers (CMOs) are now experimenting with various technologies for Media Mix Modelling (MMM). CMOs feel the results aren’t exciting enough so far.
“Generative AI powers dynamic content creation and real-time data analysis, giving marketing teams the boost they need to craft personalized customer communications and make market predictions.” However, when it comes to media modeling, AI technologies are still in their infancy, with few use cases for predictive scheduling, targeting, and media distribution. “At the moment, only human intelligence can effectively manage such a complex task,” says Rajiv Dubey, Media Head for Dabur India.
Dubey goes on to say that in the future, advanced AI technologies may be able to exploit behavioral elements to provide personalized targeting, message, and delivery of preferred media targets.
Many prominent advertisers, like Maruti, Marico, and Polycab, are also doing trial testing with such MMM technologies, though outsourcing this work to AI is still a long way off, according to their media executives.
“AI tools for Media Mix Modelling designed by various companies are being tested and improved through the internal IT Development department,” says Shashank Srivastava, Senior Executive Director, Maruti Suzuki.
Every technology has its own set of advantages and disadvantages. In business, we must always investigate the use cases that are best suited to business requirements. According to Srivastava, there is a lot of room for Gen AI in content production, particularly in creating Customised and Vernacular Creatives, Customer Interactions, Vernacular Voice Bots, and predictive targeting of existing customers for reselling, cross-selling, and upselling (using Customer Data Platform).
The automaker is also utilizing Gen AI for internal meetings, minuting, summarising, analyzing dealer financial statements, spotting gaps, and planning action (Under Development).
GenAI to Add USD 1.2 Trillion to India’s GDP
Generative AI has the potential to add USD 1.2 to 1.7 trillion to India’s GDP over the next seven years, representing an additional 5.9% to 7.2% of GDP in 2029-30. According to the latest EY report, titled ‘The Idea of India: Generative AI’s Potential to Accelerate India’s Digital Transformation,’ more than two-thirds of this would come from business services.
“The impact will vary across sectors, with financial services, transportation, education, retail, and healthcare expected to benefit the most.” Because of their digitalization and emphasis on productivity, efficiency, and personalized experiences, these industries are well-positioned to capitalize on AI’s potential, according to the report.
As businesses embark on their AI journey, ambiguity lingers over the specific trajectory this ecosystem will take in the future. There is currently a scarcity of a comprehensive strategy for providing scalable and sustainable commercial value. “Others are still in the assessment phase, meticulously weighing risks and pinpointing suitable Proof of Concepts (POCs) customized to their unique circumstances,” said specialists in the field.
Despite this uncertainty, AI solutions are being explored and deployed by a varied collection of advertisers across India. According to the EY study, three in five C-suite executives believe that AI is having a big impact on their organizations, even though 3/4 of respondents admitted to having a low to moderate degree of preparation to profit from AI.