Throughout this series, we have explored the transformative potential of Generative AI in marketing, from its ability to augment human creativity to its impact on job roles and organisational structures.
In this final article, we will tackle the myth that GenAI will not bring significant efficiencies and delve into how this technology is set to revolutionise marketing operations, client-agency relationships, and commercial models.
Myth #5: GenAI will not bring that many efficiencies
One of the most prevalent misconceptions about Generative AI is the notion that it will not deliver substantial efficiencies or cost savings. Many organisations perceive GenAI as a novelty or a nice-to-have, rather than a strategic technology platform at the core of their operations. However, our research demonstrates that GenAI has the power to revolutionise every aspect of marketing operations, from campaign planning and execution to performance measurement and optimisation. By harnessing the power of GenAI, organisations can achieve unparalleled levels of efficiency, agility, and effectiveness, providing a solid foundation for future marketing success.
Streamlining Marketing Operations with GenAI
Generative AI has the power to automate and optimise a wide range of marketing tasks, from data analysis and segmentation to content creation and personalisation. By leveraging GenAI tools and platforms, marketing teams can significantly reduce the time and effort required to plan, execute, and measure campaigns, freeing up resources to focus on higher-level strategic initiatives.
For instance, GenAI-powered systems can analyse vast amounts of customer data in real-time, identifying patterns, preferences, and behaviours that would take analysts weeks or months to uncover. This enables marketers to make data-driven decisions quickly, adapt to changing market conditions, and deliver highly targeted and relevant customer experiences.
Similarly, GenAI can streamline content creation processes by generating large-scale, high-quality, on-brand assets, from ad copy and social media posts to product descriptions and email campaigns. This not only saves time and resources but also ensures consistency and compliance across all marketing channels and touchpoints.
Transforming Client-Agency Relationships
The rise of Generative AI is also set to transform the nature of client-agency relationships. At Alchemists, we see these relationships developing through a set of phases: Translation, Foundation, Belief, and Trust. Today, getting from the Translation to the Trust phase is a lengthy and demanding process, often taking years. With the rise of GenAI ecosystems, clients and agencies will have to invest time and effort to move toward the Trust phase much faster, as the quality of their GenAI ecosystems will define their marketing competitiveness.
GenAI will be a game-changer, enabling better strategic decisions while replacing most tactical tasks. This will require a new level of collaboration and transparency between clients and agencies and a shared understanding of GenAI's capabilities and limitations.
Overall, agencies that can effectively leverage GenAI will be well-positioned to become true strategic partners to their clients.
Reshaping Budget Structures and Commercial Models
Organisations will also need to rethink their marketing budget structure and where they invest. Commercial models will also need to fully evolve to account for the new paradigm. All that is to realise Generative AI's efficiencies and cost savings potential. Rather than allocating resources based on traditional channel-based or campaign-based approaches, marketers should adopt a more holistic and agile funding model that prioritises investments in GenAI technologies, talent, and partnerships.
This may involve shifting the budget from execution-oriented activities to strategic initiatives. It may also require a more flexible and iterative approach to budgeting, allowing teams to reallocate resources quickly.
The impact on the commercial models and KPIs will be massive. The current most common type of pricing, based on Time and Materials, will become less relevant the more GenAI is utilised. We foresee a shift towards output-based pricing or subscription-based services. By leveraging GenAI to optimise performance, agencies can deliver greater value and build more sustainable and mutually beneficial relationships.
Conclusion:
By streamlining marketing operations, transforming client-agency relationships, and reshaping budget structures and commercial models, GenAI is poised to deliver unparalleled levels of efficiency, agility, and effectiveness. The myth that Generative AI will not bring significant efficiencies will quickly evaporate as organisations begin to harness its transformative potential and reflect that in commercial arrangements with their partners.
At Alchemists, we believe that the future of marketing belongs to those who can effectively leverage GenAI's power to drive business growth. By embracing this technology as a strategic imperative and adapting their operating models and partnerships accordingly, organisations can unlock a new era of marketing excellence.
As we conclude this series, we encourage marketing and procurement leaders to approach Generative AI with an open mind, a willingness to experiment, and a commitment to continuous learning and adaptation. By doing so, they can position their organisations at the forefront of the GenAI revolution and build a sustainable competitive advantage in the years to come.
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