Alex Olesen, VP of Vertical Strategy & Product Marketing at Persado, recently discussed the latest on Generative AI and AI technology in marketing in a webinar hosted by PR agency InkHouse. Fluctuations in the broader martech sector continue as more AI marketing technology and software hits the market, new vendors arrive, and others fade away. Determining the best way to use Generative AI marketing in a way that frees capacity of human creatives to do more strategic work remains a challenge for marketers. In this post, we offer a recap of the discussion framed around the questions Alex answered.
Question 1: Where are we now with Generative AI and the broader martech sector?
In 2022, venture capital funding reached $1.4 trillion in the Generative AI technology space. That is a surprising number given the radical drop in venture capital and the bearish tech market. Scott Brinker’s famous martech Infographic features over 11,000 unique vendors in 2023, and we expect this list will grow because the barrier for entry for new startups has never been lower.
Question 2: How are marketers thinking about build vs. buy for martech?
Conversely, in 2023 there has been pushback toward build versus buy. This is most likely a temporary shift. There are so many vendors today and the roadmap for Generative AI adoption and use remains so opaque that many will probably buy solutions as an efficient way to test and learn.
Martech costs also continue to seesaw. AI-enabled automated transcription services offer a primary example of this fluctuation. For several years, prices remained about the same between a variety of providers. But these prices fell a few months ago, as more players entered the transcription space and flooded the market. Consequently, the largest providers maintain the bandwidth to drop the price across the board. This cycle happens rapidly—in some cases, in just a matter of weeks.
Question 3: How should marketers think about colliding trends in martech and AI technology in marketing?
Scott Brinker has identified three colliding martech trends: 1) A universal data layer allowing multiple applications to leverage the same data, 2) Composability of applications and app functionality, and 3) AI as the marketer’s co-pilot. Technology providers are creating a new tapestry where these three trends can be mixed and matched in their marketing stack.
These innovations bring about a number of secondary effects related to trust—or a lack of trust in new providers. In response, enterprises will return to their communities and to trusted vendors to seek opinions on martech as they consider their buying decisions. Trust concerns should change how vendors market their products and services.
Question 4: What are some key brand differentiators for martech providers?
Building a brand remains one of the most important activities martech firms do. When everything feels the same, brand really matters.
Storytelling remains crucial in addition to succinctly illustrating how a product or service solves a fundamental problem. Strong marketing teams execute their digital strategies across every channel in a custom way.
In the case of Persado, our Motivation AI enterprise Generative AI marketing solution enables consumer marketers to strike the right balance between speed-to-market and personalization by connecting the data and the content on the right channel at the right time. Dynamic Motivation represents our latest offering. It leverages the power of Generative AI and the Persado Motivation AI knowledge base to motivate customers using personalized language. Dynamic Motivation combines predictive content and real-time serving to deliver optimized and personalized words and phrases based on browsing behavior, purchase history, interests, and preferences shown by the customer.
Question 5: How will the economic climate affect the martech environment?
Two protagonists prevail in today’s economy:
1) What’s affecting the consumer?
2) What’s affecting the enterprise executive who funds initiatives?
Adapting to the needs and preferences of the consumer is a Persado specialty. Our machine learning algorithms take in performance data from campaigns. When consumer sentiments change, the algorithm can sense that and adjust the predicted-best language. We do that long before human marketers would see those shifts in their consumer data analysis.
We saw shifts such as these recently in digital marketing campaign data highlighting consumer behavior changes in financial services. Persado used these AI-driven insights to boost performance in digital marketing campaigns across financial services as consumers began to respond to completely different messaging than the digital marketing messaging that performed best the previous year. This ability to pick up patterns and stay ahead of the curve is the pinnacle to AI technology in marketing.
Furthermore, we can share those insights with our clients. Our clients then adapt their messaging to what’s going on in the broader market. The Persado ability to trace consumer responses to individual words and phrases and connect that to what’s happening in the market at large exemplifies the unique Persado perspective as an AI marketing technology.
Question 6: What is the future of the CMO role?
The CMO role continues to evolve, as some firms alter the title to Chief Market Officer or Chief Growth Officer to place more emphasis on strategy. The role not only oversees marketing activities but also evaluates data and trends to improve sales. Today’s successful CMOs spend more time evaluating which markets and customers need to be engaged and motivated.
By better understanding the economic decisions their buyers make and predicting buyer activity, the CMO function often parallels that of an investment professional. For a B2C business, the CMO dives into the consumer profile and related issues to boost revenue and engagement.
Question 7: How do we view the role of social engagement in marketing?
An exceptional customer experience remains a huge part of the growth equation. Marketers using Generative AI in marketing play an increasing role in post-sale activities. Brands can leverage language and campaign techniques to help upsell existing clients and contribute to a customer intimacy strategy. When marketing and influencers come together to create customer advocacy and then showcase the customer across channels, brand awareness evolves. As the digital world grows, social belonging becomes more important to both B2B and B2C marketing.
Question 8: What are the best ways to discover new martech?
Given the vast universe of choices available, how do enterprises select the best martech?
Step #1 Identify your functional technologies and examine new technologies that play well with your existing platforms. Enterprises no longer have years to incorporate new technology into existing systems.
Step #2 Maintain the backbone of your technology stack and then identify new martech that integrates with what you already use.
Interested in learning more about increasing messaging performance across channels? Request a Persado demo today.
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