In a recent article, we discussed the impact and implication of Generative AI (GenAI), focusing on the key takeaways for private equity and portfolio companies.
The advent of GenAI marks a new era for businesses, particularly in the realm of marketing. Companies embracing AI are witnessing remarkable success in attracting, engaging, and retaining customers. As we delve into the impact of GenAI on marketing, the market size is projected to soar from $1.9B in 2022 to an estimated $22.1B by 2032, showcasing a CAGR of 28.6%. As generative AI capabilities continue advancing, adoption is growing as companies recognize the need for customer-driven marketing, more effective go-to-market strategies, and differentiating themselves vs. the scale and intensity of competition.
The growing adoption of customer-centric strategies ensures that the marketing function has benefited immensely. Models like ChatGPT and DALL-E have given marketers powerful new tools to super charge how they engage customers by creating more personalized content analyzing/predicting user behaviors and preferences, facilitating faster responses, and aiding in the scaling of operations.
1. Personalization for Customer-Centricity:
By analyzing customer data, GenAI helps tailor marketing messages, empowering marketers to create personalized content, analyze user behavior, and deliver faster responses. This focus on customer-centric strategies is revolutionizing organizational experiences.
2. Data-driven Decision Making:
Leveraging GenAI’s analytical capabilities, marketers gain valuable insights into consumer behavior and market trends. GenAI can spot trends and patterns that humans might overlook, helping professionals make more informed decisions about marketing strategies. This data-driven approach enables companies to optimize campaigns, make informed decisions, and stay ahead of the competition. For example, Co-Pilot by Microsoft allows marketers to ask complex questions across their marketing and sales data sets, enabling a holistic understanding of past, present, and future performance metrics.
3. Speed and Scalability:
Gen AI expedites marketing operations through automated content creation, real-time interactions, and swift data analysis. Many of these are manual or repetitive tasks which can be done by AI much more efficiently. HubSpot’s study indicates that 90% of marketers foresee AI and automation reducing the time spent on manual tasks. Additionally, the scalability of marketing efforts is seamlessly achieved without expanding team sizes or increasing workload.
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