Marketing measurement is evolving with the power of AI

Guest Column: Gabbi Stubbs, Strategy & Product Marketing, Adobe APAC writes about AI defining success in the digital age where agility and accuracy are key for competitive differentiation

e4m by Gabbi Stubbs
Published: Dec 26, 2024 3:23 PM  | 5 min read
Gabbi Stubbs
  • e4m Twitter

With increasing demands from the C-suite for accountability and cost-efficiency, marketers are under pressure to directly link their efforts to business outcomes. The rise of content across new channels, such as retail media networks and influencer collaborations, has intensified competition for consumer attention. To stand out, brands must be capable of testing new investments and rapidly assessing which strategies most effectively drive engagement and critical business results. Artificial intelligence offers a powerful solution to meet these demands.

According to the Gartner CMO Spend Survey,75% of marketers are now under budget scrutiny, demonstrating the incremental value of each marketing investment has become not just desirable but essential. With this increased pressure, marketers are tasked with providing clear, measurable results for every marketing dollar spent, making strategic investment decisions more crucial than ever before.

Current marketing measurement lacks the necessary speed and efficiency

According to one of our recent studies involving over 8,000 marketers and executives, more than 90% believe that AI will revolutionise every area of marketing. However, only about a quarter of these professionals have established an AI roadmap aligned with their overall business objectives, and even fewer have begun integrating AI into their business functions.

Marketers also encounter challenges in producing timely insights to guide effective budgeting and campaign planning. AI-based marketing measurement is emerging as a valuable tool for assessing the impact of marketing spend. By analysing historical campaign data across channels like email, television, and social media, marketers can make more informed decisions about budget allocation for future campaigns.

Timely insights are essential in marketing. For instance, a travel company once received its Q4 marketing results in the spring of the following year, which prevented it from using those insights to refine its Q1 marketing strategy. This delay significantly reduces the value of the data obtained. It highlights the need to accelerate marketing measurement processes, with the right technology enabling valuable insights to be delivered more promptly.

Moreover, while historical data remains beneficial, it is equally important to adopt a data-driven approach to predicting which channels will be most effective moving forward. This ensures that future marketing investments are allocated wisely, as relying solely on chance is not an option for today’s marketers.

Achieve precise planning with AI-powered attribution and marketing mix models

With marketing measurement becoming increasingly fragmented, marketers are challenged to bridge gaps in customer insights created by restrictions on third-party cookies and data limitations within walled gardens. They must also ensure clarity on performance metrics across onsite, offsite, and offline channels. To prevent campaigns from getting lost in the noise or resources from being misallocated to underperforming channels, marketers require a precise understanding of where and when to engage their customers.

One of the key differentiators of this AI-enhanced measurement approach is its ability to emphasize incrementality—determining the true, incremental impact of each marketing effort. By focusing on this more relevant metric, marketers can identify the precise contribution of their campaigns to business outcomes, ensuring that every dollar spent delivers measurable value. Incrementality offers a clearer understanding of which strategies genuinely move the needle versus those that simply overlap with existing consumer behaviour.

Beyond relying on historical measurement, marketers also need effective ways to plan future investments. Predictive AI offers a solution by integrating multi-touch attribution (MTA), which evaluates touchpoints across specific online channels, with marketing mix modelling (MMM), which provides channel-level performance and predictive insights. This combination of MTA and MMM offers a comprehensive view of marketing effectiveness and spending across both online and offline activities. Using AI for modelling and measurement enables marketers to gain insights within days rather than months, leading to more accurate and confident budget forecasting and strategic decision-making.

By strategically leveraging AI, marketers can refine and plan future scenarios by assessing the impact of their campaigns. This approach has proven effective with both customers and internal teams of organisations. Unified MTA and MMM approaches to enable more precise and relevant campaigns to be deployed on the optimal channels at the right moments.

This unified AI-enhanced approach provides top-down (MMM) and bottom-up (MTA) insights, allowing marketers to measure the return on investment more accurately and distinguish themselves by quickly pinpointing which channels and activities most likely to perform best in the future.

Rather than limiting insights to end-of-project measurement, this approach enables real-time optimisation throughout the campaign lifecycle. With AI, marketers can continuously assess performance metrics and make immediate adjustments to maximise impact.

Moreover, this approach goes beyond retrospective performance evaluations. By leveraging predictive AI, marketers can anticipate future trends, identify high-potential activities, and optimise their strategies in real time. This accelerates the speed and depth of marketing measurement, empowering teams to pivot quickly and make informed decisions with confidence.

In an era where agility and accuracy are crucial for competitive differentiation, this AI-driven evolution is not just enhancing marketing measurement—it’s reshaping how success is defined and achieved in the digital age. Marketers who embrace this transformation are better equipped to reach their goals with efficiency, confidence, and a forward-looking edge.

 

Published On: Dec 26, 2024 3:23 PM