In today’s rapidly changing business landscape, chief marketing officers (CMOs) are at a crossroads. They must not only generate growth, but also demonstrate the tangible value of marketing to the entire leadership.
Rohit Dadwal, CEO-APAC at MMA Global believes that CMOs need to lead the debate on the impact of marketing on business results. With new technologies like AI and data-driven strategies, CMOs have the tools to demonstrate marketing’s influence on the customer lifecycle and lifetime value. However, this requires changing the way marketing metrics relate to revenue and business growth – a conversation many CMOs have yet to consider.
Talk to Campaign, Dadwal also emphasizes that the adoption of AI in marketing should not be driven only by the allure of innovation, but also by the transformative potential it holds in reshaping customer engagement and efficiency operational.
As AI continues to evolve, the focus shifts from exploring its potential to maximizing its impact. For marketers, this presents both an opportunity and a challenge.
Read edited excerpts from his interaction with Campaignbelow:
CMOs are often responsible for driving growth. How can they prove that marketing is a key contributor to overall business expansion?
People often underestimate how the advertising and marketing landscape has changed, especially with the integration of technology. Every marketing investment must be tracked and justified, but the value of marketing is still overlooked.
This could be because the role of marketing has become more powerful than before. CMOs need to change the narrative, directly linking marketing activities to business outcomes, including sales and revenue growth. Too often this connection is missing.
Marketing is not just about advertising. This influences the entire consumer experience and satisfaction, but we lack sufficient data to properly connect advertising efforts to tangible business growth. CMOs need to work more closely with CFOs and CTOs.
This conversation has always been one-sided. However, revenue growth is also a part of marketing, especially now that technology is deeply ingrained in marketing functions.
At MMA, we focus on data-driven strategies and frameworks, such as the Movable Middles Growth Framework (MMGF), which shows that marketers can maximize their spend by targeting specific segments of their audience. Instead of targeting all 100 customers, focus on the 60 customers most likely to convert, leaving out the bottom 10 who may never afford your brand and the top 10 who might soon. to leave. This targeted approach is essential to maximizing customer experience and lifetime value.
AI is making waves in marketing. How do you see this transforming advertising agencies and what role will AI play in customer engagement?
AI can indeed revolutionize marketing, but businesses need to ask themselves a crucial question: do they really need AI, and if so, for which areas of the business? Many are rushing to adopt AI without understanding its true potential or benefits.
MMA Global’s State of AI survey shows that 38% of marketers are exploring generative AI use cases, conducting early-stage research and experimentation. But AI adoption goes well beyond that; it must become an integral part of the organization’s culture and long-term strategy.
AI can be expensive if done correctly. More than 60% of AI automation currently focuses on customer interactions, such as chatbots, which can reduce costs and increase customer satisfaction.
For example, in India, answering a customer’s call costs INR 25, but a chatbot can handle the same for INR 4. AI can solve 50% more simple queries than human agents, mainly because it has access to large amounts of data. It’s not just about cost savings; it’s about improving customer satisfaction.
Personalization is the holy grail of marketing, and AI can play an important role in achieving it. But companies need to think long term when investing in AI, not only in terms of costs but also in terms of human resources. AI isn’t going to eliminate jobs, but those who understand how to use it will.
As brands explore generative AI and large language models (LLM), how can they ensure data security, especially when creating custom models?
Data security is paramount, especially when building custom AI models. When it comes to responsible AI, it is essential to create secure environments, or sandboxes, where content is used safely.
Even today, data stored on servers is vulnerable to hacking, but the key is to ensure your brand identity and guidelines are integrated into the AI system. This makes your data unique and irrelevant to any other entity, reducing the risk of misuse.
As AI becomes more prevalent, there are fears it could eclipse human creativity when it comes to advertising. What is your opinion on this?
AI was created by humans, and it is humans who feed data to AI. Even though AI tools like MidJourney can create visually appealing images, the creative prompts and emotional depth still come from people. Emotional connection in marketing, cultural sensitivity and understanding of interpersonal dynamics are irreplaceable human traits.
60% of companies associated with MMA focus on creating internal AI resources. Marketers and agencies must work together to manage these advanced technologies because the partnership between brands and agencies remains crucial. AI does not replace this partnership; it improves it.
So, is AI one of the big pillars of this year’s Smarties Awards?
Smarties is our global awards program and this year we introduced three new categories around AI, including AI-Driven Excellence and AI-Driven Measurement. These categories are crucial because we want to highlight the effectiveness of AI in marketing. If we can showcase 10 great AI use cases in these categories, it could prove to be the catalyst for other marketers to adopt AI.
As the media and technology landscape becomes increasingly fragmented, how can brands simplify their approach to marketing across multiple channels?
It all comes down to clarity and simplicity. With such a proliferation of technologies, each platform has its own measures, rules and advantages.
Marketers must adopt the right technologies for their business while fully understanding their metrics. Expecting a single answer that fits all is wishful thinking. Instead, marketers should take a holistic approach to these metrics in order to drive business growth and improve the consumer experience.
