The rise in importance of Generative AI, with the huge growth of in-house marketing capabilities has shattered the old business models.
The confluence of Generative AI’s impact on advertising and the significant growth of in-house marketing capabilities has created a perfect storm in the ad industry. Traditional advertising business models, which relied on external agencies and manual content creation, have been disrupted by these factors.
Generative AI has enabled more efficient and personalized ad creation, while in-house marketing has empowered companies to have greater control over their strategies. This shift has reshaped how advertising is produced and distributed, leading to a more dynamic and cost-effective landscape. Advertisers are adapting to these changes to stay competitive in the evolving industry.
The trend of in-house marketing has been on the rise in recent years.
According to new research from the Association of National Advertisers, (ANA), 82 percent of marketers now use an in-house agency.
Many companies are choosing to build their internal marketing teams to have more control over their marketing strategies, reduce costs, and increase agility. This shift allows businesses to create content, run campaigns, and analyze data in-house, rather than relying solely on external agencies.
In-house marketing provides advantages such as faster decision-making, better brand understanding, and the ability to tailor strategies to specific business goals. However, it also comes with challenges, including the need to invest in talent, technology, and ongoing training.
Overall, the growth of in-house marketing reflects a desire for companies to have greater control over their marketing efforts and adapt quickly to changing market conditions. It also gives them a better handle on ROI.
Even relatively new entrants to the market like digital marketing specialist, S4 Group, are suffering from this perfect storm. As generative AI replaces the need for human in -put of content, and brands take their marketing in -house, they have had to cut their headcount by 500, in the last six months. Their market valuation is 6 percent of that at its peak.
We, at Agencio, are the happy orphans of this perfect storm and have reacted to this disruptive scenario, by starting to develop a global brand orchestration platform(Cloud Orchestration is predicted to grow at a CAGR of 21.4%).
By utilising Generative AI it allows companies to seamlessly manage every aspect of their brand’s Ecosystem. It is the perfect tool for in-house brand management.
Managing a brand’s ecosystem through the utilization of Generative AI is a powerful strategy. Generative AI can assist in various aspects of brand management. Our orchestration platform, Bertha, will deliver;
1. Content Generation: Generative AI can create high-quality, consistent, and on-brand content, such as blog posts, social media updates, and product descriptions.
2. Personalization: It can help tailor content and recommendations to individual customers, enhancing the customer experience.
3. Visual Assets: Generate images, videos, and graphics that align with your brand identity, making it easier to maintain a cohesive visual presence.
4. Data Analysis: Analyze customer data to identify trends, preferences, and sentiment, enabling data-driven decision-making.
5. Chatbots and Customer Support: Implement AI-driven chatbots for customer inquiries and support, providing 24/7 assistance.
6. Market Research: Utilize AI to gather and process market data, helping you adapt to changing consumer trends.
7. Campaign Optimization: Optimize marketing campaigns by generating and testing ad creatives and messaging.
8. Product Innovation: Use AI to ideate and prototype new products or services based on customer feedback and market insights.
9. Compliance and Ethics: Ensure AI-generated content complies with legal and ethical guidelines, maintaining your brand’s reputation.
10. Brand Monitoring: Employ AI to track and analyze mentions of your brand on social media and the web, helping you manage your brand’s online reputation.
It’s essential to implement Generative AI in a way that aligns with your brand’s values and maintains a human touch, as overreliance on AI can risk losing the personal connection with your audience. Regular monitoring, fine-tuning, and human oversight are key components of successful brand ecosystem management with Generative AI.
We have therefore also set up Agencio Consulting, to offer in-house team advice with this management going forward.