Challenging The Now with AI in Marketing 1

Challenge The Now

‘Challenge The Now’ is a thought leadership series designed for business

leaders of all sizes, poised to transform how we perceive and execute
marketing in the era of digitally empowered consumers. The series aims at
enabling business leaders take on change and drive their businesses into the
future. With enterprises at various stages of marketing and digital maturity,
a one-size-fits-all solution wouldn’t be the right transformation approach.
What enterprises require is a holistic reimagining of marketing transformation
leveraging digital as a catalyst to reconfigure its marketing approach and leap
ahead with confidence.

‘Challenge The Now’ serves as the catalyst for this reimagination allowing
leaders to bridge the gap between conventional practices and transformative
strategies - remapping and rewiring data, creativity, media, and technology,
fostering a comprehensive understanding of how to create impactful
brand-customer experiences for the present and the future.

This series will take a close look at 6 key areas of opportunities:

1. Technology & Innovation
2. Media
3. Consumer Experience
4. Creative & Communications
5. Data & Insights
6. User Interface & Experience

In this thought paper, Challenging the now with AI in marketing, we are

aiming at inspiring and empowering marketing leaders with the power of
AI, thus providing them a clear path towards reimagining, reinventing and
revolutionizing their approach to digital marketing.

2 Challenging The Now with AI in Marketing

 01
Introduction
Brief overview of the current marketing
landscape and the need for transformation
using AI. Pg 5
Introduction to the “In:Sights” series.
Thesis statement: The role of AI in
TABLE OF CONTENT
challenging traditional marketing practices.
Pg 7
03
Understanding AI use cases
for marketers: Diagnostic,
generative, and predictive AI
Explanation of diagnostic AI capabilities
and its impact on research. Pg 13
Exploration of generative AI and its
impact on creativity. Pg 14
Insight into predictive analytics and its
role in marketing strategy. Pg 15
Additional use cases Pg 16
05
ROI in the context of
marketing imperatives
Defining Key Performance Indicators
(KPIs) for AI-driven marketing. Pg 34
Measurement and evaluation of
ROI in B2B and B2C scenarios. Pg 36
Comparative analysis of
traditional vs. AI-driven ROI. Pg 37
07
Conclusion
Recap of key insights. Pg 44
Call to action: Encouraging readers
to embrace AI in their marketing
strategies. Pg 45
Teaser for the next installment in the
“In:Sights” series. Pg 48
Challenging The Now with AI in Marketing
02
Spotlight on AI: Dawning an
era of challenging marketers
Definition of normal way of doing things
(absence of AI) in marketing. Pg 9
Overview of how AI is revolutionizing
marketing norms. Pg 10
Importance of embracing AI for staying
competitive. Pg 11
04
Case Studies: Diagnostic,
generative, and predictive AI
Real-world examples showcasing
diagnostic AI applications. Pg 18
Creativity unleashed: Generative AI in
marketing campaigns. Pg 30
Anticipating trends: Predictive analytics
success stories. Pg 31
06
Challenge the now:
LS Digital approach
Overview of the
LS Digital approach. Pg 40
Detailed strategies for leveraging
AI in marketing. Pg 41
Strategic planning to differentiate
from competitors. Pg 42
3
 01
Introduction

4 Challenging The Now with AI in Marketing

Brief overview of the current marketing
landscape and the need for transformation
using AI

In an age where every scroll, click, and interaction is a potential data

point, the marketing world using these data points had undergone a
profound transformation. Marketers had started their challenging journey
and were maturing to marry data with creativity with technology and
were delivering better outcomes for their brands. With the emergence of
Artificial Intelligence (AI) has not only reshaped the landscape again but
has the potential to become an indispensable ally for modern marketers.
It’s no longer a question of whether to embrace AI; it’s a matter of
effectively leveraging its capabilities to elevate your marketing game.

The chatter about AI replacing human jobs or AI delivering anything you

want might be the headline, but the real story lies in the synergy between
human creativity and AI’s analytical prowess. The notion that marketers
are being replaced by algorithms is a simplistic narrative that belies
the intricate dance between technology and human ingenuity in the
marketing world. AI isn’t the terminator of marketing jobs; it’s the catalyst
for a renaissance.

As marketers, our journey is defined by our ability to adapt to the

relentless evolution of the digital landscape. From the inception of social
media advertising to the rise of e-commerce empires, our roles have
constantly evolved. The art of persuasion has evolved into a science of
precision, and the AI-driven tools at our disposal are the brushes for this
new canvas.

Challenging The Now with AI in Marketing 5

 Harnessing the power of AI in your marketing strategy isn’t about
relinquishing control; it’s about amplifying your impact. Consider this,
a recent

State of AI in Marketing 2023 from MMA India report* found that:

Approximately

70% 54% 39%

of marketers in India of marketers in India of Indian organizations
are exploring Generative point to the are in the process of
AI applications, understanding developing strategies
indicating a significant of AI as a challenge, to address AI-related
interest in AI adoption highlighting the need risks, demonstrating a
for improved knowledge proactive approach to
and training in this area. risk management.

Globally, as per eMarketer report**:

58% 98% 48%

of marketers utilizing accuracy seen when of organizations
generative AI report predicting the winning surveyed by IBM are
enhanced performance ad combination, as per already seeing a better
as a primary benefit. Pattern89. customer experience.

Marketers are using AI to predict new

trends that impacts their business

Imagine a world where data collection and analysis are seamlessly

integrated, where your content resonates effortlessly with SEO keywords,
and your media strategies are constantly optimized. With AI as your ally, you
can shift your focus from the bottom line to more meaningful endeavors –
crafting compelling narratives, fine-tuning your brand’s voice, and deeply
understanding the audiences you seek to engage.

* MMA India Report: State of AI in Marketing 2023

** eMarketer report

6 Challenging The Now with AI in Marketing

Introduction to the “In:Sights” series.
Thesis statement: The role of AI in
challenging traditional marketing practices.

In this report, we delve into the transformative capabilities of AI in the

marketing realm. We explore how it helps in customer and market
research and insights building at scale, generates and optimizes advertising
campaigns and content at scale, revolutionizes engagement by helping
build hyper-personalized experiences. Beyond the tools and techniques, we
uncover the essence of AI in marketing: the power of insights.

The possibilities for integrating AI into marketing are ever-expanding.

To navigate this exciting frontier, we’ve curated a selection of tools and
insights to help you harness the full potential of AI, whether it’s research,
streamlining copywriting, optimizing experience, or supercharging your
social media performance.

Join us on this journey as we unveil the true essence of AI in modern

marketing – a partnership that empowers, enhances, and elevates the
art and science of connecting with customers in the digital age.

Challenging The Now with AI in Marketing 7

 02
Spotlight on AI:
Dawning an era of
challenging the now

8 Challenging The Now with AI in Marketing

Definition of normal way of doing
things (absence of AI) in marketing

In the marketing lexicon, ‘USUALS’ is a term that encapsulates the

conventional, the predictable, and the often routine practices that have
long characterized our field. It’s a term that speaks to the status quo, the
tried-and-tested methods that once formed the bedrock of successful
marketing campaigns. Yet, in the ever-evolving digital landscape, the
‘USUALS’ have been rendered obsolete. What was once effective can
quickly become archaic in a world where consumer behaviors shift like
sand dunes in the desert.

The ‘USUALS’ practices relying solely on demographic data to target

audiences, crafting one-size-fits-all marketing messages, and employing
manual data analysis to make marketing decisions. These traditional
approaches, even though familiar, have their limitations in a world where
personalization, precision, and predictive insights reign supreme.

Challenging The Now with AI in Marketing 9

 Overview of how AI is revolutionizing
marketing norms

Enter Artificial Intelligence (AI), the transformative force that challenges

the ‘usuals’ and redefines marketing norms. AI is not a mere tool; it’s
the harbinger of a new era where data-driven decision-making, hyper-
personalization, and predictive analytics are the order of the day. AI
empowers marketers to transcend the confines of demographics and
delve into the realm of psychographics, understanding not just who their
customers are but what motivates and engages them in a profound way.

AI, with its machine learning algorithms, has the remarkable ability to sift
through vast troves of data, identifying patterns, anomalies, and hidden
insights that human analysis would struggle to uncover. It not only
predicts trends but also prescribes actions based on these predictions.
It enables marketers to be proactive rather than reactive, positioning
them at the forefront of consumer expectations.

10 Challenging The Now with AI in Marketing

 Importance of embracing AI
SPOTLIGHT N AI
for staying competitive

In this era of digital Darwinism, where adaptability is the key to survival,

embracing AI is not merely an option; it’s a mandate for staying competitive.
Marketers who continue to rely on outdated ‘USUALS’ risk being left in the
wake of innovation. The digital landscape is a battleground where brands
compete not just for attention but for relevance as well. In this relentless
race, AI is the ultimate ally that enables marketers to navigate uncharted
territories, engage audiences with unparalleled precision, and craft
campaigns that resonate on a personal level.

To remain competitive is to embrace the transformative potential of AI

and recognize that it is not the enemy of human creativity but its enabler.
It’s the technology and exploration that liberates marketers from the
mundane so they can focus on what truly matters - the art of storytelling,
the development of authentic brand voices, and the creation of experiences
that deeply resonate with their target audiences.

In the following sections, we will explore how AI is

not just challenging the now but redefining
the very essence of marketing.
We will dive into the specific
capabilities of AI that are driving
this revolution, from diagnostic
insights to generative creativity
and predictive foresight.

Challenging The Now with AI in Marketing 11

 03
Understanding AI use
cases for Marketers :
Diagnostic, Generative,
and Predictive AI

12 Challenging The Now with AI in Marketing

Diagnostic AI use cases

At the heart of AI’s transformative power lies its ability to diagnose,

interpret, and decipher data at a scale and speed that surpasses human
capacity. Diagnostic AI, also known as descriptive analytics, serves as
the foundation upon which marketing strategies are built. It provides the
answers to questions such as Who are my customers, segments, what’s
happening in their world, how do they come into brands world, why do
they engage, cultural context and nuances, category tends, competition
comparison.

With diagnostic AI, marketers can gain profound insights into their
customers’ behaviors. It sifts through mountains of historical data to
uncover patterns, trends, and anomalies that may have otherwise eluded
human analysis. By understanding the ‘what’ and ‘why’ of past, marketers
can make data-driven decisions and refine their strategies for the future.

Challenging The Now with AI in Marketing 13

USE CASES FOR MARKETERS Exploration of Generative AI and its
impact on creativity

Generative AI, often considered the vanguard of creativity, challenges

the conventional belief that machines lack artistic flair. In the marketing
realm, generative AI unleashes a new era of content creation and
storytelling. It doesn’t just mimic human creativity; it amplifies it.

Imagine an AI capable of crafting compelling narratives, generating

catchy ad copy, or even designing visually stunning graphics. Generative
AI transforms marketing content from the ordinary to the extraordinary,
infusing it with creativity that resonates deeply with audiences. It’s the
UNDERSTANDING AI

tool that empowers marketers to scale their creative efforts and captivate
consumers with tailored, engaging content.

14 Challenging The Now with AI in Marketing

Insight into Predictive Analytics and its
role in marketing strategy

Predictive analytics is the forward-looking compass of marketing strategy.

It is the technology that gazes into the future, guiding marketers toward
the most promising paths. Through the analysis of historical data and
patterns, predictive analytics foretells what is likely to happen next,
enabling marketers to make proactive decisions.

In the marketing context predictive analytics informs decisions on ad

targeting, product recommendations, and customer retention strategies.
It can predict consumer behaviors, such as which products they are likely
to purchase next or when they might be inclined to churn. By leveraging
predictive insights, marketers can optimize their campaigns, allocate
resources efficiently, and deliver personalized experiences that anticipate
consumer needs.

In the subsequent sections, we will dive deeper into real-world use

cases where diagnostic, generative, and predictive AI capabilities are
transforming marketing practices. From understanding consumer
preferences to creating captivating content and strategizing for the future,
AI is not just reshaping marketing; it is revolutionizing the way we connect
with our audiences.

Challenging The Now with AI in Marketing 15

 Additional use cases which companies
are embarking in spaces of

Voice Search and Chatbots: The rise of voice search and chatbots
emphasizes the need for conversational marketing and natural-
sounding interactions​​.

Marketing Automations: AI-driven marketing automations streamline

campaigns across multiple channels, optimizing engagement and
conversions​​.

Livestream Shopping and Social Shopping: These new phenomena

use AI to combine e-commerce with entertainment, providing real-
time product demonstrations and leveraging influencer marketing
and user-generated content for product promotion​​.

Check the link to know more.

https://trustmary.com/marketing/digital-marketing-trends-rise-of-
artificial-intelligence/

16 Challenging The Now with AI in Marketing

04
Case Studies:
Diagnostic, Generative,
and Predictive AI

Challenging The Now with AI in Marketing 17

 Real-world examples:
Diagnostic AI applications

Case in point:

Climate Change - A Gen Z perspective

Client: An international non-profit in the field of climate, energy and nature.

Challenge: How are Gen Zs in India and Brazil engaging in climate action?
How does their interest in climate change stack up against other interest
categories?

Insight and Impact: By analyzing thousands of social media posts from

young climate activists and digital creators in India and Brazil, prominent
narratives illuminating different facets of Gen Z’s interest and engagement
in climate action were identified.

18 Challenging The Now with AI in Marketing

 India Gen Z: Climate anxious and want to influence
change for a better future
125%

Average
Growthe (Aug 20202-Jul 2021vs. Aug2021-July 2022)
Participatory
approach
100% for the better Established
future High growth, high volumes

Trending
75% High growth, low volume

Average

Prioritizing
50% Dormat Climate anxiety
enviroment

Powered by Quilt.Ai
Low growth, low volume

Mobilizing
25% to fight for Embracing
climate sustinability
action
Steady
Low growth, high volume
0%
0% 10% 20% 30% 40%
Search volumes-Aug 2020-July 2022 (as a % of all searches for each narrative)

Brazil Gen Z: Climate warriors who believe that there is no

climate justice without social justice.
20%
Average

Trending
High growth,
Growthe (Aug 20202-Jul 2021vs. Aug 2021-July 2022)

We are the action low volume

Preaching
sustainabilty

10%
Indigenous’s
fight for survival
Established
High growth, high volumes
Average

0% Dormat
Powered by Quilt.Ai

Low growth, low volume

Mobilizing
Steady
-20% to fight for
Low growth, high volume
climate
Amazon
vs.capitalism
action

-20%
0% 10% 20% 30% 40%
Search volumes-Aug 2020-July 2022 (as a % of all searches for each narrative)

The study also revealed that social media is their biggest arsenal
in driving conversations and actions around climate change.
Research also showed Gen Z’s interest in climate change, although
significant, stacks much lower when compared to other categories
that they are also interested are in.

Challenging The Now with AI in Marketing 19

 Real-world examples:
Diagnostic AI applications

Case in point:

Transmitting the right brand in money transfers

Client: One of the world’s leading money transfer companies.

Challenge: How are the key money transfer brands positioned, from the
point-of-view of consumers? What are the big opportunities for the client
to reposition its brand to drive differentiated relevance in the global market
for remittances?

Insight and Impact: Looking at Instagram and YouTube content from nine
major money transfer brands, six distinct communications themes were
identified, and brought to life through representative text, images and
videos. It also articulated the central emotions within each theme. The study
mapped nine brands across the communications themes to identify where
there was “white space” for the client’s brand to move into.
Two themes in particular were identified as ideal zones to build the client
brand’s future marketing around.

Powered by Quilt.Ai

20 Challenging The Now with AI in Marketing

Real-world examples:
Diagnostic AI applications

Case in point:

Charged with uncertainty: A deep dive into

the EV supply chain apprehensions
Client: An international non-profit in the field of climate, energy and nature.

Challenge: Explore public sentiments concerning the electric vehicle supply

chain in five countries. Interpret diverse curiosities and fears across different
cultural and economic contexts, requiring a nuanced analysis for precise and
actionable insights.

Insight & Impact: Analyzing over 700,000 searches and 4,000 social
media posts, uncovered escalating concerns (+59% since 2020) about the
environmental and social impacts of the EV supply chain. Prominent among
the findings was misinformation and political rhetoric surrounding China,
Tesla, and narratives on EV pollution. The client was provided with insights-
powered targeted strategies to counter the prevalent narratives online.
The data and insights not just helped the client understand public sentiment
but also enabled them to effectively address these concerns.

Searches reflect growing concerns (+59%)1 regarding the enviromental

and social impacts of EV supply chain
• USA (+70%) • France (+57%) • Germany (+53%) • India (+52%) • United Kingdom (+39%)

“electric cars battery “are electric cars bad for

“carbon footprint of electric
the enviroment” (+500%)
Powered by Quilt.Ai

22000 cars” (+333%) enviroment” (+366%)

20000
18000
Monthly search volume

16000
14000
12000 “Manufacturing
electric car battery
10000 pollution ” (+500%)
8000
6000
4000
2000
0
Jan 2020 Jal 2020 Jan 2021 Jal 2020 Jan 2022

Date

Challenging The Now with AI in Marketing 21

 Real-world examples:
Generative AI applications

Case in point:

Leveraging AI to generate concepts in line with

Gen Z consumer trends
Challenge: How can we leverage AI to generate and new brand concepts in
line with Gen Z trends around ‘limitless’ for 11 brands?

Insight and Impact: AI models were used to create one creative concept
for each brand with the aim of exploring examples of how brands in these
industries could play to the future Gen Z consumer. Some brand examples
used in this exercise include Amazon, Airbnb, Capital One, LinkedIn, and
General Mills. The concepts were created in a way that integrated previous
work on Gen Z trends around the concept of ‘limitless’ and brand values.

Amazon RetroTron: Airbnb Hustle Haven:

“Back in Time, Anytime” “Focus. Create. Succeed.”
1 Amazon is launching a Gen Z offering 1 Airbnb is launching a Gen Z offering that
that takes users back in time to explore celebrates the power of monetization
and experience iconic moments or
Highlighting inspiring stories of people
events of the Y2K era 2
who have used Airbnb properties to
This product will be an interactive achieve success
2
Amazon Alexa skill, featuring content
3 Could feature content creators,
tailored based on user preferences
Roblox developers, and other
and interests
individuals who have leveraged
3 Through this trend, Amazon their side hustles while staying in an
can provide customers with an Airbnb property
immersive new product offering, as
Visuals should be evocative and
well as capitalize off the growing 4
interest in retro-style products
captivating, portraying the potential Powered by Quilt.Ai
of living life to its fullest while utilizing
among Gen Zers
Airbnb’s flexible and affordable options

22 Challenging The Now with AI in Marketing

Real-world examples:
Generative AI applications

Case in point:

Leveraging AI to generate and evaluate

brand concepts
Client: A leading global beverage company

Challenge: How can we leverage AI to create new product propositions

and concepts for four soft drink brands launching alcoholic ready-to-drink
variants in the European market?

Insights and Impact: After a thorough analysis of

the research reports provided by the client, the data
was distilled into blocks of digestible, bite-sized
information to feed as inputs into an AI model. The
outcome: 27 new and distinct product concepts
complete with product names and taglines, product
idea and descriptions, functional and emotional
benefits, ingredients etc. as well as packaging
design for inspiration. The concepts were put into
a workshop including all brand stakeholders, and
mixologists, to filter down to a final few concepts
to take forward into product development.

Powered by Quilt.Ai

Challenging The Now with AI in Marketing 23

 Real-world examples:
Generative AI applications

Case in point:

Leveraging AI-led creative concept generation to

innovative for an established coffee brand
Client: A global beverage company

Challenge: How can we leverage AI to generate creative concepts, taglines,

and beverage experiences for different coffee segments?

Insight and Impact: AI used to explore creative concepts as a continuation

from our tribe segmentation work. Collaborating with the client to
understand the consumer segments and mindsets they were targeting,
leveraged AI models to offer textual and image creative concepts. This
included creative cafe concepts, taglines, drink names
and beverage ideas (ice coffee, hot coffee, etc.). For
further nuance, AI concepts that were directly inspired by
different consumer segment profiles were also included.
This creative conceptual ideation was used by the client
to inspire their internal strategy and communication work.

Powered by Quilt.Ai

24 Challenging The Now with AI in Marketing

 Real-world examples:
Predictive AI applications

Case in point:

Using predictive AI to understand how brands’ ads

have changed over the past year
Client: A leading global beverage company

Challenge: How can we leverage AI to evaluate 13 brands’ ads to uncover

how their communications have changed over the past year (2021 vs. 2022)?

Insight and Impact: Using proprietary ‘Ad semiotics

technology’, 26 ads across 13 brands were analyzed.
Did a deep-dive into each brand, using AI to detect the
differences between brands’ ads from 2021 vs 2022 in
Powered by Quilt.Ai

archetypal cues, ad testing value scores, differentiation,

and number of times a brand’s logo appeared. Primary
insight found was that out of all sample ads, Doritos’ 2022
ad was most differentiated, as signified through its heavy
use of personified animals which led to a decrease in
Brand archetype most aligned with sample ad relatability scores.
2021 2022
Caregiver
0.4
Rebel Hero
0.3 % of frames where brand Differentiation: Ad testing values present in
logo is detected ad vs. top performers each sample ad
Lover 0.2 Innocent
13% 1.00 0.15 2021 2022
0.1 10% 0.75
0.1
8%
0.0 Jester 0.50
Explorer 5% 0.05
3% 0.25
0% 0.0 0.0
Artist Magician 2021 2022 2021 2022 Accessible Enjoyable Relatable

Sage No labels found

Ruler

Challenging The Now with AI in Marketing 25

 Real-world examples:
Predictive AI applications

Case in point:

Identifying winning concepts using AI

Client: A leading global beverage company

Challenge: How can we leverage AI for almost instantaneous results for

testing 11 new product concepts against 4 key metrics and, thus, identify
winning concepts?

Insight and Impact: Using ‘Ad semiotics’ technology, 11 new product

concepts were tested on four key metrics - ‘needs fit’, ‘believability’,
‘uniqueness’ and ‘brand fit’. This AI based technology mapped the alignment
of each concept against the set metrics with a score. Through this client
was able to identify which concepts aligned with various consumers needs
(needs fit) the most, identify the ones that met the fine balance across the
other three metrics (Believability, Uniqueness, Brand fit) as well as pinpoint
concepts that needed improvement on specific metrics. This allowed the
client Identify the top two winning concepts in matter of a couple of hours.

26 Challenging The Now with AI in Marketing

 Powered by Quilt.Ai

Challenging The Now with AI in Marketing 27

 Real-world examples:
Predictive AI applications

Case in point:

Using predictive AI to evaluate SuperBowl ads

Client: A leading global beverage company

Challenge: How can we leverage AI to evaluate SuperBowl ads to predict

future campaign success?

Insight and Impact: Using proprietary ‘Ad semiotics technology’, conducted

a frame-by-frame analysis on 25 ads from the 2023 NFL SuperBowl.
Deep-dived into each ad, using AI to detect archetypal cues, assign ad testing
value sores, as well as measure ad, brand, and social performance. Insights
generated gave a clear picture of why some SuperBowl ads performed better
than others— ads which scored higher in relatability oftentimes received
higher engagement and greater growth in consumer buzz.

Consolidated performance score

100%
The Farmer’s Dog
The Farmer’s Dog
Average
75%
AI predictor of purchase intent
AI predictor of content relatability
50% Engagement
AI interpretation of values
Average Twitter sentiment
Multi-channel impact on brand interest
25%

Powered by Quilt.Ai
0%
25% 50% 75% 100%

28 Challenging The Now with AI in Marketing

 In addition, we have more examples of global brands finding
success with AI.

Analyzing and winning:

Diagnostic AI applications

Netflix’s Content Recommendation Engine:

Netflix, a pioneer in leveraging AI, uses diagnostic AI to analyze viewer data
and recommend personalized content. By examining past viewing habits,
preferences, and even the time spent on particular genres, Netflix ensures
that subscribers receive tailored content recommendations. This has
significantly increased their user engagement and retention rates.

Amazon’s Product
Recommendations: Amazon’s
Product Amazon’s diagnostic AI
algorithms analyze users’ browsing
and purchase histories to suggest
products they are likely to buy.
These recommendations account
for a substantial percentage
of Amazon’s total sales and
have been a critical factor
in the company’s
continued growth.

You might
also like this

Challenging The Now with AI in Marketing 29

 Creativity Unleashed:
Generative AI in marketing campaigns

The Washington Post’s AI-Powered Reporting:

The Washington Post has employed generative AI to assist in
creating news articles. While human journalists remain essential
for in-depth reporting, AI-powered systems generate automated
stories for routine topics like earnings reports and sports scores.
This allows human reporters to focus on pertinent stories and
investigative journalism.

Burger King’s AI-Generated Ads:

Burger King used generative AI to produce advertisements for their

“Moldy Whopper” campaign. The AI-generated visuals depicted
the natural decay of a Whopper burger over time, emphasizing
the use of preservative-free ingredients. The campaign garnered
widespread attention, showcasing the creative potential of AI in
marketing.

30 Challenging The Now with AI in Marketing

Anticipating Trends:
Predictive analytics success stories

Spotify’s Music Recommendation Algorithm:

Spotify employs predictive analytics to anticipate user music
preferences. By analyzing listening history, user-generated playlists,
and real-time listening behavior, Spotify’s algorithm predicts songs and
artists users are likely to enjoy. This not only enhances user experience
but also aids in personalized advertising.

Challenging The Now with AI in Marketing 31

 Ford’s Predictive Maintenance:
In the automotive industry, Ford utilizes predictive analytics to forecast
vehicle maintenance needs. Sensors within Ford vehicles collect data on
various components, allowing the company to predict when parts are
likely to fail and proactively schedule timely maintenance for customers.
This predictive approach enhances customer satisfaction and reduces
maintenance costs.

These real-world examples illustrate the tangible impact of diagnostic,

generative, and predictive AI in marketing and beyond. From personalized
content recommendations to AI-generated advertising and proactive
maintenance scheduling, AI has become a driving force behind enhanced
customer experiences and more effective marketing campaigns.

In the following sections, we will delve deeper into how we can define ROI
in the AI-driven marketing world.

32 Challenging The Now with AI in Marketing

05
ROI
in the context of
marketing imperatives

Challenging The Now with AI in Marketing 33

 Defining Key Performance Indicators
(KPIs) for AI-driven marketing

Key Performance Indicators (KPIs) are essential for evaluating the

effectiveness of AI-driven marketing initiatives. They provide a
clear framework for measuring success:

Example 01 Example 02
Research effectiveness Engagement and
and efficiency conversion rate

Example 03 Example 04
Media spend Predicting
and optimization communications and
optimization

+
-
+
+
- -

34 Challenging The Now with AI in Marketing

 Case in point:

Conversion Rate
In both B2B and B2C marketing, the conversion rate is a vital KPI. AI can
optimize ad targeting, content personalization, and lead nurturing to
increase conversion rates. For instance, a B2B company may measure the
conversion rate from leads to closed deals, while a B2C retailer may track
the rate of website visitors converting to customers.

Case in point:

Customer Lifetime Value (CLV)

CLV represents the total value a customer brings over their entire
relationship with a business. AI can enhance CLV by enabling personalized
experiences, leading to higher customer retention and long-term
profitability. B2C companies like Amazon and B2B providers like Salesforce
use AI to analyze CLV and tailor marketing strategies accordingly

Challenging The Now with AI in Marketing 35

 Measurement and evaluation of ROI
in B2B and B2C scenarios

Measuring ROI in B2B and B2C scenarios involves assessing the financial
impact of AI-driven marketing efforts:

Example: B2B Lead Generation

In B2B marketing, AI can optimize lead generation by identifying high-
quality leads and automating lead nurturing. ROI can be measured by
comparing the cost of AI tools and campaigns with the revenue generated
from converted leads. For instance, if a B2B company invests in AI-driven
lead generation tools and sees a 20% increase in sales, they can calculate
ROI based on the additional revenue generated.

Example: B2C E-commerce

In B2C e-commerce, AI can boost ROI by improving product
recommendations, reducing cart abandonment rates, and increasing
sales. ROI is calculated by comparing the costs of implementing AI-driven
solutions with the increase in revenue and profit margins. For instance, if
an online retailer invests in AI for personalized product recommendations
and sees a 15% increase in sales, they can calculate ROI based on the
revenue boost.

36 Challenging The Now with AI in Marketing

Comparative analysis of
Traditional vs. AI-driven ROI

Example: Traditional Marketing in B2C

A traditional B2C marketing campaign might involve mass email blasts to
a broad audience. ROI would be calculated based on the number of sales
generated from the campaign and the associated costs. In contrast, an
AI-driven B2C campaign might use personalized email recommendations,
leading to higher open rates and conversions. Comparative analysis would
reveal the improved ROI of the AI-driven approach.

Example: Traditional Sales Outreach in B2B

In B2B, traditional sales outreach may involve cold calling an exhaustive list
of potential leads. Here, ROI is determined by the conversion rate of these
leads into customers. AI-driven B2B sales outreach might use predictive
analytics to identify the most promising leads, resulting in higher conversion
rates and a more efficient use of resources. Comparative analysis would
show the improved ROI of the AI-driven approach.

Challenging The Now with AI in Marketing 37

 These examples demonstrate how AI-driven marketing initiatives can
redefine KPIs, improve ROI measurement, and outperform traditional
methods in both B2B and B2C scenarios. By focusing on specific KPIs,
measuring ROI accurately, and comparing traditional and AI-driven
approaches, organizations can gain a deeper understanding of the
impact of AI on their marketing efforts.

As per the State of AI in 2023: Generative AI’s breakout year. Enterprise

Scale AI Maturation: AI high performer organizations attributing at least
20% of EBIT in 2022 to AI are leveraging generative AI across various
business functions, especially in product and service development and
risk and supply chain management​​. Interestingly, these high performers
focus less on cost reduction and more on creating new businesses or
revenue sources through AI.
Finally McKinsey research indicates that marketing is one of the primary
business areas seeing revenue benefits from AI​​.

In the following sections, we will continue to explore the immense

potential of AI in reimagining digital marketing strategies for the modern
age using our framework.

38 Challenging The Now with AI in Marketing

06
Challenge the now:
LS Digital Approach

Challenging The Now with AI in Marketing 39

 Overview of the LS Digital Approach

We have designed a comprehensive framework to guide marketers

in harnessing the full potential of AI in their marketing strategies.
It’s a roadmap for navigating the dynamic landscape of digital
marketing and staying ahead in the game.

Step 01
Start by leveraging the power of AI to extract insights from data,
automate routine tasks, and optimize marketing campaigns.
AI can be your ally in understanding consumer behavior,
personalizing content, and making data-driven decisions.

Step 02
Crafting a winning strategy is crucial. Dive deep into how AI can
redefine your marketing tactics, from ad targeting to content
creation. Think strategically about how AI can enhance customer
experiences, drive engagement, and achieve your marketing
objectives.

Step 03
In a competitive marketplace, differentiation is key. Explore how
AI can help you stand out from the crowd. Whether it’s through
hyper-personalization, innovative storytelling, or cutting-edge
customer engagement, AI can be your ticket to differentiation.

40 Challenging The Now with AI in Marketing

Detailed Strategies for
Leveraging AI in Marketing

Data-Driven Insights: AI can unearth invaluable insights from your data,

helping you understand customer preferences, behaviors, and trends. Utilize
these insights to tailor your marketing strategies and content.

Content Personalization: AI-driven personalization ensures that your

content resonates with individual consumers. Craft personalized experiences
that connect on a deep level, fostering brand loyalty.

Efficiency Through Automation: Automate repetitive tasks, such as data

analysis and lead scoring, to free up time for strategic planning and creative
endeavors.

Predictive Analytics: Use predictive analytics to anticipate market trends,

consumer behavior, and campaign outcomes. Stay ahead of the curve by
making proactive decisions.

Challenging The Now with AI in Marketing 41

 Strategic planning to
differentiate from competitor

Innovative Storytelling: AI can help you craft compelling narratives that

captivate your audience. Explore creative ways to tell your brand story,
using AI-generated content or AI-enhanced creativity.

Hyper-Personalization: Go beyond traditional segmentation and

offer hyper-personalized experiences. Tailor your messages, product
recommendations, and interactions to each individual.

Customer Engagement: Use AI-powered chatbots, virtual assistants, and

AI-driven customer service to enhance engagement. Provide immediate
and personalized responses to customer queries.

Continuous Learning: Stay at the forefront of AI advancements.

Continuously educate your team on emerging AI technologies
and trends to remain competitive.

Our approach isn’t just about embracing AI; it’s about reimagining your
entire marketing strategy. It’s about leveraging the power of AI to challenge
the ‘USUALS,’ and delivering outcomes that set you apart from the
competition.

42 Challenging The Now with AI in Marketing

07
Conclusion

Challenging The Now with AI in Marketing 43

 In our journey through this thought paper, we’ve explored the transformative
power of Artificial Intelligence (AI) in modern marketing. Here, we recap the
key insights and extend a call to action, encouraging readers to embrace AI
as an indispensable ally in their marketing strategies.

Recap of key insights

We began by challenging the conventional narratives surrounding AI,

dispelling the myth that it replaces human creativity. Instead, we emphasized
the synergy between human ingenuity and AI’s analytical prowess,
underlining AI as a catalyst for a marketing renaissance.

Our exploration of diagnostic, generative, and predictive AI unveiled the

diverse capabilities reshaping marketing norms. From deciphering past data
to crafting compelling narratives and predicting future trends, AI offers
a comprehensive toolkit for marketers.

Real-world use cases across B2B and B2C domains showcased AI’s
tangible impact on enhancing customer experiences, generating creative
content, and driving anticipatory strategies. Through these case studies, we
witnessed AI’s ability to deliver results that resonate with modern marketing
imperatives.

We delved into ROI calculation, emphasizing the importance of defining

KPIs and accurately evaluating ROI in the context of AI-driven marketing.
Comparative analyses between traditional and AI-driven ROI demonstrated
the remarkable impact AI can have on marketing effectiveness.

44 Challenging The Now with AI in Marketing

Call to Action: Embrace AI in your
marketing strategies

As we conclude, we extend a call to action to all modern marketers.

Embrace AI as more than a tool; it’s a strategic partner in redefining your
marketing game. Whether you operate in B2B or B2C, AI holds the key to
unparalleled personalization, efficiency, and competitive advantage.

It’s time to leverage the power of AI for data-driven insights, hyper-

personalization, and strategic automation. Reimagine your marketing
strategy, challenge the now and drive your brand into the future with
confidence.

Challenging The Now with AI in Marketing 45

 Here is a potential list of AI tools that can get
you started on a transformative journey:

Builder IO
Multi-channel experiences
building automated
https://www.builder.io/

Relume Library
One of the fastest ways to
build a website
https://library.relume.io

Diagram
Ai-powered UI design tool
https://diagram.com/

Glide
Build Ai-powered no
code apps
https://www.glideapps.com/

Typedream:
Build Ai-powered no code
websites
https://ai.typedream.xyz/

Typeframes:
Produce stunning product
videos in minutes
https://www.typeframes.com/

Meshy:
Ai-powered 3D modelling
https://www.meshy.ai/

FlowRL:
UI personalization tool
https://flowrl.ai/

46 Challenging The Now with AI in Marketing

 Flawless:
Instant UX audit tool
https://flawless.is/

Simple Analytics:
A great Google Analytics alternative
https://www.simpleanalytics.com/

WorkHack:
Hyper-personalized marketing
https://workhack.ai/

MagicPost:
LinkedIn content creation
https://magicpost.in/

Bodt:
Ai-chatbot for websites
https://www.bodt.io/

Martin:
Conversational voice AI
https://www.trymartin.com/

Appolo:
End-to-end sales process
https://www.apollo.io/

AudioWriter:
Speech to transcript converter
https://audiowriter.app/

aiPDF:
Summarize PDFs for insights
https://aipdf.ai/

Challenging The Now with AI in Marketing 47

 Our next installment of
“In:Sights” Series

Our journey doesn’t end here. Stay tuned for the next installment
in the “In:Sights” series, where we will continue to explore the
evolving landscape of marketing in the digital age. We’ll dive into
media and real-world success stories that will further empower
you to navigate this exciting frontier.

Thank you for joining us on this thought leadership journey.

Let’s continue to challenge the now, redefine marketing norms,
and usher in a new era of digital marketing empowered by AI.

48 Challenging The Now with AI in Marketing

LS Digital is a Leading Independent Digital Marketing Transformation (DMT)
company from India. The company comprises of four entities,
LS Digital, Media and Measurement and Transformation Consulting
company, Langoor, CX & Web 3.0 company, F1 Studioz, a UI/UX company,
and Social Panga, a digital-first creative company, that have come together
to form a global DMT brand.

LS Digital is building India’s first DMT network for the World. Using
#ChallengeTheNow as guiding mantra for the marketers, LS Digital is
empowering the brands to construct a digital future.

With 1200+ professionals with different skillsets and over a decade of

experience, LS Digital is committed to provide integrated digital marketing
transformation solutions to brands and partner with them in their digital
journey to grow their businesses. LS Digital offers the most comprehensive
suite of digital marketing services through its six-pillar DMT framework;
Data & Insights, CX, Innovations & Technology, Media, UI/UX,
Creative & Communication.

For more details, visit: https://www.lsdigital.com/

Write to us: marcom@lsdigital.com

© 2023 Copyright LS Digital

Challenging The Now with AI in Marketing 49