Marketers Seek Practical Tech ROI Boost Amid Economic Flux

The Consumer Electronics Show, the tech industry’s premier trade event, is famous for its sampling of flashy gadgets and glimpses into a far-flung future, but marketers in Las Vegas last month for CES 2023 had little appetite for flying cars or robot butlers. With budgets pared down to brave a looming economic downturn, brand leaders are instead on the hunt for technology that can yield new revenue in the here and now—which means that patience for meandering experimentation is waning. After a pandemic-era period in which brands were more willing to go out on a limb testing technology like metaverse experiences and cryptocurrency-adjacent fields, companies now seem more interested in the practical lessons from that trial and error. That doesn’t mean CMOs are scrapping their innovation budgets altogether this year. Instead, they are zeroing in on how targeted tech investments in areas like artificial intelligence and augmented reality can improve efficiency in marketing operations and drive results in the near term. "CMOs need to be thinking about technology in a completely different way," said Emily Ketchen, CMO of the Intelligent Devices Group at Lenovo. "There is a renewed focus on [return on investment]—and maybe not so much just ROI as the golden egg, if you will, but really understanding the impact of the marketing that you are doing." AI efficiencies As concerns around digital privacy continue to shape digital advertising, marketers are looking to artificial intelligence as a means to better personalize advertising without the use of cookies or other identifiable consumer information. Between predictive analytics, consumer insights and other automation tech, machine learning is a natural area to turn to when looking to wring more efficiency from a tech stack, according to Dana Bhargava, head of experience planning and media at Sanofi Consumer Health. "A lot of AI tech is going to help you understand what people are thinking,” Bhargava said. “I think AI is going to help us get a little closer to the ‘why’ and not just the ‘what,’ in terms of people’s behavior." Speculation has also been rampant in recent weeks about what research group OpenAI’s new conversational AI tool, ChatGPT, could mean for the future of copywriting, customer service and other language-based applications. Trained on a massive data set that spans virtually the entire internet, the machine-learning model is able to produce realistic-sounding text based on a dialogue prompt. The Biggest Tech Trends at CES 2023, According to Marketers Right now, marketers and agencies are exploring how large language models such as ChatGPT and its GPT-3 backbone might be used for iterating and optimizing copy in bulk digital ads, helping creatives brainstorm or powering chatbots. Such technology remains in its earliest stages in terms of commercial application, however, and its output is limited by its often-loose adherence to factual accuracy. Nevertheless, Interactive Advertising Bureau CEO David Cohen said generative AI-powered personalization of copy could be a game-changer for digital advertising. "One of the greatest challenges there’s been on the creative side is that the ability to personalize is awesome, but if you only have three ads, it doesn't matter,” Cohen said. “So coming up with all of that iteration is price prohibitive, historically. If AI could reduce the barrier of entry to doing that, I think it's a big deal." Practical purpose in the metaverse? After months of hype around tech trends like virtual worlds and digital tokens, some marketers have grown disenchanted with what proponents call the next iteration of the internet, or Web3, as it’s become clear how far from adoption these technologies are for the average consumer. Bhargava said she is on the lookout for ways in which the metaverse can appeal to consumers as a tool beyond games, the only area in which it’s gained any significant traction among consumers thus far. "The metaverse to me right now is gaming—that’s just another fancy word for gaming," Bhargava said. "Most people are not gamers. That's not how they're going to use it. So where are the applications to real life?" Some of that attention has turned to augmented reality, which is seen as a more practical alternative to virtual worlds with its potential for supplementing physical shopping, facilitating remote product demos or try-on tech, and enhancing in-person activations. "Augmented reality is pretty much primetime right now," said Mastercard chief marketing and communications officer Raja Rajamannar. "It’s going to be something which is going to be hugely enabling marketers to be able to communicate and engage with their consumers and prospects in extremely different and unique ways." CMO Priorities A Deloitte survey of more than 1,000 C-suite executives asked marketers about their focus areas amid an economic downturn and ranked the following at the top: Accelerating the shift to digital technologies and platforms like AI, social channels, augmented reality and the metaverse. Expanding into new demographic segments and geographic markets. Using new systems and algorithms to enhance customer personalization. Core business areas Though it might be tempting to trim spending on innovation overall, Qualcomm Technologies CMO Don McGuire said it would be a mistake for marketing execs to pull back from technology right now. Instead, brands should double down on proven digital strategies centered on core growth areas within their businesses. "Everything my marketing team does needs to support the larger business objectives," McGuire said. "This means an increased emphasis on ROI-driven strategies and tactics. We are putting this into practice at Qualcomm by focusing our efforts on continuing to support the health and expansion of the Snapdragon brand globally as well as the major growth areas for our business, including automotive and internet of things, and ensuring that our marketing efforts drive growth and support these tailwinds." This story is part of Adweek’s Advertising Redefined digital package, which spotlights all the ways that the industry is evolving as brands face greater challenges than ever in reaching consumers.

Emerging Technologies

Marketers Search For Practical Tech to Boost ROI Amid Economic Flux

Targeted investments in AI and AR could drive results for brand leaders

Patrick Kulp

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Patrick Kulp