Marketing Budget Cuts? There’s A Hack

The Gartner 2024 CMO Spend Survey came out recently and – surprise! Budgets are down 15%. Analysts are calling it the “era of less.”

CMOs are hoping AI will create efficiencies and there may be some truth in that. But careless use of AI is dangerous. Take Toys R Us, which experienced backlash for an unsettling brand video, completely AI generated.

We’ve got a better idea.

Use AI and machine learning to simulate your paid media investments and identify which mix – within your newly trimmed marketing budget – will generate the most sales.

This “hack” is called media mix modeling (MMM). It’s actually a hack that’s been around for a while, but it was only available to big brands with big budgets. It was historically used for omni-channel marketers, but these same algorithms – in an era of cookie deprecation and impending privacy legislation against behavioral targeting – can be applied to digital media.

With today’s cloud computing, machine learning models and, yes, some AI assist – this hack can be accomplished fast and affordably. It’s a smart first stop for brands of all sizes looking to do more for less.