Brand Experience

Generative AI Reshapes Marketing Landscape in India

23 March, 2024

In the ever-evolving realm of marketing, the introduction of Generative AI is shaping an era of unprecedented transformation. As 2023 unfolds, marketing strategies are being redefined with the aid of this cutting-edge technology. The incorporation of Generative AI in marketing practices has been driven by its ability to create personalized content, decipher consumer behavior, and extract real-time insightful data—which in turn, heralds a new chapter of innovation and creativity in the marketing domain.

Businesses, recognizing the potential of Generative AI, are channeling substantial portions of their marketing technology (MarTech) budgets into these tools. According to the Capgemini Research Institute’s report, ‘GenAI and the evolving role of marketing: A CMO’s Playbook’, marketers in India are allocating a striking 62% of their MarTech budget to GenAI tools. Notably, almost half have moved beyond the planning stage and are actively developing teams to integrate Generative AI across diverse marketing and advertising initiatives. Others remain in a contemplative phase, rigorously assessing risks and crafting Proof of Concepts (POCs) that align with their unique industry needs.

The emergence of Generative AI places the Chief Marketing Officer (CMO) role at the forefront of strategic importance. The delicate balance of marketing finesse, especially in Media Mix Modeling, emphasizes the irreplaceable value of human judgment. Media Mix Modeling, a technique to analyze the efficacy of marketing channels on sales performance, requires a nuanced understanding of an organization’s media mix—encompassing social media, traditional advertising, and online platforms. CMOs across prominent brands are experimenting with Generative AI tools in Media Mix Modeling, yet findings reveal that these tools are still maturing, with minimal application in forecasting, targeting, and media planning. Human intelligence, for the moment, remains essential for intricate activities like predictive scheduling and media delivery.

That said, the prospect of AI tools gaining proficiency to personalize targeting and messaging based on consumer behavior remains on the horizon. Advertisers such as Maruti, Marico, and Polycab, are already piloting Generative AI for Media Mix Modeling, albeit acknowledging the technology’s infancy in this area. Businesses need to identify the most advantageous applications of Generative AI that resonate with their specific requirements. The potential of Gen AI in crafting bespoke, multilingual creatives, enhancing customer engagement, and streamlining marketing strategies through predictive analytics for customer retention strategies, like upselling and cross-selling, is particularly promising.

Additionally, Gen AI’s practical uses extend beyond marketing communications. The automotive giant Maruti Suzuki employs this technology internally, for tasks such as minuting meetings, summarizing discussions, analyzing dealer financials, and planning business strategies—a testament to Gen AI’s vast scope in improving operational efficiency.

Significantly, Generative AI promises a major economic impact, projected to add between USD 1.2 and 1.7 trillion to India’s GDP by 2029-30, a boost of 5.9% to 7.2%, according to a recent EY report titled ‘The Idea of India: Generative AI’s potential to accelerate India’s digital transformation’. Business services, finance, transportation, education, retail, and healthcare stand to make considerable gains from AI’s capabilities, given these sectors’ focus on digitalization as well as driving productivity and personalized consumer experiences.

Despite the buzz, the trajectory of the Generative AI landscape carries an element of uncertainty. There lacks a comprehensive strategy for systematically leveraging AI to create scalable and long-term business value. Companies stand at the crossroads, with some already testing and employing AI tools, while others remain cautiously poised, assessing potential risks and relevant applications. The EY study reveals mixed sentiments, with a majority of C-suite executives recognizing AI’s significant impact on their operations, yet three-quarters admitting their moderate preparedness to harness AI’s benefits.

Diligent about potential pitfalls, marketers express concerns about ‘hallucination’—when AI generates nonsensical outputs, privacy laws, accuracy of results, and even the potential for job displacement. Thus, Gym Marketing experts and those focused on More Gym Members, Advertising For Gyms, and Gym Lead Generation, are meticulously evaluating the role of AI in their strategies, acknowledging the promise and profound implications of Generative AI in reshaping the marketing industry—as the journey toward AI-powered personalization and efficiency continues, with cautious optimism.