The CMO’s death knell, AI ad-ventures, and a failure to "spark joy"
Another fortnight, another email. This week, is the CMO a dying position? AI companies finally venture into advertising as they fight the hype hangover, and how brands are failing to tap into TikTok (is this really a surprise to anyone??).
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The CMO seat is heating up (again)
Catch up quick: Only 63% of Fortune 500 companies are retaining a CMO. Is the role dying? Companies like Hyundai, are phasing it out while others like Gap are reviving the position.
Driving the trend: Economic pressures are squeezing marketers to deliver on bottom-line metrics and prove they’re worth the budget — and those who can’t are fast approaching Chief Marketing Outcasts.
The bigger picture: Companies are pivoting to "Chief Customer" or "Chief Revenue" roles which are absorbing marketing functions to bridge the traditional sales-marketing divide. The concern? These sales-minded leaders tend to sacrifice long-term brand building to the “quick wins” gods.
Our view: Titles matter less than impact. CMOs must enable end-to-end customer experiences that align with sales to drive revenue. Fail to adapt, and the seat gets a lot hotter.
AI platforms join the advertising party
Driving the news: AI powerhouse Perplexity plans to roll out sponsored ads on its platform by Q4 2024.
Thought bubble: Is AI the next fun thing to be ruined by advertising? And at what cost to credibility and user experience?
Thought bubble 2: Could AI tools like Perplexity take users’ individual searches and preferences, then use that data to instantly create personalized AI-generated ads? Do we want this future?
Thought bubble 3: Beyond advertising, tools like Profound are helping marketers surface their brands within AI searches. Is this the frontier for SEO?
The bottom line: Where there's attention, there's advertising potential. AI platforms are a new opportunity for digital marketing spend — question is: who’ll be making the ads?
Branded TikToks are really sh*t
By the numbers: A weirdly Marie Kondo-coded study found 84% of branded TikToks fail to “spark joy”, 60% are utterly forgettable, and 24% trigger extreme negative emotions. Yikes.
Between the lines: Is this data surprising? No. Is this a case of marketers following attention to new platforms then missing the vibe? Probably. Is this a wake-up call for brands to level up their TikTok game if they want to make an impact? 100% yes.
Our perspective: TikTok demands unique content, not rehashed ads. It can’t be a bolt-on marketing strategy. To win requires tailored tactics, resources, and metrics for success. If you can't commit to doing it right, it’s better not to do it at all. We don’t need more rubbish out there.
The AI hangover begins?
Context: As the AI hype bubble bursts, companies such as Oddity Tech are facing backlash for "AI washing" (overstating their AI capabilities to woo investors and customers).
Why it matters: While some very practical AI applications exist, most “game-changing” AI initiatives are yet to make contact with reality. Beyond legal consequences, overly stating AI capabilities has customers rolling their eyes.
The zag: To quote Benedict Evans quoting someone else, “'AI' is whatever doesn't work yet”. Could this be the real explanation for the decline in AI optimism?
What to watch: Some — like Anthology with its "Trustworthy AI" policy — are course-correcting. Expect more scrutiny and self-policing as the AI hype bubble deflates and the hard work of implementation starts.
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