• by Ray Schultz , Columnist, August 5, 2024

Targeting and being able to predict future buying patterns are among the toughest hurdles faced by chief marketing officers, according to Dentsu Creative’s 2024 CMO Report. And they could easily affect teams who work in the email channel.  

Of the CMOs polled, 44% say using data to provide insights on customers and to predict future products and propositions is a significant challenge, while 35% find it a minor challenge.  

Another 40% are significantly challenged when attempting to understand and respond to changing consumer behavior. Another 36% cite delivering personalized content and marketing at scale.   

However, many CMOs are investing in data — and AI.

• 65% say they are investing in data analytics and insights to help inform our creative 
• 59% say they are using AI and machine learning to predict changes in customer behaviors
• 58% say they leverage social listening to proactively identify shifts in sentiment/behavior 
• 45% say they are using Gen Z units or research programs 
• 44% say they are engaging with fandoms as part of our audience/targeting strategy 

Of those CMOs surveyed, 79% say they will invest over 10% of their budget in innovation and 28% plan to spend 21-30%. 

Are CMOs actually using AI? Apparently, yes. And their sentiments about it are changing.  

For instance, 65% agree that generative AI will never replace the human imagination. But that’s down from 75% last year. 

Moreover, 49% now say GenAI will not be able to create ads that move people. But 67% indicated that in 2023. 

Similarly, 65% believe that customers will pay a premium for human generated content. But 81% felt that way in the previous year. 

Overall, 85% of CMOs consider increasing competition and market saturation to be challenges, while 83% cite growth in an economic slowdown. 

In addition, 30% of U.S. CMOs say their sales are flat or declining. 

But 83% believe that powerful creative can transform businesses, and 61% feel that businesses underestimate the power of emotion in driving transformation, while 81% say creative is more important to their business than ever.