It’s not just buzz and hype. Companies that are adopting AI are gaining an “insurmountable advantage” according to McKinsey Global Institute.
AI adopters are reporting elevated earnings, vastly improved financial performance, and are beginning to tower over peers so dramatically that the playing field may not level-out.
It seems like yesterday that artificial intelligence started hitting the marketing scene. How can there be such an immediate, drastic benefit rift between AI adopters and AI laggards?
As our very own Chief Technology Officer and data scientists extraordinaire, Paul Phillips, says, “it all boils down to the cost-per-decision.”
Twenty years ago, Fortune 100 companies would pay $0.20 (or more) for each algorithmic decision used to identify a high-value customer.
For example, a company like AOL would have paid $0.20 to find me (and my instant messenger addiction) so they could mail me that CD with 500 free hours.
Today, AOL would pay a miniscule fraction of a cent for the same decision. The decision-making process has become faster and cheaper over time, as more and more human processes have been automated. The result? The cost-per-marketing decision has halved every 14 months for the past 20 years.
In turn, AI adopters are successfully reaching their most valuable consumers at the lowest possible price, effectively snuffing any competitive advertisers operating sans-AI.
Many advertisers are waiting to see if AI delivers on it’s promises before investing and adopting. But at this point, it doesn’t make sense to wait. Not only are they losing ground (fast) but waiting is financial suicide. The cost is dropping so quickly, that today’s “break-even” investment will be a 50% margin gain in 14 months.
Basically, if you adopt today, you’ll see a return in 14 months or less. If you don’t, you’ll see a definite loss. At this point, AI adoption isn’t a choice, it’s just common business sense.
Are you still on the fence about AI? Get up and running before your competitors snuff you out. Contact us to learn how AI can make your advertising smarter, faster, and more effective today.
Magnetic is an artificial intelligence company that uses machine learning to deliver smarter, faster, and more effective advertising. Our powerful AI platform continuously analyzes the attributes of over 350 million live user profiles alongside real-time inventory supply and bid opportunities to deliver highly performant audiences and profitable campaigns for our clients.