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Marketing shifts to AI-focused strategies in 2025

Tue, 19th Nov 2024

The marketing industry is expected to experience significant changes in 2025 as organisations shift towards technology investment and AI integration, driven by reduced marketing budgets.

Mellissah Smith, Founder of Robotic Marketer and a marketing strategist, forecasts that companies will transition from traditional marketing expenditure to a model focused on advanced technology and measurable ROI. She comments, "In 2025, we're going to see companies pivot away from traditional marketing spending towards a model that prioritises advanced technology and a clear return on investment. The focus will be on doing more with less—using AI to automate tasks, streamline roles and shift budgets toward areas where impact can be tracked and maximised. It's a bold move, but it will separate the leaders from the laggards in marketing innovation."

Smith describes the reduction in marketing budgets as the "big defund," which will lead to significant investments in technology. This shift is expected to place AI-powered solutions at the forefront, allowing marketing teams to achieve more with fewer resources. This adoption of automation will enable brands to track and optimise campaigns more precisely, enhancing measurable returns across digital channels. As part of this transformation, marketing departments are anticipated to reduce in size, with routine roles increasingly being fulfilled by AI-driven solutions.

Despite the reduction in traditional roles, Smith predicts growth in specialised areas such as customer experience, prompt engineering, and personalised communications. She states, "Roles that can't be easily replaced by automation—like customer experience, prompt engineering and personalised marketing communications—will see growth. Companies will need experts to enhance the customer journey, fine-tune AI tools and create personalised messaging that resonates on an individual level."

For small businesses, the "big defund" is set to alter how they engage with influencers, shifting from upfront fees to profit-sharing models. This approach aligns incentives and fosters partnerships that are mutually beneficial. Smaller enterprises will thus be able to leverage the reach of influencers while maintaining control over their budgets.

Smith also anticipates an evolution in creative roles, supported by AI. She explains, "Traditional writing roles will take a backseat to a new wave of creatives using AI to amplify storytelling, brand narrative and audience engagement." This indicates a transformation in content creation, blending human creativity with AI efficiency.

Predictive analytics is projected to receive a larger portion of marketing budgets, benefiting companies that have already embraced AI. With insights into consumer trends and behaviours, businesses will have powerful tools to improve decision-making and drive ROI.

Another significant trend is the merging of sales and marketing into a unified department, reshaping traditional organisational structures. Smith notes, "This alignment of sales and marketing won't be easy or universally popular. But it will foster a deeper understanding between the two areas, creating stronger collaboration and an appreciation of each role's contribution to revenue and growth."

Startups are poised to become major disruptors, leveraging their agility and innovative approaches, particularly against companies reliant on traditional consulting models. In response, there will be a focus on roles in AI transformation, consulting, and strategic planning.

As 2025 unfolds, companies leading in AI adoption, personalised customer experiences, and tech-enabled efficiencies will position themselves advantageously. The marketing landscape will be characterised by strategic resource allocation, marking a new era for the sector.

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