Loom video published in 2022.
Update (10/2024):
All areas of marketing are being immensely impacted by AI. AI agents will need to be orchestrated by people like Growth Operators to create truly impactful marketing strategies.
Introduction: The Evolution of Performance Marketing
The landscape of performance marketing has evolved dramatically over the years, and it continues to do so. As we move forward, it's becoming increasingly clear that the future is all about leveraging data science, automation, and AI in ways that were once unimaginable.
In this article, I’ll walk you through three stages of performance marketing: the past, the present, and the future. Each stage highlights key shifts in strategy, operations, data usage, and creativity—and what it means for the future of marketing.
The Past: A Focus on Channels, Strategy, and Manual Data Collection
In the early days, performance marketing was about mastering specific channels and operations.
- Operations on Channels:
Most efforts were dedicated to optimizing marketing channels like SEO, landing pages, conversion rate optimization (CRO), and organic visibility. Excellence in these areas was crucial for success. - Strategy Based on Past Experiences:
Strategy decisions were often based on past experiences and gut feelings. Questions like “How much should we spend on Facebook Ads vs SEO?” dominated discussions. The marketing team and the board would look at business outcomes such as MQLs, SQLs, and revenue, but often without solid data to back these decisions. - Data & Automation:
Data collection was largely manual. Teams would gather data from ad networks, Google Analytics, and other platforms, often using tools like Supermetrics or Google Data Studio. However, the data from marketing and business outcomes rarely connected seamlessly, leaving decision-makers to operate in silos. - Creativity in Isolation:
The creative process was handled by separate teams with little to no collaboration with performance marketers. There was little iteration between the creative and marketing sides, resulting in campaigns that often felt disjointed from data-driven insights.
The Present: Data-Driven Strategy and Team Integration
Fast forward to the present, where the landscape has improved but still has room for growth.
- Return on Investment (ROI) and Media Efficiency Ratio (MER):
Strategies are now more focused on measurable ROI. Metrics like MER (Media Efficiency Ratio) are commonly used to evaluate the success of campaigns. CMOs, growth marketers, and performance marketing strategists are more aligned, though the process still relies heavily on experience. - Operational Excellence Still Matters:
Operational execution remains essential, but its role has slightly diminished as strategy and data take a more prominent position. Operations now account for about 25% of the overall marketing focus, down from 35%. - Data & Automation are Key:
Unlike in the past, data and automation now connect every piece of the marketing puzzle. The role of data visualization has grown, and now, marketing teams understand that the spend on specific platforms needs to be tied to actual business outcomes. There is more clarity around how channel mixes affect new customer acquisition or eCommerce revenue. - Collaborative Creativity:
Creative strategy has shifted to a more collaborative approach. It’s now based on a test-and-learn methodology, where performance marketers, strategists, and creatives work together to develop more effective campaigns. The focus is on developing the right hooks, engagement strategies, and conversion tactics.
The Future: A Shift Towards AI, Data Science, and Automation
Looking to the future, performance marketing will shift even further towards data-driven decision-making, powered by AI and automation.
- AI-Driven Strategy:
The future is all about input-driven processes rather than output-driven decisions. Marketers will analyze past data and feed this information into ad platforms like Facebook, Google, and Amazon, enabling their machine learning algorithms to target audiences with the highest predicted lifetime value. - Capital Allocation Based on Predictive Data:
With the help of AI and data science, companies will be able to predict future trends and audience behavior with far more accuracy. This will revolutionize capital allocation, allowing marketers to invest where they’re most likely to see long-term gains rather than relying on past experiences. - Integrated Operations:
While operations will remain important, the future will see the value of other areas like strategy and data science increase dramatically. Operations will be seamlessly integrated into data-driven strategies. - Data-Backed Creative Development:
Creative processes will no longer be based solely on gut feeling or intuition. AI and data will help identify the most valuable audiences and actions, allowing creative teams to develop content specifically tailored to those audiences with the highest predicted lifetime value. - From Output Marketer to Input Marketer:
Performance marketers will shift from being output-driven (focused on immediate results) to input-driven (focused on feeding the right data into the system). Marketers will become responsible for ensuring that platforms have the correct inputs, which will then be used by machine learning algorithms to drive better business outcomes.
Conclusion: The Rise of AI, Data Science, and Growth Operators
In the near future, the most successful marketers will be those who master the art of feeding the right data into AI systems. The days of relying on manual data analysis and intuition are quickly coming to an end. Instead, marketers will rely on predictive insights and machine learning to make smarter, faster decisions.
Growth Operators will play a crucial role in orchestrating this transition. They will ensure that both human teams and AI agents work seamlessly together, creating more efficient, data-driven marketing operations that will drive growth in ways previously unimaginable.
The future is clear: data science and automation will dominate marketing strategies, and the key to success lies in understanding and adapting to these emerging technologies. As we move forward, Experiment Driven will continue to pioneer this shift, ensuring our clients stay ahead of the curve.
Ready to Future-Proof Your Marketing Team?
If you're looking to stay ahead of the curve and ensure your marketing operations are driven by cutting-edge AI, data science, and continuous experimentation, we're here to help. Contact us at hi@experimentdriven.expert to explore how we can transform your team into a future-proof growth machine. Let's build a smarter, faster, and more impactful marketing strategy together.
