AI Marketing Trends: Global Impact and European Perspectives 2024
With over a quarter of invested dollars in American startups this year directed towards AI-related companies, AI stands central in current business innovation (Crunchbase). In this blog, we'll explore how the Dutch and European market relates to this global trend and what this means for marketers looking to integrate AI into their strategies.
Global Trends in AI Marketing
Economic Impact: AI is expected to contribute $15.7 trillion to global GDP by 2030, primarily through product improvements, variety, and personalization (PWC). This forecast underscores AI's economic power and potential. The global AI marketing market is projected to reach $108 billion by 2028 (Fit Small Business). The market for generative AI in marketing is expected to grow from $1.9 billion in 2022 to $22.1 billion in 2032, with a CAGR of 28.6% (Market Research).
AI Marketing: Globally, 72.2% of executives indicate they use AI for content marketing (Fit Small Business). This emphasizes AI's growing acceptance as an essential tool in marketing strategies. Moreover, 61.4% of SMB marketers have already used AI (AI Marketing Benchmark Report). A noteworthy 70% of top-performing marketers worldwide have a fully defined AI strategy, indicating that a well-developed approach is essential for success (IMM).
AI Marketing in America: Nearly half (49%) of American marketers are increasing their AI budgets as part of their strategy to improve customer experience (Insider Intelligence).
AI Marketing in Europe: The European market for AI and ML software is growing rapidly, with annual growth of nearly 40% (Ministry of Foreign Affairs). However, 40% of European marketing leaders admit their marketing campaigns need improvement, compared to only 23% in North America. This highlights a larger digital skills gap in Europe (Forbes).
AI in the Netherlands
The Netherlands aims for a leading role in AI by involving everyone in the digital world and giving them control over their digital lives. While Asia and the US lead the way, the Netherlands can close this gap through targeted investments in AI innovations.
AINEd InnovationLabs collaborates for responsible AI applications in government services. The National Growth Fund is investing €204.5 million in the AINEd program to stimulate AI development. Through a value-driven approach, the Netherlands can become a European example for responsible AI implementation (Dutch Government).
How Are Marketers Handling These Trends in 2024?
Strategic Role of AI: 42.2% of marketers believe that if AI takes over marketing activities, strategic and decision-oriented tasks will remain with human marketers (AI Marketing Benchmark Report).
AI-Driven Campaigns: 19.2% of respondents spend more than 40% of their marketing budget on AI-driven campaigns (AI Marketing Benchmark Report).
Cost Reduction and Revenue Increase: New research from McKinsey shows that 42% of surveyed organizations report cost reductions through AI implementation (including generative AI), and 59% report revenue increases. Compared to the previous year, there was a 10 percentage point increase in respondents reporting reduced costs, suggesting AI delivers significant efficiency gains (Artificial Intelligence Index Report 2024).
Improved Labor Productivity: In 2023, various studies assessed AI's impact on labor, showing that AI enables employees to complete tasks faster and improve their output quality. These studies also showed that AI can bridge the skills gap between low and high-skilled workers. However, other studies warn that using AI without proper supervision can lead to decreased performance (Artificial Intelligence Index Report 2024).
Segmentation and ROI: 60% of marketers consider AI initiatives most valuable and profitable. Besides improving segmentations, AI and generative AI can segment customers more accurately and with greater precision. Microscopic segmentation, which was historically very costly for retailers, can now be instrumental in increasing engagement and brand loyalty. Moreover, automated marketing activities, such as email marketing, social media posts, and ad placements, ensure higher consistency across campaigns (Forbes).
Experiential Marketing: Experiential marketing, a strategy focused on creating immersive and interactive experiences, represents 26% of total work in AI marketing (Fit Small Business).
Embraiced's Role
At Embraiced, we help companies overcome AI adoption barriers. Lack of understanding (41.9%) and high implementation costs (23.7%) are the main reasons companies aren't using AI yet (AI Marketing Benchmark Report). Through our expertise in AI-driven strategies, training & execution, we can help companies fully leverage AI's benefits. Contact us now to see how these trends can work to your advantage!
Conclusion
Investments in AI marketing are increasing worldwide, and for good reason. AI offers unprecedented opportunities to optimize marketing strategies, reduce costs, and increase revenue. In the Netherlands and Europe, there are enormous opportunities to embrace these technologies and stay ahead of the competition. At Embraiced, we're ready to support companies in this transition to an AI-driven future.
Comments