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BCG's Mark Abraham Says CMOs Are Taking Charge Of AI Strategy

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BCG's Mark Abraham Says CMOs Are Taking Charge Of AI Strategy

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101 segments

0:00

So, if there's one skill that CMOs need

0:02

to have in the future, it's curiosity.

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I don't think we have all the answers,

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and no CMO does.

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But, the curious CMO will find them.

0:15

>> [music]

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>> They're setting up teams of AI wizards

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who are testing and learning the new

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tools and

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>> [music]

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>> constantly moving forward the way they

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do marketing. And then they take the

0:30

best of those experiments and scale them

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quickly.

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I think that spirit of curiosity will

0:36

have to start at the top, but also

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permeate the entire marketing

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organization [music]

0:40

of the future. So, this year at Cannes,

0:43

CMOs are really feeling in the hot seat.

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For the first time ever, more than half

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of CMOs told us in our annual CMO survey

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that they're in the driver's seat of

0:54

their own AI transformation. That means

0:56

they're making the decisions on the AI

0:59

investments in the marketing function.

1:01

But, with great power comes great

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responsibility. They actually have to

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deliver on the ROI and the results now.

1:08

So, in Cannes, they're looking to have

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the real conversations. They're looking

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to dig into what works and what doesn't,

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and how [music] they can close the gap

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between a transformation illusion and

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transformation reality. So, a great

1:22

example of how a generative marketing is

1:24

playing out is in the beauty industry.

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Beauty brands are investing in new

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[music] tools and new approaches, not

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just in content creation, but in

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insights generation, how [music] they

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write briefs, then they how they create

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the content, and how they optimize and

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activate [music] that content.

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So, what it means for marketers is a

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much more strategic process, where they

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get [music] to spend time not on the

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manual work, but on the joy of creating

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great campaigns with strategic

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targeting, [music]

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with better ideas and better back and

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forth with the agencies spent on the

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creative [music] process.

2:00

And for customers, that means much

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sharper targeting of what the brand

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stands for, much easier discovery

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including in the LLMs and on the

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websites and

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>> [music]

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>> ads of brands themselves, so they can

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find the products they love more easily.

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Brands are having to build an entirely

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new capability around discoverability in

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LLMs.

2:24

And they're setting up new teams around

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AEO and GEO to do that. That means they

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have to rethink their entire content

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strategy, not just on their own website,

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but also around the entire internet.

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Because LLMs at the end of the day look

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at the brand in all the places that they

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show up, not just to consumers, but also

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in a way that a machine can read.

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Now, I think strategic brands are not

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just trying to

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optimize their content. They're actually

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thinking about what part of the journey

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customers should have in the LLMs, how

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they provide the best information, the

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best context for [music] that, where

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they even think about advertising

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directly inside the LLMs, and then where

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they want to own that conversation

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themselves in their own channels.

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In the age of agent of commerce, brands

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have to develop a strategic capability

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around how they want to be discovered,

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have conversations with customers, and

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then actually transact with customers

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inside and outside of LLMs. They're

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setting up AEO teams that curate content

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across the internet and their own

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websites so that LLMs can help customers

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discover them, but then they're making

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strategic choices on where they want to

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continue that conversation inside the

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LLMs versus directed to their own

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websites and channels they directly

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control. These are some of the most

3:49

strategic choices brands are making now

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for the future.

Interactive Summary

This video explores the evolving role of CMOs in the era of AI, emphasizing the importance of curiosity and strategic adaptation. It highlights how CMOs are taking charge of AI transformation, moving beyond manual tasks toward creative and strategic processes. Furthermore, the video discusses the emergence of generative marketing and the critical need for brands to develop new capabilities in 'discoverability' and search optimization within Large Language Models (LLMs) to effectively reach customers.

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