This report puts the subject of 'AI in marketing' into context for CMOs and senior marketers, looking to build long-term plans for implementation of AI into their broader marketing playbook. The report looks at: - The scale, speed and value of AI for marketers - Insights on how to plan and roadmap its implementation - Highlighting key use cases - Perspectives on how search and brand discovery will change - Recommendations for how to begin work on AI transformation

1. IMPACT OF AI ON MARKETING

2. 10
CONSIDERATIONS
ON THE IMPACT OF AI ON MARKETING

3. 1
THINK BIGGER ABOUT AI

4. 1
THINK BIGGER ABOUT AI
“The potential of this market is hard
to grasp – somewhere between all
software and all human endeavours.”
Andreesen Horowitz
Additional $9.5 - 15.4 Trillion per year to global economy
(according to McKinsey Global Institute)

5. 1
THINK BIGGER ABOUT AI
•All businesses will change, new businesses emerge
•Apps will be built in a day, with no code
•1-2-1 customer marketing at scale
•Everything, everywhere, all at once
•New frontiers (eg. space)
WHAT’S GOING TO BE POSSIBLE:

6. 2
WEB 3.0 REDEFINED

7. 2
WEB 3.0 REDEFINED
2022 2023 2024
“Metaverse is the new Internet”
“Crypto and NFTs are are the
backbone of Web3”
“VR goggles the next
Smartphone”
“AI is boring”
Adapted from: Benedict Evans
“Meh! Low quality experience”
“But not sure how and when
exactly”
“Can Apple bring new life to
this space?”
“AI is Web3.0”
“Rapid improvement in content”
“Blockchain and NFTs as
record for AI agents?”
“Browsers replaced by chat
and voice”
“AI accelerates all tech”
THE NARRATIVE HAS FLIPPED

8. 2
WEB 3.0 REDEFINED
Bill Gates
(speaking about OpenAI)
Microsoft
“In my lifetime, I’ve seen two demonstrations
of technology that struck me as revolutionary.
The
fi
rst time was in 1980…
…the second big surprise came just last year”.
“The development of AI is as fundamental
as the creation of the microprocessor, the
personal computer, the Internet, and the
mobile phone.”

9. 3
IT’S HAPPENING QUICKLY

10. INSTAGRAM
SPOTIFY
DROPBOX
FACEBOOK
FOURSQUARE
TWITTER
AIRBNB
KICKSTARTER
NETFLIX 3.5 YEARS
2.5 YEARS
2.5 YEARS
2 YEARS
13 MONTHS
10 MONTHS
7 MONTHS
5 MONTHS
2.5 MONTHS
5 DAYS
CHATGPT HITS 1 MILLION USERS IN 5 DAYS
CHATGPT
TIME IT TOOK FOR ONLINE SERVICES TO HIT ONE MILLION USERS
(1999)
(2022)
(2010)
(2008)
(2008)
(2004)
(2009)
(2006)
(2008)
(2009)
Launched
Source: Statista 2023
IT’S HAPPENING QUICKLY 3
100 MILLION
MONTHLY ACTIVE USERS
BY JANUARY 2023
Nov 30, 2022 (Launch Date)
ChatGPT signals mainstream awareness
for AI. While the growth of ChatGPT is
impressive, it’s really only representative
of a much larger emergence of AI tech -
an emergence and maturation which
has been brewing for decades.

11. 4
THE BIG GAINS ARE NOT IN CONTENT

12. Organizational Value
Organizational Capability
4 BIG GAINS FOR MARKETING
MARKETING TEAMS NEED TO
CLOSE THE GAP QUICKLY
FUTURE
CURRENT
(Revenue)
(Costs)
HIGHER
LOWER
Content/Creative
Headlines, Blogs, Ads
Translation
Do you have prompt engineers?
And technical design/copy
creators?
Bots, CX Automation
Do you have a chatbot already in
action?
Ad Targeting/Re
fi
nement
ROI, Attribution
What new markets (segments)
could you reach if bandwidth and
resources were not a constraint?
Customer Insights
Churn
New Products, R&D
What new datasets can be added
to existing CRM to inform your
understanding of customers?
Predictive Analytics
Simulations
New Markets
Merchandising
Do you have UX/UI people to
rapidly develop apps?
Coding (Apps)
Virtualization (AR/VR)
Do you have data scientists and
psychologists to organize and
interpret data?
Data as a Service
New Businesses
Do you have start-up capable sta
ff
to venture into new areas?
Dynamic Pricing
Segmentation
COMPANIES NEED TO EVALUATE INTERNAL
CAPABILITIES VS POTENTIAL GAINS ACROSS
A GROWING SPECTRUM OF OPPORTUNITIES.

13. 5
UNLOCKING NEW VALUE

14. 5
UNLOCKING NEW VALUE
THE JOB LOSS NARRATIVE WILL DROP OFF QUICKLY AND WILL BE REPLACED BY
QUESTIONS OF HOW BRANDS CAN DELIVER MORE, DO BETTER AND GROW MORE QUICKLY.
IN THIS CONTEXT, BRANDS SHOULD HAVE A ROADMAP FOR WHERE AND WHEN TO
IMPLEMENT AI PLANS ACROSS THE ORGANIZATION.
(Revenue)
(Costs)
HIGHER
LOWER
C
o
n
t
e
n
t
&
S
o
c
i
a
l
C
u
s
t
o
m
e
r
S
e
r
v
i
c
e
(
B
o
t
s
)
C
u
s
t
o
m
e
r
I
n
s
i
g
h
t
s
A
d
T
a
r
g
e
t
i
n
g
/
R
e
fi
n
e
m
e
n
t
P
r
e
d
i
c
t
i
v
e
A
n
a
l
y
t
i
c
s
D
a
t
a
a
s
a
S
e
r
v
i
c
e
C
o
d
i
n
g
(
A
p
p
s
)
Existing Net New
ORGANIZATIONAL VALUE
A ROADMAP FOR IMPLEMENTATION
What new businesses could you move
into? What data do we have that
could be the centre of new o
ff
ering?
New audience groups, new countries
leveling up from selling products to
SOLUTIONS.
What is currently in high demand
but expensive to deliver?

15. 6
EARLY MOVER ADVANTAGES

16. 6
AI will help brands overcome limits on cookies
(and 3rd party data), supercharging 1st party
data when combined with other datasets.
In the short-term, there is massive potential
to improve targeting and conversion with AI.
Major gains are available for
fi
rst-movers with audience segmenting,
ad targeting, re-targeting and conversion work
fl
ows.
EARLY MOVER ADVANTAGES

17. 6
HARD TO REACH CUSTOMERS
The impact on search will be profound. There
will be a signi
fi
cant reduction in tra
ffi
c to
Websites…except for well known brands and
distinct products.
As users shift to chat and voice…
Brands will need to build presence on more channels and CREATE A
CENTER OF GRAVITY where customers come to them and stay with them

18. 7
AVERAGE WONT CUT IT

19. 7 AVERAGE WONT CUT IT
SEARCH RESULTS WILL
‘AVERAGE’ TOWARD
BRANDS WITH HIGH
SHARE OF VOICE
MARKET
LEADERS
SHARE OF VOICE
DIFFERENTIATORS
FUNCTIONAL PSYCHOGRAPHIC
“What are the top
brands for X?”
“What are the best
products for X, if I want XX,
and XXX?”
“What are the best
products for people who
XXXX?”
BRANDS MUST ‘OWN’
CATEGORIES/COMMUNITIES
BUT 15% OF DAILYGOOGLE
SEARCHES ARE UNIQUE. IN THE
SHIFT AHEAD, NOVEL SEARCHES
WILL INCREASE, CREATING
OPPORTUNITIES FOR NICHE
ASSOCIATIONS.

20. 7 AVERAGE WON’T CUT IT
FUTURE
CURRENT
CONTENT
QUALITY
Smaller Brands Larger Brands
Quality lift for
smaller brands
Larger brands
MUST lift standard
CONTENT QUALITY WILL TREND UPWARDS
USING AI, SMALLER BRANDS WILL BE ABLE TO INCREASE CONTENT
QUALITY AND VOLUME. LARGER BRANDS WILL HAVE TO RESPOND
WITH CORRESPONDING INCREASE IN QUALITY TO STAND OUT.

21. 8
BRAND MOMENTS MATTER

22. 8 BRAND MOMENTS MATTER
DISCONNECT
BETWEEN TOP AND
BOTTOM OF FUNNELS
PURCHASE
CONSIDERATION
AWARENESS
Big moments create
lasting memory, SOV …
and word-of-mouth.
Consideration gets throttled,
with more limited consideration
sets, fewer channels.
THE FUNNEL CONCEPT IS A HOLDOVER
FROM WEB 1.0. ELIMINATION OF
COOKIES AND 3RD PARTY DATA
FURTHER ERODE THIS PARADIGM.
Brand preference must be
fi
rmly in place by the time
a customer is ready to buy.

23. 9
BE MORE HUMAN

24. 9
BE MORE HUMAN
https://hbr.org/2020/08/the-secret-to-ai-is-people
Humanity as an advantage: authenticity,
personality, fun, funny, quirky, empathetic
customer care, ethics and transparency.
Being human, things created by humans and
human connection are likely to rise in value.
Expect live events and experiences to rise in value.

25. 10
TRANSFORMATION PARADIGMS

26. 10
TRANSFORMATION PARADIGMS
COST VS REVENUE
Short-term pain vs long-term
gain? AI will be the persistent
drumbeat for transformation.
Customer service and predictive
analytics are optimal staring
points.
INSIDE VS OUTSIDE
Teams for internal value (data),
external (customers & content).
Like Zillow.
Pushing progress from two sides
to gain more varied insight.
EXISTING PLATFORMS
Using existing marketing tools to
test AI features and plugins from
rich ecosystems.
Better to rent
fi
rst …build later.
(Eg. Salesforce, HootSuite)

27. CDP (CUSTOMER DATA PLATFORMS) AND OTHER ‘SYSTEMS OF RECORD’ SERVE AS USEFUL STARTING POINTS
WHEN IT COMES TO BUILDING ORGANIZATIONAL VALUE THRU AI. COMPANIES SHOULD EVALUATE THESE
PLATFORMS FOR AI CAPABILITIES (BOTH CURRENT AND FUTURE DEVELOPMENT ROADMAP), TOGETHER WITH
ECOSYSTEM AND THIRD-PARTY APPS, TO ASCERTAIN POTENTIAL LEVERAGE GAINED FROM AI.
CDP’S ARE A GREAT STARTING POINT
OMNICHANNEL DATA
INTEGRATIONS
Social Data
COLLECT UNIFY ANALYZE ACTIVATE
Inputs Identification Insights Outputs
PROFILE
MANAGEMENT
INSIGHTS, ANALYTICS
& PREDICTIVE SCORING
COMMUNICATIONS
INTEGRATIONS
Web & App Logs
Advertising Data
Customer Surveys
eCommerce
CRM Data/Insights
IoT Device Info
Social Media
Ad Platforms
Email
Websites & Apps
Loyalty Systems
Messaging Apps
Bots
Business Intelligence
Data Visualization
Market Insights
New Product Ideation
Segmentation
Bots/Messengers
Churn Prediction
3rd Party Data (Big Data)
DATA & DECISION
ENGINE Search/SEO
Attribution (ROI)
Predictive Analytics
10
TRANSFORMATION PARADIGMS
POS Info
CDP

28. BRAND X TREND INSIGHTS
DETAILED DATA AND DETAILS ON THE ECOMMERCE AND SOCIAL MEDIA
LANDSCAPE ACROSS ASIA. PERSPECTIVES ON REGIONAL GROWTH.
INSIGHTS, ANALYSIS AND GROWTH FRAMEWORKS FOR DIRECT-TO-
CONSUMER BRANDS - WITH GLOBAL AND U.S. FOCUS.
RANKING OF CHINA’S TOP CONSUMER, RETAIL BRANDS GROWING ONTO
THE WORLD STAGE. INSIGHTS ON IF/HOW THEY ARE SUCCEEDING. TOTEM
COMPREHENSIVE PLANNING AND GROWTH FRAMEWORKS FOR BRAND
SUCCESS IN CHINA.
Totem works with a range of brands in
Asia, China and Globally on brand
strategy, marketing tech, and business
intelligence solutions.
We have experience across multiple
AI applications, including; data
visualization, predictive analytics,
chat/bots, automation, CRM
enrichment and overall transformation
planning/audit.
Our clients range across industries,
including; retail, fashion, beauty, travel,
entertainment, tech and
fi
nance.