Last week, on the Marketing Manager blog, I wrote about how AI is revolutionizing how strategists approach their email marketing, emphasizing personalized campaigns over social media investments.
As the Blaze report said, “The more AI-savvy a business becomes, the more they recognize that the unique advantages of AI align perfectly with channels that historically required too much manual effort for small businesses to leverage effectively.”
Looking then at the larger, general grouping of advertisers and marketers, as Nielsen has done with its recent “From Chaos To Clarity” report, it would appear there’s a lot still to be learned from AI.
Only 16% of email budgets will see an increase of more than 50% this year, down 3% YoY, all while a majority (54%) of global respondents are cutting ad spending.
(Source: Nielsen)
“As marketers plan to reduce ad spend this year, many will continue to increase investments in digital channels, but at lower rates,” the report says, which found 29% expecting to increase their social media spending by 50%. “The channels at the top of the list are the same as last year (social media, display, video ads and search), but compared to last year, fewer marketers are planning major budget increases on digital channels in 2025.”
As for traditional channels, print remains steady from last year with 13% planning to increase their spending by 50%. Direct mail, out-of-home advertising, and linear TV all saw YoY upticks.
AI, of course, was seen as the biggest trend likely to have an impact this year, with companies of all sizes expecting that impact to be seen with personalization and optimization. However, a higher percentage of those companies with billion-dollar budgets (71%) expect that impact as opposed to those with $50 million-plus budgets.
“Companies with big budgets in particular are seeking to use AI as a path to optimize and drive growth,” the report says. “While all companies will need to incorporate automations, marketers at companies with smaller budgets may benefit from focusing more on standing out by focusing on purpose in their marketing and collaborating with influencers.”
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