Gartner Predictions for CMOs Show AI, Social Toxicity, and Data Privacy Forge the Future of Marketing

Rhea-AI Summary

Gartner, a leading research firm, has unveiled its top five marketing predictions for 2023 and beyond. Key insights include that by 2027, 80% of marketers will establish content authenticity functions to combat misinformation. By 2025, 70% of CMOs will prioritize ethical AI accountability. Furthermore, many brands are expected to shift budgets toward product placement in entertainment content due to rising ad avoidance. Notably, one-in-three businesses without loyalty programs will implement them by 2027 to enhance customer retention.

Positive

• By 2027, 80% of enterprise marketers will establish a dedicated content authenticity function.
• By 2025, 70% of CMOs will identify AI ethics as a top concern.
• By 2024, 70% of brands will allocate at least 10% of their media budget to product placement.

Negative

• Rising consumer avoidance of traditional digital ads may impact marketing effectiveness.
• Potential reputational risks associated with AI and ethical concerns.

Marketing Leaders Will Need to Develop Stronger Connections Between Customers and Brands

STAMFORD, Conn.--(BUSINESS WIRE)-- As marketers face increased scrutiny over their operations, Gartner, Inc. has revealed its top five predictions that marketing leaders must incorporate in their strategies in 2023 and beyond to drive results and regain the confidence of business leaders.

“Against a backdrop of unrelenting social and economic pressures, marketing leaders look toward a future where smarter marketing leads to deeper, more valuable connections between customers and brands,” said Andrew Frank, Distinguished VP Analyst in the Gartner Marketing practice.

“From managing misinformation to ensuring effective first-party data collection, this year’s predictions prioritize the trends that marketers and advertisers can no longer afford to ignore,” Frank said.

The top five predictions for marketing leaders are:

By 2027, 80% of enterprise marketers will establish a dedicated content authenticity function to combat misinformation and fake material.

The proliferation of generative AI and user generated content will dramatically increase the volume and variety of content brands must monitor. Proactive reputation management is critical, but scanning for inaccurate or defamatory content at scale in real-time is increasingly difficult in a polarized and high-velocity landscape.

“The advancement in the scope and sophistication of misinformation creates a growing concern for CMOs,” said Chris Ross, VP Analyst at Gartner. “Just as AI and other technologies contribute to the content problem, they will also be part of the solution, especially when complemented with dedicated teams that listen, engage, and escalate brand interests across the digital content ecosystem.”

By 2025, 70% of enterprise CMOs will identify accountability for ethical AI in marketing among their top concerns.

Privacy-related restrictions on data collection, economic pressures, and AI breakthroughs are driving marketing teams to rely more heavily on AI and machine learning to optimize campaign performance and lower costs.

Simultaneously, regulators and advocacy groups are vocalizing concerns about manipulative and biased uses of AI through developments such as the AI Act in the EU or the AI Bill of Rights in the U.S. Several brands have come under fire over their use of advanced technology to influence consumers in creepy and inequitable ways.

“Marketing is uniquely positioned to understand the superior CX AI affords as well as its trust and reputational risks,” said Frank. “This puts the onus on marketers to address the ethical issues that AI is raising in their practices, and the impetus to do so must come from the top.”

By 2024, 70% of brands will redeploy at least 10% of their media budget to product placement in entertainment content.

Consumers with means are working harder than ever to avoid online ads: Gartner anticipates that by next year, 85% of consumers with household incomes above $120K will pay for entertainment subscription tiers, software, hardware or mobile devices that allow them to avoid advertising entirely.

“The game of cat-and-mouse has become very expensive,” said Kate Muhl, VP Analyst at Gartner. “Brands pay top dollar to reach high income consumers via digital advertising, but such impressions become less meaningful as this audience figures out new ways to tune them out. Marketers who cling to traditional digital ad formats will increasingly reach an audience composed largely of digital have-nots.”

Instead, brands that shift budgets toward product placements in entertainment content such as streaming TV will persevere: Two-thirds of the 301 consumers surveyed in October 2022 said they prefer this format rather than seeing separate ads.

One-in-three businesses without a loyalty program today will establish one by 2027 to shore up first-party data collection and retain high-priority customers.

At present, loyalty programs are most prevalent in the travel, hospitality and retail industries. However, there are opportunities in other verticals, such as banking and consumer packaged goods. Only 36% of 1,068 brands Gartner analyzed in 2022 had a loyalty program.

Effective loyalty content generally drives higher open rates than non-loyalty emails, improving wallet retention and growth among high-priority customer segments. By 2023, both B2B and B2C companies will increase their investments in loyalty programs as a percentage of their total marketing budget.

“The competition for customers' attention and first-party data will increase as more companies launch and revamp loyalty programs,” said Brad Jashinsky, Director Analyst at Gartner. “CMOs running best in-class loyalty programs will elevate their approach beyond transactional benefits and recognize personalization as a critical differentiator.”

By 2025, organizations that use AI across the marketing function will shift 75% of their staff’s operations from production to more strategic activities.

The use of AI in marketing operations will reduce friction and eliminate redundancy, allowing marketers to shift their budgets and resources to activities that support a more dynamic marketing organization.

For example, marketers can leverage AI in the creative process to automate the capturing, processing, and analyzing of real-world images and videos, improving image quality and developing digital twins. “AI will continue to refine marketing operations processes to drive more agile, data-based responses to the challenges ahead that have no signs of slowing down,” said Nicole Greene, Sr Director Analyst at Gartner.

Gartner clients can learn more in the report: “Predicts 2023: AI, Social Toxicity and Disappearing Customers Forge the Future of Marketing.” Additional information is available in the associated eBook and webinar.

About Gartner for Marketers

Gartner for Marketers provides the objective, expert advice, and proven tools that CMOs and other marketing leaders need to seize the right opportunities with clarity and confidence, and to stay ahead of the trends that matter. With in-depth research and analysis, Gartner for Marketers helps you focus on the opportunities with the greatest potential to deliver results. More information on Gartner for Marketers is available online at www.gartner.com/marketing. Follow news and updates from the Gartner Marketing practice on Twitter and LinkedIn using #GartnerMKTG. Members of the media can find additional information and insights in the Gartner Marketing Newsroom.

About Gartner

Gartner, Inc. (NYSE: IT) delivers actionable, objective insight to executives and their teams. Our expert guidance and tools enable faster, smarter decisions and stronger performance on an organization’s mission critical priorities. To learn more, visit gartner.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221213005705/en/

Katie Costello

Gartner

katie.costello@gartner.com

Jordan Brackenbury

Gartner

jordan.brackenbury@gartner.com

Source: Gartner, Inc.

FAQ

What are Gartner's top marketing predictions for 2023?

Gartner's predictions include establishing content authenticity functions, prioritizing ethical AI accountability, and increasing budgets for product placements.

How will marketing strategies change by 2027 according to Gartner?

By 2027, Gartner predicts that 80% of marketers will focus on content authenticity, and many businesses will adopt loyalty programs.

What impact does AI have on marketing accountability?

Gartner states that by 2025, 70% of CMOs will consider accountability for ethical AI in marketing among their top concerns.

Why are brands shifting their budgets towards product placements?

Brands are shifting budgets to product placements as 85% of high-income consumers are avoiding online ads.

What is the significance of loyalty programs according to Gartner's predictions?

By 2027, one-in-three businesses without loyalty programs will establish one to retain high-priority customers and enhance data collection.