Big impact in one month for AAA
One of the first pilot users of Adobe’s AI-as-a-Service approach is AAA Northeast, which used it in March to increase lead generation for its auto insurance business by 28% while reducing ad spend by 16% for the month.
“Our technology stack is primarily Adobe,” said Lisa Melton, senior vice president of marketing at AAA Northeast. “And so when they came to us and asked if we wanted to be part of the pilot, we were like, absolutely. It’s every marketer’s goal to make sure your dollars go where they matter the most.
The AAA Northeast insurance business that was part of the pilot uses digital signage, search, connected TV, linear TV and a small amount of postcard direct mail, Melton said. Adobe’s AI MMM analytics led it to shift money from linear TV to display and search.
Melton hopes to continue testing the AI MMM tool on other lines of business, perhaps including membership acquisition, which has more direct mail in the mix. And it now integrates Adobe Experience Cloud into its technology stack.
Adobe previously had an AI attribution tool, but in conversations with marketers they found they wanted ROI analytics solutions that covered more media than attribution doesn’t. can’t, including cookieless offline media and social media walled gardens, said Monica Lay, senior product marketing manager for digital. experience at Adobe.
Marketing mix modeling can analyze the results of these media, but historically it has taken six to 12 months for initial setup and three months to provide ongoing reporting thereafter, Lay said. That doesn’t help marketers who want to figure out how to spend extra dollars or cut budgets in a current budget cycle, she said.
Pressure to deliver more for less
“We notice in conversations with customers a pressure on senior management to deliver more for less,” she said. “We’re seeing budget cuts in marketing spend, but there’s still pressure to meet the same revenue targets.”
Liz Miller, vice president and principal analyst at Constellation Research, who tried out the AI MMM tool, said she really liked it as “a way to account for all that data that can come in the form of a giant tsunami that no one can really handle”. It’s starting to bring in a new layer of what I call decision speed, which is not just making good decisions, but making big decisions faster.
Miller also thinks the tool, as part of a suite of Adobe services, could open up marketing mix modeling to a much wider range of marketers who simply couldn’t afford it before. “Media mix modeling has been prohibitively expensive for many organizations,” she said.
Gerry Murray, research director for marketing and sales technologies at IDC, sees Adobe’s move as “an inflection point” for intuitiveness and simplification of how marketers can use templates. that guide decision making.