56 percent CMOs allocate over 20 percent of budget on innovation: Dentsu report

When 67% of CMOs doubted that AI could create content that moves us in 2023, the number has dropped 18 percentage points to 49% this year.

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| August 1, 2024 , 12:56 pm
By contrast, trust in Generative AI to enhance creativity and innovation as a co-pilot and accelerator of human creativity is growing, with fewer considering it a threat to human craft and ingenuity. (Representative Image: Andrea De Santis via Unsplash)
By contrast, trust in Generative AI to enhance creativity and innovation as a co-pilot and accelerator of human creativity is growing, with fewer considering it a threat to human craft and ingenuity. (Representative Image: Andrea De Santis via Unsplash)

Dentsu Creative has released its annual global survey of 950 chief marketing officers. Data shows that 79% of respondents agree that marketing is a key driver of business transformation, with 83% of CMOs believing that creative ideas can transform businesses and 81% seeing creativity as more important to their business than ever. Innovation has also been identified as a driver of business transformation, with 56% of CMOs planning to invest more than 20% of their budget over the next 12 months in innovation.

79% of CMOs feel challenged to predict changing behaviors and shape new products and propositions to serve them; bringing inside-out insight to the business is now identified as the most important role of marketing in many markets. While CMOs are now committed to building brands in emerging spaces and platforms, the data reveals their uncertainty about how to navigate and effectively tell stories in these new channels. Though 88% of respondents agree that it is more important than ever for brands to be part of culture, 74% are unsure how best to connect brands to culture in meaningful and strategic ways.

A similar hesitation is evident with 77% of CMOs agreeing that brands today should be built in collaboration with other brands, platforms, and creators; however, 60% also express concern about relinquishing control.

By contrast, trust in Generative AI to enhance creativity and innovation as a co-pilot and accelerator of human creativity is growing, with fewer considering it a threat to human craft and ingenuity. When 67% of CMOs doubted that AI could create content that moves us in 2023, the number has dropped 18 percentage points to 49% this year. A majority of 77% would now be interested in training AI on their brand’s look, feel, and tone of voice. As well as feeling more confident about the potential of AI, CMOs also feel more confident about their own role in the face of AI, this year significantly less likely to believe AI may replace their jobs.

“What we’re hearing from clients, and our survey confirms, is that they need and value creativity more than ever. But it’s a new kind of creativity; creativity that is business-driven, making an impact across every aspect of their organization from comms to commerce to sustainability. In parallel, we see new attitudes to AI emerging, where it’s not a threat to human creativity but a way of giving human creativity superpowers — exponentially increasing the pace and possibilities of personalization, real-time responsiveness, and relevance,” said Abbey Klaassen, Global Brand President, Dentsu Creative.

Harsha Razdan, CEO, South Asia, dentsu said, “In a world where creativity is no longer a nice-to-have but a must-have, CMOs are driving the future with flair and fearlessness. At dentsu, we’re not just watching this transformation from the sidelines; we’re crafting the playbooks and remixing the rules. This year’s report is the ultimate guide to conquering the Marketing X Tech X Consulting frontier. Embrace the chaos, think audaciously, and lead the charge.”

Amit Wadhwa, CEO, South Asia, Dentsu Creative added, “The 2024 CMO Report unveils how creativity and tech are reshaping the marketing landscape. Storytelling remains crucial, with generative AI emerging as a creative ally. While others strive to keep pace, Dentsu Creative is setting new benchmarks, crafting solutions that redefine how brands engage and resonate.”

Pats McDonald, Global CSO, Dentsu Creative commented, “Brands and businesses are now in the era of sudden change. Changes we’ve anticipated for years are now accelerating dramatically and reaching critical tipping points accelerated by new behaviors, new technologies, and new possibilities. We can’t reach new customers in old ways or make new work with old tools. Brands today will be built at the intersection of culture, commerce, and community; in a world where stories are shoppable, and stores are stories. The challenge for brands will be to engage communities in thoughtful and collaborative ways, enabling scale, relevance, and authenticity.”

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