Session library

The Future of Marketing AI

Debra Williamsons · July 5, 2024

analyticsai marketingconsumer behavior
David: Very excited to have Debra Williamson here. We’ve known each other for a long time—I’m an eMarketer alum from 2001 to 2004. A lot of what I learned in the industry comes from reading those reports and writing articles on things I had no experience with, like online grocery markets or B2B eCommerce in Estonia. So getting to know Debra and her work has been a treat. Now, with her company, Sonata Insights, she has some valuable insights to share on AI’s impact in marketing. Debra, welcome!

Debra: Thank you so much, David. And wow, it’s been almost 20 years since you left eMarketer—that's wild! I'm thrilled to be here. I’ve been a member of the AI Marketers Guild for a few months, and you’ve probably seen me on Slack or at meetings. I was excited when David invited me to talk to you all.

Before we get started, can we launch the poll?

David: Absolutely. Thanks for suggesting it, Debra. Let's give everyone a minute to respond. I’m especially curious to hear your thoughts on Apple’s recent AI developments. It looks like we have over half the responses in already.

**(03:09)**

David: All right, the poll results are in. It seems most people feel that Apple's recent announcement is noteworthy but not revolutionary. What’s your take, Debra?

Debra: I agree; I was hoping Apple would announce something groundbreaking, but it’s still interesting. As analysts, we try to predict trends, and if we're wrong, we adjust. Today, I’ll discuss the current state of consumers and AI, their usage patterns, and what we can learn from past tech cycles. So, I’ll start my presentation.

David: For those who think it will be game-changing, feel free to add your thoughts in the comments!

**(04:21)**

Debra: A little about me—I'm Debra Williamson, founder of Sonata Insights. I was with eMarketer for 19 years, where I led the social media research practice. My new company continues to focus on social media, but increasingly, I’m exploring AI and consumer behavior, particularly how these shifts impact marketers. We often talk about using AI to make internal processes more efficient, but today I want to focus on the consumer landscape and what past tech cycles can teach us about AI’s future.

Let’s start by rewinding to the late 1990s and early 2000s, during the broadband boom.

**(05:53)**

Debra: Back in the late ’90s, I was a journalist at *The Industry Standard*, covering the dot-com era. Broadband was a game-changer—it transformed the online experience from slow dial-up to high-speed connections, leading people to go online more frequently and search more. Google, Yahoo, and Netscape started gaining traction, while companies like Amazon and eBay emerged as online shopping became viable. Broadband access also helped traditional media shift online, and digital advertising started to grow.

Broadband also significantly impacted online spending. When people had broadband instead of dial-up, their time spent online increased sharply, which boosted e-commerce. According to eMarketer data, online spending rose 65% over five years as broadband became more common.

**(09:21)**

Debra: Now, moving into the social media era—this shift began in the mid-2000s. I was covering demographics at eMarketer when I noticed that college students were using email primarily to communicate with professors or family, but using social media platforms like Facebook and Myspace to talk to friends. That realization led us to focus on social media, which eventually became a central part of consumer life.

Social media fundamentally changed consumer behavior. People began publicly sharing personal moments, photos, and more. Social capital became tied to friends, followers, and likes, and brands had to adapt by joining these social spaces and interacting with consumers directly. This era also gave rise to influencer marketing, which allowed regular people to gain influence over their networks, effectively turning social capital into monetary value.

**(13:47)**

Debra: Next, we had the smartphone era, which brought information on demand. When I got my first iPhone, it changed how I engaged with the world—everything I needed was suddenly in the palm of my hand. Smartphones enabled instant access to apps, real-time news sharing, social media, and even location-based services like Google Maps and ride-sharing. The convenience of mobile drove retail changes; by 2019, 56% of adults shopping in stores used their phones to research products.

Today, mobile devices are the primary way people access the internet, making mobile advertising essential. Video content, social platforms, and in-app experiences are all significant parts of mobile usage.

**(17:24)**

Debra: So why review these tech cycles? Because each cycle had one thing in common: connection. Each of these shifts—from broadband to social media to smartphones—transformed how consumers connect with content, each other, and brands. Broadband connected us to more content. Social media connected us to communities. Smartphones connected us to constant communication. Now, we’re entering the AI era, which I believe will lead to new forms of connection, but we still have a lot of work to help consumers understand AI.

**(20:20)**

Debra: Surprisingly, AI is already helping people connect in ways we might not expect. Take Reid Hoffman, for example—he created an AI version of himself that can respond using his past thoughts and writings. AI is also helping parents read creative bedtime stories for their kids and even helping people reconnect with loved ones who’ve passed away through AI-generated digital “afterlives” in China.

According to The Verge, 40% of Americans have used an AI tool, and younger generations are especially likely to adopt AI early on. But there’s still a gap; many people, particularly older generations, don’t yet understand what AI can offer.

**(24:22)**

Debra: A personal story—my dad, who’s 87, uses Siri every day but had never heard of ChatGPT. I showed him how it works, answering questions about stock performance and even giving a summary of me based on public information. His excitement grew with each answer, which reminded me of the importance of helping people feel comfortable using AI tools.

That’s why, even though adoption is growing, only about 23% of adults have used ChatGPT, according to Pew Research. We have a lot of work to do to educate consumers about AI’s potential benefits, especially when headlines often emphasize fears of AI overtaking humanity.

**(27:24)**

Debra: Education should be a priority. The Reuters Institute recently found that only 7% of US internet users use ChatGPT daily, with almost half never having heard of it. This presents a massive opportunity for education. Should it be the AI companies, tech giants, media, or marketers who lead this effort? I think it should be all of us.

The more familiar people are with AI, the more they trust it. Ipsos found that 81% of people who frequently use generative AI would trust product recommendations from an AI tool, while only 11% of those who never use AI felt the same. Familiarity drives trust, so it’s essential to make AI approachable.

**(34:07)**

Debra: I believe AI will transform how we connect in terms of culture, collaboration, commerce, and creativity. AI will enable richer, more interactive consumer experiences across these areas. But it’s up to us as marketers and industry leaders to help consumers navigate this change and feel comfortable with AI’s role in their lives.

Thank you all for listening. Please connect with me on LinkedIn or visit my website to learn more.

David: Thank you, Debra. This has been incredibly insightful. 

**(36:43)**

Audience Member: Debra, comparing AI to past tech cycles, what do you see as the biggest opportunities for entrepreneurs in marketing?

Debra: Great question. I think AI agents hold a lot of potential. Soon, AI could handle complex tasks for us, like planning an entire vacation, where it currently only helps with booking a flight or a hotel. I’m excited to see where this goes, but we must consider the impact on industries, such as travel agents, that traditionally handled these tasks.

David: Definitely, and how do you see this affecting Google’s ad revenue and search model?

Debra: That’s a big topic. Google is already a kind of walled garden, with information panels that provide answers without needing to click further. They’re likely to monetize AI overviews soon, giving advertisers more bidding opportunities. However, this change will challenge the traditional publisher ecosystem, as fewer users may visit external sites if answers are provided directly on Google.

**(42:06)**

Audience Member: Looking back, was there a point where the advertising ecosystem “broke,” and are there lessons we can apply to avoid repeating those issues with AI?

Debra: I’d say social media significantly shifted the digital ad market. Early on, Facebook’s use of targeting data was groundbreaking but led to privacy issues we’re still dealing with. In AI, we’re seeing similar discussions around data privacy, and regulation will likely play a critical role here. But with AI moving so quickly, regulatory frameworks often lag behind.

**(48:41)**

Debra: Before we wrap up, I’m curious to hear from anyone who thinks Apple’s new AI tools are going to be truly game-changing. Does anyone have thoughts on what we might be missing?

David: Great question! For me, I think companies like HP, Dell, and Lenovo could benefit hugely as demand for processing power increases. This AI boom is making us reconsider hardware specs in a way we haven’t since the early 2000s.

Debra:

 Excellent point, David. When AI is seamlessly embedded in hardware, adoption will accelerate. Apple could see huge adoption just from having such a massive, established user base.