Measuring Success: Understanding Marketing in the Age of AI

Article Summary

Many businesses want to know how well their advertising works, especially with new technologies like AI. It is often hard to measure how AI chatbots help people find brands. Michael McCash, from Lendi Group, a home loan company, says, "You can't improve what you can't measure." Lendi wanted to make its advertising better, so they started using marketing mix modeling. This is a system that helps companies see which marketing efforts bring the best results. They found that traditional TV, which they had not given enough investment, was actually a very efficient channel for advertising. By moving money to traditional TV, Lendi saw a big ROI (Return on Investment), meaning they got more money back than they spent.

Marketers often use the newest technologies they like, such as streaming services. However, AI chatbots like ChatGPT are now becoming a new way people discover products. When people ask AI questions, the discovery phase of finding a brand can be hidden. It's hard for companies to get visibility into how their products appear in AI search results. To solve this, Lendi uses special tools. For example, one tool asks AI chatbots many questions, like "find home loans," and then checks the results. This helps Lendi see how their brand shows up compared to competitors.

Lendi has also tried advertising directly in AI chatbots, but they saw only middling performance so far. The cost of getting a new customer, or customer acquisition, was too high. However, they noticed a new type of potential customer: people who already did a lot of research using AI chatbots before coming to Lendi's website. These customers are more informed and closer to buying a home loan. So, Lendi is focusing less on chatbot ads now. Instead, they want to understand how AI influences the early stages of customer research. They believe that getting data from AI platforms about what questions people ask will be the next frontier for marketers. This will help them understand customers better.

Key Vocabulary

Comprehension Questions

1. What challenge do many businesses face with AI according to the article?

• They don't know how to create AI chatbots.
• They find it difficult to hire AI experts.
• They don't know how to measure AI's impact on their brand.
• They are worried about AI replacing human jobs.

2. What surprising finding did Lendi Group make about its advertising after using marketing mix modeling?

• Online ads were not effective at all.
• Streaming TV was the best investment.
• Traditional TV was an efficient channel they had underutilized.
• Radio advertising generated the most profit.

3. Why is it difficult for marketers to track how AI chatbots influence customer discovery?

• AI platforms charge a lot for data.
• Marketers don't have the right tools to analyze AI.
• AI platforms make it hard to see how brands appear in search results.
• Customers don't use AI chatbots to find products.

4. Based on Lendi's experience, what is a key characteristic of a 'potential customer' who uses AI chatbots for research?

• They are usually younger and prefer streaming services.
• They have already learned a lot about the product before contacting the company.
• They are easily influenced by direct advertising on AI platforms.
• They are mainly interested in finding the cheapest options.

5. Given Lendi's findings, what should other businesses consider when planning their marketing strategy related to AI?

• They should stop all traditional advertising immediately and focus only on AI.
• They should prioritize understanding how AI helps customers research before investing heavily in AI ads.
• They should spend a lot of money on AI chatbot ads because it's the newest trend.
• They should ignore AI marketing until platforms provide all the data for free.

Discussion Prompts

1. How does your company currently measure the success of its marketing or sales efforts?

2. Can you think of any examples in your industry where a traditional method proved to be more effective than a new technology?

3. How might AI tools change how customers find information about your company's products or services?

Live Session Prep & Cheat Sheet

🎯 Speaking Targets (Vocabulary)

Try to use these target terms in your speaking turns:

• Investment
• Efficient channel
• ROI
• Visibility
• Customer acquisition

⚙️ Grammar Target Formula

Zero Conditional: Talking About General Truths and Business Principles: If + present simple, present simple

💬 Discussion Openers

Use these phrases to open or structure your arguments:

• In my opinion...
• What do you think about...?
• From my experience...
• I agree/disagree because...

Teacher Notes

This lesson introduces students to the challenges and opportunities of marketing in the age of AI. Focus on clear definitions for vocabulary and encourage students to relate the concepts to their own professional experiences. The grammar point, Zero Conditional, is practical for discussing general business truths.

Speaking Class Facilitation Guide (Tutors/Moderators Only)

🎭 Role-Play Scenario

Situation: Your company needs to decide where to put its marketing budget for the next quarter. You have limited money and must choose between investing more in traditional advertising (like print or local TV) or in new digital channels, including exploring AI chatbot ads.

Goal: Decide on a budget allocation that balances trying new methods with getting clear, measurable returns on investment.

⚖️ Debate Prompt

{"side_a":["Traditional methods (e.g., TV, radio) have a proven track record and often higher ROI.","They can reach a broader audience, including those less tech-savvy.","It's easier to measure their impact with established tools."],"side_b":["Digital channels, including AI, are where customers spend more time now.","New technologies offer innovative ways to reach specific audiences.","It's important to be an early adopter to stay competitive in the long term."],"question":"Should businesses invest more in traditional marketing methods or new digital channels like AI chatbots?"}

💡 Discussion Facilitation Tips

Encourage students to use the Zero Conditional when discussing general truths about marketing (e.g., 'If we don't measure, we can't improve.'). Ask students to explain their reasoning using vocabulary from the lesson, such as 'ROI' or 'efficient channel'. If a discussion slows down, ask direct questions about personal experience: 'Has anyone seen high ROI from a traditional campaign?'

Session Blueprint

How does your company currently measure the success of its marketing or sales efforts?