CMOs must master AI to prove marketing’s business impact: Rohit Dadwal

In today's rapidly changing business landscape, chief marketing officers (CMOs) are at the crossroads. They not only need to deliver growth but also prove the tangible value of marketing to the broader C-suite.

Rohit Dadwal, CEO-APAC at MMA Global believes that CMOs must lead the conversation about marketing’s impact on business outcomes. With new technologies such as AI and data-driven strategies, CMOs have the tools to demonstrate marketing's influence on customer lifecycle and lifetime value. However, this requires a shift in how marketing metrics are linked to revenue and business growth—a narrative many CMOs are yet to drive.

Talking to Campaign, Dadwal also emphasises that the adoption of AI in marketing should not be driven by the allure of innovation alone but by the transformative potential it holds in reshaping customer engagement and operational efficiency.

As AI continues to evolve, the focus is moving from exploring its potential to maximising its impact. For marketing leaders, this represents both an opportunity and a challenge.

Read the edited excerpts for his interaction with Campaign, below:

CMOs are often tasked with driving growth. How can they prove that marketing is a key contributor to overall business expansion?

People often underestimate the changing landscape of advertising and marketing, especially with technology's integration. Every marketing dollar must be tracked and justified, but the value of marketing is still being overlooked.

This might be because the role of marketing has become more powerful than before. CMOs need to shift the narrative, linking marketing activities directly to business outcomes, including sales growth and revenue. Too often, this connection is missing.

Marketing isn’t just about advertising. It influences the entire consumer experience and satisfaction, yet we lack enough data to connect advertising efforts to tangible business growth properly. CMOs need to work more closely with CFOs and CTOs.

This conversation has traditionally been one-sided. However, revenue growth is also part of marketing, especially now that technology is deeply embedded in marketing functions.

At MMA, we focus on data-driven strategies and frameworks, such as the Movable Middles Growth Framework (MMGF), which shows that marketers can maximise spending by targeting specific segments of their audience. Instead of targeting all 100 customers, focus on the 60 most likely to convert, leaving out the bottom 10 who may never afford your brand and the top 10 who may soon leave. This targeted approach is key to maximising customer experience and lifetime value.

AI is making waves in marketing. How do you see it transforming ad agencies, and what role will AI play in customer engagement?

AI can indeed revolutionise marketing, but companies need to ask themselves a critical question: Do they really need AI, and if so, for which parts of the business? Many are rushing to embrace AI without understanding its true potential or benefit.

MMA Global’s State of AI survey shows that 38% of marketers are exploring generative AI use cases, conducting early-stage research and experimentation. But adopting AI goes beyond that; it needs to become part of the organisation’s culture and long-term strategy.

AI can be expensive if done correctly. Over 60% of AI automation currently focuses on customer interactions, such as chatbots, which can reduce costs and boost customer satisfaction.

For example, in India, answering a customer’s call costs INR 25, but a chatbot can handle the same for INR 4. AI can solve 50% more simple queries than human agents, primarily because it has access to vast amounts of data. This isn’t just about cost savings; it is about improving customer satisfaction.

Personalisation is the holy grail of marketing, and AI can play a huge role in achieving it. But businesses must think long-term when investing in AI—not just in terms of cost but also in human resources. AI is not going to take away jobs, but those who understand how to use it will.

As brands explore generative AI and large language models (LLMs), how can they ensure data security, particularly when building custom models?

Data security is paramount, especially when building custom AI models. When it comes to responsible AI, it is essential to create secure environments, or sandboxes, where content is used safely.

Even now, data stored on servers is vulnerable to hacking, but the key is to ensure that your brand’s identity and guidelines are integrated into the AI system. This makes your data unique and irrelevant to any other entity, reducing the risk of misuse.

With AI becoming increasingly prevalent, there is a concern that it might overshadow human creativity in advertising. What is your take on this?

AI was created by humans, and it is humans who feed AI with data. While AI tools like MidJourney can create visually appealing images, the creative prompts and emotional depth still come from people. The emotional connection in marketing, cultural sensitivity, and understanding of interpersonal dynamics are irreplaceable human traits.

60% of the companies associated with MMA focus on building internal AI resources. Marketers and agencies need to work together to handle these advanced technologies because the partnership between brands and agencies is still crucial. AI is not replacing this partnership; it is enhancing it.

So, is AI one of the big tent poles at this year’s Smarties awards?

Smarties is our global awards programme, and this year, we introduced three new categories around AI, including AI-driven excellence and AI-driven measurement. These categories are crucial because we want to highlight the effectiveness of AI in marketing. If we can showcase 10 great AI use cases from these categories, it might prove to be the catalyst prompting other marketers to adopt AI.

With the media and technology landscape becoming more fragmented, how can brands simplify their approach to marketing across multiple channels?

It all comes down to clarity and simplicity. With so much proliferation of technology, each platform has its own metrics, rules, and advantages.

Marketers need to adopt the right technologies for their business while fully understanding their metrics. Expecting a one-line answer that fits all is wishful thinking. Instead, marketers should take a holistic approach to these metrics to drive business growth and enhance the consumer experience.