AI Figures Heavily Into CMOs’ Strategic Considerations

Why It Matters

The shift signals a fundamental reallocation of marketing dollars toward data‑rich, AI‑driven, and entertainment‑centric channels, reshaping competitive dynamics across the advertising ecosystem.

Key Takeaways

• FAST viewing dominates among Black audiences
• AI preferred for product recommendations
• Marketing spend rises 8.7% on data services
• High‑growth firms spend 12% of revenue on marketing
• Programmatic and direct buying blend dominates this year

Pulse Analysis

CMOs are recalibrating their playbooks to capture value from emerging media, especially entertainment intellectual property and free‑ad‑supported streaming TV (FAST). The data shows Black viewers command nearly a third of FAST watch time, far exceeding their demographic share, making this segment a lucrative target for brand storytelling. Simultaneously, marketers are betting on AI to personalize product recommendations, a comfort zone that aligns with broader expectations for intelligent, data‑driven experiences.

Spending patterns reveal a decisive tilt toward data infrastructure and programmatic execution. U.S. marketer investment in data services is projected to climb 8.7% this year, while high‑growth companies devote about 12% of revenue to marketing—more than double the allocation of stagnant firms. The blend of programmatic and direct buying reflects a desire for both scale and brand‑safe environments, especially as display advertising outpaces linear TV and retail spikes around marquee events like the Super Bowl.

Looking ahead, CMOs anticipate that the majority of future revenue will arise from offerings that have yet to materialize, underscoring the importance of agility and forward‑thinking innovation. This outlook drives heavier budgets for performance‑focused campaigns, even as overall spend remains evenly split between brand and performance. As consumers increasingly use smart TVs as their primary streaming device and compare prices across marketplaces, marketers must integrate cross‑channel insights to stay competitive in a rapidly evolving digital landscape.