"Agencies are being rocked by the rise of AI. The solution? Bring on more humans. No, seriously. On Tuesday, digital agency Incubeta announced its acquisition of RocketSource, a consultancy that helps advertisers understand what drives customer behavior using data science and predictive analytics. The price of the deal was not disclosed. The traditional agency business model is falling apart, according to Alex Langshur, CEO of Incubeta in the Americas, because its cost structure is being "obliterated" by AI."
"But agencies are just "the canary in the coal mine for corporate America," Langshur told AdExchanger. And so to shore itself up for the future, Incubeta is seeking out the "gems," as Langshur put it, meaning companies that have already "solved for the transformation" by creating clear guidelines and guardrails for the use of AI"
"The consultancy, whose main offerings include data as a service (a model where data from a variety of sources is available to consumers on demand), growth consulting and digital experiences, was founded in 2017 with the goal of answering one question: Why do customers stick with a brand? It still offers these services, but the difference now is that it uses AI to do the same tasks more efficiently."
Incubeta acquired RocketSource to reinforce agency capabilities amid AI-driven disruption that is eroding traditional agency cost structures. Incubeta is targeting firms that have established AI guidelines, guardrails and human talent to prompt and govern AI tools. RocketSource, founded in 2017, offers data-as-a-service, growth consulting and digital experiences to help brands understand customer retention and model business goals, channels and market opportunities. RocketSource applies AI to automate and accelerate analytics and transformation, enabling faster insights into customer behavior. Consumer purchase decisions oscillate between emotional and logical reasoning, a pattern used to shape targeting and experience strategies.
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