"AI is both part of the problem and part of the solution. It can make targeting more efficient, ensuring ads reach the right potential customers, but it also alters how people engage with brands online, impacting the follow-through rate after impressions."
"To insulate from rising customer acquisition costs, businesses must add strategic layers to their digital marketing efforts and lean into channels less affected by AI's influence on consumer behavior."
Customer acquisition costs are rising due to AI intercepting search traffic, leading to fewer website visits despite ad exposure. To combat this, businesses should include links and QR codes in ads, optimize for AI citations, and explore OTT/streaming ad formats. Focusing on referrals can also help offset costs, as one referral can generate multiple leads without additional expenses. Companies like Roof Maxx illustrate how to adapt marketing strategies to mitigate rising costs while maintaining effective customer engagement.
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