Tom Goodwin’s provocative analysis challenges the simplistic view that AI will merely “make ads,” arguing instead that true AI transformation in marketing will emerge in less expected ways. As a respected industry consultant, he identifies a crucial disconnect between AI developers and advertising professionals, suggesting that many AI tools lack genuine understanding of marketing’s nuanced human elements. This perspective offers essential context for business leaders navigating AI adoption in creative fields.
The big picture: AI enthusiasts often fundamentally misunderstand advertising, reducing it to mere words on pictures rather than recognizing the complex psychological and strategic elements that drive effective marketing.
- Many AI solutions claiming to revolutionize marketing are built by technologists with limited understanding of advertising’s true nature.
- The industry has shifted toward “vibe marketing” – creating hundreds of ads and optimizing based solely on click performance without deeper strategic thinking.
Why this matters: The real value of advertising extends far beyond its visible outputs, with clients buying advice, reassurance, and strategic direction rather than just creative assets.
- People don’t purchase legal contracts but legal advice; similarly, they don’t buy McKinsey’s solutions but rather “career insurance” or “plausible deniability.”
- This misunderstanding leads to narrow AI applications that fail to address marketing’s core functions.
Three stages of AI transformation: Goodwin outlines a progression of how AI will impact marketing, evolving from superficial applications to fundamental restructuring.
Stage one – AI as a sparkly magic wand: The current phase focuses on isolated task automation with limited strategic integration.
- Technology specialists apply AI to narrow tasks without holistic marketing understanding.
- Creative tools become democratized but face challenges with IP theft and AI hallucinations.
Stage two – AI as a new transmission for old engines: The emerging phase involves proper system integration and process transformation.
- Marketing production lines become streamlined with AI-enhanced operations.
- CMOs gain access to dashboards with real-time data, enabling more responsive decision-making.
Stage three – AI as the blueprint for a new world: The future phase will fundamentally reshape business models and marketing approaches.
- Organizations will rethink marketing from first principles rather than simply automating existing processes.
- New communication forms will emerge, with marketing becoming more imaginative and less operational.
Between the lines: Goodwin’s analysis suggests that current AI marketing hype often mistakes the tool for the craft, missing the deeper strategic and psychological dimensions that make advertising effective.
- Understanding human behavior and business strategy remains essential regardless of technological advancement.
- The most valuable AI applications may emerge in unexpected areas rather than in creative production itself.
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