Marketing Against The Grain: AI Agents Will Kill Marketing As We Know It, According to Perplexity's Founder

Release Date: January 2, 2025
Host: HubSpot Podcast Network
Guests: Kipp Bodnar (HubSpot’s CMO), Kieran Flanagan (Zapier’s CMO)

Introduction

In this eye-opening episode of Marketing Against The Grain, Kieran Flanagan and Kipp Bodnar delve into a groundbreaking perspective on the future of marketing in an AI-driven landscape. Centered around a thought-provoking two-minute video by Aravand, the founder of Perplexity, the discussion explores how AI agents are poised to fundamentally transform advertising and the roles of marketers, especially within the B2B software sector.

The Paradigm Shift: AI Agents as Gatekeepers

Kieran Flanagan kicks off the conversation by highlighting Aravand's visionary ideas on advertising in an AI-dominated world. Aravand posits that AI agents will become the primary consumers of advertisements, effectively rendering traditional human-targeted ads obsolete.

“[00:02:35] Aravand: ...the user never sees an ad, right? So unlike Google, the different merchants are not competing.”

Key Insights:

• AI Agents as Advertisers’ New Audience: Instead of targeting human users directly, marketers will need to craft advertisements aimed at AI agents that filter and select products on behalf of users.

• Pre-Programmed Specifications: These AI agents operate based on a predefined set of criteria provided by users, such as budget constraints, preferred features, and specific needs. As a result, advertising will transition from emotional and brand-centric appeals to strictly functional and specification-based messaging.

Implications for Paid Advertising and B2B Software

Kieran elaborates on the profound implications of this shift, particularly for paid advertising and B2B software marketing:

“[00:04:11] Kieran Flanagan: ...you are actually creating them for the agent. Because the agent is the one that is actually looking through all of these adverts to figure out what the best product is.”

Key Points:

• Automation of the Procurement Process: AI agents will autonomously handle the entire procurement process, from researching potential products to making purchasing decisions, leaving marketers to adjust their strategies accordingly.

• Reduction of Brand Influence: Traditional marketing efforts that rely on creating emotional connections and brand loyalty will lose their effectiveness. Instead, success will hinge on meeting the exact functional requirements specified by the AI agents.

• Challenges for Marketers: The shift demands a re-evaluation of how marketing budgets are allocated and how advertising content is created. Marketers must now focus on optimizing their offerings to align precisely with the criteria set by AI agents, rather than appealing to human emotions and preferences.

The Future of Marketing Roles

As AI agents take over more aspects of the marketing funnel, the roles of marketers will evolve significantly:

“[00:05:31] Kieran Flanagan: ...all of the things that we may do may be to service agents. And that is a crazy thing to think about.”

Key Considerations:

• Enhanced Focus on Data-Driven Strategies: With AI agents handling user interactions, marketers will need to leverage data analytics more intensively to understand and predict the criteria used by these agents.

• Automation and AI Collaboration: Marketers will increasingly collaborate with AI tools to automate tasks such as content creation, data analysis, and campaign optimization, ensuring that their strategies remain aligned with the evolving technological landscape.

The End of Traditional Advertising

Kieran underscores the transformative impact AI agents will have on traditional advertising models:

“[00:05:55] Kieran Flanagan: That is the fundamental point. I as a user want to stay away of this. ... The future that Aravand is painting here is really a challenging one for marketers because it reduces everything to a pre programmed list of functional specs.”

Key Takeaways:

• Decline of Human-Centric Ads: As AI agents manage advertisements based on functional specifications, the traditional methods of engaging human audiences through creative and emotional appeals will diminish in relevance.

• Rise of Specification-Driven Marketing: Marketing strategies will pivot towards demonstrating how products meet specific criteria and solve particular problems, rather than building brand narratives or fostering emotional connections.

• Need for Adaptation: Marketers must anticipate and adapt to these changes by developing new approaches that cater to AI agents’ operational frameworks, ensuring their products remain visible and attractive within this new advertising ecosystem.

Conclusion: Navigating the AI-Driven Future

As the episode wraps up, Kieran emphasizes the urgency for marketers to prepare for the impending AI revolution:

“[00:12:26] Kieran Flanagan: ...a lot of the things that we may do may be to service agents. ... 2025 is going to bring us further and further down that path.”

Final Thoughts:

• Proactive Strategy Development: Marketers should begin experimenting with strategies that align with AI agent behaviors, such as optimizing product specifications and leveraging data-driven insights.

• Continuous Learning and Innovation: Staying ahead in this evolving landscape will require ongoing education and a willingness to embrace innovative marketing techniques that cater to AI-driven procurement processes.

• Collaboration with AI Technologies: Embracing AI as a partner rather than a competitor will be crucial for marketers aiming to thrive in this new environment.

Notable Quotes

• Aravand on AI Agents and Advertising:

  “[00:02:35] ...the user never sees an ad, right? So unlike Google, the different merchants are not competing.”

• Kieran Flanagan on the Future of Advertising:

  “[00:05:31] ...all of the things that we may do may be to service agents. And that is a crazy thing to think about.”

• Kieran Flanagan on Marketers’ Challenges:

  “[00:05:55] ...The future that Aravand is painting here is really a challenging one for marketers because it reduces everything to a pre programmed list of functional specs.”

This episode of Marketing Against The Grain serves as a crucial wake-up call for marketers, urging them to reimagine their strategies in anticipation of an AI-dominated advertising future. By understanding and adapting to the role of AI agents as the new gatekeepers, marketers can navigate the challenges and seize the opportunities presented by this transformative shift.