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Artificial intelligence has become a key driver of digital transformation and revenue growth for companies worldwide, with reports of profit margin improvements of 25% or more thanks to its adoption.
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Major digital and technology platforms such as Google, Meta, Amazon, TikTok, Apple, Nvidia, and Adobe hold a large share of the digital market and lead AI investment.
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Sir Martin Sorrell highlighted that Latin America is a growth engine for the advertising industry due to its young population, healthy birth rate, and increasing technological capabilities.
In the latest episode of the Merca2.0 podcast, Sir Martin Sorrell, founder and executive chairman of S4 Capital, shared his vision on how technology and artificial intelligence are creating an impact in the marketing and advertising sector.
Sorrell, who leads a technology-driven digital marketing services company, explained how algorithms and media planning and buying tools are redefining the role of agencies. “We are now more advisors than mere executors. We have become validators of what the platforms do and strategic guides for clients,” he said. During the conversation, he emphasized the importance of Latin America as a growth engine for the industry, especially because of its young population and the region’s technological capabilities. “Looking at the quarterly reports of major holding companies, Latin America is the only region showing growth, even in times of inflation and economic difficulties,” he noted.
The expert also addressed the consolidation of power among major digital platforms such as Google, Meta, Amazon, TikTok, and technology companies like Apple, Nvidia, and Adobe. “These six platforms control much of the digital advertising market, and their investment in artificial intelligence exceeds $500 billion annually. For brands, the best way to reach consumers is through them,” he explained.
He also spoke about the different relationship models between agencies and brands, from outsourcing to integrating teams within companies. He stressed that speed, efficiency, and a unified structure are key in a world where technology is advancing at a rapid pace. “We are operating in an entirely digital environment, driven by data and AI. This allows us to be faster, better, and more efficient—something crucial in a context of slow growth and high inflation,” he stated.
Finally, Sorrell insisted that agencies’ ability to align themselves with emerging technology platforms will be critical to maintaining relevance and delivering results for brands. “Our role is to validate, advise, and ensure that clients’ strategies are aligned with the platforms that will define the future of marketing,” he concluded. In this context, artificial intelligence (AI) has positioned itself as a key driver of digital transformation for companies worldwide. According to an IBM report, 67% of business leaders reported revenue increases of 25% or more thanks to the integration of AI into business operations.
In addition, 66% attributed increases of at least 25% in profit margins to AI systems and tools.
Podcast: The New World Order of Marketing