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Digital Transformation Examples: How Vendors Are Adapting to GenAI and Market Shifts

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Digital Transformation Market Status

As Digital Transformation Programs Mature, So Do Buyers’ Expectations, Testing Vendors’ Engagement and Partner Strategies

As the most mature digital transformation component, customer experience (CX) has compelled buyers to embark on omnichannel projects to unify insights and processes across the customer life cycle for years now. Vendors have plenty of use cases to rely on, but slower discretionary spend is pressure-testing vendors’ value propositions rooted in trusted algorithms.

 

The digital marketing services space, as tracked by TBR, will expand at a CAGR of 6.5% from 2023 to 2028, reaching $145 billion, which is lower than our forecast from six months ago of $152 billion. The marketing industry is on the cusp of transformation with the advent of generative AI (GenAI) chatbots, particularly in relation to content development and brand safety. Vendors have an opportunity to optimize personalization at scale, but only if they also address talent management and data protection, compelling them to carefully balance messaging across ecosystem stakeholders.
 

Watch Below: TBR Principal Analysts Discuss How the GenAI Disruption Is Similar to Prior Disruptions, as well as How It Is Different, and Which Technology Vendors Are Best Positioned to Win and Why

GenAI Remains the Single Most Disruptive Technology, Testing Vendors’ Ability to Deliver Transparent Campaigns Through Ecosystem Lenses

Since we began estimating the digital marketing services market seven years ago, we have projected annually that Strategy and Creative & Branding services would grow the fastest. Creative & Branding served as the DNA of digital marketing, and brands have constantly sought guidance on how to adapt to operating in digital environments.

 

GenAI will change that, as the technology has the potential to bring the cost of content development to $0. This will pressure Creative & Branding revenue growth but also test vendors’ analytics models as the spending shifts toward Advertising & Analytics services, provided vendors ensure that transparency, governance and clear data strategies are in place.

Examples of Vendors’ Recent Digital Transformation Activities

  • Ogilvy launched Influencer Shield, a risk management solution that helps target opportunities around brand safety.
  • Bain strengthened its footprint in APAC with the acquisition of the consulting and managed services division of Max Kelsen, an Australia-based AI and machine learning solution provider.
  • Accenture Song has been chosen as the global creative and content agency of record for the talent company Randstad. Accenture Song will also support the transformation of Randstad’s marketing department through the use of GenAI.
  • AKQA launched a new campaign for IBM, showcasing the transformative power of IBM Hybrid Cloud using visuals and a cinematic storytelling approach.
  • McKinsey & Co. launched its Salesforce-enabled Growth Tech capability. The service will pair McKinsey’s AI modules from QuantumBlack and help the firm pursue business transformation opportunities with clients seeking to optimize the Salesforce stack.
  • Capgemini and Salesforce partner to provide GenAI for CX Foundry to deliver personalized and data-driven customer experiences by automating customized content creation.
  • IBM Consulting launched a practice that helps clients create AI foundation models and large language models utilizing open-source approaches and proprietary data to train purpose-specific AI models through IBM’s InstructLab solution. IBM is also expanding the IBM Consulting Advantage portfolio by adding new assistants, assets and methods that will support specific consulting roles, and client engagements around application modernization and management as well as data and business process transformation.

 
TBR’s Digital Transformation: Digital Marketing Services Benchmark provides key service line, regional and operational data and analysis across 19 leading digital marketing services vendors. Vendor coverage includes Accenture, Capgemini, Deloitte, HCLTech, IBM Consulting, McKinsey & Co., Tata Consultancy Services, and more. Service lines covered are Strategy, Creative & Branding, Web, Mobile & Commerce, and Advertising and Analytics. To access all available Digital Transformation: Digital Marketing Services Benchmark data and analysis, start your free Insight Center™ trial today.