Experimental ad budgets are getting a second look nowadays. AI platforms are rolling out ad products, tried and true channels are more saturated than ever and marketers are desperate to find new audiences.
Those marketers are revamping their test-and-learn budgets to account for things like generative search optimization (GEO), ChatGPT pilot ads and even out-of-home. Agencies say there’s a larger appetite to test the unknowns, shift KPIs and expectations for the sake of scale and incrementality. In some cases, that’s growing the budget. In others, it’s shifting existing dollars away from so-called guaranteed performance channels to experimental places like AI ads or retail media.
Dollars shifting out of performance
Take performance marketing shop Markacy for example. Historically, the agency followed an 80-20 rule: 80% of spend goes to core media and 20% to experimenting.
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