How Much Does it Cost to Use Generative AI in Marketing?

Generative AI is a rapidly growing field with the potential to revolutionize marketing. By automating tasks such as content creation, personalization, and targeting, generative AI can help marketers save time and money while improving the effectiveness of their campaigns.

But how much does generative AI cost for marketing? The answer depends on a number of factors, including the specific use case, the size of the organization, and the level of customization required.

Understanding TCO

In general, however, generative AI is becoming more affordable. There are now a number of off-the-shelf tools that can be used for basic tasks, such as generating text or images. These tools are typically priced on a subscription basis, with monthly or annual fees. I cover some of the most popular ones in this post.

For more complex tasks, or for organizations that need a high degree of customization, generative AI can be more expensive. In some cases, businesses may need to develop their own generative AI models, which can require significant investment in time and resources.

However, the potential benefits of generative AI can make the investment worthwhile. For example, one study found that businesses that use generative AI can save an average of 5 hours per week per marketer. This can lead to significant productivity gains and cost savings.

In addition, generative AI can help marketers create more effective campaigns. For example, by generating personalized content, generative AI can help businesses reach their target audience with more relevant messages. This can lead to increased engagement and conversions. I’ll cover measuring KPIs in another post soon.

Future Costs

Overall, the cost of generative AI for marketing is declining. As the technology matures, it is becoming more affordable and accessible to businesses of all sizes. As a result, generative AI is becoming a valuable tool for marketers looking to improve the efficiency and effectiveness of their campaigns.

The Last Word(s)

In summary, here’s a review of some of the factors that can affect the cost of generative AI for marketing:

• The specific use case. Some use cases, such as generating text or images, are more straightforward and require less customization than others, such as generating personalized content or targeting ads.

• The size of the organization. Larger organizations with more complex marketing needs will typically require more sophisticated generative AI models, which can be more expensive to develop and deploy.

• The level of customization required. Businesses that need a high degree of customization will typically need to develop their own generative AI models, which can be more expensive than using off-the-shelf tools.

Despite the potential costs, generative AI can offer a number of benefits for marketing, including, as explained in an earlier post.

What’s one low cost experiment you could try this quarter? How will you measure success? And whose buy-in do you need to gain to move forward?