What is compound marketing?
Compound marketing is a new marketing approach that drives rapidly compounding growth. Marketers accelerate marketing iteration using agentic AI powered by first-party data.
Where does the concept of compound marketing come from?
If you’ve spent time investing, you’ve likely heard of the concept of compound interest. This concept is so renowned that Albert Einstein is attributed with describing compound interest as the “eighth wonder of the world.”
When you’re talking about a savings account, there’s a big difference between interest that compounds at 1% annually vs. 1% daily.
Now, apply that concept to the marketing cycle. What if your marketing programs could improve at 1% a day vs. 1% year? That’s compound marketing.
The key to that growth is a faster marketing cycle, powered by quicker iterations and experimentation. A Compound Marketing Engine enables that iteration speed using agentic AI powered by first-party data in the enterprise cloud.
How does compound marketing differ from traditional forms of marketing?
Traditional marketing cycles are often manual and slow. Think of the last time you had to launch a marketing campaign.
- It starts with an idea and its audience. Getting that audience is typically a manual process — either you put in a ticket with the data team to pull the information, or you use SQL to pull it yourself from your database.
- Once you have the audience in hand, you need to build the campaign. That involves analyzing and deciding which channels are best suited for the audience you’ve chosen, then crafting the campaign and uploading the audience to that channel.
- From there, you launch the campaign. If you want to run an A/B test or other experiment, you might need to repeat some of these steps.
- Once the results come in, it’s up to you and your team (or maybe a data analyst) to digest the campaign data and determine the next steps.
Compound marketing accelerates this process, so you can launch, analyze, experiment, and iterate on campaigns faster. That means you can quickly find the marketing programs that work, instead of waiting weeks or months to determine whether your idea will bring the ROI you’re looking for.
With a Compound Marketing Engine, each of the above steps moves faster:
- Agentic AI lives on your cloud data warehouse, and after learning from your data it can predict and recommend audience segments to use based on your business goals and past campaign performance. An intuitive UI also lets marketers you quickly build and tweak segments based on any criteria.
- Powered by the first-party data in your enterprise cloud, agentic AI can also build and recommend customer journey paths for your audiences, optimizing channel selection based on performance data.
- AI agents analyze campaign data alongside all other customer data in your cloud warehouse, providing detailed performance analysis and recommendations for adjusting and improving future campaigns for better ROI.
Why is compound marketing important now?
Two major trends in the marketing world are coming to a head: the influence of AI (in particular, agentic AI) and the rise of the data cloud.
It’s a cliche at this point: AI is changing marketing. But unlike other tech shifts we’ve seen in marketing (think: television, internet, mobile), AI is changing how we create marketing vs. how people consume marketing.
Then there’s the data cloud — the widespread adoption of the enterprise cloud as an organization’s single source of truth.
Agentic AI and the data cloud are two core components of compound marketing — it’s what enables a faster marketing cycle and rapid growth. The agentic AI is powered by the first-party data in the cloud, providing campaign analysis and suggestions that allow marketing organizations to iterate faster and achieve higher ROI.
What kind of results can I expect from compound marketing?
Compound marketing ultimately decreases marketing cycle time, often from quarters or months to weeks or days. Not only does this have the potential to increase revenue in a shorter timeframe, it can also reduce costs thanks to more efficient processes.
Beyond the efficiency gains, the most exciting outcomes from compound marketing are in its ability to drive meaningful and measurable growth.
Here are some examples of how customers are using the GrowthLoop Compound Marketing Engine and the results they’ve seen:
- At Indeed, the marketing team used GrowthLoop to boost marketing velocity by 8X and increase revenue by 20%.
- At Allegro, one of Europe’s largest e-commerce marketplaces, the team used GrowthLoop to create an AI-powered retail media network solution that led to a 2X increase in return on ad spend (ROAS); a 60%+ increase in gross merchandise value (GMV) on DMV360, Meta, TikTok, and YouTube; and a nearly 4X improvement in click-through rate and 70% decrease in cost-per-click on Meta.
What is a Compound Marketing Engine?
A Compound Marketing Engine is an enterprise solution powered by agentic AI on the data cloud. It helps marketers drive compound growth by accelerating the marketing cycle to:
- Propose audiences and customer journeys
- Trigger campaigns across channels
- Continuously analyze performance data to make suggestions for campaign optimization
A Compound Marketing Engine has three defining features:
- Operates on top of a data cloud - This accelerates campaign launch and iteration, allows compliant access to all data, and reduces manual workarounds. It also operates on your organization’s existing enterprise data cloud (such as BigQuery, Snowflake, Databricks, or Amazon Redshift), so it drives faster implementation, better security, and decreased cost.
- Operates across all marketing and advertising channels - This allows it to optimize holistically, create unified audiences and customer journeys, and measure impact more accurately.
- Runs agentic AI - With human approval, agentic AI builds audiences and executes journeys across channels. A Compound Marketing Engine features a chat-based interface that allows the marketer to activate agentic AI to address multiple marketing tasks simultaneously.