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. 

How does a Compound Marketing Engine differ from an enterprise marketing cloud platform or traditional CDP?

How does a Compound Marketing Engine differ from a composable CDP?

Both a Compound Marketing Engine and a composable CDP are built on top of the data cloud and use a composable architecture, meaning they preserve the single source of truth in the data cloud and activate campaigns across every channel.

A Compound Marketing Engine builds upon composable CDP capabilities by putting the power of agentic AI, fueled by your cloud data, into the hands of your marketing team. 

How does a Compound Marketing Engine use agentic AI?

Agentic AI is a key part of the Compound Marketing Engine. The AI agents are powered by first-party customer data in your cloud data warehouse and help marketing teams iterate faster by:

• Proposing audiences, customer journeys, and channels for campaigns
• Executing those campaigns under marketing's direction
• Learning from the performance data and continuously improve

The GrowthLoop Compound Marketing Engine currently has six AI agents that collaborate with marketers to optimize and launch campaigns:

• Data Agent learns and understands the data in your cloud to provide user-friendly field descriptions while assessing what data would be most useful for each audience.
• Audience Agent creates precise audience segments for your campaigns based on campaign history, traits, and attributes, and suggests additions to the segment as insights arrive.
• Journey Agent builds personalized omnichannel journeys, choosing the optimal channels and timing based on historical performance data, and provides optimization options based on performance.
• Insights Agent references historical and real-time performance data and helps other agents provide actionable recommendations for rapid improvement.
• Research Agent acts as your personal brainstorming partner who searches the internet to retrieve contextual answers about campaign decisions.‍
• Supervisor Agent oversees all other agents, making real-time assessments of when it's time to activate one or multiple agents to perform growth-driving actions for you.

Because they’re working from the most accurate data in your cloud, agents can predict the best audiences for your goals, journeys for those audiences, and channels for those journeys. 

Then, GrowthLoop’s agentic AI reasons and executes your campaigns across all platforms — like Meta, Google Ads, Braze, etc. Build the audience once and use it everywhere — we connect directly to these channels, so we can take a holistic approach that works better for your business. 

Finally, once your campaigns start running, performance data feeds back into your data cloud, further informing the AI’s audience and journey recommendations.

Does a Compound Marketing Engine work with any enterprise data cloud?

Yes. The Compound Marketing Engine works with any enterprise data cloud, including Google BigQuery, Snowflake, Databricks, AWS Redshift, and more.

Who should use a Compound Marketing Engine?

The Compound Marketing Engine is built for next-generation marketing teams who believe in collaborating with AI agents to build 1:1 personalization rooted in the data cloud. 

Will the AI agents in the Compound Marketing Engine replace marketers?

When using a Compound Marketing Engine like GrowthLoop, it’s important to note that a human is in control at every stage of the compound marketing cycle. Marketers still set the goals and approve or edit what AI suggests. 

We believe AI isn’t here to replace marketers, but instead to give marketers new superpowers that elevate their work and drive faster results.

Where can I see the Compound Marketing Engine in action?

Watch our webinar recording with GrowthLoop CTO Tameem Iftikhar, who provides an in-depth demo of the Compound Marketing Engine. 

If you want to explore how the Compound Marketing Engine could support your organization’s specific use cases, reach out to our team to book a personalized demo.