MSI

How AI Recommendations Are Changing the Rules of Brand Growth

  • ARF; MSI

What happens to brand growth when consumers increasingly turn to AI assistants instead of relying on familiar brands or traditional search results? As generative AI becomes a more influential part of product discovery and purchasing decisions, marketers face new questions about how brands gain visibility, enter consumers' consideration sets and compete for attention. In MSI Working Paper, Tri-System Brand Growth: The AI Mediation Layer, researcher Pablo Ulpiano González Castro introduces a framework that adds AI availability to the established concepts of mental and physical availability. Drawing on brand-growth theory, an experiment and cross-category measurement research, the paper examines how AI-generated recommendations may reinforce existing brand advantages or create new opportunities for competing brands, and what these changes mean for marketing strategy and brand measurement.

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How News Algorithms Redirect Traffic and Reshape Content

  • ARF; MSI

News aggregators can exert substantial influence through the algorithms that determine which stories and sources receive prominent placement. An analysis of Russia’s Yandex News found that top-five homepage referrals drove large increases in outlet traffic, while an algorithm change that reduced exposure for independent outlets did not lead consumers to abandon the platform. Affected outlets subsequently changed how they wrote and packaged their news, showing that distribution algorithms can shape production as well as consumption.

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How Generative Search Changes Shopping Decisions

  • ARF; MSI

Generative search may help consumers move from broadly stated needs to more focused shopping decisions. In a field experiment involving more than 6.4 million users of Meituan—a Chinese e-commerce platform, consumers given AI-generated responses placed more orders and generated greater transaction value than those using a conventional keyword search. They also spent less time browsing and concentrated their attention on fewer, more relevant categories and merchants.

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  • Article

The Future of AI Adoption

Every two years, the Marketing Science Institute (MSI) asks every member company Trustee to provide input to help set priorities for the research that will guide our activities for the next few years.

These priorities enable MSI to engage in its most critical mission: moving the needle on important marketing problems.

One of the priorities focuses on the need to develop new approaches that enable firms to gain insights from multiple approaches, to synthesize, to bring together disparate methods to drive action. There is also a sense that the old methods aren’t working as well, and that some of the traditional indicators and metrics are less effective.

Here are some topics that illustrate where significant research is needed in this area:

  • How to bring multiple sources and types of information together to gain insight and to make better decisions (e.g., big data meets unstructured data; data scientist meets anthropologist). Can such synthesis be automated?
  • Integrating behavioral theory and marketing frameworks into big data marketing
  • How can firms speed up the process by which they collect data, synthesize, identify insights, take action, get feedback, and do any necessary course correction? Is this process different for B2B and B2C?

/research/2016-2018-research-priorities/new-data-new-methods-and-new-skills-how-to-bring-it-all-together

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Four Pillars for Responsible AI Marketing

  • ARF; MSI

As AI becomes more embedded in marketing, organizations face ethical and regulatory questions alongside implementation challenges. Drawing on a synthesis of 35 high-quality qualitative research sources, this MSI working paper proposes a “Responsible AI Marketing Framework,” centered on four pillars: transparency by design, consent architecture, algorithmic accountability and consumer empowerment.

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Making Sense of Open-Source Marketing Mix Modeling

  • ARF; MSI

As privacy changes make it harder for marketers to track individual customer journeys, media and marketing mix modeling (m/MMM) is experiencing renewed interest. Open-source tools from Meta, Google and the PyMC ecosystem promise to make these methods more accessible, particularly for organizations without the resources for customized proprietary models. In this MSI working paper, Julian Runge and Koen Pauwels evaluate the leading open-source approaches, examining their capabilities, differences and tradeoffs. Their analysis shows that while automation can democratize sophisticated marketing measurement, using these tools responsibly requires careful attention to model assumptions, diagnostics, calibration and validation.

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Beyond Clicks: What Polarizing Content Really Costs Publishers

  • ARF; MSI

Digital publishers often assume that content generating the most clicks also creates the most valuable readers. This MSI Working Paper challenges that assumption. Using behavioral data from a major European news publisher, the researchers find that while politically polarizing content reliably increases engagement, it does little to drive subscriptions—and during politically charged periods, it can actually reduce subscriber acquisition and increase churn. The findings offer important guidance for publishers and marketers seeking to balance short-term attention with long-term customer relationships.

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How LLM Adoption Is Reshaping Search, Web Traffic and Digital Advertising

  • ARF; MSI

As consumers increasingly turn to large language models for information, their wider online behavior may change in ways that affect search engines, publishers and advertisers. This MSI Working Paper analyzes detailed browsing data to examine what happens after users adopt LLMs. The researchers find that traditional search activity eventually declines by more than 20%, visits to smaller and education-related websites fall, and exposure to display advertising decreases. The findings suggest that LLMs are becoming substitutes for some established online activities while potentially concentrating traffic among the web’s largest platforms.

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