Sourced from BCG

This brief is based on the article “Five Truths (and One Lie) About Corporate Transformation.”

Change can be daunting for any business. It can even be painful. But when change fails to deliver short- and long-term value for a company, it can land a CEO in the unenviable position of having led a failed transformation.

The odds are certainly stacked against success. A new BCG global analysis shows that only 1 in 4 transformations deliver value-creating, enduring change.

A 75% failure rate is sobering for any CEO mulling a transformation path. But BCG’s analysis has brought to light five truths CEOs can embrace to improve their chances of leading a successful transformation, as well as a common lie they should never tell themselves.

Five Truths

1. CEOs can (and should) fix things before they break. Starting a transformation when a company’s total shareholder returns (TSR) are level pegging or ahead of industry averages delivers significantly more value (2.7 percentage points higher TSR over three years) compared to change efforts launched after a company has fallen behind its peers.

2. Leadership will make or break the transformation. Success often pivots on whether a company’s leadership fully demonstrates their willingness and commitment to change. Sometimes, this necessitates an organizational restructuring. BCG data shows that launching a leadership change during a transformation can deliver 4.1 percentage points greater TSR performance over a five-year arc (compared to a previous downturn period). The impact on TSR can nearly double that if the new leadership comes from outside the company.

3. CEOs cannot cut their way to greatness. One year into a transformation launch, investor expectations drive over 70% of TSR outperformance (compared to peers), while efficiency improvements account for only 13%. This disparity underscores the need for CEOs to craft a compelling transformation plan and shareholder narrative at the start of their efforts. Five years into a transformation, cost reductions do play a bigger role, driving more than 30% of TSR outperformance. But even that share is eclipsed by revenue growth, which accounts for more than 40%—indicating that when it comes to long-term transformation success, execution is key.

4. Transformations require a long-term orientation. Transformations with a long-term strategic orientation are associated with 12.5 percentage points higher TSR over five years, BCG analysis shows. Organizations that strike a forward-looking stance often have an entrepreneurial culture that continuously develops new ideas and is unafraid to try unproven models. To support this bold, innovative orientation, companies can complement traditional, backward-looking performance metrics with more forward-focused ones.

5. CEOs cannot make things up as they go. Establishing a formal transformation program is associated with 5.9 percentage points greater TSR over a five-year change effort. In the same vein, CEOs who put their money where mouth is can also unlock greater transformation value. According to BCG’s analysis, a higher-than-industry average restructuring investment is associated with 5.7 percentage points greater TSR in the long run.

One Lie to Avoid

Thinking these truths don’t apply to everyone. At any point over the past two decades, roughly a third of companies were significantly underperforming their peers. Some lagged for years. Transformation is often necessary to improve performance, but it is very tough to get right. CEOs who realize they are probably not the exception to the five truths and instead internalize and act on them fully are more likely to ascend to the ranks of the one quarter of corporate chiefs who actually get change right.

Sourced from BCG

By Jack Kelly

As we stand on the cusp of a new year, the job market continues to evolve at an unprecedented pace, driven by technological advancements and shifting economic realities. In this dynamic environment, professionals across all industries are recognizing the critical importance of upskilling and reskilling to remain competitive and relevant.

The coming year presents a golden opportunity to invest in yourself by acquiring the in-demand skills that employers are actively seeking, ensuring you’re well-positioned for career growth and new opportunities in an increasingly digital and automated world.

The rapid acceleration of digital transformation, catalysed by recent global events, has reshaped the way businesses operate and the skills they require from their workforce. From artificial intelligence and data analytics to cloud computing and cybersecurity, the demand for tech-savvy professionals continues to soar across sectors.

In-Demand Hard Skills For The New Year

As traditional job roles evolve and new positions emerge, the ability to learn and adapt quickly has become a critical asset in itself. By proactively developing these in-demand hard skills, you not only enhance your marketability but also position yourself to thrive in the face of future disruptions and opportunities in the job market.

1. Artificial Intelligence and Machine Learning

AI and machine learning are becoming indispensable skills in the job market, with their importance growing exponentially across industries. The demand for AI-related skills is 3.5 times higher than the average job skill, reflecting the rapid integration of these technologies in various sectors, a PwC report revealed.

This surge in demand is driven by the transformative potential of AI and ML in the workplace. This fast-emerging technology is expected to automate up to 300 million jobs in the United States and Europe, according to investment bank Goldman Sachs, while simultaneously creating 97 million new roles that require advanced technical skills, as predicted by the World Economic Forum. This shift is not just about job displacement; it’s about job evolution. Companies adopting AI are planning to expand their workforce, with 91% of firms integrating AI aiming to increase their employee numbers by 2025.

2. Cloud Computing

Cloud computing skills will remain in high demand, as the industry continues its explosive growth and transformation of business operations across sectors. Gartner forecasts global end-user cloud spending to reach $723 billion in 2025, a 21.5% increase from the previous year.

The rise of generative AI and the need for integrated platforms are accelerating cloud adoption, with 90% of organizations projected to have hybrid cloud deployments by 2027. As organizations continue to migrate their applications and workloads to the cloud, with 48% planning to move at least half of their applications within a year, proficiency in cloud computing will be crucial for professionals looking to stay relevant in the rapidly evolving job market of 2025.

3. Cybersecurity

Cybersecurity skills are highly coveted, as the digital landscape faces unprecedented threats and skyrocketing costs associated with cybercrimes. By 2025, global cybercrime costs are projected to reach a staggering $10.5 trillion annually, according to a report by Cybercrime Magazine.

This surge in cybercrime is accompanied by a severe shortage of qualified professionals in the field. The cybersecurity job market is expected to grow by 33% between 2023 and 2033, with an estimated 3.5 million unfilled cybersecurity positions worldwide by the end of 2025. This talent gap is further exacerbated by the rapid evolution of cyber threats, with encrypted threats increasing by 92% in 2024 and malware rising by 30% in the first half of the same year.

4. Data Analysis

Businesses are increasingly relying on transforming unstructured data into actionable insights to drive growth, improve user satisfaction and maintain a competitive edge in the market. The demand for data analytics expertise is surging across industries, with trends like AI-enhanced analytics, natural language processing and advanced data visualization reshaping how organizations leverage their data assets.

As organizations grapple with the challenges of data quality and governance, professionals skilled in ensuring data integrity and implementing effective data strategies will be in high demand, making data analysis an essential skill.

5. Digital Marketing

In today’s digital landscape, businesses are leveraging online social platforms to connect with and engage their target audiences and customers.

With global digital ad spending projected to surpass $740 billion in 2024, and over 5 billion social media users worldwide, proficiency in digital marketing strategies will be crucial for professionals looking to thrive in the competitive job market.

Feature Image Credit: Getty

By Jack Kelly

Follow me on Twitter or LinkedIn. Check out my website or some of my other work here.

Jack Kelly has been a senior contributor for Forbes since 2018, covering topics in career development, job market trends and workplace dynamics. His articles often focus on practical advice for job seekers and employees, as well as covering the latest news impacting workers so they can make informed decisions about their careers. Read More

Sourced from Forbes

By Christine Moorman and Koen Pauwels

Summary.

A bi-annual poll of U.S. marketing leaders found that social media investments have declined to their lowest level in seven years. An analysis of poll data suggests that lack of strategy fit, weak returns, and new competition from retail media may help explain this dip. Researchers leverage their findings to offer suggestions to marketers on how to overcome past strategy misalignment in order to continue to benefit from social media’s immediacy and pervasiveness, including through the use of Gen AI.

In June 2020, social media spending surged to 23% of marketing budgets when the pandemic forced consumers to stay home and marketers pivoted to digital channels for outreach. A new, heightened focus on social media accelerated the digitization of marketing so that by 2022, fully 57% of spending was dedicated to digital marketing. The recent adoption of new marketing technology (Martech) to automate processes and the use of AI to generate content have driven digitization further into business models.

By Christine Moorman and Koen Pauwels

Sourced from Harvard Business Review

By Aurelie Sauthier

The boundaries betwee and content marketing are becoming less distinct for experts in our industry, prompting an important question: Is content marketing the future of influencer marketing? Central to this discussion are the strategic interplay between earned and paid influence, and the innovative approach of turning authentic, earned content into digital assets for paid advertising.

The Dynamics Of Earned Vs. Paid Influence

Influencer marketing fundamentally relies on two forms of influence:

• Earned influence consists of organic endorsements from influencers who genuinely support a brand or product. It is characterized by authenticity and trust, as influencers freely share their unfiltered experiences with their followers. This form of influence is highly valued for its credibility and deeper engagement.

• Paid influence involves compensating influencers for promoting a brand or product. While this provides brands with more control over messaging and reach, paid content can appear less genuine to some audiences. However, when executed thoughtfully, paid influence effectively amplifies a brand’s presence.

Content Marketing: The Bridge Between Earned And Paid Influence

Content marketing, which focuses on creating valuable, relevant and engaging content, is becoming a key strategy to bridge the gap between earned and paid influence. To deepen connections with audiences, brands are increasingly repurposing authentic, earned content into digital assets for paid ads.

This offers several advantages:

• Authenticity at scale: Repurposing genuine earned content for paid ads maintains the trust and credibility that come from organic endorsements, even in a paid context.

• Broader reach: Turning earned content into digital assets helps reach audiences beyond the influencer’s community, maximizing content impact.

• Cost efficiency: Repurposing existing content can be more cost-effective than producing new content, optimizing return on investment.

• Extended usability: You can use the content you’ve transformed into digital assets across multiple platforms and campaigns, enhancing its longevity and adaptability.

How My Agency Merges Earned And Paid Influence

In our always-on influencer programs, we try to always combine earned and paid influence to maximize impact for our clients. For the earned portion, we focus on securing as much in-feed video content as possible rather than ephemeral stories. This tactic ensures broader visibility and sustained engagement, as in-feed videos enjoy longer life spans and usually greater organic reach.

Once we have collected a range of earned videos, we carefully scrutinize each piece, identifying which content aligns most effectively with the brand’s messaging and objectives. We then obtain listing rights for the most compelling videos, allowing us to repurpose them as paid ads.

How To Turn Your Earned Influence Into Digital Assets

Transforming your earned influencer content into digital assets involves several strategic steps:

• Identify high-performing content: Select influencer posts that resonate strongly with the influencer’s audience and align with the brand’s values and messaging.

• Secure permissions: Obtain the necessary rights from influencers to repurpose their content for paid advertising, ensuring transparency and maintaining trust.

• Learn to let go of control: You must encourage internal teams—marketing, legal and compliance—to embrace the authenticity that makes influencer content powerful. This means relaxing some of the typical requirements in influencer briefs and trusting influencers to create content that genuinely connects with their audience.

• Repurpose content: Adapt the selected influencer content into various digital formats, such as video ads, banner ads or social media promotions, while preserving the original tone and authenticity.

• Amplify reach: Use paid channels to introduce earned influencer content to new audiences, extending its life span and impact far beyond the influencer’s immediate followers.

By embracing authenticity and giving influencers creative freedom, you can effectively turn earned content into valuable digital assets that resonate with a broader audience.

The Future: Unified Content And Influencer Strategies

Influencer marketing is moving toward a unified approach that leverages both earned and paid influence within a strategic content marketing framework. By converting authentic earned content into digital assets for paid ads, brands can harness the full potential of influencer marketing, significantly expanding reach and engagement.

Ultimately, the merging of influencer marketing and content marketing, supported by the strategic use of earned and paid influence, is redefining how brands connect with audiences. The brands that will thrive are those that can seamlessly integrate these approaches, creating content that resonates authentically while delivering measurable business outcomes. The future of influencer marketing is indeed entwined with content marketing—particularly in the smart use of earned influence as a foundational asset for paid advertising.

Feature Image Credit: getty

By Aurelie Sauthier

Aurelie Sauthier, President & Co-Founder of Made in, Canada 1st Influencer Marketing Agency, est. 2012 with a second office in Paris. Read Aurelie Sauthier’s full executive profile here.

Sourced from Forbes

By Sherin Shibu 

Gen Z is barely using Google as a verb anymore.

Google is the most popular search engine in the world, but its dominance over search ad revenue—and Gen Z’s vernacular—is losing steam.

According to a Wall Street Journal report, Google’s share of the $88.8 billion U.S. search advertising market is expected to fall to the lowest point in over a decade as a diverse set of competitors like Amazon, Perplexity AI, and TikTok deliver alternative search experiences.

Consumers are conducting product searches through Amazon and social media searches through TikTok, with targeted ads creating revenue for each business along the way. Perplexity is expected to infuse its AI search results with ads later this month.

Those rival offerings will push Google’s U.S. search ad market share below 50% next year and bring Amazon’s share up to about 25%, per the WSJ.

Moreover, Bernstein Research shows that Gen Z is barely using the term Google as a verb. Young users are “searching” through social media, Amazon, and ChatGPT; they aren’t “Googling,” Bernstein analyst Mark Shmulik wrote in a September note.

As of last week, Google’s AI Overviews now display ads with relevant products under a “sponsored” banner. According to a Google spokesperson, the ads will only appear under relevant searches.

^{Example of ads in Google AI overviews. Credit: Google}

Even with AI rivals like ChatGPT, Google’s numbers remain strong. Its share of the overall search market has remained at least 90% so far. Bing, Yahoo, and other search engines have less than 4% each of the market.

Google ad revenue also increased from 2022 to 2023, rising from $224.47 billion to $237.86 billion.

By Sherin Shibu 

Sherin Shibu is a business news reporter at Entrepreneur.com. She previously worked for PCMag, Business Insider, The Messenger, and ZDNET as a reporter and copyeditor. Her areas of coverage encompass tech, business, strategy, finance, and even space. She is a Columbia University graduate.

Sourced from Entrepreneur

By Rachel Curry

SearchGPT is already dubbed by some as the “Google killer.”

Arvind Jain, a former Google (GOOGL) engineer and now CEO of the enterprise A.I. search platform Glean, never saw Google’s approximately 90 percent market share in online search as overtly anticompetitive—after all, Google always had a superior search product, Jain said. In recent years, however, innovation seems to have given way to profitability. “The experience was getting worse, especially on mobile devices, where there are just way too many ads on the page,” the former Googler told Observer.

For the first time in many years, competition is ramping up. In July, OpenAI announced SearchGPT, an A.I.-powered search engine that many already dubbed the “Google killer.” Smaller players, such as Perplexity AI, are also gaining momentum in the search space.

“There is more serious competition than ever before,” Ashwini Karandikar, executive vice president of media, technology and data at the American Association of Advertising Agencies, an industry group, told Observer. Karandikar’s prescience is rooted in decades of industry experience, during which she witnessed digital advertising go from just 5 percent of a company’s advertising budget to practically 100 percent.

Technologically, answer engines powered by large language models (LLMs) have the potential to shake up the search and digital advertising markets, but Jain doesn’t think they’re not yet commercially ready. “Personally, as a user, I don’t feel comfortable going to these answer engines,” he said. That’s because most of them don’t provide the source of information from which they generate answers. Some chatbots are starting to cite sources, but this feature is still in the early stages. Ultimately, competitors will have to lean into a hybridized search solution, said Jain, which will combine plain search and plain answers for an optimized user experience.

That need for transparency has roots in the trust gap highlighted by consumer-facing A.I. products. The A.I. trust gap is “the sum of the persistent risks (both real and perceived) associated with A.I.,” Bhaskar Chakravorti, a business professor at Tufts University, wrote in a recent article for the Harvard Business Review. Common concerns around A.I. include deepfakes, hallucinations, data privacy and A.I.’s inherent black-box problem. Last year, Pew Research found that 52 percent of Americans feel more concerned than excited about the increased use of A.I., with people particularly torn about its application for finding accurate information online.

To establish public trust, companies like OpenAI, Google, Microsoft, Meta and Amazon are all prioritizing self-regulation. These companies are on a steering committee for a truth-seeking organization called C2PA, or the Coalition for Content Provenance and Authenticity. It’s an “open technical standard providing publishers, creators and consumers the ability to trace the origin of different types of media,” according to the coalition’s website.

Feature Image Credit: Jakub Porzycki/NurPhoto via Getty Images

By Rachel Curry

Sourced from Observer

By Kristen Dolan

Over the course of this year, I’ve helped brands navigate seismic industry changes, from Oracle’s departure from the advertising business to Google’s cookie phase-out reversal. At the centre of discussions (besides the obvious, AI) is an increasing focus on the role influencers play across the media mix and customer journey. After engaging in meaningful discussions with the industry’s top marketing leaders, I’m sharing a top 10 list of my favourite questions, along with my perspectives, which have helped to shape media strategies and innovation roadmaps.

Let’s dive in!

10. How is AI transforming influencer marketing?

While AI has been around for quite some time, generative AI (GenAI) has been a recent topic of interest over the last two years. GenAI is a type of AI that generates copy, graphics, audio and videos. The integration of AI technologies, including GenAI, in the influencer marketing landscape is catalysing transformative advancements in creator vetting, communication efficiency and content creation. In other words, it’s a BFD.

By harnessing AI-driven insights, agencies and brands can optimize workflows, strengthen client relationships and navigate regulatory complexities. These are mere examples, but the opportunities are limitless.

9. Will virtual influencers replace traditional influencers?

If the question pertains to the human impact on influence, I find it hard for AI to replace human connection. People follow influencers because they genuinely have built these parasocial relationships, trust what that influencer is saying and trust their recommendations as they would seek their own friend out to do so. The human connection is what drives that authenticity.

While I don’t see that wavering in place of AI, I do see a more collaborative role in that creators can tap into AI tools to help manage their businesses. Operationally, they can save so much time and resources by tapping into AI tools to help automate things like resourcing, invoicing, planning, data/analytics and so much more. From a content perspective, AI can certainly expedite and advance the creation process—I see an early-stage use case here of expanding creativity, not used to directly influence an action/recommendation.

8. How will creator content evolve over the next few years?

Outside of AI collaboration, creator content is becoming more pervasive. I hope to see brands more proactively adapt to a creator and audience-first mindset when developing omnichannel strategies.

7. What are the most innovative ways influencers are using new social media features?

Anecdotally, I really want creator-led programming to have its moment. Humor me…if we are seeing more consistent tune-ins across lives on social, inevitably, that means people are developing the habit of tuning into their favourite creators at a specific time.

In parallel, we’re seeing Netflix test out live content.

If both worlds are successful, creator live content becomes extremely valuable. I can see a world where streaming platforms are picking up creator programming (as they would broadcast programming) and offering creator content as a viewing option.

6. What influencer strategy is most slept on?

From a brand perspective, deeper creator collaborations. Creators, as their own small businesses, are an untapped resource for brands to realize their full ROI potential.

5. Which past social predictions have made an impact so far this year?

Less of a prediction and more of a framework for discerning marketing hype from hyperbole. Essentially, the parameters that need to be met in order for an emerging social platform to truly be noteworthy are: consistent adoption, a positive and value-adding user experience, serving a need and evolving with its user base as those needs change.

Threads userbase hit 200 million monthly active users according to their Q2 earnings. Up 100 million from their initial launch week in July of last year—a platform to monitor and distinguish from hyperbole if the framework elements continue to be met.

4. How can brands leverage creators to streamline the checkout process?

Approaching strategies with a customer-first mindset, understanding the customer journey and the role influencers can play in driving sales on your website or in your store. An important concept is recognizing creators as a standalone media channel. Creator content will become more pervasive as the ROI continues to be justified.

3. What does the future of creator commerce look like?

I don’t look at things as if there’s a definitive endpoint, but I can speak to the general cyclical pattern of ubiquity to consolidation and vice versa. Consumers have so many options, more than ever. Their attention grows more and more fragmented, and the ability to meet them where they are, with relevant messaging and the ability to immediately shop, is business critical but also cumbersome. The next phase in the future will inevitably shift to a version of consolidation, which we’re starting to see a glimpse of via Google’s Anti-Trust ruling and TikTok’s partnering with Amazon for integrated shopping.

2. What examples across the creator economy stand out as ground-breaking applications of AI, and how can businesses tap into that potential?

What I consider ground-breaking isn’t necessarily the splashy consumer-facing side of marketing but the technical infrastructure that fuels consumer insights and strategy. The stronger the first-party data for a brand, the more opportunity there is to eliminate wasted spend and influence more immediate ROI. I look forward to seeing applications of AI that enrich the data process for consumer profiles and strengthen propensity modelling for stronger go-to-market strategies.

1. How should companies be navigating this new wave of digital transformation through AI technology?

Be agile or stay fragile. I encourage everyone to embrace innovation and technology while finding ways to uplevel yourself, your business and your people.

Today is the worst state we’ll experience technology. It only improves from today onward. Those embracing it today are setting themselves up for success in the future.

Feature Image Credit: getty

By Kristen Dolan

Kristen Dolan is SVP of Growth at Influential. Read Kristen Dolan’s full executive profile here.

Sourced from Forbes

By Lindsey Gamble

Facebook announced that it will roll out a new monetization program called Facebook Content Monetization Beta. This program will merge in-stream ads, Ads on Reels, and the Performance Bonus into a single initiative. Creators will be compensated for Reels, longer videos, photos, and text posts based on a performance-based payout model.

Facebook also reported that:

• It has paid out creators $2 billion in the past year alone, following its expansion from compensating creators for longer videos to other content formats.

• Payouts for Reels and short-form videos have grown by more than 80 percent.

• Currently, only one-third of creators who monetize on Facebook do so through more than one Facebook-funded program.

The new program will be available in 2025, but creators can learn more and express their interest in the program here.

Why It Matters: Facebook is simplifying its monetization programs for creators by consolidating what were previously multiple programs, which had varying availability, eligibility requirements, and sign-up processes, under one umbrella. This streamlined approach will make it easier for creators to participate in and earn from Facebook’s monetization opportunities.

Despite paying out billions to creators in the past year—though still much smaller than YouTube’s $70 billion over the last three years—Facebook often doesn’t receive enough recognition for the opportunities it offers on its platform. However, with recent moves to create a more TikTok-like video experience and its push to attract Gen Z, we can expect an uptick in creators investing their time and resources in Facebook.

Feature Image Credit: Facebook / Facebook Content Monetization Beta 

By Lindsey Gamble