Why Economic Uncertainty Is A Critical Growth Period For AI And More

Forbes

3 days ago

Economic Uncertainty
Despite signs of stock market stabilization and amongst ongoing trade tensions, consumer confidence is teetering on the edge. According to a recent Prosper Insights & Analytics survey, 60% of Americans are uncertain about the future of the U.S. economy.
Prosper - Consumer Confidence
For businesses, this isn't just a statistic—it's a warning. According to a recent Prosper Insights & Analytics survey, 46%, of Americans planning to reduce their spending, companies need to act quickly. In a climate where every dollar counts, the focus must shift toward strategies that deliver clear, measurable performance.
Prosper - Current State of US Economy
Scott Howe, a longtime and respected executive who leads LiveRamp — the industry leader in data collaboration — has witnessed this evolution across decades in adtech. In our conversation, he laid out how today's CEOs and CMOs are doubling down on precision and accountability, and stressed that this moment also demands forward-looking, strategic action.
'Today's CEOs want proof. They're turning to CMOs and saying: show me the ROI. The smartest marketers are rising to the challenge by unlocking the full power of their first-party data, leaning into data collaboration, and demanding measurement at every turn. In turbulent markets, the dollars don't disappear — they consolidate. And they flow to the partners who can prove performance. That's why budgets are migrating to platforms with real accountability,' Howe told me in an interview.
The retreat in ad spend is made even more evident by the World Advertising Research Center (WARC), which slashed its global ad spend forecast in March, and then cut it again by 0.5% in its June quarterly update.
As marketers reassess priorities in light of macroeconomic pressures, Howe stresses the urgent need to keep data at the core of long-term strategy. Marketers who have built strong data foundations and gained a full understanding of their customers are already reaping the rewards. This data-driven approach isn't just a lifeline in uncertain times; it's the bedrock that will power marketing programs with lasting impact—both now and in the future.
'This is already a pivotal moment separating data haves — who can amass data to drive insights — from have-nots. The companies leaning in aren't just gaining near-term advantage, they're unlocking transformational value through data collaboration, while building the signal foundation that will create transformational value in the future,' said Howe.
According to a recent Prosper Insights & Analytics survey, more than 76% of consumers are taking steps to protect their digital privacy, marketers need to lean into first-party data—the data consumers choose to share—to create personalized experiences that really resonate, both now and in the future. Relying on outdated tools to reach consumers will only make it harder to personalize and measure effectively as people take more control over their data. In today's environment of high job pressure and performance expectations, marketers without a solid strategy may find their results—and their accountability—falling short.
Prosper - How Protecting Online-Digital Privacy
While first-party data is a start, it is often incomplete. Since many companies don't own all of their distribution and communication points with customers, marketers need to collaborate with one another to drive insights and deliver better experiences to customers. A food company might possess data on who saw their advertising, which becomes more powerful when a retailer provides insights on which of their users actually clipped coupons or purchased a product. LiveRamp then helps unlock value from this data collaboration by connecting data from multiple sources, enabling seamless identity management, omnichannel integration, and cutting-edge measurement and analytics using clean room technology — all while protecting consumer privacy.
In data collaboration partnerships, success can take many forms—brands can work closer with publishers to reach new customers, retailers improve how they connect with customers and measure the impact of campaigns, and companies–from airlines to TV platforms–can create new ways to use their customer data to drive additional revenue.
For example, leading job search platform Indeed tapped LiveRamp's identity solution to move away from third-party cookies, leveraging the strength of its first-party data and publishers' first-party data. As a result, Indeed improved its ability to connect with customers, growing its retargeting audience by 54%, and driving business outcomes, with response rates to job postings up 20%.
'As economic uncertainty continues, smart marketers are doubling down on what works. But what's different now is what they can do with data and tools like clean rooms. They have clearer visibility than ever into what's driving performance. The guesswork is gone. And in this economy, there's no room for wasted spending. Accountability isn't optional anymore,' added Howe.
As Howe emphasized, data is the key driver of growth in the next frontier of adtech: AI. AI models rely on data to be effective. And to create personalized customer experiences, these models must be trained with responsibly sourced first-party data.
Data-driven marketing, including collaboration, allows companies to optimize their marketing performance while providing the essential data that AI needs to succeed. By tapping into richer, more accurate data, companies can accelerate AI model training and gain valuable customer insights in the process.
'AI was everywhere at the recent Cannes Lions event—and for good reason. It's reshaping the industry customer journey from the ground up. We're heading toward a world where AI agents shop on our behalf, skipping the traditional path entirely. To keep up, brands need first-party data and strong connectivity—so they can tie together every new touchpoint, plug into emerging AI channels, and keep measuring what's actually driving performance,' said Howe.
Privacy concerns remain a hurdle for advertisers turning to AI. According to a recent Prosper Insights & Analytics survey, more than 58% of consumers are deeply concerned about their privacy being compromised by AI using their data. This highlights the critical need for responsible data practices that safeguard privacy—particularly in AI—and offer transparency and control over consumer information.
Prosper - Concern About Privacy From AI
By combining first-party data with privacy-enhancing technologies like clean rooms, marketers can engage in responsible data collaboration, unlocking the full value of their data while maintaining control and preserving consumer trust.
'Macroeconomic headwinds are real—and marketers will feel the pressure,' said Howe. 'But it's in moments like these that winners are made. We already know what drives growth: data, collaboration, and measurable performance. So, if you take your foot off the gas now, you're not just slowing down—you're giving up ground you may never get back.'