Klarna, the AI-powered global payments network and shopping assistant, today announced it has reduced its sales and marketing spend by 11% in Q1 2024 while increasing the number of campaigns and updating marketing collateral more frequently. This achievement was made possible by the company’s embrace of AI-powered marketing solutions, which have streamlined operations, enhanced efficiency, and reduced reliance on external agencies.
AI at the Forefront of Marketing
Klarna’s adoption of AI has transformed its marketing approach, enabling the company to generate significant cost savings while simultaneously boosting marketing output. By leveraging AI for image generation, content creation, and campaign optimization, Klarna has achieved remarkable results:
- Reduced external agency expenses: Klarna has slashed its spending on external marketing suppliers by 25%, encompassing translation, production, CRM, and social agencies. This translates into annualized run-rate savings of $4 million.
- AI-powered imagery and content: Klarna has harnessed the power of generative AI tools like Midjourney, DALL-E, and Firefly to produce over 1,000 images in Q1. This has streamlined the image development cycle from six weeks to a mere seven days.
- Enhanced marketing efficiency: Overall, Klarna’s AI-driven marketing initiatives have resulted in a 37% cost reduction, equivalent to approximately $10 million on an annualized basis.
Executive Commentary
Klarna’s CMO, David Sandström, expressed his enthusiasm for the company’s success in leveraging AI for marketing optimization: “We are delighted to have achieved a reduction in marketing costs while concurrently increasing our marketing output. AI has played a pivotal role in this success, and we are committed to further investing in this technology to continuously enhance our efficiency.”
Conclusion : Embracing the Future of Marketing
Klarna’s experience serves as a compelling testament to the transformative power of AI in the realm of marketing. By embracing AI-powered solutions, Klarna has achieved substantial cost savings, enhanced marketing agility, and improved customer engagement. As AI technology continues to evolve, it is poised to play an even more prominent role in shaping the future of marketing and customer interactions.
About Klarna
Klarna is the leading global payment provider, revolutionizing the shopping experience for millions of consumers worldwide. The company’s mission is to make shopping smooth and effortless, offering a seamless and intuitive experience that is both convenient and secure. With over 90 million active users across 27 markets, Klarna is one of the fastest-growing companies in Europe.
