Make Competition Irrelevant

Valentina Diaco 0:00

So instead of asking how how do we beat our competitors, let's start questioning what would make the competition irrelevant. I mean, these are completely different questions and they produce completely different strategies and angles.

Welcome And Guest Introduction

Joeri Billast 0:19

Hello everyone and welcome to the Web3 CMO Stories podcast. My name is Joeri Billast. I'm your podcast host, and today I'm so excited to be joined by Value.

Valentina Diaco 0:30

Hi, good morning. I'm great. Super happy and excited to be here.

Joeri Billast 0:35

Happy to have you on the show. People that have been following my LinkedIn, or maybe your LinkedIn Vale, they have seen. We have been together on a stage not so long ago in Malta at Next. It was an amazing fireside. She had an amazing experience. But for people that didn't see that, they don't know you guys, I have Valentina Diaco on the podcast. She's the founder and a strategic business and iGaming Advisor, a fractional CCO of Profit Matches, self-employed, and she also organizes events. I participated at an amazing event in Malta, AI Match Sessions, The Sunset Edition. We'll probably come back to that during the conversation, Vale. And as my listeners know, I always dive straight in.

The Emotional Driver Behind Growth

Joeri Billast 1:23

So tell us, Vale, after senior roles across entertainment, luxury, telecom, eye gaming, and tech. What stayed true for you about great marketing despite all the changes in channels and in technology?

Valentina Diaco 1:40

I've been a marketer by heart because I started when I was extremely young during my university study, and I had the privilege of working already from the very, very young age with several industries, as you said, from luxury, automotive, telecom, and now gaming and tech. There is all the time we are living this shift where channels perhaps are changing, where also the way we consume media is changing. But the psychology doesn't. And let me give you some kind of concrete examples because I watch it actually show up in the numbers across every industry I've been in. Customer acquisition costs have gone up to 60% almost over the last five years. Everyone in performance marketing feels that. This thing is always to optimize harder, to have better creative, tighter targeting, maybe sometimes bigger budget, lower cost per leads. And what the data actually shows is that brands with a very strong emotional layer actually outperform on the metric that matters most. Existing customers, for example, spend plus 70% more than the new ones. 5% improvement in retention can deliver up to 95% profit increase. And the product changes, the landscape too, but the emotional driver often doesn't. So if I need to pinpoint to one thing where marketing stays true is the emotional driver behind it. In luxury, you are not selling a bug, you are selling an identity. In entertainment, you are selling an escape. You know, in the A-gaming industry, you are selling that kind of feeling of that spin, that anticipation, your most near miss, that fraction of a second where anything can be possible. So again, I guess the emotional driver didn't change over years. And it stays even stronger now with AI, even more important than it was before, I might say.

Designing Curated Networking Experiences

Joeri Billast 4:02

Yeah, you talk about an emotional driver, and when I was at your event, I really felt there, you know, meeting people in real life, the good vibes, the emotions, people laughing, and so on. So I am curious, Vali, what made you decide to build AI image sessions as this curated experience instead of the traditional networking event?

Valentina Diaco 4:25

Yeah, the the traditional networking events are great. Don't get me wrong, but it it are getting crowded and large and massive, and perhaps you are attending these massive conferences, and then you realize that the most valuable conversation is actually happening in a corridor while you're queuing, while you're trying to buy some drinks. And I wanted to create something that was not transactional in the first place. Something where you don't have a badge, you don't you don't have uh a big booth, you don't live with many, many, many business cards perhaps. But you I wanted to design something with a purpose, something where interesting minds could actually meet and connect. Something that has been built with the intention of creating the right conditions for people who maybe unlikely manage to spend time and exchange real value can actually happen. It's like almost for me, if I need to use an analogy, it's the networking event, the big one, are the transactional ones and the match-making ones, the one that I try to create with AI match, are real, but are very perf purposefully. Like they are designed with the purpose. So yeah, what I try to build is something curated, much much smaller than the big scale event. But I hope something super meaningful for the people who attended. I really want anyone to leave the event with something, and it could be a lead, an idea, a new connection, a reflection. During the event, I mean you experienced yourself there was this activation called AI must message in a bottle, and also there is a reason why. I wanted to make something that is usually rare. We don't see anymore, okay, in a bottle traveling by the sea. But they are rare, but their rarity nowadays is also something exclusive, something unique, something that where when in lands is full of meanings. This is what I was trying to do with AIMatch, almost to build a story around the importance of curation, the importance of bit something by design. I created the event behind the scenes by a survey across attendees, operators, affiliates to understand they had the biggest challenge when implementing AI. So everything was designed with a purpose in mind.

Joeri Billast 7:26

Yeah, I love that. Meaningful conversations, I think, becomes valuable more and more. Now, your event, you are in iGaming, Valentina. So of course, people had good conversations, did a lot of networking too. But I think the selection of the audience that you select who are participants for the network event were operators, AI builders, I think even affiliates, investors, partners. Any, you know, anything that came out of the conversations that you heard about, you know, where AI gaming is really heading or something else?

Where AI In iGaming Is Heading

Valentina Diaco 8:11

Yeah, the feedback was overwhelming to say the least. And as you know, when you end up building an event, it doesn't really end when the event finished, but you have so many insights that you want to extrapolate out of it. And the audience was a very nice mixed audience. I think that are much more in need of understanding how the traditional SEO playground is changing and interested in how they can monetize DAI visibility. Then we had operators meaning casinos, portbook, who had I would say there were different segments within the bigger kind of audience of operators. A few very advanced in the way they look at artificial intelligence, the way they look at solving problems with artificial intelligence, the way they wanted embedded already in their decision-making layer. There were others looking at which tools to implement in a different type of stage of their journey. Um and then there were the ones right in between where they were wondering not only which solutions to implement, but also how to measure the profitability that you can gain when strategically implementing AI. So there was a very good mix of people to summarize. The ones embedding AI into operations already, from compliance, personalization, marketing, um building something much more structural, and then the ones who are figuring it out, where is the area of the business where it's worth implementing AI for which reason?

Joeri Billast 10:22

Yeah.

Where Leaders Get AI Adoption Wrong

Joeri Billast 10:24

No. Vale, many companies say that they want to become AI driven, but the real work is often messy. So where do you see leaders getting AI adoption wrong?

Valentina Diaco 10:38

I would say that the main button is not to pause, but to understand where to implement AI. We are, for example, in a world saturated with content. Everyone can create content, so the biggest challenge is how to be unique, how to build credibility in a way that you attract the right audience, that you attract your uh ideal audience in order to give the audience, the user, truly experience, and at the same time you as a business able to create systems that help intelligently to understand where to allocate your budget, where to invest, how operationally improves certain loopholes, how to predict immediately the lifetime value of your users. So I guess there are several parts everyone is hyped on grasp AI and get it right, but very, very few are asking the right questions. Very, very few are understanding that even if, for example, producing content got much, much cheaper, then how to wrap attention, how to create attention, it's becoming very, very expensive.

Joeri Billast 12:18

I love that we are really aligned on the thoughts. It's like I'm listening to you, listening to my own TEDx talk I gave some time ago, where it's all about that, that competence is actually cheap, right? And it's about what matters today is about being believed and know what you want to be trusted for. No. But also important is not to give all the keys to AI, but keep the human in the loop. Um so how do you see that there?

Human In The Loop In Practice

Joeri Billast 12:45

What does it actually mean, keeping the human in the loop? Uh when companies are using AI across marketing, operations, decision making?

Valentina Diaco 12:53

It's it's it's human in the loop is also, I guess, an overused word nowadays. Okay, does something. For me, human in the loop means that there is a high-skilled person who can strategically outline a plan in order for the different AI agents, in order for the different solution to orchestrate everything that reflects the strategy that is set up by a human. What I keep saying all the time is that AI is not a crystal ball, right? AI is a mirror. It's actually reflect of your thoughts, of your thinking, of your vision. So for me, human in the loop is almost the human being orchestrating a system where there is a knowledge base that can be continuously updated and learned by AI. There are agents that can support the productivity of a company. There is a task force of humans that set up the strategy that know exactly what they want from AI. Um and this is sometimes the strategic foundations and sometimes what I see still missing. So I'm not saying that AI is hyped only, I'm saying that only a few are putting the basis for the strategy in order for AI to augment what a human being can do. Does it make sense to you?

Joeri Billast 14:43

Yeah, it makes sense, and I love also the phrase AI is a mirror. I remember when you had the fireside chat and you had the idea let's involve the audience in the room, and people were asking questions, and I know you mentioned that too at the time. Yeah, fireside chat, also an amazing experience. And thank you again for inviting me there, Valet.

The Rise Of The Chief Value Officer

Joeri Billast 15:04

We talked about a topic in my book at the future CMO, and I talk in the book about the chief value officer, and I know this was one of the ideas that resonated with you. So now it's my turn to ask you how do you see the shift from a CMO where the role is evolving into a chief value officer?

Valentina Diaco 15:24

I remember very clearly when I read your book, and that this concept really resonated with me. And let me tell you why. I've been always covering my entire career roles within the marketing department, and also my role, now as a founder, but also as an interim CCO, evolved. So I could see everything that you actually nicely conveyed through the book, like really reflecting in my own experience. Because again, before the CCO role, I always covered CMO roles of marketing directors, drones, and and it's changing a lot. And I love the word value officer because the CMO is the ones that needs to create value across different areas of the business. New role needs to fully understand the financial project projection of a company, needs to fully understand the P ⁇ L, needs to fully understand how to define the emotional trigger that we mentioned earlier, needs to understand about product and the experience, needs to understand how to retain customers. So it's it's a much, much larger role, especially also in the gaming industry, but I would say across all the industry compared to what was considered. The main questions that CMO would need to ask today are not only what is the channel or the media mix that we need to craft in order to reach a specific persona's, but it's also what is the experience that you want that persona to deal with, which is the hook that we want to use in order to grab the attention. What are the habits that we want our users to form during the interaction with our brand? So I do relate a lot with the shift value officer because first of all there are stats saying that actually the CMO role belonging to the C-suite is the one with the shorter lifetime, meaning that uh this role is already evolving into something else, and not because marketing is not relevant anymore, it's essential, but it's actually encapsulated and think different parts of the business.

Joeri Billast 18:09

Absolutely.

Valentina Diaco 18:10

So it's almost, you would say that it's not only an orchestra, it's almost someone who can have such a strong ability with data governance decisions. This is what I can relate most when I think it's wrong.

Joeri Billast 18:28

Yeah, I love that you explained it all of it. It's always nice, you know, when I talk to people and how they define it. Like it's always the concept of the book that people talk the most about is indeed the chief value officer. They come back to me at a coffee here in Sintra some time ago with the lady that had my book, and she had like with a marker this passage in the book, she really wanted to talk about that. So it really you know resonated, and also apparently with Philip Cogler, you know, the father of modern marketing, if he endorsed that too.

Balancing Performance With Trust In iGaming

Joeri Billast 18:58

Now, of course, you are in iGaming. Marketing is open performance driven there, right? So, how do you see brands balance this measurable growth with, on the other side, trust, responsibility, and long-term brand value?

Valentina Diaco 19:15

Yeah, it's a hot topic in our industry because there is always this kind of almost um conflict between going towards regulated markets or unregulated, because both of the strategies require a completely different approach from a marketing commercial product point of view. And the reality is that being regulated is very, very expensive. As an operator, you are going to pay significant gaming duties and you are restricted, you are restrictive bonuses for your users, you are investing heaven in responsible gaming, um, while the gray market perhaps offers a much, much shorter term payback on your investment. I believe that the stronger statement is that we need to be, when we make a strategic decision and a business decision, we need to be very true to the decision that we make. Sometimes it's a trade-off, right? Reason why the strategic layer before adding any type of technology is so important because it's the business decision that determines your future roadmap and plans. Sometimes I hear from different clients that they want to make money in the shortest time possible, but they also want to build brands and they want to build credibility and trust. I think the two aspects can live together if we are patient to wait for those results. It sometimes is a trade-off. And back to your point, how a gaming brand can actually balance. I love to always talk about a new way of maybe calling and mentioning marketing, which is not branding, not performance marketing, but brand formants. The two that are glued and stacked together. Because we need to trust the process. We need to trust the funds that if we really want to create a business with a sense of a profit, we need to be patient and not expect money coming on our way in the shortest payback time possible. We need to have a purpose, we need to build a brand, we need to make sure that there is the emotional hook and bond that to be created. Between a brand and the users, including players, in a gaming, in order to generate the profit, the cash flow in order to actually retain our users and not just spending money on acquisition, which is a super super expensive, and then thinking of making money in the shortest time possible. I think we need to be true to our initial strategic business. This is the right balance between the two from a business perspective.

Joeri Billast 22:34

Yeah. Now, something else that meets meeting, and probably you too was there was another event in Malta we I've been to.

Blue Ocean Thinking For New Categories

Joeri Billast 22:43

The ODIS Global Ocean Journey on the Sea, really exciting. And you did that panel, there was a lot of networking there. What did that experience teach you about creating new categories instead of competing in crowded spaces where everyone is competing?

Valentina Diaco 23:02

Yeah. So instead of asking how how do we beat our competitors, let's start questioning what would make the competition irrelevant. I mean, these are complete di different questions and they produce completely different strategies and angles. When I was building AI match sessions, I wasn't thinking about the other A gaming events. I was almost thinking about what is not being done yet, which was creating a really like a type of different infrastructure. It's almost like going into an empty space, and the blue ocean thinking that all this e-gaming is actually applying taught me this that is super, super important to define a new space and become the pioneer into something and not all the time copying or analyzing competitions. Let's understand when and if a category is settled, but asking what can we do differently that doesn't exist yet because it solves a real problem. This is, I think, it's a different type of uh thinking framework where it's super, super important, especially with AI, to actually switch to because of the reason that we mentioned earlier. Because everyone has access to everything. Like creating content or having access to knowledge is not anymore because it's accessible to everyone, right? It's almost everyone seems an expert of everything nowadays. But what we don't have is something that can judge what is right, what is wrong, what is the truth, what is unique, what is different. So these are, I guess, the blue ocean strategy and thinking that I'm it's also tricky, okay, to always look at the blue oceans because are the um riskier ones, are the ones that are not defined yet, are the ones that will be copied by someone else. Okay, so it's a cycle, right? What I'm trying to say is let's not try to fight for a part of the oceans that is already crowded.

Joeri Billast 25:30

Yeah.

Valentina Diaco 25:31

Look outside and understand what are the white spaces. Yeah, and how do you know the white spaces that perhaps would become red, so would be crowded. It just uh a new cycle that allows a new type of explorations, new type of ideas.

Joeri Billast 25:50

Indeed, but yeah, every blue ocean at some point maybe become red, you know, if you ever, and then you need, you know, to to find other oceans. I think you created blue ocean with your AI match sessions event, you know, to make it differently. I really felt like different, it's different, you know, these amazing vibes there, the people, the location, you know, those things make it unique. Um I also tried Valentina to do that on my side in Sintra here. It's also a unique location. You know, I have my retreat here. I've been done one retreat, putting people together, and sometimes it's also by doing an experience that you find out, oh, this made it unique. Because my retreat started, you know, with the idea we will, you know, connect with each other, talk about AI marketing. What came out when you listen to the testimonials is that people are really bonding together, they were sharing struggles that they had, they were held by others, and this was really something that sometimes it comes out by just doing things and by having these real life connections.

Valentina Diaco 26:54

Yeah, and it's also really something that I think the power of people getting together, it also gives a boost of not only energy, but the ability of listening, what are the real struggles, the possibility of being uh authentic and sincere, the possibility of understanding where is the need, okay, for someone like us, okay, who are advisors, consultants, founders, uh fractional CMOs to understand what are the opportunities out there that we can tap into. So when I early said the AMH sessions was not born or was not built to be a transactional event, I meant that I didn't want to have people pitching their sales, their product in a very sales-driven way. I want people to organically talk about something that could lead to a business deal, that could lead to uh collaboration in the near future. So there is still that purpose behind it, but it's just done in a different way. It's done by really listening and understanding if uh a lead or a new connection can become a warm lead, can become a hot lead, can become a business partner.

Where To Follow Valentina And Closing

Joeri Billast 28:24

I think the time always goes really fast when I speak with you, Valet. But I guess my listeners will be curious about what you are building with AMAT sessions and all around AMAT sessions. Um, if people are interested and they want to stay updated about everything that you are doing, where would you like me to send them?

Valentina Diaco 28:44

So on LinkedIn, Valentina Diaco, you can follow me there. AIMatch, it's also a matchmaking directory that includes AI solutions, dedicated design for now, for eye gaming, and crypto brands, but soon will be extended to other industries. So you can also check AIMatch.profitMatches.com. And there is a newsletter that will be sent out and get more populated as we grow the database. So I hope to get in touch with everyone interested to learn about AI marketing, new technologies, and business strategies.

Joeri Billast 29:25

Amazing, as my listeners know. Are always show notes, so the links that you mentioned will be put in there. If you heard something and you want to check it, check out the show notes. Um it was really a pleasure to have you on the show today.

Valentina Diaco 29:39

Thank you so much for having me. Really pleased.

Joeri Billast 29:43

Guys, what an amazing episode. You really feel the positive energy here with Vali. I really love to do the fireside chat with her. If you think that this episode is useful for people around you or that would be interested in a math sessions, be sure to share this episode with them. If you're not yet following the show, this is a really good moment to hit the subscribe button. If you haven't given me a review yet, if you give me these five stars, this really goes a long way. And of course, I would love to see you back next time. Take care. Support the conversations at the intersection of Feb3 AI and the future of digital leadership.