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Marketing School - Digital Marketing and Online Marketing Tips

Everything You Knew About Paid Traffic Doesn't Work Anymore

Marketing School - Digital Marketing and Online Marketing Tips

Eric Siu and Neil Patel

Business, Marketing, Careers

4.61.4K Ratings

🗓️ 31 March 2026

⏱️ 15 minutes

🧾️ Download transcript

Summary

Growth Newsletter: https://levelingup.beehiiv.com/subscribe Need marketing help? Visit: https://www.singlegrain.com/ and https://npdigital.com/Want to recruit great marketers? Find them here: https://marketingschool.io/hire Neil and Eric break down why AI is quietly killing the marketing channels most businesses still rely on — cold email open rates have dropped over 40%, AI-generated content is getting near-zero engagement, and outreach inboxes are completely flooded. They share exactly where they're shifting their marketing spend in 2026, why branding and in-person events are the new moat, and why Neil basically quit doing podcasts. Key Takeaways: Cold email open rates dropped 40%+ from end of 2024 to Q1 2026 across 11 B2B companies AI-generated content gets terrible engagement unless it's specifically about AI topics Brand, relationships, and intellectual horsepower are the only real moats left in 2026 Chapters: 00:00 AI Is Destroying the Marketing Channels You Rely On01:13 The Cold Email Saturation Problem Nobody Is Admitting02:51 Open Rates Dropped 40% — Real Data From 11 B2B Companies05:48 Why Branding Is the Only Real Moat Left in 202606:44 Why He Basically Quit Doing Podcasts11:46 The 3 Things That Survive AI: Brand, Relationships, Horsepower13:23 Why Manual Content Is Beating AI Content Right Now 𝗔𝗕𝗢𝗨𝗧 𝗧𝗛𝗘 𝗖𝗛𝗔𝗡𝗡𝗘𝗟Welcome to Marketing School, one of the top business podcasts with over 61 million downloads. Hosted by Eric Siu and Neil Patel, recognized by Forbes as a Top 10 Marketer. 🎙️ Learn More About the HostsEric Siu – Leveling Up: https://www.youtube.com/@LevelingUpOfficialNeil Patel: https://www.youtube.com/@neilpatel 📩 Free ResourcesUbersuggest: https://www.ubersuggest.com/Answer The Public: https://www.answerthepublic.com/ ✅ Subscribe for Daily Marketing Insights!

Transcript

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0:00.0

Everyone already knows. We talk about this a lot.

0:02.1

AI changing marketing. What are you shifting your marketing spend to in 2026? Or what are you doing with your marketing spend in 2026? And some of them could be the same old, but I'm just curious what it is. And we can go back and forth on this based on everything that's happening in AI. Yeah. So I'll tell you what we're doing right now. I do think we're going to spend more on tokens.

0:22.6

I do think you and I go to buy local infrastructure. Let's just start there. And people might be thinking, how is that tied into marketing? In my mind, it does because we're buying intelligence to do more marketing tasks, right? So we're getting a lot more inquiries for the agent stuff that we have. And so next week, we should be able to get up our MVP version of our site, single brain.

0:39.1

Finally, we're getting that up now.

0:40.6

So if people want our agents or AI transformation, we're going to go straight for that, just because that's where I've kind of forced my organization into. So we're going way harder on that cold email infrastructure. So because my agents build out all the cold email infrastructure now, we're sending way more cold emails. And it's constantly tweaking the offers and all that too. So I think we're going to go harder on that. But that costs tokens too. That means we're going to be spending more on Apollo API credits or maybe just build our own eventually. So I think it's spending more on tokens. The offer that we have is moving more on the AI side. And that's maybe a good starting point. We we can go back and forth. Yeah. So before I get into my, the number two, right,

1:14.8

Eric just gave us number one. A quick thing, I'm in an email group with a lot of entrepreneurs

1:20.2

who have been using AI for sending mass cold emails. And we would call these marketing emails. The reason I wouldn't call them sales

1:29.1

emails is you then get the lead once they're warmed up, then it goes to the salesperson.

1:33.7

Almost everyone in the group is seeing a similar pattern in which when it first started, it was

1:39.8

kind of effective. Now people are getting bombarded way too much with cold emails from AI. And it's just

1:48.1

degrading response rates and it's almost not effective anymore. Our positive reply rates so far,

1:55.4

I want to say is about 1% or so, which is decent. Like usually you want your positive reply rate

2:00.6

anywhere from like 1 to 3% or so for positive reply on cold email. So it's not bad right now, but I can see it going in a direction where it's like it's not hard to build this infrastructure, you know. Yeah, and when I'm talking about the numbers, I'm not talking about the reply rate. I'm talking about from sending the email to then getting the reply to setting up a call

2:19.3

to then going through the pitch process and then closing a deal.

2:22.3

Wait, but all the people in your email group, what kind of businesses do they have?

2:26.3

They're all B2B.

2:28.3

B2B, like what do they?

2:30.3

B2B enterprise.

2:31.3

Okay.

2:32.3

So some of them are software, some of them are services. It's actually only

2:35.0

one of those other two. It's either their software or their services. We don't have like

2:38.6

manufacturing or anything in the email group. There's only like 11 or 12 of us. And if you look at

...

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