AI impact on advertising jobs

AI in Advertising: Revolution or Threat?

WPP and other companies are launching AI-generated campaigns. Meta, the owner of Facebook, is planning to allow businesses to create their own ads. WPP chief Mark Read is stepping down as the agency contends with AI.

Artificial intelligence is rapidly changing the advertising industry. For example, motion capture tech allows Rahul Dravid to give coaching tips, and an algorithm using Shakespeare’s handwriting powers a robotic arm to rewrite Romeo and Juliet.

WPP produced AI-created ads for Cadbury’s Bournvita and Bic. The agency group is spending £300m each year on data, tech, and machine learning to stay competitive. Mark Read said AI is “fundamental” to WPP's future but will reshape the workforce. Read will leave at the end of this year, after almost seven years as chief executive and more than 30 at WPP.

The changes for ad agencies come from a familiar source. Google and Meta created tech tools for publishers and ad buyers, helping them dominate online. Big tech took almost two-thirds of the £45bn spent by advertisers in the UK this year. Mark Zuckerberg now wants to take over ad creation with AI tools for campaign creation and targeting on social media sites, leading to fears of the “death of creativity” and job cuts at agencies. These tools are expected to roll out by the end of next year.

Agencies are investing in their own AI tools and working with tech companies like Meta and Google to keep clients. One ad agency chief executive said AI will eliminate many jobs, particularly in production. However, roles in strategy and consumer insight may be safer.

The Human Element

Stephan Pretorius, “WPP’s AI guy,” said creativity remains a human skill. He said AI replaces tasks, not jobs, but agencies need to restructure, and client relationships are changing. WPP announced undisclosed global redundancies across WPP Media last month. Another ad agency chief executive said clients expect them to develop AI so they can cut budgets.

The IPA reports there were 26,787 people employed in UK media, creative, and digital agencies last year. Advertising spending has grown from £60m in 1938 to a forecast of over £45bn this year. Agency heads believe there is too much brand risk in handing creative processes to AI for major advertisers. One creative agency chief said AI work often looks “glossy, very idealised and slightly plasticky.”

Meta's AI Plans

Zuckerberg clarified that Meta’s AI tools are for small and medium-sized businesses. He said that if you are working with an agency, you’ll probably keep doing that. But if you aren’t, Meta will come up with thousands of versions of your ad and test them.

Meta and Google say they have “democratised” advertising. One ad agency boss says this is a smokescreen, as they now take nearly two-thirds of all UK ad spend. Sir Martin Sorrell called Meta and Google “frenemies”. The rise of AI in advertising is forcing the industry to adapt. Patrick Garvey of We Are Pi said Meta’s promise to “auto-generate your ad in seconds” means the “production sausage factory is about to be fully mechanised” and calls Meta’s approach the “fast food of advertising”.