AI Marketing & Agency Consolidation

AI Branding: Empathy vs. Power

New brand marketing efforts from OpenAI and Anthropic highlight the increasing importance of empathy. The goal isn't to be relatable, but to normalize a major change in how humans interact with machines. As Neil Barrie of TwentyFirstCenturyBrand noted, these companies are “building brands around weapons grade power.”

Each AI company is taking a different approach, shaped by its ambitions and perspective. OpenAI is focused on reassurance, with campaigns showing ChatGPT assisting in everyday tasks. Anthropic highlights human ingenuity, quietly supported by Claude. Perplexity uses thriller and comedy elements, with Lee Jung-jae from Squid Game escaping a trap using the tool.

However, marketing AI through emotion has risks, potentially creating ambiguity. Jon Williams from the Liberty Guild points out that these AI tools have immense processing power, yet marketing campaigns often use a soft-focus, emphasizing the human element to make people feel in control.

Williams argues that this approach sells not just utility and trust, but also continuity—the idea that humans remain in charge. Each time we ask AI to perform tasks, we transfer decision-making for convenience, potentially allowing the interface to shape our choices. Barrie emphasizes the responsibility that comes with such power, questioning whether brands can truly own that narrative.

These campaigns should clarify what AI is for and who it benefits, or the category may be defined by power instead of progress. The true test is whether these brands can inspire a future where AI serves a purpose greater than their own interests.

Agency Model Shifts: Consolidation

Bayer's agency model offers insight into industry trends. The company consolidated global creative, production, and media duties into IPG, opting for traditional consolidation rather than a custom setup. This move towards integration and efficiency is driven by Bayer's increasing centralization.

A global marketer at Bayer mentioned the aim is to create consistency across markets and invest in strategies that drive results. Bayer is functioning more as a unified company, requiring its agency partner to adapt accordingly.

Ruben Schreurs from Ebiquity noted that as clients become more like operating companies, their agency partners need to evolve as well. A shift is occurring away from agency CEO titles toward centralized leadership at the holdco level.

Jay Wilson, an analyst at Gartner, shared a client's frustration with the holdco model and limited choices, even considering starting over. This sentiment reflects the ongoing changes in the industry.

Additional Updates

Nike's Stabilization

After a period of decline, Nike's latest earnings report indicates slight revenue growth, suggesting that its focus on brand over discounting may be effective.

TikTok's Algorithm

TikTok creators are concerned that a potential U.S. ownership change could lead to algorithm adjustments, impacting content reach and monetization.

Meta's Vibes Feed

Meta's new Vibes feed is a fully AI-driven content stream. It may succeed by focusing on endless entertainment, regardless of the content's authenticity.

Electronic Arts Acquisition

A Saudi-led consortium acquired Electronic Arts for $55 billion, driven by the belief that AI will boost entertainment and lower game production costs. This deal is part of Saudi Arabia's effort to diversify its economy.

TikTok Executive

TikTok insiders speculate that Adam Presser may lead a new venture as the company navigates shifting strategies and regulatory pressures.

OpenAI's Sora

OpenAI's Sora video generator may use copyrighted content by default unless copyright holders opt out. Also, OpenAI's move into shopping has implications for marketing, discovery, and retail media.

TikTok Algorithm Changes

TikTok creators are preparing for algorithm changes as U.S. firms plan to take control. Brad Jashinsky from Gartner sees Nike's progress as just the start of their turnaround.