AI Marketing & Agency Consolidation Trends
Source: digiday.com
In the pursuit of establishing brands centered on AI assistants, empathy is taking a back seat. Recent marketing initiatives from OpenAI and Anthropic highlight this shift, retrospectively emphasizing Perplexity's earlier campaign. The focus isn't on being relatable but on acclimating people to significant changes in how humans and machines interact.
According to Neil Barrie, co-founder and global CEO of TwentyFirstCenturyBrand, these companies are essentially “building brands around weapons grade power.” The initial approach involves polished product demonstrations designed to ease people into this new reality. Each AI company adopts a unique marketing strategy influenced by its own perspective and goals.
AI Marketing Approaches
OpenAI aims to provide reassurance, as seen in its campaigns across the U.S., U.K., and Ireland. These feature short films where ChatGPT subtly assists in various tasks. Anthropic, conversely, emphasizes intellect, showcasing Claude's support for problem-solvers. Perplexity takes a different route with an ad featuring Lee Jung-jae from Squid Game, creating a blend of thriller, demo, and absurdist comedy.
These strategies aim to capture attention, gain users, and boost investor confidence. However, using emotion to market AI carries risks, potentially leading to ambiguity. Jon Williams, CEO of the Liberty Guild, pointed out the public once believed a chess-playing machine was a technological feat when in reality, someone was inside operating it. Today's AI tools possess genuine processing power, yet marketers often present them with a soft filter, creating a sense of continuity and suggesting humans remain in control.
With each interaction, users delegate more responsibility, gradually trading decision-making for convenience. As social media and smartphones have demonstrated, the trade-offs often reshape culture before they're fully understood.
Barrie notes that these campaigns highlight the importance of responsibility, particularly for brands like Anthropic. The challenge lies in not only showcasing technology's empowering capabilities but also actively advocating for its responsible use through various channels.
The long-term success of these brands hinges on establishing a belief in a future where AI tools serve a purpose greater than their creators.
Agency Model Changes
Bayer's decision to consolidate its global creative, production, and media responsibilities for its health division under IPG is seen as an indicator of the direction the industry is heading. This move towards consolidation aims to create consistency across markets and allocate resources to proven strategies, according to a Bayer global marketer.
Ruben Schreurs, CEO of Ebiquity, notes that as clients become more like operating companies, their agency partners need to adapt accordingly. One notable shift is the replacement of agency CEO titles with more centralized leadership at the holdco level. Jay Wilson, a vp analyst at Gartner, mentioned a client's frustration with the holdco model, suggesting a potential overhaul of traditional practices.
Additional Updates
Nike appears to be stabilizing, with recent earnings showing revenue growth, potentially due to a renewed focus on brand value over discounting, led by CEO Elliott Hill.
TikTok's potential U.S. ownership change has sparked concerns among creators about possible algorithm adjustments that could affect content reach and monetization.
Meta's new Vibes feed is speculated as a potential future version of TikTok, utilizing an AI-driven content stream.
A Saudi-led consortium's $55 billion acquisition of Electronic Arts is based on the belief that AI will drive an entertainment surge while reducing game production expenses.
TikTok insiders anticipate Adam Presser to head a new venture as the company deals with evolving strategies and regulatory demands.
OpenAI's Sora video generator is expected to use copyrighted material by default unless copyright holders opt out.
TikTok creators are preparing for algorithm changes as U.S. firms anticipate control of the algorithm.
Brad Jashinsky, director analyst at Gartner, suggests that Nike's progress is just the start of its turnaround.