??The Creativ Brief: CMO 2024 Survey Breakdown

The annual CMO survey was published this week by Deloitte, Duke Business School, and the American Marketing Association. The broad study measures priorities amongst marketing leaders in over 300 companies, across industries, and multiple revenue brackets.?

We pulled out the biggest trends and most notable statistics for easy reading.

First, most companies spend about 10% of revenue, 10 cents on the dollar, on marketing activities across industries.??

CPG companies were top spenders with about 17.5% of budgets going to marketing. B2C companies spend nearly double than B2B companies, 13.4% (B2C) on average compared to 7.85% (B2B). Small companies spend the most on marketing as a gross percentage of revenues while larger companies spend less.?

Massive investment in martech expected in the next five years, up to 31% increase. 75% of marketing organizations now utilize some combination of marketing technology stack.?

For all the media hype, AI adoption and usage in marketing organizations is low. Only 30% of marketing organizations are piloting or testing Large Language Models. Only 13% of organizations are actively using them. It’s less for generative AI.?

Marketing organizations top five responsibilities are 1. brand, 2. digital marketing, 3. advertising, 4. social media, and 5. marketing analytics. Lead generation is number six and had the largest positive jump from 63% to 70%.?

Customers care most about the quality of the products and services by a huge margin at 34%. Next is the price at 18%, followed by trust (16%) and excellent service (11.4%). Dead last is corporate responsibility and innovation. These ‘no-duh’ findings offer a poignant reminder to what's important for customers.?

Our big takeaways:

• Marketing spend remain flat across industries
• Analytics and revenue generation responsibilities continue to shift to marketing departments?
• Marketing technology expenditure is set to increase, AI adoption remains low. Lots of runway for optimization, efficiency, and growth in these areas.?
• Customer still care about quality more than price.?

3 Stories Dominating Media and Tech Headlines

Comcast To Offer New Peacock, Netflix & Apple TV+ Streaming Bundle, CEO Says. The Bundle will be introduced this month at a competitive price that’s more affordable than “anything that is in the market now.” This announcement came a week after the announcement of a Disney, Warner Bros. Discovery bundle that would offer Disney+, Hulu, and Max to consumers starting this summer.

Why it matters: The bundle, much derided in the 2010s and a major point of differentiation for emergent streaming platforms, is back! Bundles have made a resurgence as multiple individual streaming services cost consumers more than bundled packages. Bundles spread risk across multiple content providers while lowering overall costs to consumers for more content.?

OpenAI introduces new artificial intelligence model, GPT-4o | AP News. The o is short for ‘omni’. In addition to aesthetic improvements such as voice and tone alterations, GPT-4o boasts enhancements to the OpenAI product’s ability to reason in real time over audio, text and video. In addition, GPT-4o is able to indicate a user’s mood and tone, shaping its response to match appropriately.

Why it matters: These advancements expand the applications for OpenAI's breakthrough technology product. With the ability to now respond with cadence, voice, and describe emotional states, the product’s applications to both service and products go further as 3rd party companies look to license new tools.?

Netflix gets NFL Christmas Day Games as they make major expansion into sports.? In its first major sports contract, Netflix secured the Kansas, Pittsburgh, Baltimore, and Houston NFL games this Christmas. It will also get at least one game in 2025 and 2026 with the contract running for three years. Netflix also recently cut a 10-year, $5 billion deal for WWE Raw.?

Why it matters: Netflix is betting on live with their simultaneous push into advertising expansion. The two strategies coincide as advertisers pay a premium for live programming and sports. Meanwhile the NFL seeks partners to expand the reach and prestige of the league.?

Creativ Spotlight - United Airlines New Safety Video

The cast and crew on this soundstage are at the mercy of a little blue ball.

It's about the size of a billiard ball. It rolls, bounces, and floats its way through a Rube Goldberg machine — a complicated chain reaction that leads the viewer from scene to scene in United Airlines' new onboard safety video.

Our client 1stAveMachine produced the Rube Goldberg machine and video with director Karim Zariffa. Read the NPR interview.

Stat of the Week - Netflix Ad Revenue

Netflix will make $1 billion from advertising revenue in the United States. 2024 is it's second year selling ad inventory.

In May, Netflix hosted its first in-person upfront.

The company showcased live sports by securing the rights to "WWE Raw" and tennis, golf, and boxing exhibitions, all of which create lucrative sponsorship opportunities for Netflix to sell.

Netflix's burgeoning ad revenue, nearing $1 billion by 2024, marks its strategic foray into advertising, leveraging live sports content to create lucrative sponsorship opportunities and signaling its emergence as a formidable player in the traditional media advertising arena.

One Fun Thing - Team at ThinkLA Spring Social

We work remotely at Creativ Strategies. It makes in-person events, like ThinkLA’s social events, an essential part of team culture building. We gathered our LA based crew last week for the organization's annual Spring Social.