Digital Debrief 6.12.24

Artificial Intelligence (AI) & Search?

• Kantar's 2024 BrandZ rankings reveal that bets on artificial intelligence (AI) are driving significant brand value growth, particularly for tech firms like Nvidia. The total value of the world's top 100 brands rose by 20% to nearly $8.3 trillion, surpassing pre-pandemic growth expectations. While top brands like Apple, Google, and Amazon remain unchanged, companies embracing AI, such as Nvidia and AMD, saw substantial increases in brand value. Newcomers to the top 100 include Lululemon and Pinduoduo, reflecting a solid consumer tech and media recovery. Despite overall growth, Kantar cautions that pricing-driven strategies may reach their limits amid ongoing economic volatility.
• At its Worldwide Developers Conference (WWDC) , Apple unveiled Apple Intelligence , a new generative AI system for iPhone, iPad, and Mac, designed to personalize user experiences by combining AI with personal context. Alongside this, Apple partnered with OpenAI to integrate ChatGPT into iOS 18, iPadOS 18, and macOS Sequoia, enhancing features like Siri and Writing Tools. Apple Intelligence, which emphasizes privacy with on-device processing and Private Cloud Compute, aims to simplify tasks and enhance productivity. The campaign emphasizes Apple's commitment to innovation while maintaining user privacy.

Here are some key highlights from The Verge :?

Apple Intelligence Introduction:

☆ Announced at WWDC 2024.

☆ A new suite of AI features for iPhone, Mac, and other devices.

☆ Includes a more conversational Siri and custom AI-generated "Genmoji."

Siri Enhancements:

☆ Integrates GPT-4o for advanced queries.

☆ Can manage notifications, write text, and summarize emails.

☆ Performs actions across apps and understands onscreen context.

☆ Works with both Apple and third-party apps.

☆ Features on-device processing and Private Cloud Compute for complex tasks, ensuring privacy.

Genmoji and Image Generation:

☆ The new "Genmoji" feature creates custom emoji-like reactions.

☆ "Image Playground" generates images based on user prompts.

☆ AI-enhanced Photos app improves search and offers features like erasing objects.

OpenAI Partnership:

☆ Siri will use ChatGPT for complex queries with user permission.

☆ ChatGPT integrated into AI writing tools, can generate images.

☆ Ensures privacy by obscuring IP addresses and not storing user requests.

☆ Users can connect their accounts to access paid ChatGPT features within Apple's system.

Marketing, Influencer & Advertising?

• Oracle is shutting down its ad business , which saw revenue decline to $300 million in the 2024 fiscal year, down from $2 billion in 2022 . Despite spending billions on acquiring nearly a dozen ad tech companies over a decade, including DataLogix and Moat, the business struggled due to setbacks like Meta's 2018 data restrictions and the General Data Protection Regulation. These challenges led Oracle to cease third-party data services in Europe and face class action lawsuits over user privacy. CEO Safra Catz announced the decision during the company's latest earnings call.
• United Airlines has launched Kinective Media , the airline industry's first media network that uses travel data for personalized ads. Partners include Macy’s and Dentsu. The platform reaches consumers via United's mobile app and inflight screens, ensuring privacy with anonymized audience segments. This venture offers brands access to nearly 100 million monthly app sessions and 100,000 seatback screens for targeted advertising. Read more in Marketing Dive .?
• Ocean Spray 's new "Just Add Cran" campaign features Johnny, a new character inspired by the iconic farmer duo from past ads. The campaign includes three ad spots promoting various products and will air on streaming TV with online and social media support. This marks Ocean Spray's first major brand refresh in over 20 years, aiming to connect with a new generation of consumers.

• Dr Pepper has become the number two soft drink in the US, surpassing Pepsi, by leveraging strategic investments, agile marketing, and flavor innovations. The key to its success is the "Fansville" campaign centered on college football and athlete partnerships. New flavors like Strawberries & Cream have driven significant sales and attracted younger consumers. The brand's rapid trend response and balance between core product appeal and innovation have been crucial.
• Jif 's new campaign, "The Merger," promotes its peanut butter and chocolate-flavored spread by parodying HBO's "Succession." The campaign features a 90-second film starring J. Smith-Cameron as the CEO of The Peanut Butter Group, dramatizing a fictional merger with Chocolatey Corp. This pop culture-inspired effort includes a full-page New York Times ad, branded content, and a fictional company landing page. The "That Jif’ing Good" platform, launched in 2019, aims to modernize the brand and appeal to younger, multicultural consumers by tapping into cultural trends and preferences.

• Circling back to a great campaign, Crayola 's "Stay Creative ." Created with Dentsu Creative, it features a heartfelt short film that reunites adults with their childhood art to highlight the importance of creativity. This campaign aims to remind parents of their creative experiences and encourage them to nurture creativity in their children. It is part of Crayola's larger effort to elevate the conversation around creativity and its lifelong benefits. The campaign has already garnered over 2 million views and is leveraging social media to find more participants whose childhood art Crayola archives.?

• The sportswear brand On Running has appointed Zendaya as a brand partner for a multiyear deal . Zendaya leads the new "Dream Together" ad campaign and will collaborate on future product designs. The partnership aims to enhance On's positioning in the market, leveraging Zendaya's influence in fashion and sports. This move follows On's recent collaborations and strong market performance, with the brand expanding rapidly and seeing significant revenue growth.

• WARC reports that while retail media spending is expected to grow 13.7% this year to $153.3 billion, the growth rate will slow to 10.6% in 2025 as brands reach budget limits (Marketing Dive ). Retail media networks, driven by sophisticated use of shopper data for offsite campaigns, remain competitive, with Amazon projected to command 37.3% of the market. Although currently strong, the meteoric growth of retail media is expected to decelerate as the market matures.
• Ikea is launching "The Co-Worker Game " on Roblox on June 24, offering ten paid positions to UK and Ireland residents to staff its virtual store. This initiative, part of the "Careers Done Different" campaign, aims to attract new employees by providing a virtual work experience that mirrors real-world Ikea stores. This marks the first time a brand has offered paid work on Roblox.

• Pepsi CMO Todd Kaplan is leaving PepsiCo after nearly two decades to pursue an outside opportunity (Check out Kaplan’s LinkedIn post ). Kaplan, who became chief marketer in 2022, played a crucial role in the brand’s turnaround, including a significant visual overhaul and growth initiatives for Pepsi Zero Sugar. His departure comes as the cola wars intensify, with Pepsi and Coca-Cola launching new products and Dr Pepper rivaling Pepsi as the second most popular carbonated soft drink brand.?
• Dentsu has revised its global advertising forecast, now expecting a 5% growth in ad spend for 2024 , up from the previously anticipated 4.6% , totaling $754.4 billion. This increase is driven by a solid start to the year, bolstered by digital advertising opportunities, the upcoming Summer Olympics, and the U.S. presidential election. Digital advertising is projected to grow by 7.4%, capturing 59.6% of the market, with significant contributions from retail media and paid social categories.

Social Media

LinkedIn:

• LinkedIn is introducing a new video sponsorship program called "The Wire ," allowing brands to run in-stream video ads with trusted publishers like Bloomberg, Forbes, and Reuters to enhance credibility and engagement. Additionally, LinkedIn is incorporating more AI tools into its ad creation process through its "Accelerate " option, now integrating Microsoft Designer for generating campaign creatives. This includes AI-generated imagery, text overlays, and enhanced targeting options, aiming to simplify and improve the ad creation process while leveraging rising video consumption on the platform.

Meta:

• In a new interview with Colin and Samir , Instagram chief Adam Mosseri shared key insights into the platform's algorithms , emphasizing the importance of video content and private sharing for post reach. He highlighted that "sends" (sharing content with friends) are now crucial for evaluating post-performance. Mosseri also discussed Instagram's approach to healthier content ranking and its focus on supporting smaller creators. He revealed that around half of all video impressions are viewed with the sound off and noted the platform's priority shift from publishers to individual creators. The full interview provides valuable direction for Instagram's strategy.
• At Meta's "Conversations" conference , new business messaging tools were introduced, including AI support on WhatsApp, improved ad targeting, and expanded Conversions API. Meta Verified is now available for businesses in select countries, offering verification and premium features. Other updates include custom promotional messages, new message templates, and business calling features on WhatsApp.

TikTok:?

• TikTok 's new guide for fashion marketers, “SMB Fashion & Retail: Your recipe for Sucess ,” offers insights on how European fashion and retail SMBs can maximize campaigns this summer and connect with shoppers. It covers critical purchase drivers, promotion options, ad types, targeting, best practices, creative tips, fashion trends, and important shopping dates. This resource is essential for fashion brands aiming to enhance their presence on TikTok.

X:?

• X is testing advanced account analytics for X Premium subscribers , offering detailed insights into content performance with more specific date ranges and metrics. While some demographic insights may return, these features are behind a paywall as part of X's strategy to boost subscription revenue, which currently contributes minimally to the company's earnings.

Reddit:?

• Reddit has announced its first Ads API partnership with customer experience management platform Sprinklr . This collaboration allows Sprinklr users to create more effective Reddit campaigns by accessing Reddit's ad solutions and analyzing public conversations to understand audience behavior better. Companies like PepsiCo, Uber, Puma, and Honda, which use Sprinklr for social media management, will benefit from easier access to Reddit ads, potentially increasing ad experiments and effectiveness on the platform. Reddit plans to appoint more partners for its Ads API and is expanding third-party ad opportunities.

WhatsApp:?

• WhatsApp Channels reached 500 million users a year after its launch. Announced at Meta's "Conversations" conference , this broadcast messaging feature lets users follow topic-based groups for updates. It offers brands new ways to connect with audiences through promotions and announcements, reflecting the trend towards messaging engagement. ‘Channels’ is still rolling out, and users can join the waitlist.

Pinterest:?

• Pinterest 's new campaign highlights its ability to connect users with diverse interests and inspire creativity. It features fantastical, non-CGI scenes, emphasizing the platform's 518 million monthly users and their unique journeys. The campaign runs through November 2024 on TV, streaming, social media, digital platforms, and cinemas and aims to target younger demographics and ad partners in the U.S. and U.K.

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Snapchat:?

• Snapchat 's new report, “Driving Sustainability Through Augmented Reality ,” reveals AR's environmental benefits, such as reducing carbon emissions and waste through virtual product trials and events. The study found consumers value these sustainability features, potentially boosting AR adoption. Snapchat's advanced AR tools significantly positively impact both users and the environment.

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