June 20 2023 - I Cannes Not Believe It

👋Happy Wednesday all. Well, things have picked back up– Cannes mania is full steam ahead, we've got AI and M&A across tech and adworld + more awful Cannes puns. All this and more below –

WPP has acquired a 30% stake in Majority, an Atlanta-based agency co-founded by NBA legend Shaquille O'Neal. The terms of the deal were not disclosed, but O'Neal will retain his stake in the agency. Majority, which was launched in 2021, has quickly gained recognition and was named to Ad Age's Small Agency list in 2022. The agency's revenue doubled to $10 million in 2022, and its clients include The NBA G League, OshKosh, Match Group, General Motors, and Sprite. Majority focuses on disruptive creativity and has a diverse team representing BIPOC and LGBTQ+ communities. While operating independently, Majority may collaborate with other WPP agencies.

Adobe's proposed $20 billion acquisition of Figma is facing an in-depth investigation by the European Union Commission. The Commission plans to examine the acquisition due to concerns about its potential impact on competition in the market for interactive product design and whiteboarding software. This investigation by the EU Commission follows similar probes by the U.S. Department of Justice and the United Kingdom's Competition and Markets Authority.

• OpenAI is reportedly considering the launch of a marketplace for AI models, similar to an app store, where businesses can access and sell customized AI models. The marketplace would offer large-language models that can be used for various purposes, such as detecting fraud or providing market information. OpenAI's potential app store would compete with existing app stores run by its customers and partners, including Salesforce and Microsoft. OpenAI CEO Sam Altman discussed the plans with developers during a meeting in London. While OpenAI has not confirmed active efforts to develop a marketplace, companies like Aquant and Khan Academy have expressed interest in participating.
• Snapchat CEO Evan Spiegel revealed that over 150 million users have utilized Snapchat's AI-powered chatbot, MyAI, sending over 10 billion messages. Spiegel believes that the data and insights gathered from these conversations can be used to enhance targeted advertising on the platform. Topics of interest among users have included McDonald's and car recommendations. Spiegel shared an example of a user who used MyAI to learn how to ask for a raise and successfully obtained a higher hourly wage. Despite concerns about young users accessing AI, Spiegel stated that Snapchat has implemented safety measures and community guidelines, with over 99.5% of MyAI responses conforming to those guidelines.
• VideoAmp has signed a 10-year agreement with Allen Media Group, becoming the media company's primary trading currency. This marks the first time VideoAmp, a Nielsen rival, has been chosen as the primary option for a network. The deal not only broadens VideoAmp's exposure to a wider range of advertisers but also validates its ability to measure diverse audiences, which is crucial for initiatives supporting minority-owned media. Allen's decision to choose VideoAmp over Nielsen was influenced by concerns about Nielsen's measurement issues and criticism from industry professionals.

• Omnicom has partnered with Google to integrate Google's generative AI models into its ad tech, allowing brands to access generative text and image capabilities. This marks the first commercial use of Google's generative AI technology in advertising. Omnicom will utilize two key Google AI models, Imagen for generating images and PaLM 2 for text, within its internal marketing and data platform called Omni. One notable aspect of Google's program is its copyright protections, as the models have been trained using copyright-free data. Omnicom will also create custom AI models for brands by training the machines using the brands' own data, enabling them to optimize their marketing operations. The partnership reflects Google's efforts to commercialize AI and provide advertisers with AI-powered tools for ad creation and campaign management.
• IBM and Adobe are expanding their partnership to leverage AI technology and enhance content supply chains. IBM will utilize Adobe Sensei GenAI services and Adobe Firefly, a suite of generative AI models, to help clients create personalized customer experiences and design customized journeys. IBM Consulting will introduce new Adobe consulting services and assist clients in implementing generative AI models into the design and creative process. The collaboration aims to streamline content workflows, improve efficiency, and automate tasks while ensuring transparency, governance, and brand integrity. Adobe's enterprise customers will have access to IBM Consulting's team of data and AI consultants, who will integrate Adobe's AI-accelerated Content Supply Chain solution with clients' proprietary customer data and brand guidelines.
• Meta is showcasing its advancements in AI and Reels at the Cannes Lions International Festival of Creativity. Alvin Bowles, Meta's VP of global business group, highlighted how AI can assist in the creative process, particularly in media buying. Meta is exploring the use of AI chatbots to generate multiple versions of ads and assist with customer support. The company also discussed AI assistants that could be utilized by businesses and creators to engage with customers and fans. Additionally, Meta is promoting its plan to serve more ads on Reels, while its competitor to TikTok is emphasizing its brand safety initiatives and expanded inventory filters.

• Misfits, the gaming entertainment and lifestyle organization, is undergoing a rebrand to reflect the shifting landscape of the esports industry. While Misfits initially focused on competitive gaming, it has since pivoted towards content creation and investing in creator-powered ventures within metaverse platforms like Minecraft and Roblox. The rebrand aims to position Misfits as an interactive entertainment and lifestyle company rather than just an esports organization. The company has removed the word "gaming" from its name, introduced an updated logo, expanded its color palette, and launched a streetwear-inspired merchandise line.
• Spotify is reportedly set to launch its hi-fi tier, offering lossless music streaming, through a new premium subscription plan called "Supremium." The plan, expected to be launched later this year, will likely cost more than the current premium plan of $9.99 per month. It will initially roll out in non-U.S. markets and may expand to the U.S. in October. The move aims to increase Spotify's revenue and satisfy investor demands for a price increase. The hi-fi tier was first announced in 2021 but faced delays due to licensing issues. Apple and Amazon have already introduced lossless music options in their music streaming services.

• Uber Advertising has partnered with Omnicom Media Group (OMG) to collaborate on a data sharing initiative. The partnership allows OMG to utilize Uber's mobility and delivery data to serve its clients' advertising. This is Uber's first partnership with an agency holding company. The data collected by Uber Advertising will be integrated into Omni, Omnicom's operating system, enabling deeper consumer insights based on their specific commerce journeys. The collaboration aims to provide more effective and efficient advertising by leveraging data and audience segments. The partnership has already been tested, with HBO Max sponsoring a Lizzo concert through Uber. Additionally, Uber's recent launch of video advertising across its network further expands advertising opportunities. Omnicom recently launched Omni Commerce, which consolidates retail media inputs into a single dashboard.
• Sprite has been named the Most Resilient Brand by Kantar based on its analysis of shopping behavior and brand performance. The ranking is determined by the brands that have attracted the greatest number of new shoppers. Sprite's rebranding efforts, including a new visual identity and environmentally friendly packaging, contributed to its success. Private-label brands are also experiencing significant growth due to high inflation and consumers seeking cheaper alternatives. Kantar predicts that private-label brands will have a 40% market share in Europe's largest markets by 2028. The research also highlights that innovation has played a key role in driving growth for many brands, with new product launches and targeted marketing strategies leading to increased shopper base.
• Adobe Stock creators are expressing dissatisfaction with Adobe's generative AI image generation platform, Firefly. Some contributors claim that their stock images were used to train Firefly without their consent or notification. They argue that Adobe's actions are unethical and unfair, as the platform is now flooded with AI-generated content that competes with their own work. The creators believe that Adobe should have informed them and provided an opt-out option from the beginning. The influx of AI images into Adobe Stock is also impacting the platform, and creators are concerned about the future of the marketplace. Legal experts suggest that artists may have limited legal recourse due to the broad language in Adobe's terms of service.

• TikTok claims that half of its users trust brands that partner with creators on the platform. The company stated that 79% of users see TikTok as a space for brands to showcase their personality and express themselves. They also highlighted the importance of creative content in driving a brand's sales lift, stating that 47% of sales lift from advertising comes from the creative element. TikTok aims to facilitate authentic and easy-to-launch campaigns through its TikTok Creator Marketplace tool, which currently connects over 800,000 creators with advertisers. TikTok also emphasized that its user base extends beyond young people, with 67% of users being over the age of 25. The platform has seen the rise of various communities, enabling creators to establish partnerships with brands and grow their following.
• A hacker group called BlackCat is threatening to leak confidential information stolen from Reddit unless the company pays a $4.5 million ransom and cancels its plans to charge fees to third-party developers. The group initially demanded only the ransom but later added the demand to comply with the Reddit communities that protested the developer fees. Reddit confirmed a hack but stated that no user data was accessed. BlackCat has been active since late 2021 and has previously targeted Australian businesses.
• Roblox is expanding its target audience by allowing creators to make experiences specifically for users who are 17 and older. This move aims to attract an older demographic and provide more mature content, including depictions of violence and alcohol use. To ensure age compliance, users will need to verify their age by scanning their driver's licenses and submitting a selfie. Roblox has seen significant growth in its user base aged 17-24 and believes that its older creators are ready to build more mature worlds on the platform. The company also sees monetization potential in this demographic, as older users may have more disposable income. However, certain restrictions will still apply, such as prohibiting nudity and explicit sexual content. Roblox is looking to increase its revenue and plans to offer targeted advertising to verified users over 17, giving marketers more control over their target audience.

• Rivian signs deal to use Tesla's EV charging standard
• Pharrell Williams on his Louis Vuitton debut: ‘This is not a gig. This is a dream’
• How Christopher Nolan Learned to Stop Worrying and Love AI
• Warner Bros. Shares Down After ‘The Flash’ Underperforms
• AKQA and Volvo Cars award two Grand Prix winners
• Twitch's new program to increase streamers' subscription revenue will only benefit 2.5% of them
• Vimeo intros a trio of AI-powered editing features
• ElevenLabs, the voice-generating platform, raised $19 million and launched a new detection tool.
• Trevor Noah’s Next Act? A Spotify Original Podcast
• German tabloid Bild to replace range of editorial jobs with AI
• Creator Startup Funding Breaks Quarterly U.S. Losing Streak

The kids are not alright: Creature London launches first ad campaign for Child Poverty Action Group

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