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“To me, there’s no tighter relationship between gaming and sports,” says Craig Elimeliah, Chief Creative Officer of Code and Theory. While sports took center stage at the Cannes Lions International Festival for Creativity, and Stagwell’s SPORT BEACH, it’s clear from dozens of our interviews with senior marketers that gaming is also on the world leaderboard and becoming an essential platform for reaching digital-first consumers.

Everyone’s a Player

While the concept of a “gamer” conjures up the archetypical image of an teenage boy, 50% of people who identify as gamers today are women, Activision Blizzard’s Claire Nance reminded marketers on stage at SPORT BEACH. To counteract this pervasive stereotype, Nance suggests redefining “gamer” as “player,” a more comprehensive term she says better reflects the heterogenous gaming demographic. As gaming technology advances and becomes more accessible, the barriers to entry, such as the need to purchase an expensive console, no longer exist, enabling more people to pick up gaming and become “players,” further diversifying the gaming audience.

The Rise of the Gaming Generation

As younger generations age, gaming has evolved from a niche hobby to an essential part of the modern entertainment mix and a nascent platform for advertisers. Yet, “we’re still not seeing brands and agencies lean in [to gaming] with as much focus as we would expect,” notes Brad Simms, CEO and President of GALE, whose agency has helped companies like MilkPEP and Bomb Pop reach untapped consumers through gaming. There are 3.4 billion unique gamers globally.

Why has gaming become so pervasive? Nance says a generational shift is underway. “When you look at geriatric millennials, this is the first generation that really grew up with gaming as a kid and has taken it through into life and into adulthood. As geriatric Millennials and GenX are starting to have children, they’re introducing gaming to their kids.”

Leveling Up to Immersive Experiences

“As a device guy I’ll tell you that experiential gaming is the future, says Ajit Sivadasan, Global Head of Online Sales, Digital Marketing & Platform at Lenovo. Not too long ago we witnessed a massive shift in gaming from the 2D world to the 3D world. Now, immersive experiences are all the rage, bridging the physical world with the digital world in ways previously unimaginable. Gaming is the optimal platform to integrate AR, VR, and XR technologies, creating an interactive and hyper-realistic universe for gamers to engage with and explore. The technology is advancing rapidly. Itamar Benedy, CEO and Co-Founder of Anzu, believes that “in 5 years from now, people will move most of their internet-based interactions to a 3D World.”Thus, now is the time for brands and marketers to not only embrace gaming, but to become early adopters of these immersive technologies, shaping the future of this evolving industry and capturing the attention of consumers globally 

Creative Excellence Across In-Game Advertising Scores High

“Gaming is a place where ads should not be disruptive…they should actually be additive to the experience part of the game,” Elimeliah notes. Companies like Stagwell and Anzu are transforming the in-game advertising experience for players, ensuring that ads are immersive and creative.

Anzu, in partnership with Stagwell, recently shared insights into creative best practices for intrinsic in-game advertising, where following these practices can significantly enhance brand lift performance and drive brand awareness. “This research shows that non-intrusive and authentic ads can captivate attention and enrich the gaming experience, but only if approached in the right way and with an appreciation for how the gaming audience prefers to interact with brands,” says David Sable, Vice Chair of Stagwell.

Creative excellence is essential to the marketing around gaming as well. For the launch of Blizzard Entertainment’s Diablo IV, 72andSunny created “Cathedral of Diablo,” a dramatic and cinematic campaign featuring a 160-foot-long mural of Diablo scenes painted across the interior of a French Gothic cathedral. “It’s a different world now than when it was when I first started doing video game advertising. There was a time when you would put out a 15-second trailer for a niche market,” says Tim Wolfe, Group Creative Director of 72andSunny. “Slowly and steadily, as gaming itself became more mainstream, its communications became more mainstream, advanced and crafted.”

It's Game Time

Stagwell recently launched a strategic gaming partnership with Anzu designed to help brands transform the in-game advertising experience. Interested in breaking into immersive gaming experiences? Reach out to hello@stagwellglobal.com.

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As we reflect on the Cannes Lions International Festival of Creativity, it’s evident that while technology evolves, creativity remains the linchpin. Despite AI’s buzz on the Croisette, the actual impact in the Lions’ jury rooms was minimal. The focus instead was on diverse marketing transformations—from hidden consumer forces reshaping business strategies, to sports’ role in brand-building, to the power of entertainment-led advertising. 

Whether you’re winding down from the excitement of Stagwell’s SPORT BEACH or you’re absorbing Cannes’ big ideas from home, here are Three Quick Things you need to know. Find more Cannes insights here and here 

  1. YOU CAN’T SPELL BUSINESS TRANSFORMATION WITHOUT CREATIVITY: The future of the CMO is always a hot topic at Cannes. Marketing leaders are tasked with driving initiatives as impactful as their C-Suite peers. Good news—CMOs’ creative problem-solving skills equip them well. Emerging from the Creative Business Transformation jury room, Michael Treff, CEO of Code and Theory, emphasizes: “Business transformation must work across most company functions, or it isn’t truly transformation.” Looking ahead, Treff says marketers will miss out if they assume AI is the only opportunity for business transformation. “There are seismic changes in human behaviors happening…and ontological questions for a lot of businesses in categories that are going through disruption. What is the meaning of a financial services institution? What is the role of institutional education? What is the future of media?” Hear more from Treff here.  
  2. ATHLETES AS RENAISSANCE ENTREPRENEURS: “As an athlete, I was always being told to just play basketball,” said NBA All-Star Carmelo Anthony at Stagwell’s SPORT BEACH, discussing the challenges of breaking into the exclusive wine and spirits industry. Now, “I’m kicking the door down and saying…give us a chance, let us come in and be creative, and let’s make magic.” Athletes like Anthony are diversifying into industries such as fashion, media, and philanthropy, proving pivotal in creating new economic opportunities. “We’re not made to be one-dimensional, we’re human – we’re made to do so many things,” said LSU Tigers basketball star and rapper, Flau’jae Johnson. Athletes are not just being sponsored by brands; they’re shaping them, suggests alpine skier and Olympian Mikaela Shiffrin, who advised brands on stage that equity-based collaborations are “one of the most surefire ways to create a really authentic connection and partnership” with this new class of renaissance entrepreneurs. But don’t just chase the biggest names. Both Johnson and Mark Kirkham, CMO of Pepsi International, spoke on stage about the need for more “grassroots” partnerships, or brands partnering early with up-and-coming stars. Watch all sessions from SPORT BEACH here.
  3. DEBUNKING MARKETING’S EMERGING TECH PROBLEM: Entertainment is a reflection of culture,” says GALE Managing Director, Creative and Entertainment Lions Jury President Geoff Edwards. So as culture changes and moves, so entertainment changes and progresses, and the category evolves as well. With consumers rebelling against intrusive ads, the focus on branded entertainment at Cannes has been on the rise in recent years. “But getting entertainment right requires more than being entertaining,” Edwards reminds us. Successful entertainment finds narratives that are captivating and uniquely convey the brand’s message. And the impact of technology in this realm is profound, with each year introducing new platforms, partnerships, and ways to experience content. “When it’s done well, [entertainment] is the most powerful force on Earth. Plus, it changes every year, because the entertainment industry changes every year. Technology, film, episodic, documentary, live experiences, gaming and music make this an exciting and interesting category.” Learn more from Geoff here.

ALL THE ACTION, NONE OF THE SWEAT

Relive every moment from Stagwell’s SPORT BEACH at the Cannes Lions International Festival of Creativity – without moving an inch. Stream mainstage sessions and interviews from the Content Studio on YouTube here. 

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Game on. Welcome to Cannes Lions, home of Stagwell’s SPORT BEACH, where everybody wins. 

Every morning for SPORT BEACH attendees and interested parties at home, we’ll recap the biggest moments from the day prior and break down today’s most impactful events so you can plan your schedule.

Questions? Reach Team Stagwell at cannescomms@stagwellglobal.com. It’s Monday, June 17, and here is what you can look forward to today..

Download the Official SPORT BEACH App 

Stay in the loop on all things SPORT BEACH 2024 by downloading our app today. The app allows you to view events, create your personalized schedule, browse the star-studded speaker line-up, and find all the information you need. There is even an AI-powered chatbot to help you make every moment count.

Three Quick Things: Our Cannes Lions Predictions

Brace yourself for discussions around the festival with our quick primer on the three trends (not named AI…) that we expect to dominate Cannes Lions this year. Click the image below to read the article.

 

SPORT BEACH Play-by-Play 

Get the download on today’s activities on the beach – stop by, say hello, and maybe break a sweat. You can always view the full SPORT BEACH schedule here.

  • Runner’s World x Saucony Monday Run Club | 7:30 AM – 8:30 AM | Off-site | Shake off the jet lag with a 3-mile loop through the heart of Cannes, led by Runner’s World’s Runner-in-Chief and Team Saucony.
  • Breakfast Hosted by the Ad Council: What CMOs Need to Know About The Mental Health Crisis | 9:00 AM -10:30 AM | Sky Deck | Join SPORT BEACH and Hearst for an exclusive look at the Ad Council’s Mental Health Initiative, featuring Heidi Arthur, Rich Dorment, Todd Haskell, Ryan Linder, and NFL great Brandon Marshall. 
  • Pickleball Clinic with Patrick Mouratoglou | 9:30 AM -10:30 AM | Main Court | Sharpen your pickleball skills with legendary tennis coach Patrick Mouratoglou, who has coached greats like Serena Williams and Holger Rune.
  • Dirt is Good: Resilience as a Key Success Driver | 11:00 AM – 11:30 AM | Stage | Join Unilever in conversation with Real Madrid great Roberto Carlos and legendary tennis coach Patrick Mouratoglou to discuss resilience and its correlation to success in life, sports, and business. 
  • Let’s Get Loud: The Sound of Sport, from Fans to Brands | 11:30 AM – 12:00 PM | Court | No matter what sport, what city or what country, the sound of sport is unmistakable – and essential to the experience as a fan. Learn how brands are supporting this element of sport, and how its evolving for an elevated consumer. 
  • The Future of Winter Sports Competition | 12:00 PM – 12:30 PM | Stage | Five-time Olympian Shaun White will be joined by business partner Jim Miller to discuss snowboarding’s growing cultural prominence and provide a sneak peek into some exciting snow-based news. 
  • It’s a Win-Win: Why Sponsorships Make Sense | 12:30 PM – 1:00 PM | Stage | Hear from top brands on why their sports partnerships make sense, and how they measure KPIs. Lioness goalkeeper Mary Earps will bring the athlete POV, digging into how brands can best leverage athletes to bring these partnerships to life for fans. 
  • Guinness x Sport: Building Vibrant Communities with The Premier League and Guinness Six Nations | 1:00 PM – 1:30 PM | Stage | Hear the perspective of an iconic brand (Guinness) & athlete (Frank Lampard) on how to capture the infectious passion of football and rugby to bring communities together and how Guinness is using sport as a creative force for good.
  • #UnitedbySnapdragon: Manchester United and Qualcomm Level Up | 1:30 PM – 2:00 PM | Stage | Join Manchester United legend Eric Cantona and Qualcomm CMO Don McGuire ahead of the Snapdragon brand’s debut on the front of Manchester United’s kit for the upcoming season. 
  • Whose Job Is It Anyways? Driving Equity in Sport | 2:00 PM – 2:30 PM | Stage | This panel will explore the specific role brands can and should play as we drive for equity in sport, featuring WNBA legend Sue Bird in conversation with State Farm, Marriott and Amazon.
  • We Play Different: Alex Honnold x The North Face | 2:30 PM – 3:00 PM | Stage | This conversation will delve into how the “Playing Different” mantra dictates how both The North Face and Honnold approach exploration.
  • The Halfway Line: The Brands & Athletes Driving Women’s Sport Forward | 3:00 PM – 3:30 PM | Stage | The greateast female ski racer of all time Mikaela Shiffrin and Mark Kirkham from PepsiCo will share their perspectives on how we can cover more ground for women in sports today.
  • Business of Sports w/ AJ Andrews | 4:00 PM – 5:00 PM | Content Studio | Join ReachTV’s AJ Andrews as she takes a deep dive into the trillion dollar business of sports. From athletes to executives, each guest will share their unique business perspective on how sports has evolved beyond the game. 
  • Open Play x Epidemic Sound | 4:00 PM – 6:00 PM | Court | Join us to wrap up your first day of Cannes with Open Play, soundtracked by Epidemic Sound, including a live guest DJ and musical guest from their catalogue of royalty-free artists.
  • Cocktails with BxP | 4:00 PM – 6:00 PM | Fan Zone | Cocktail reception hosted by Stagwell’s Brand Performance Network. Please note, this event is invite only.
  • Clio Sports Honorary Awards Dinner | 7:30 – 10:30 PM | Main Court | Please note, this event is invite only. 

On the Mainstage: Navigating Emerging Tech with Chairman and CEO Mark Penn 

Off the beach, Stagwell Chairman and CEO Mark Penn will take the Rotonde Stage on the Cannes Lions Innovation track for a keynote on how marketers can apply contrarian thinking to navigate emerging technology hype. Get all the details here

Catch other speakers from across the Stagwell network around the festival today: 

  • 72andSunny’s Damaune Journey at Playing to Win: Made on Culture @ Culture Mix | 1:00 PM | Culture Mix Cannes | Learn More.
  • Code and Theory’s Dan Gardner at ADWEEK House: You’re Using AI for That, Right? Delivering Creative Excellence with Artificial and Human Intelligence | 2:00 PM | 3.14 Rooftop | Explore the balance between data-driven decision-making and emotional connection. | Register

Stay Connected

Team Stagwell is on the ground at Cannes, ready to cover the Palais, fringe stages, and maybe even a yacht or two, bringing you the latest insights from the festival. Keep up with the latest, and reach out if you have questions or requests.

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CONTACT

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Bonjour! Team Stagwell is headed to Cannes Lions, ready to cover the Palais, fringe stages, and maybe even a yacht or two, bringing you the latest insights from the Festival. We’ll also be bringing sports and business icons like Carmelo Anthony, Sue Bird, Joe Burrow, Jason and Travis Kelce, Megan Rapinoe, and JuJu Watkins to SPORT BEACH for some exciting action.  

Ahead of the Festival, we’re sharing three predictions to track as the programming unfolds. While AI will undoubtedly be a hot topic, in this edition we’re focusing on everything else – though you won’t want to miss our Monday mainstage session on “The Contrarian’s Compass: Navigating Emerging Tech Hype.”

Let’s dive in,
Beth Sidhu
Chief Brand Officer, Stagwell

  1. ALL ROADS WILL LEAD BACK TO SOCIAL: At Cannes, two key discussions will shape future investments in the social media space, where ad spend is set to surge in 2024, led by TikTok (anticipated to grow 38%) and Instagram. First is the future of social video. As the popularity of bite-sized videos diminishes and Gen Z gravitates towards longer-form content (although this mainly just means 90-second videos), expect significant discussions about new monetization and creative opportunities in social video. We’ll also be keeping an eye on how marketers view the viability of “challenger platforms like TikTok, which have built incredible momentum in recent years but face a shifting regulatory and consumer landscape in the U.S. and abroad. Learn more about what social-savvy brands can do to prepare for the future in this blog from Movers+Shakers CEO Evan Horowitz 
  2. BRANDS WILL GET SCHOOLED ON THE RIGHT ATHLETE SPONSORSHIP PLAYS: Today’s athletes are multi-hyphenate leaders and aspirational figures who excel in business, media, nonprofits, and more, far beyond their achievements on the field. As the Cannes spotlight turns to sports, be sure to attend SPORT BEACH panels such as “It’s a Win-Win: Why Sponsorships Make Sense” with Channel Factory and Relo Metrics, and mainstage events such as “The Rapid Evolution of Athletes as Brand Builders” with the NFL. These sessions will guide brands on shifting from a brand ambassador approach to a true partnership mindset when collaborating with athletes. By involving athletes in product development, marketing strategies, experiential initiatives, and impact-driven projects, brands can benefit from their unique perspectives and vast audiences. Brush up on this shifting dynamic by streaming our SXSW 2024 talk, “Athlete as a Brand: Creating Authentic Connections.” 
  3. MARKETERS WILL TRULY PLUG INTO GAMING: Marketers are no longer overlooking gaming and e-sports, which boast 3.3 billion gamers globally and will reach $4.3 billion in global ad revenue this year. With immersive consumer experiences now a priority for brands, gaming is the perfect market. Keep an eye out at Cannes for insights emerging from campaigns that win big at the Entertainment Lions for Gaming and Brand Experience & Activation categories. Their success will demystify the nascent big-C creative and performance media opportunities. You also won’t want to miss Stagwell’s GALE in conversation with Lenovo, Activision Blizzard, and the National Women’s Soccer League at SPORT BEACH on Tuesday on the future of consoles and community. One other thing to track: 2023 was a big year for the convergence of gaming, marketing, and branded entertainment, as massive titles like the Super Mario Bros. movie and “The Last of Us” translated into branding opportunities galore. Brush up on the insights with National Research Group’s whitepaper, “Why Video Games are the New Frontier for Hollywood.” 

Follow the Buzz from SPORT BEACH

Join us on LinkedIn, Twitter, Instagram, and YouTube as the Stagwell network hits the ground at Cannes Lions and brings to life SPORT BEACH, our flagship activation home to 50+ of the most renowned athletes, brands and cultural icons coming together around the power of sport and its massive global impact on business and culture. 

Learn more and register at https://www.sportbeach.com/

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ABOUT COLLE MCVOY

Colle McVoy (CM) is a full-service creative agency that builds enduring relationships between forward-thinking brands and people. We believe this time of rapid change is filled with opportunities, so we constantly strive to push the boundaries of creativity, pressure-test best practices and create new brand futures. As a Certified B Corporation, we believe a better future means we have a responsibility to use our expertise as a force for good to benefit all people, communities and the planet.

Frontiers in Focus

Want to explore more of the frontiers of marketing? View more of our work on the cutting edge of AI and immersive brand experiences here

SIGN UP FOR OUR INSIGHTS BLASTS

We’re sure you’ve heard about JOMO (the joy of missing out). Here’s the reality: It’s one thing to miss out, it’s an entirely different thing to find the joy in it. 

To reinforce La-Z-Boy’s new platform, Long Live the Lazy, Colle McVoy’s creative technology team designed and fabricated “The Decliner,” a first-of-its-kind recliner allowing owners to AI-generate a cancellation excuse via SMS simply by pulling the handle. 36,000+ people signed up for a chance to win their own Decliner just in time for National Lazy Day as part of the earned creative brand act. 

Our Approach to Transformation

For a chance to put their feet up with AI assistance and La-Z-Boy style, people were asked to submit the most creative excuses they’ve ever used to protect their JOMO. And, influencers created content to amplify attention to the contest. The innovation was a technological hack—with 225 lines of code directing the AI server and 344 lines for each fabricated chair. An indicator of sorts had to be fashioned to let people know requests were processing, which took the form of an LED-lined puck at the handle base. The tech choices needed to be as reliable as the chairs themselves and couldn’t disrupt La-Z-Boy’s comfort and durability standards.

Our Impact

Colle McVoy drove 1.1B media impressions across 317 placements in the likes of USA Today, Better Homes & Gardens, Architectural Digest and more. People definitely put their feet up, juicing La-Z-Boy’s website traffic by 200% and increasing brand sales by 50% during the first weekend of the campaign.

The La-Z-Boy Decliner has gone on to win several awards, including Best in Technology at the 2023 PRWeek Awards and Best in Research & Consumer Insights in MediaPost’s Planning & Buying Awards. Nearly 13,000 cancellations have been sent by Decliner owners, giddy with AI-assisted JOMO. 

Wondering where to begin with AI implementation in your organization?

Email Beth Sidhu, Chief Brand and Communications Officer at Stagwell, to discuss how we can support your organization’s digital goals. 

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Stagwell is a contender for Network of the Year at The 2024 Webby Awards with 23 nominations

With nominations across categories including Marketing, Innovation, Health & Wellness, Diversity, Equity & Inclusion, and more, Stagwell and its agencies are on course to take home big wins at the 28th Annual Webby Awards, the leading international award recognizing excellence on the internet. Twelve Stagwell agencies are up for consideration in the People’s Voice vote: 72andSunny, Code and Theory, Doner, Instrument, GALE, PRophet, Rhythm, Left Field Labs, Movers+Shakers, Anomaly, Allison, HUNTER and Mediacurrent. Every vote countsclick through the nominations listed below to cast your vote.

Voting takes less than ten seconds:

  1. Click through the links to each nomination
  2. Create an account
  3. Click VOTE

Voting closes on April 18.

72andSunny

Advertising, Media & PR

Wisp: Anti-Choice Ads — Online Guerilla & Innovation

Wisp: Anti-Choice Ads — Video Ad Shortform

United: Believing Everything Changes — Best Media Strategy

Social

Wisp: Made By Choice — Public Service, Social Impact & Activism

NFL: The Table Read — Sports

Anomaly

Video

Johnnie Walker Red Carpet Strides — Diversity, Equity & Inclusion

Code and Theory

Advertising, Media & PR

YETI: Map The Gaps — Products & Services

YETI: Map The Gaps — Best Use of Online Media

Amazon: Ads That Work As Hard As You Do — B2B Campaign

 

Apps & Software

Scout by Sutter Health: A Powerful Tool For Building Resilience in Today’s Youth — Health, Wellness & Fitness

Doner

Advertising, Media & PR

The NIL Student Nurse Initiative — Health, Wellness & Pharmaceutical

The NIL Student Nurse Initiative — Best Partnership or Collaboration

Social

Hungry Howie’s: The Missing Slice — Public Service & Activism

GALE

Advertising, Media & PR

Chipotle: Doppelganger — Best Use of Data Driven Media

 

Video

MilkPEP: Wood Milk — Comedy

HUNTER

Advertising, Media & PR

Lactaid: Kelis Partners With Lactaid to Get You to Drink Real Dairy — Best Influencer Endorsements

Instrument

Websites and Mobile Sites

Catona Climate — Corporate Social Responsibility

Figma: Shortcut by Figma — Business Blog/Website

Microsoft: The hidden power of feelings — Health & Wellness

Microsoft: The future of work is neurodiverse — Responsible Innovation

Left Field Labs

Mediacurrent

Movers+Shakers

PRophet

Apps and Software

PRophet Influence: Koalifyed — Marketing & Content Management

Rhythm

Allison

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Stagwell’s agencies led the show at this year’s Campaign U.S. Agency of the Year Awards, one of the biggest U.S. award shows recognizing creative excellence and outstanding business performance across marketing firms. 

Assembly was crowned U.S. Media Agency of the Year, reflecting the impact its investments in data, talent, and technology have had on its clients’ businesses. The agency achieved a record client retention rate of 95%, which has resulted in tremendous growth, securing $30 million in new contracts and 25 net new clients including Carter’s Cole Haan, Vera Bradley, ONE, Inogen and Brooks Running. Additional factors contributing to the win include:

  • Driving the largest revenue growth yet in a seven-year partnership with Ace Hardware;
  • Executing a rebranding and repositioning at the holding-company level in collaboration with partners at Elevance Health and;
  • Launching a first-of-its-kind loyalty program that helped Vivid Seats distinguished itself from competitors such as SeatGeek and StubHub, yielding a 250% growth in repeat user base and quadrupled brand searches.

GALE won U.S. Advertising Agency of the Year for its remarkable blend of advisory/consulting services, media, and storytelling expertise – a model that has driven clear results for client partners such as Chipotle and MilkPep. Editors celebrated the impact of GALE’s work in 2023, including:

Congratulations are also in order for 72andSunny and Code and Theory who were recognized as honorable mentions in the Advertising Agency and Digital Innovation categories. The agencies have a proven track record of recognition for business and creative transformation.

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SXSW 2024: Pulse on Culture for the C[x]O

As an essential convergence point for marketers anticipating the future, SXSW helps businesses unveil the trends at the intersection of culture, commerce, and digital transformation that will shape a new age of consumers. As our teams emerge from SXSW, here are five consumer trends that demand attention, offering insights into what lies ahead. Connecting each trend is an opportunity to build fandom with consumers around your business.

ATHLETES AS BRANDS; A NEW FANDOM HOOK?

Brandon Marshall, former 12-year NFL wide receiver and host of I AM ATHLETE, says today’s athletes are multi-hyphenate leaders – building businesses and nonprofits, and creating identities that go well beyond the field, court or track. For brands, this offers a major opportunity to write a new playbook for partnership that positions athletes as multi-dimensional ambassadors to reach consumers who are hungry for authentic connection. For Kalen Thornton, a former NFL player and current senior PepsiCo executive, the three things to consider are authenticity, connection and distinction. Authenticity is especially crucial in today’s marketing landscape; consumers appreciate genuine connection, and it can make or break whether they transition to long-term brand fans. If CMOs can build stronger partnerships with athletes that reflect that, they’re in a better place to activate athletes as brand storytellers – in turn creating fandom with customers.

Keeping up with Jarvises: The Race to Bots with Benefits

There were few explicit sessions in the advertising track at SXSW on AI –  but of those on the agenda, sessions like “Navigating Advertising Hype Cycles” made it clear marketers are over the buzz, and in the mood for clear use-cases. Here’s one to noodle on. Generative AI is ushering in subtle yet impactful changes in consumer interactions with products and services. The focus extends beyond convenience; whether stated or not, we are now in an arms race to create realistic versions of popular sci-fi bots like Iron Man’s Jarvis. In this “age of anticipation,” as Code and Theory Chairman Dan Gardner calls it, brands must stay ahead by developing or integrating with the best personal assistants available to link their consumer experiences to a broader ecosystem of value. Already, we’re seeing global brands like L’Oreal and Walmart take steps to infuse AI assistants into their brand proposition, whether by providing beauty advice or enhancing moments across the retail experience. Gardner emphasizes the imminent digital transformation of customer experiences, fueled by vast data and AI’s ability to anticipate needs rather than merely reacting. This is an opportunity for every sector, and one that requires keen collaboration between CEOs and their marketing and technology leaders.

“For too long, we’ve been looking at ‘personalization’ as the answer. That was just targeting. Now, we will begin to see industries disrupted by a reimagined approach to delivering value. We are finally at the point where AI plus data can anticipate customer behaviors. This will boost sales in the near term as well as build affinity in the future,” says Gardner.

Adulthood Canceled? Gen Z’s Mid-Life Crisis as an Experiential and Commerce Opportunity

The COVID-19 pandemic triggered seismic shifts in digital transformation, giving rise to entirely new consumer behaviors and sectors. For Gen Z, already wielding significant global purchasing power, the pandemic resulted in missed rite of passage moments, impacting independence and income security. 38% of Gen Z women feel like their lives were ‘canceled,’ and 61% of Gen Z say the pandemic has increased their feelings of loneliness, per Stagwell’s Harris Poll.

At SXSW, conversations in the advertising track like “Building Brands in the Unhappiness Era” converged around the opportunity to create positive and delightful experiences for consumers – a bulwark against the bad vibes COVID left behind. Whether that’s adopting a play-centric approach to brand expression or leaning into branded entertainment, the challenge and opportunity are clear: the most active purchasing group for the next decade is eager to make up for lost time. How will brands help them conquer this opportunity? Strategies that cultivate equity and fandom by incorporating community, connection, and experience into marketing will dominate.

Navigating the New Consumer “Political Brain”

In a polarized landscape, brands risk losing support if they enter politics improperly. Activating consumers’ “political brains” divides the base and diminishes brand support. Stagwell Chairman and CEO Mark Penn says:  “At best, politics splits this country 50–50. If you get involved in politics in any way, whatever your popularity is, it [gets] cut in half. For brands like targeting mass market consumers, you cannot win. You can only win if you’re a smaller niche brand that has a group of customers that would be very compatible with your values or political values, or you’ve expressed those values during a prolonged period of time, so they’re already baked into your brand.”

To insulate themselves, Chief Communications Officers must tread carefully, avoiding making consumers feel like they’re casting a vote with each purchase. They must seek, as well, counsel from perspectives across the political spectrum, acknowledging their consumers are diffuse in their ideology as well.

Beyond the ‘Shop’ Page; Will AI Transform E-Commerce?

“Brands are at a pivotal moment in time when it comes to e-commerce,” says Lauren Kushner, CEO, Kettle. “Many retailers had a booming few years followed by some softness in their conversion funnel and they are taking a hard look at how e-commerce can work harder for them. Enter tools and experiences powered by AI.”

AI is poised to elevate e-commerce by forcing brands to rethink their online interactions, moving beyond the push to a push-and-pull cycle with their customers. With tools and experiences powered by AI, brands can create contextualized and innovative online experiences that anticipate consumer needs. Hyper-personalized recommendations and streamlined purchase flows promise to forge more meaningful connections with brands and drive conversions.

Bring Community to Commerce

As Redscout CEO Ivan Kayser tells it, a modern approach to the marketing mix places community, advocacy, and content at its core. “We are just starting to dig through the rubble of the DTC reckoning, beginning to draw lessons from rule-breaking brands that are operating from a completely new playbook. Brands that are deepening value for and with their existing customers rather than focusing solely acquisition should be watched closely.” Per a new study from Assembly and Dotdash Meredith, unveiled at SoHo House at SXSW on Monday, communities provide marketers with the chance to talk, explore, and support the motivations and values that drive consumer behavior.

The balancing act moving forward is seeking strategies that genuinely benefit the business bottom line – while engaging customers in a manner that doesn’t scream transactional. While on the ground at SXSW, Kayser has been on the lookout for measurement approaches focusing on differentiation, consumer preference, and margin. And for brands that treat every aspect of the business as an expression of the brand, greatly expanding the opportunity to build fandom with each touchpoint. If you can advance short-term revenue goals while building a cohort of customers that will follow, and purchase with you, in the future, you can crack the fandom code. 

Follow Along

In the dynamic realm of SXSW, these trends provide a glimpse into the future, challenging marketers to adapt and innovate in the ever-changing landscape of commerce, culture, and consumer behavior. Follow along with Stagwell on LinkedIn, Twitter, and Instagram as SXSW continues.

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Connect with Stagwell at CES 2024

Stagwell will return to Las Vegas for CES 2024, where we will host a series of conversations at the intersection of business, marketing and impactful technology. Join us for interactive briefings, hands on experiences, and shared discourse to level up your experience at the world’s biggest technology show.

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Boot up! The U.S.’ biggest technology show, CES, is just around the corner and Stagwell is headed to Vegas with our eyes peeled for the technology that will drive marketing and business transformation in 2024. CES is inspirational, no doubt. But for modern business leaders, finding focus on the convention floor can be tricky.

To help the C-Suite parse the fads from the frontiers at CES, Stagwell is launching the first edition of a new insights series, C [×] O. Across some of the biggest creative, technology, and marketing events this year, we’ll bring our brand of smart, quick insights to focus the C [×] O in your organization on the most valuable transformations to track. At CES, we’ll be looking out for trends for the CEOs, CMOs, CTOs, and C(Communications) Officers.

Still getting your plans together for Vegas? Meet our experts here and read on for their predictions of what to expect on the ground.

CEOs: Remember the VCR
David Sable, Vice Chair, Stagwell

CES can be the equivalent of watching a focus group with a loud and polarizing participant who creates a dynamic around one POV that suits their purpose. I refer you, with caution, to the years where we heard that drones would take over the world; AR/VR would change everything we did; Climate issues would be core to all that we buy: TV screens were dead and gone: and of course, AI will rule the world.

In 1970, at CES, Phillips introduced the consumer VCR, bringing a $50,000 TV studio product to our homes…which evolved to the Streaming we have today. Keep your eyes open and your minds free. Think about that VCR, ignore the group think, and see if you can spot what actually might be next. Contrarian thinking may unlock an unpopular or unexpected path to transforming your business. More to come from the floor.

CMOs: Look Out for The Age of Smarter Creativity
Maggie Malek, President, North America, Crispin Porter + Bogusky

CES 2024 will be another chapter in the narrative of finding the balance between technology and people. AI will, of course, be the champion as it’s top of mind for virtually everyone, but 2024 will be about how companies utilize the tech to enable even smarter marketing. CMOs will continue to have to find the right magic middle of leveraging AI for efficiencies while re-investing those savings into areas to drive their business. AI will allow dollars to be spent towards smarter creative; more access to creators as advertisers; reduced media waste with AI-enabled adtech; revitalizing purpose-driven investments from equity to sustainability; and stronger digital experiences to drive personalization in a cookieless world. Life post-pandemic has always been about efficiency, but we’re optimistic 2024 enables brand building to re-emerge even smarter than before.

CTOs: The Quantum Era Puts the CTO-CMO Partnership in Focus
Justin Lewis, Chair, Constellation

Technology transformation surged in 2023 with the adoption of consumer-friendly GenAI. This shift mirrored the early days of social media, swiftly evolving from initial skepticism to a rallying cry for global businesses and tech leaders. CES 2024 promises to chart AI’s continued trajectory as we are treated to tangible results from a year of experimentation across various sectors.

CES will be a pivotal moment for tech leaders, emphasizing the imperative collaboration between Chief Technology Officers (CTOs) and Chief Marketing Officers (CMOs). Expect organizations to rekindle focus on this partnership, which is essential for transforming innovation into category-defining opportunities. On the ground, I’ll be tracking how immersive tech like AR and VR gains traction, infiltrating education, fitness, and business applications; how industries expand blockchain’s applications, especially in healthcare; and how quantum computing, a game-changing tech, takes the spotlight for its problem-solving prowess and security enhancements, demanding collaboration between tech experts and the government to navigate associated risks.

CCOs: With Mis/Mal/Dis-Information Afoot, 2024 is the Year of Responsible Tech
Ray Day, Vice Chair, Stagwell

For Chief Communications Officers at this year’s CES, “responsible tech” needs to be a major theme. While AI was THE headline of 2023, adopting it – as well as other game-changing technologies – responsibly and ethically will be job one for those of us trusted with stewarding an organization’s reputation. Comms leaders need to be focused on technology and its role in misinformation – especially leading up to the U.S. General Election; polarization and how to use technology to bring people back together; and better anticipating the ever-increasing reputation risks technology will pose in the year ahead.

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