Originally Released On

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CONTACT:

IR Contact:
Ben Allanson
ir@stagwellglobal.com 

PR Contact:
Sarah Arvizo
pr@stagwellglobal.com 

Revenue Growth of 8%, Led by 13% Growth from Performance Media & Data

Net Loss Attributable to Stagwell Inc. Common Shareholders of $1.3 million

Adjusted EBITDA of $90 million, An Increase of 25% Year-Over-Year

Adjusted EBITDA Margin of 17%, An Increase of 320 Basis Points Year-Over-Year

EPS of $(0.01); Adjusted EPS of $0.16, An Increase of 14% Year-Over-Year

Net New Business of $66 million in Q1; LTM Net New Business of $284 million

Reaffirm Guidance for 2024 of Organic Net Revenue Growth of 5% to 7%; Adjusted EBITDA of $400 million to $450 million; Free Cash Flow Conversion of ~50%

NEW YORK, May 1, 2024 /PRNewswire/ — (NASDAQ: STGW) – Stagwell Inc. (“Stagwell”) today announced financial results for the three months ended March 31, 2024.

FIRST QUARTER RESULTS:

• Q1 Revenue of $670 million, an increase of 8% versus the prior year period.
• Q1 Net Loss attributable to Stagwell Inc. Common Shareholders of $1.3 million versus Income of $1.4 million in the prior year period.
• Q1 Adjusted EBITDA of $90 million, an increase of 25% versus the prior year period.
• Q1 Adjusted EBITDA Margin of 17% on net revenue, an improvement of 320 basis points versus the prior year period.
• Q1 Earnings Per Share Attributable to Stagwell Inc. Common Shareholders of $(0.01) versus $0.00 in the prior year period.
• Q1 Adjusted Earnings Per Share attributable to Stagwell Inc. Common Shareholders of $0.16 versus $0.14 in the prior year period.
• Net new business wins of $66 million in the first quarter, last twelve-month net new business wins of $284 million.
• Q1 Net Revenue of $532 million, an increase of 2% versus the prior year period.
• Q1 Organic Net Revenue increased 2% versus the prior year period, led by 54% increase in Advocacy.

Mark Penn, Chairman and CEO, said, “We are on target for 2024 with a return to growth and strong margin expansion led by the double-digit growth of the Performance Media & Data Capability. We see tailwinds of record new business, growth in advertising generally, and a strengthened market position given growing industry accolades for our work.”

“We continue to invest in technology with the Stagwell Marketing Cloud setting the pace for innovation and we believe that we will see growth in AI-related digital transformation assignments building in the second half of the year along with a strong advocacy season. At the same time, we are successfully expanding our global presence, and we are seeing that pay dividends with enhanced growth.”

Frank Lanuto, Chief Financial Officer, commented: “Revenue in Q1 grew by 8% year-over-year to $670 million. Cost actions taken in 2023 contributed to 25% growth in adjusted EBITDA or $90 million, representing a 17% adjusted EBITDA margin, an improvement of 320 basis points over the prior year. We are well positioned to achieve our 2024 targets, as we continue to focus on efficiency, especially through the implementation of AI on our shared services platform.” 

Financial Outlook

2024 financial guidance is reiterated as follows:

• Organic Net Revenue growth of 5% to 7%
• Organic Net Revenue excluding Advocacy growth of 4% to 5%
• Adjusted EBITDA of $400 million to $450 million
• Free Cash Flow Conversion of approximately 50%
• Adjusted EPS of $0.75 – $0.88
• Guidance assumes no impact from foreign exchange, acquisitions or dispositions.

* The Company has excluded a quantitative reconciliation with respect to the Company’s 2024 guidance under the “unreasonable efforts” exception in Item 10(e)(1)(i)(B) of Regulation S-K. See “Non-GAAP Financial Measures” below for additional information.

Video Webcast

Management will host a video webcast on Wednesday, May 1, 2024, at 8:30 a.m. (ET) to discuss results for Stagwell Inc. for the three months ended March 31, 2024. The video webcast will be accessible at https://stgw.io/Earnings. An investor presentation has been posted on our website at www.stagwellglobal.com and may be referred to during the webcast.

A recording of the webcast will be accessible one hour after the webcast and available for ninety days at www.stagwellglobal.com.

Stagwell Inc.

Stagwell is the challenger network built to transform marketing. We deliver scaled creative performance for the world’s most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing. Led by entrepreneurs, our specialists in 34+ countries are unified under a single purpose: to drive effectiveness and improve business results for their clients. Join us at www.stagwellglobal.com.

Contacts

For Investors: 
Ben Allanson
IR@stagwellglobal.com

For Press:
Beth Sidhu
PR@stagwellglobal.com

Non-GAAP Financial Measures

In addition to its reported results, Stagwell Inc. has included in this earnings release certain financial results that the Securities and Exchange Commission (SEC) defines as “non-GAAP Financial Measures.” Management believes that such non-GAAP financial measures, when read in conjunction with the Company’s reported results, can provide useful supplemental information for investors analyzing period to period comparisons of the Company’s results. Such non-GAAP financial measures include the following:

(1) Organic Revenue: “Organic revenue growth” and “Organic revenue decline” reflects the year-over-year change in the Company’s reported net revenue attributable to the Company’s management of the entities it owns. We calculate organic net revenue growth (decline) by subtracting the net impact of acquisitions (divestitures) and the impact of foreign currency exchange fluctuations from the aggregate year-over-year increase or decrease in the Company’s reported net revenue. The net impact of acquisitions (divestitures) reflects the year-over-year change in the Company’s reported net revenue attributable to the impact of all individual entities that were acquired or divested in the current and prior year. We calculate impact of an acquisition as follows: (a) for an entity acquired during the current year, we present the entity’s prior year net revenue for the same period during which we owned it in the current year as impact of the acquisition in the current year; and (b) for an entity acquired in the prior year, we present the entity’s prior year net revenue for the period during which we did not own the entity in the prior year as impact of the acquisition in the current year. We calculate impact of a divestiture as follows: (a) for a divestiture in the current year, we present the entity’s prior year net revenue for the same period during which we no longer owned it in the current year as impact of the divestiture in the current year; and (b) for a divestiture in the prior year, we present the entity’s prior year net revenue for the period during which we owned it in the prior year as impact of the divestiture in the current year. We calculate the impact of any acquisition or divestiture without adjusting for foreign currency exchange fluctuations. The impact of foreign currency exchange fluctuations reflects the year-over-year change in the Company’s reported net revenue attributable to changes in foreign currency exchange rates. We calculate the impact of foreign currency exchange fluctuations for the portion of the reporting period in which we recognized revenue from a foreign entity in both the current year and the prior year. The impact is calculated as the difference between (1) reported prior period net revenue (converted to U.S. dollars at historical foreign currency exchange rates) and (2) prior period net revenue converted to U.S. dollars at current period foreign exchange rates.

(2) Net New Business: Estimate of annualized revenue for new wins less annualized revenue for losses incurred in the period.

(3) Adjusted EBITDA: defined as Net income excluding non-operating income or expense to achieve operating income, plus depreciation and amortization, stock-based compensation, deferred acquisition consideration adjustments, and other items. Other items include restructuring costs, acquisition-related expenses, and non-recurring items.

(4) Adjusted Diluted EPS is defined as (i) Net income (loss) attributable to Stagwell Inc. common shareholders, plus net income attributable to Class C shareholders, excluding amortization expense, impairment and other losses, stock-based compensation, deferred acquisition consideration adjustments, discrete tax items, and other items, divided by (ii) (a) the per weighted average number of common shares outstanding plus (b) the weighted average number of Class C shares outstanding, (if dilutive). Other items includes restructuring costs, acquisition-related expenses, and non-recurring items, and subject to the anti-dilution rules.

(5) Free Cash Flow: defined as Adjusted EBITDA less capital expenditures, change in net working capital, cash taxes, interest, and distributions to minority interests, but excludes contingent M&A payments. Free Cash Flow Conversion is the percentage of adjusted EBITDA.

Included in this earnings release are tables reconciling reported Stagwell Inc. results to arrive at certain of these non-GAAP financial measures.

This document contains forward-looking statements. within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company’s representatives may also make forward-looking statements orally or in writing from time to time. Statements in this document that are not historical facts, including, statements about the Company’s beliefs and expectations, future financial performance, growth, and future prospects, the Company’s strategy, business and economic trends and growth, technological leadership and differentiation, potential acquisitions, anticipated operating efficiencies and synergies and estimates of amounts for redeemable noncontrolling interests and deferred acquisition consideration, constitute forward-looking statements. Forward-looking statements, which are generally denoted by words such as “aim,” “anticipate,” “assume,” “believe,” “continue,” “could,” “create,” “estimate,” “expect,” “focus,” “forecast,” “foresee,” “future,” “goal,” “guidance,” “in development,” “intend,” “likely,” “look,” “maintain,” “may,” “ongoing,” “opportunity,” “outlook,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” or the negative of such terms or other variations thereof and terms of similar substance used in connection with any discussion of current plans, estimates and projections are subject to change based on a number of factors, including those outlined in this section. 

Forward-looking statements in this document are based on certain key expectations and assumptions made by the Company. Although the management of the Company believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. The material assumptions upon which such forward-looking statements are based include, among others, assumptions with respect to general business, economic and market conditions, the competitive environment, anticipated and unanticipated tax consequences and anticipated and unanticipated costs. These forward-looking statements are based on current plans, estimates and projections, and are subject to change based on a number of factors, including those outlined in this section. These forward-looking statements are subject to various risks and uncertainties, many of which are outside the Company’s control. Therefore, you should not place undue reliance on such statements. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update publicly any of them in light of new information or future events, if any.

Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statements. Such risk factors include, but are not limited to, the following:

• risks associated with international, national and regional unfavorable economic conditions that could affect the Company or its clients;
• and demand for the Company’s services, which may precipitate or exacerbate other risks and uncertainties;
• inflation and actions taken by central banks to counter inflation;
• the Company’s ability to attract new clients and retain existing clients;
• the impact of a reduction in client spending and changes in client advertising, marketing and corporate communications requirements;
• financial failure of the Company’s clients;
• the Company’s ability to retain and attract key employees;
• the Company’s ability to compete in the markets in which it operates;
• the Company’s ability to achieve its cost saving initiatives;
• the Company’s implementation of strategic initiatives;
• the Company’s ability to remain in compliance with its debt agreements and the Company’s ability to finance its contingent payment obligations when due and payable, including but not limited to those relating to redeemable noncontrolling interests and deferred acquisition consideration;
• the Company’s ability to manage its growth effectively, including the successful completion and integration of acquisitions that complement and expand the Company’s business capabilities;
• the Company’s ability to develop products incorporating new technologies, including augmented reality, artificial intelligence, and virtual reality, and realize benefits from such products;
• adverse tax consequences for the Company, its operations and its stockholders, that may differ from the expectations of the Company, including that future changes in tax laws, potential increases to corporate tax rates in the United States and disagreements with tax authorities on the Company’s determinations may result in increased tax costs;
• adverse tax consequences in connection with the Transactions, including the incurrence of material Canadian federal income tax (including material “emigration tax”);
• the Company’s unremediated material weaknesses in internal control over financial reporting and its ability to establish and maintain an effective system of internal control over financial reporting;
• the Company’s ability to protect client data from security incidents or cyberattacks;
• economic disruptions resulting from war and other geopolitical tensions (such as the ongoing military conflicts between Russia and Ukraine and in Israel and Gaza), terrorist activities and natural disasters;
• stock price volatility; and
• foreign currency fluctuations.

Investors should carefully consider these risk factors, other risk factors described herein, and the additional risk factors outlined in more detail in our 2023 Form 10-K, filed with the Securities and Exchange Commission (the “SEC”) on March 11, 2024, and accessible on the SEC’s website at www.sec.gov, under the caption “Risk Factors,” and in the Company’s other SEC filings.

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.

CONTACT

ces2023@stagwellglobal.com

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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.

Contact:

hello@stagwellglobal.com

CONTACT

hello@stagwellglobal.com

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72andSunny

• Call of Duty Modern Warfare “Squad Up” – Nominee – Video > General Video > Trailer – VOTE HERE 
• NFL “We See You” – Honoree – Advertising, Marketing & PR > Advertising Campaign > Corporate Social Responsibility Campaign – VIEW THE WORK 
• HubSpot “Success Stories” – Honoree – Advertising, Marketing & PR > Craft > Best Copywriting – VIEW THE WORK 
• Bumble “Fall in Love with Dating” –  Honoree – Advertising, Marketing & PR > Individual > Video Ad Shortform > VIEW THE WORK  
• Google “Helping You Help Them” – Honoree – Advertising, Media & PR – Advertising Campaigns – Best Partnership or Collaboration – VIEW THE WORK  

Anomaly

• Make Time for the Life Artois – Nominee – Advertising, Media & PR > Craft > Best Video Editing – VOTE HERE

ARound

• ARound Stadium – Honoree – Apps, dApps and Software > App Features > Best Use of Augmented Reality – VIEW THE WORK

Code and Theory

• Skidmore, Owings & Merrill – Nominee – Websites and Mobile Sites > General Websites and Mobile Sites > Architecture, Art & Design – VOTE HERE
• Code and Theory Inclusive Design & Marketing – Honoree  – Video > Branded Entertainment > Diversity, Equity & Inclusion – VIEW THE WORK
• Windows (Consumer) – Honoree –  Websites and Mobile Sites > General Websites and Mobile Sites > Web Services & Applications – VIEW THE WORK
• Fatherly – Honoree – Websites and Mobiles Sites > General Websites and Mobile Sites > Travel & Lifestyle – VIEW THE WORK
• Amazon Ads – Honoree – Advertising, Media & PR > Branded Content > Products & Services – VIEW THE WORK

GALE

• 26.2 You’re Gonna Need Milk For That with MilkPEP – Nominee – Advertising, Media & PR > PR Campaigns > Best Event Activation > VOTE HERE  

HUNTER

• Johnnie Walker and Lilly Singh Join Forces for Gender Parity in Leadership – Nominee –  Video > Branded Entertainment > Corporate Social Responsibility – VOTE HERE

Instrument

• Eames Institute – Nominee – Website and Mobile Sites > General Websites and Mobile Sites > Architecture, Art & Design > VOTE HERE
• Blackspace – Nominee – Websites and Mobile Sites > General Websites and Mobile Sites > Activism – VOTE HERE

Observatory

• “Live From The Upside Down” Netflix Stranger’s Things and Doritos from Observatory & Slap Global – Nominee – Advertising,  Media & PR > Branded Content > Media & Entertainment – VOTE HERE 
• “Live From The Upside Down” Netflix Stranger’s Things and Doritos from Observatory & Slap Global – Nominee – Video > Branded Entertainment > Media & Entertaniment – VOTE HERE
• “Live From The Upside Down” Netflix Stranger’s Things and Doritos from Observatory & Slap Global – Nominee – Metaverse, Immersive & Virtual > General Virtual Experiences > Entertainment, Sports & Music – VOTE HERE 

YML

• YETI Year in Preview: Plan your wildest year yet – Nominee – Websites and Mobile Sites > General Websites and Mobile Sites > Events – VOTE HERE 
• Albertsons: Simplifying Grovery Shopping for Millions – Nominee – Apps, dApps and Software > General Apps > Shopping & Retail – VOTE HERE 
• Chopt: Building an End-to-End Experience for a Challenger Brand – Nominee – Apps, dApps and Software > General Apps > Food & Drink –  VOTE HERE 
• FIREWATCH: Using NFTs to Fight California Wildfires – Honoree -Websites and Mobile Sites – Responsible Innovation – VIEW THE WORK  
• Albertsons: Simplifying Grocery Shopping for Millions in the Websites and Mobile Sites – Honoree – Best Mobile Visual Design – Function – VIEW THE WORK 
• Champion: Evolving an Iconic Brand For a New Generation – Honoree – Websites and Mobile Sites > Shopping & Retail –  VIEW THE WORK 
• Chopt: Building an End-to-End Experience for a Challenger Brand – Honoree – Apps, dApps and Software > Technical Achievement – VIEW THE WORK 
• FIREWATCH: Using NFTs to Fight California Wildfires – Honoree – Websites and Mobile Sites > Sustainable Technology: VIEW THE WORK 

Originally Released On

PR Newswire

CONTACT:

Media Contact
Sarah Arvizo
pr@stagwellglobal.com

Originally Released On

PR Newswire

CONTACT:

Alex Birmingham
KWT Global
abirmingham@kwtgloblal.com

Emily Falcone
Axios
emily.falcone@axios.com

Originally Released On

PR Newswire

CONTACT:

Sarah Arvizo
Stagwell
pr@stagwellglobal.com 

By

By: Aaron Kwittken, Co-Founder and CEO, PRophet

Originally Published in The Drum

CONTACT

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When I launched PRophet in late 2020 I left behind both the ’comforts’ of agency life and the agency I founded. Fast-forward to 2023 and the road less traveled is now a digital super-highway destined to transform the PR industry as we know it, primarily using AI-driven technologies and techniques designed to make modern communicators more productive.

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As we look to the future of marketing, one thing is certain: Artificial Intelligence (A.I.) will play a major role in shaping the industry. From generative A.I. revolutionizing the way we approach creativity to predictive A.I. providing unprecedented insights and analytics, the potential of A.I. in marketing is vast and exciting.  

But what exactly does the next decade hold for this rapidly evolving field? We asked some of the top minds across Stagwell, including leaders from the Stagwell Marketing Cloud, PRophet, Code and Theory, Colle McVoy, Yamamoto, Concentric Health Experience, and Vitro, to share their predictions and insights on the future of A.I. in marketing.  

A.I. Won’t Eat the World – But it Will Give Consumers Time and Brands Opportunity

Mansoor Basha, Chief Technology Officer, Stagwell Marketing Cloud

“AI and ML are at the forefront of driving digital transformation across industries and will undoubtedly continue to do so. In a 2011 op-ed, Marc Andreessen observed an environment in which software was increasingly becoming king, famously stating that ‘software is eating the world.’ His observation came about a decade after the peak of the 1990s dot-com bubble as companies like Facebook and Skype were booming. Looking to the next decade, I believe that AI and ML will be eating the world, changing the way we work, live, and interact with brands. 

I predict that as AI technology changes everything around us—with things like driverless cars and more efficient, sustainable systems—consumers will have more time on their hands. This will give brands the opportunity to leverage more pointed channels to reach audiences that have more free time to participate. AI will find brands’ ideal audiences and reach consumers in the right place at the right time, especially as AR and VR go mainstream. 

And as the hype around ChatGPT and generative AI simmers down, marketing teams will become more comfortable adopting a wide range of AI tools that help them build powerful workflows that drive innovation, aid in decision making, and create new business models. ChatGPT will be an entry point for many marketing teams as they look for relevant ways to use new technologies in their day-to-day work.”
 

Enhance, Not Replace

Aaron Kwittken, Founder and CEO, PRophet

“Generative AI, while not perfect, is the needle that pierced the veil of doubt and fear amongst marketers when it comes to adopting AI technology. The current limitations are only encumbered by the lack of data needed to make it more performative. 

When paired with the right inputs, this technology will make marketers more efficient by enabling them to create base content faster and better, freeing them up for higher value tasks like editing and strategy deployment. In addition to content creation for press releases, social posts, pitches, marketing collateral, blogs, and more, I see this technology as a huge aid when it comes to legal and compliance issues, especially when working with third parties like influencers and celebrity spokespeople.

Make no mistake, though, the downsides will need to be managed. 

Generative AI may reduce the need for junior staff; could be used as an accelerant to create and spread mis and disinformation; and could make professionals more complacent, less creative, and more transactional. This is where it will be on marketers to get creative about how they use this tool to enhance their current activities, not replace them.” 

The Key Word with A.I.? Enablement

Dan Gardner, Code and Theory Co-Founder and Executive Chairman

“At the moment, where we will see AI transformation is in how we conduct business. While traditional creative shops may be focused on stunts and activations, I believe the key word here is ‘enablement,’ and how the technology allows businesses to do what they haven’t been able to do before.

Where the technology is built into systems that yield long-term results. What this looks like exactly, we still do not know for certain, but I do know that technology at its best is when it has the power to drive meaningful change in people’s lives.” 

Watch Out for A.I.’s “WordPress” Era

Yamamoto Digital Team

In the end it’s not the technology that sells, it’s the story it tells.”  

Welcome to AI as shiny new toy, with machine learning, natural language processing and open access combining to create a sandbox for early adopters. Expect showy, public activations (e.g. Ryan Reynolds reading an AI-generated script for Mint Mobile) as well as backstage experimentation. We marketers will find it hard to pass on an instant first draft of everything we do.  

Then AI enters its WordPress phase. Smaller players will benefit from “good enough” templates that auto-generate content. Meanwhile experts will game AI’s limitations to circumvent the inevitable commoditization.  

There are also threats. To brand safety. To copyright laws. To beliefs about creativity. We’ll have hard conversations about everything from unconscious bias to criminal misuse. Then, in ten years, full impact. We imagine a golden age of hyper-targeted, account-based marketing. We also predict AI depreciating the value of individual assets a la Napster killing the compact disc. Expect real people to respond with bespoke, humanistic, artisan campaigns.   

Finally, a confession. That tasty quote at the top? ChatGPT wrote it. The prompt: Crystalize the future of AI in the haunted, optimistic voice of Don Draper. How’d we do?  

“Make it More Human” 

Ben Majoy, Creative Director, Observatory

We’re in the industry of threading the needle of perfection, constantly trying to find new ways to get as close as possible to what sometimes feels like an impossible vision. Artificial Intelligence is now creating a superficial answer to that question, but we’ll soon see that creating something narratively resonant means a lot more than a “vision” coming to life.

In the same way that a perfect cheeseburger just doesn’t taste as good as a sloppy one (or any other curated vs. bespoke experience example you want to use), we’re going to see that no matter how accurate the A.I. responds to our prompt, it will never FEEL as good as the human-made. There’s humanity in what we do.

Until Artificial Intelligence can replicate nostalgia, trauma, and emotions like seeing someone you haven’t seen in ten years and picking up right where you left off, we will also feel like something is missing. We’re about to enter the era of “make it more human,” taking the place of the “I’ll know it when I see it” feedback loop.

Sturgeon’s Law

Tom Sullivan, CEO, Vitro

RESPONSE TO YOUR PROMPT, FROM CHAT GPT (195 words) 

AI is already revolutionizing marketing…and this continue over the next decade. A big step will be through the use of machine learning algorithms to analyze consumer data and make more targeted, personalized recommendations. This will likely include personalized email campaigns, targeted social media ads, and customized product recommendations on e-commerce sites.

Or course…there are chatbots and virtual assistants. These tools allow companies to interact with customers in real-time, providing immediate support and assistance. They will also be able to handle routine tasks, freeing up human customer service reps to handle more complex inquiries. As time marches on these will continue to get better (and seem even more human). 

AI will also have a major impact on content marketing, as machine learning algorithms will be able to analyze consumer data and create more effective content. This could include personalized blog posts, videos, and other types of content that are more likely to engage and convert consumers. 

Overall, the use of AI in marketing is likely to increase efficiency, reduce costs, and improve the customer experience. Whilst there may be some initial disruptions as companies adopt these new technologies, the long-term benefits are likely to be significant. 

RESPONSE TO YOUR PROMPT, FROM TOM (195 words) 

See above. It’s so generative. It’s Sturgeon’s Law (90% of everything is crap). My guess is…AI will generate at least 50% of marketing assets/thinking. It’ll probably all be pretty smart…pretty good. But when it gets to emotional storytelling, powerful creative…it’ll be just like people, generating a lot of “crap”. AI is digital. Digital is binary. Zeroes and Ones. Blacks and whites. Much of creativity comes from the muted tones, the instincts and intuitions…the random brain synapses that live in the grays. I’ve spent a lot of time playing with AI in several arts (music, writing, imagery). Some of it really interesting, and maybe even gives bits of inspiration…but so much of it is just a mashup of elements we’ve seen before. Usually…you can tell AI was the ghost in the machine, right away.  

These are relatively early days, and they are super exciting…but here are three watchouts that come to mind:  racial biases and presenting incorrect information as true fact. And…look at the “open” in Open AI. It seems to be claiming that everything is open source. So I wonder; will I will end up being a windfall for intellectual property attorneys? Time will tell.   

The InkWell is Half Full for Copywriters

John Neerland, VP, Group Creative Director, Colle McVoy

Over the past month, ChatGPT has hit the world, the industry and advertising copywriters in particular, like a ton of virtual bricks.  

The reaction from writers I’ve talked to has ranged from cautious pessimism to downright dread. Gallows humor abounds. One writer quipped that it might finally be time to get HVAC certified.  

But I’m choosing, for now, to see the inkwell as half full. Just like Photoshop didn’t eliminate art directors and designers, ChatGPT won’t make copywriters obsolete.   

Out of the gate, ChatGPT is only as good as the inputs it receives. And even then, ask it to write headlines for a specific product or brand and you get a list that feels more like 50s newspaper retail ads than the One Show.   

So, if it isn’t pumping out pencil-worthy lines just yet, how can copywriters harness ChatGPT (and not be trampled by it)? Some initial ways include using it to get over blank page syndrome, getting unstuck from one idea or approach, exploring new tones and styles, making copy more search friendly and speeding up the more mundane writing tasks to free up time for more interesting ones.   

Over the next decade, my hope is that copywriters find ways to leverage AI not only as a technological aid to make their work easier and more efficient, but a tool to help make their ideas bigger and their writing better than they’ve ever imagined. Or maybe that’s just what the bots want us to believe. 

A Foundational 21st Century Development

Allison+Partners Digital team

Generative AI is about to change our world.  The capability of AI to generate original and useful creative work at scale is both amazing and terrifying, yet it will be one of the foundational technologies of the 21st century.  There’s no question it will change how we – as communicators and consumers – live, work, learn and even think.   

Tools like ChatGPT make it easier to quickly create targeted content, both written and visual. What’s more, it will help expedite what was once a very manual (and tedious) process by customizing and personalizing content for journalists, analysts and customers. In turn, there’s every chance that many of these pitches will be received by AIs with subsequent stories likely written by them as well. (In fact, some already are – controversially.)

Yes, AI may help everyone create content, just like calculators and spreadsheets help us generate numbers. But AI cannot imagine. It cannot bring years of client experience and strategy to the table. And it cannot replace passion, empathy or excitement for our clients and their offerings. AI is just one tool, plain and simple. We can and should use it to reinforce our best, most human qualities in the many years ahead. However, it will still need you – your humanity, your personality, your perspective and your soul.  

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This piece is part of Stagwell’s Marketing Frontiers content series on Artificial Intelligence. Visit this page to view other perspectives and work from Stagwell’s global teams on A.I.