As 2023 progresses, the landscape of brand advertising is undergoing a significant transformation, shifting from traditional campaigns to a more intricate blend of marketing and entertainment, driven by the rapid evolution of the industry and the rise of new technologies. This metamorphosis is seeing brand dollars actively invest in the creator economy, where influencers and content creators are central to shaping cultural narratives and business strategies.
James Kirkham, co-founder of brand consultancy Iconic, remarked, “For a long while, we’ve been witnessing the death of the campaign and the birth of the cultural moment. Traditional advertising is entertainment’s understudy, while brands are learning merely to be protagonists in culture stories.” This insight encapsulates the dynamic changes brands are embracing as they seek relevance and engagement in a digitally driven marketplace.
The recent trend is exemplified by M&A activity among major players in the marketing and entertainment sectors. Publicis Groupe's acquisition of Influential and Stagwell's purchase of Leaders are notable examples of this shift. The growth of entities like Common Interest—a marketing holding group aiming to integrate marketing strategies with cultural relevance—reinforces the notion that the line between entertainment and brand marketing is steadily dissolving.
The ongoing acquisition spree highlights an industry recognising the value of cultural connection. Scott Sutton, CEO of Later, provided insights into this trend by explaining the strategic acquisition of social commerce app Mavely for $250 million. He stated, “When we run campaigns for clients we’re leveraging the data we’ve amassed from over 350 million posts on our social platforms alongside 3 million influencer activations… So when we go to work with a brand, we now can predict performance with great accuracy and drive provable ROI for them.” This strategy showcases an enthusiastic embrace of influencer marketing as a means to achieve measurable results.
Matthew Lacey, a partner at M&A advisory firm Waypoint Partners, elaborated on brands’ growing desire for authenticity and cultural relevance. “Whilst technology has become increasingly important to everyone for efficiency purposes, we’ve seen that brands actually want to understand what’s culturally relevant to be authentic,” he commented, indicating that companies are increasingly realising the benefits that arise from aligning with contemporary cultural movements.
The acquisition strategies employed by traditional advertising giants, such as WPP’s purchase of New Commercial Arts and Disney’s substantial investment in Epic Games, also reflect the burgeoning understanding that integrating entertainment with effective marketing is critical. Kirkham pointed to these actions, suggesting that “when WPP acquires creative powerhouses and Disney pours billions into gaming, they’re acknowledging that cultural currency is the only currency that truly matters.”
As the industry continues to grapple with the implications of these trends, the question is no longer whether the convergence of brand advertising and entertainment will proceed, but rather how far this integration will expand. The response to evolving consumer behaviours and preferences will likely dictate the next phase of growth, as firms navigate the blurred lines of marketing, entertainment, and culture in an ever-competitive environment.
Source: Noah Wire Services