Publicis Shifts Focus to Creative as AI Expands Beyond Media
▼ Summary
– AI discussions in advertising are shifting from media optimization to creative production, as noted by Publicis CEO Arthur Sadoun.
– Marketers are exploring AI’s potential to create more content faster and cheaper while integrating it with data for personalized campaigns.
– Publicis plans to innovate around AI-driven production in early 2024, seeing it as a major growth opportunity for the industry and the company.
– AI is already impacting creative work, with 22% of video ads using generative AI in 2023, expected to rise to 39% by next year.
– Holding companies like Publicis and Omnicom are integrating AI into creative processes to enhance efficiency and expand creative possibilities.
The advertising industry’s AI focus is expanding beyond media buying into creative production, with major holding companies like Publicis Groupe leading the charge. According to CEO Arthur Sadoun, brands are increasingly asking how AI can streamline content creation while maintaining quality and personalization at scale. This shift marks a turning point for agencies as they reposition creative capabilities as a core growth driver.
During a recent earnings call, Sadoun emphasized that production has become a critical area of investment, describing it as the “backbone” of future innovation. Publicis reported mid-single-digit growth in creative services last quarter, fueled by rising demand for AI-enhanced production workflows. Industry data supports this trend, 22% of video ads last year involved generative AI, a figure projected to jump to 39% within the next twelve months.
The implications are significant. Creative agencies and production studios currently contribute 20% of Publicis’ revenue, a share that could grow substantially as AI tools reduce costs and increase output. Sadoun noted that while media operations evolved rapidly with programmatic buying, creative processes have lagged in digital transformation, until now. AI promises to bridge that gap, much like automation revolutionized media planning.
Other holding companies echo this sentiment. Omnicom’s CTO Paolo Yuvienco revealed how AI enables creative teams to test unconventional ideas through simulated focus groups and real-time campaign adjustments. “This isn’t just about cutting costs,” he explained. “It’s about unlocking entirely new creative possibilities.” Meanwhile, Meta’s push to offer AI tools to smaller advertisers signals broader industry disruption, though holding firms remain focused on enterprise-level opportunities.
Experts warn that success hinges on balancing efficiency with quality. Barney Worfolk-Smith of DAIVID notes that C-suites will prioritize cost savings, but agencies must prove AI-generated content resonates with audiences. The challenge? Standing out in a landscape where everyone adopts similar tools. As Sadoun put it: “We need studios that deliver faster, cheaper, and better, not just more.”
The race is on to redefine creativity in the AI era. Agencies that crack this code could dominate the next decade, while those stuck in legacy models risk obsolescence. One thing’s certain: the divide between media and creative is blurring, and the winners will be those who harness both.
(Source: Digiday)
