Uncertainty on the Croisette

“Where agencies will continue to add brilliant value is in applying creative power to a landscape dominated by AI and tech. It might be efficient but brands will need creativity even more to avoid disappearing in a sea of sameness, powered by the same algorithms and LLMs."

Cannes is a once-a-year chance to take a raincheck on the state of the industry and to get the perspective of those who like me who have walked the Croisette for more years than we care to remember.

This year there were more clients and a huge percentage of North American delegates. But there was also a sense of separation. Increasingly there are two Cannes; one for creativity and one for deals, a big, sprawling ad industry trade fair spanning sea-front apartments, hotels and tumbling onto the Cannes beaches where CMOs and platform heads chat to glamorous creators and influencers.

A lot of the conversation was about how agencies are in retreat, with the platforms and ad tech partners not just on the beach and yachts but leading many of the conversations about the future of the industry.

I’m not the first to say that AI was the talk of the town. Every single panel, every single conversation… including at our CMO Forum had an AI angle. That’s no surprise because the transformation in marketing organizations is huge and happening now.

The savings in terms of efficiencies are eye-watering. There is widespread talk of 60-90% efficiencies. One CMO talked about 90% faster content creation and 70% faster launch times.

More than that, AI is redefining the entire go-to-market process as well as the vertical marketing value chain. No single brand has yet got to grips with the scale of the transformation that is coming. The majority approach is to pilot via an AI cross-functional board but all have the same key challenges such as data privacy, IP and bias.

This AI-powered future presents a huge challenge for agencies. Agencies are brilliant at creative but that’s not the majority of their work. They are under pressure and the future is likely a smaller, more efficient, more productive (“less waste”) agency architecture.

Where they will continue to add brilliant value is in applying creative power to a landscape dominated by AI and tech. It might be efficient but brands will need creativity even more to avoid disappearing in a sea of sameness, powered by the same algorithms and LLMs.

Cannes Lions is always an island away from the worries of the world but this year the disconnect felt more extreme than ever. For all the talk of people, purpose and authenticity, there was little mention of war, inflation, the cost-of-living crunch or possible recession.

Where there was common ground was around the issue of uncertainty that many in our industry are grappling with – as reflected in our research – whether that manifests in terms of future of agency models, AI’s impact on jobs, the economy, geopolitics or regulations.

What I was pleased to see this year was the huge support for WFA and its work. There was a big turn-out at our events. We took part in a host of panels and our research into the Marketer of the Future, AI and media, Marketing Transformation and Our Global Risk Barometer all resonated in the South of France.

The hard work for our members starts now as they put the deals done in Cannes and the insights gathered into practice in a way that benefits their businesses the best.