Sir Martin, the founder of WPP, leads S4Capital now, which focuses on delivering services in a digital-first manner. He emphasizes how advertising and marketing are at a turning point thanks to AI, which is slowly creeping into the industry. Right now, the actual use cases for AI are still somewhat limited, despite a lot of testing and workshops happening. Many clients hesitate to implement AI at scale for various reasons.
He identifies five key areas where AI is making an impact. First up is copywriting and visualization. AI helps create ads more quickly. This speed is a double-edged sword; as processes get faster, the traditional business model starts to shift. If it takes less time to create ads, clients expect lower costs, which could mean fewer jobs for copywriters and art directors.
Next is personalization at scale. Take a show like “Squid Game” on Netflix. In the past, creating promotional assets might involve about a million and a half pieces. Now, thanks to AI and first-party data, that number is skyrocketing. Although the cost per asset is dropping, the sheer volume creates more opportunities for employment in this area.
Moving to media planning and buying, this sector faces disruption too. Currently dominated by a handful of holding companies employing around 200,000 people, the future looks different. These companies still rely heavily on manual processes, while industries like investment are already using algorithms. Platforms like Google and Meta show the shift toward algorithmic planning and buying. For instance, a significant portion of Meta’s ad revenue now comes from algorithm-driven solutions that simplify the process for advertisers.
Efficiency is another area where AI shines. With new cloud-based solutions, such as those developed in partnership with Nvidia and AWS, what used to require an expensive broadcast truck can now be done at a fraction of the cost. This shift in efficiency could lead to substantial changes within traditional media companies.
Finally, there’s the democratization of knowledge. Leaders like Nvidia’s CEO Jensen Huang manage vast teams differently, emphasizing accountability over traditional one-on-one interactions. This flattening of organizations can reduce political maneuvering and streamline processes.
When asked about AI’s broader influence, Sir Martin notes its transformative effect on sectors like manufacturing and finance. Companies face pressure from lower-cost competitors, like Chinese automakers or fintech startups, pushing them to become more efficient.
For enterprises to capitalize on AI, he suggests three main areas of focus: Agility, control, and the importance of first-party data. The need for agility is evident, but achieving it is challenging. Many organizations outsourced after the 2008 financial crisis, leading to a loss of control over critical functions. Sir Martin argues that regaining this control is essential, especially in data management. With third-party cookies losing effectiveness, leveraging first-party data becomes crucial for staying competitive.
