Fueled by data.

Driven by creativity.

Our latest Data for Breakfast conference on AI disruption highlighted a pivotal moment akin to an industrial revolution for ad-tech and advertising. With AI now pervasive and continuously evolving, marketing professionals must rethink their strategies to stay relevant in a rapidly changing landscape. 

Introduction: The AI Revolution 

AI was first introduced in 2019, but its omnipresence is now undeniable. The unprecedented adoption of tools like ChatGPT has set world records, while predictions suggest that by 2028, 72% of people will use generative AI for search—up from just 3% today. As marketers, the challenge lies in navigating this new reality: how do we create and share content when creativity is produced differently, and audiences consume entertainment in novel ways? 

The consensus is clear: while AI won't replace marketers, those who harness AI effectively will outperform those who don't. Marketers should embrace AI as a tool for enhancing productivity and creativity. 

Current Challenges and AI Integration 

 We are currently in a period of experimentation (2024-2026) where marketers are testing various AI applications. Following this phase, a significant acceleration in AI use is expected between 2026-2028, leading to an elevation of AI capabilities by 2028-2030. This timeline suggests a profound transformation in how marketing operates. Despite the progress, several challenges remain. AI's reliance on existing platforms, like Google, means that tools using AI are not yet perfect. Moreover, there are concerns about the potential for AI to exacerbate exciting issues, like toxicity on social media. 

Panel Insights 

The conference featured a panel of industry experts, including Frank Galvani from Google, Solene Deswartes from Intact Assurance, and Sean Wiltshire from Data Sciences, who shared vital insights into the future of marketing. Frank emphasized the essential role of AI in daily marketing operations, particularly through predictive analytics, while Solene highlighted its crucial impact on insurance pricing and efficiency in digital marketing. Sean cautioned against overestimating AI's capabilities, reminding the audience that it lacks true understanding and focus. The discussion also touched on the transformation of traditional search marketing methods, as Solene noted that marketers are eager to adopt AI tools to streamline their processes. Frank elaborated on how search methodologies will evolve towards personalized user experiences, underscoring the need for marketers to adapt their strategies in this changing landscape. 

Content and Ethical Marketing Practices 

Quality content remains crucial in the AI era. Frank emphasized the need for tailored messaging, while Sean pointed out the challenge of segmenting audiences accurately with AI. 

Omnicom Media Group’s DCO solution Artbot was developed to help our clients to create ads at scale, using a combination of AI, CRM data and third-party information from our biggest partners like Google and Meta. 

Ethical considerations are also vital. Solene discussed the strict guidelines her team follows to ensure responsible AI usage, while Frank highlighted Google's commitment to ethical AI practices and collaboration with regulatory bodies.  

Measurement and Future Outlook 

Measuring the success of AI initiatives is complex. Frank suggested focusing on efficiency gains, while Solene mentioned how delegating routine tasks to AI allows her team to concentrate on strategic activities. However, Sean cautioned that many companies tend to underinvest in AI, which could hinder their ability to capitalize on these technologies. He also brought a global perspective, mentioning that AI regulation is now a priority on the international agenda, particularly highlighted during the recent UN General Assembly. Effective regulation requires cooperation among nations, making it clear that no single entity can tackle these challenges alone. 

Conclusion 

The conference underscored that while AI is reshaping the marketing landscape, it is also a tool for creativity and efficiency. As we navigate this transformation, collaboration, ethical considerations, and a focus on strategy will be crucial for success. AI presents great potential for marketers to embrace, while remaining vigilant about its limits. 

One year after the implementation of Bill C-18, which led to the removal of news publishers from Meta platforms, how are local media outlets faring?

In 2024, three major players—Google, Meta, and Amazon—control 74% of digital ad spending in Canada. Google and Meta have seen slight declines in market share, while Amazon has experienced sustained growth over the past two years. The launch of Amazon's video offering in February is expected to accelerate this growth in the coming years. Without delving into all subtypes of digital channels, the combined share of GAFAM is slowly decreasing, though they remain largely dominant.

The digital market is growing faster than the dominant players in Canada, creating some opportunities for local publishers to generate growth, albeit limited. However, competition is diversifying, particularly in the video space, putting additional pressure on many media outlets to reposition themselves.

According to SimilarWeb data, a downward trend in visits to Canadian news sites has been observed since 2022, well before Meta excluded news sites from its platforms in August 2023. Overall, this decline has not accelerated significantly from month to month following Meta's decision. In other words, global data do not indicate a specific impact of Meta on news publishers following Bill C-18. However, journalism content creators are best placed to speak to the effects of this change on them. We reached out to some local publishers to get a sense of the market and illustrate their reality.

The biggest current challenge for Canadian publishers seems to be reaching their audiences across multiple platforms while balancing the use of the "big players'" channels and supporting platforms owned by the publishers themselves. We are in a context of great paradox.

"Despite the fact that news is no longer accessible in Meta's ecosystem, part of the population says they still get their news on these platforms."

From the agencies' point of view, we have observed an acceleration of developments from some media partners since last year, whether in the deployment of new ad products or the increase in technological capabilities.

When asked about their vision for the next five years, the media outlets we interviewed foresee the acceleration of two opposing yet connected phenomena: convergence and fragmentation. Convergence will be driven by social platforms and companies developing artificial intelligence (AI) solutions, which hold the keys to the evolution of information consumption. This evolution could lead to the disappearance of smaller players and harm the quality of information.

"Media is food for the mind and soul, and consuming empty calories carries long-term risks."

This view is echoed by Patrick Salois, Vice President of Sales and Operations at La Presse, who stresses the need to raise awareness among the public and decision-makers about the importance of independent local journalism. He also promotes growth through technological investment and revenue diversification to reduce dependence on advertising revenue.

Fragmentation will partly come from this need for independence, for example through nanomedia, micro-social platforms, and perhaps micro-mags, like those launched by Urbania, to maintain direct contact with readers and offer new subscription opportunities.

The creation of video inventories in all its forms has become a priority, along with the development of ad formats dedicated to digital performance, the integration of "clean room" technologies, the valorization of connected user data, and a renewed approach to campaign measurement. Although the volume of data, access to conversion APIs, and the appeal of video or social platforms continue to give GAFAM an advantage, the efforts of local partners contribute to rebalancing their share in media planning.

The most critical changes to face the future seem to revolve around efforts to raise awareness among Canadian decision-makers and the population about the importance of independent local journalism.

"Another misconception is that Canadian content is less competitive on the international stage, while local media play a crucial role in offering coverage tailored to the realities and needs of the Canadian public."

Redefining the notion of performance is a challenge that all market players have embraced, though not all are ready to support advertisers in this shift. A consolidation of efforts and support from professional associations such as A2C or CMDC aims to promote training and the dissemination of best practices in advertising buying and optimization.

Some media groups acknowledge that they should have anticipated the growth of global digital platforms by investing earlier in solutions to reduce their dependence on these platforms. This evolution, which initially benefited everyone, did not reveal the urgency to act differently. Lessons have been learned, and media outlets are now taking control of their destiny for the next phase of transformation.

"We live in an era where nothing is guaranteed, and everything is changing faster and faster."

Never again will we put our fate in the hands of Zuck or Musk."

Touché! would like to thank Patrick Salois of La Presse, Émilie Filion and Christophe Cluzel of SRC, and Philippe Lamarre of Urbania for their insights and participation in this article.