A technological takeover of ad creative could bring both opportunity and disruption.
The Cannes Lions Festival of Creativity, an ad industry conference, awards show and schmoozefest that begins on Monday, is known for its beaches and its sunny atmosphere.
This year, attendees can also expect an existential debate.
For years, ad executives have understood a technological takeover of ad creative was coming, and with it, a power shift from creative agencies to the tech giants that control the platforms. Now, with companies like Google, Pinterest, Snap and Amazon steadily adding powerful A.I. ad creation tools, it feels uncomfortably near.
Anxieties peaked this spring with reports that Meta would soon allow advertisers to make A.I.-generated ads without any agency involvement.
Some believe agencies can effectively embrace generative A.I. (Agencies are a “critical partner” and “an essential channel for the industry,” Dave Dugan, Meta’s vice president of global clients and agencies, said when asked about the company’s new A.I. tools.) Others warn agencies will be displaced by it.
“The advertising world might be at their funeral without even realizing it,” said Geoffrey Colon, an entrepreneur who spent two decades at creative agencies and tech giants. To sum it up, he said: “Iceberg ahead.”
Agencies are dependent on tech platforms for distribution. For years, Madison Avenue’s relationship with Silicon Valley has been somewhere between symbiotic and codependent, with agencies and tech companies working together to buy, sell and serve ads across various platforms.