Great writing, sir! As for the investment thesis...there is some (a lot of truth) but reality is slightly more nuanced. Slop can be automated/AI-fied and since slop is 95% of what's out there, well, the business case is easy. There is still a 5%, high-margin, niche where creativity and taste (advertising holdcos have neither, so they are dead anyway) matters.
The other - and far more important - comment is that your case is built for a world in which communication works predominantly through videos/images, propagated through paid adv. Paid adv is a joke (you write as much yourself, mentioning costs) and adv is a dying form, automated or not. Influencer marketing, events (to use very pop and all-encompassing labels) are where it's at. So maybe the market for slop is not the only market, not even a growing one...although I agree that, within that market, AI will probably kill agencies (unless we all discover that the cost of running data centers makes the whole business case untenable).
This article comes at the perfect time, honestly. You truely nail these seismic shifts. The way you connect MrBeast's reach to Sora's output is brilliant. Agencies are definitely in for a rude awakening. It's like a paradigm shift accelerated by infinite compute power. Spot on!
Insightful piece. The edge won’t come from fighting the algorithm but from feeding it the right structure. The next wave of consumer brands will treat their digital presence like training data, teaching AI how to represent them in search, social, and shopping experiences.
Great writing, sir! As for the investment thesis...there is some (a lot of truth) but reality is slightly more nuanced. Slop can be automated/AI-fied and since slop is 95% of what's out there, well, the business case is easy. There is still a 5%, high-margin, niche where creativity and taste (advertising holdcos have neither, so they are dead anyway) matters.
The other - and far more important - comment is that your case is built for a world in which communication works predominantly through videos/images, propagated through paid adv. Paid adv is a joke (you write as much yourself, mentioning costs) and adv is a dying form, automated or not. Influencer marketing, events (to use very pop and all-encompassing labels) are where it's at. So maybe the market for slop is not the only market, not even a growing one...although I agree that, within that market, AI will probably kill agencies (unless we all discover that the cost of running data centers makes the whole business case untenable).
Outstanding writing once again B. Bravo.
This article comes at the perfect time, honestly. You truely nail these seismic shifts. The way you connect MrBeast's reach to Sora's output is brilliant. Agencies are definitely in for a rude awakening. It's like a paradigm shift accelerated by infinite compute power. Spot on!
Insightful piece. The edge won’t come from fighting the algorithm but from feeding it the right structure. The next wave of consumer brands will treat their digital presence like training data, teaching AI how to represent them in search, social, and shopping experiences.