What’s Hot

On July 21st of this year, we entered the world of Barbenheimer which is made up of Greta Gerwig’s Barbie and Christopher Nolan’s Oppenheimer. Vue International said it was the biggest weekend for UK cinema tickets in the last 4 years (partly due to COVID).  The cinema chain stated that a fifth of its customers had purchased tickets to see both films on the same day, a testament to the scale and hype around these two films and the coincidental timing of their release. They even confirmed that 2,000 of their cinemas had completely sold out of seats for the launch of Barbie.

Many months prior to the launch, the Gold, Silver and Bronze spots were sold for both films. In DCM cinemas, Dyson nabbed the Gold spot before Barbie, with Levi’s and Google Pixel grabbing Silver and Bronze. For Oppenheimer, Samsung took the prime position whilst Sky Glass and Peugeot grabbed the two prime spots before screening.

As of August 2023, the total box office revenue surpassed £104m which is 67% higher than the same month in 2022. Year-to-date revenue is also up 10% compared with the period between January and the end of August 2022. For brands, there is one major takeout from these stats. Results serve to highlight how important cinema is to the overall media plan, even if it’s not quite as big as both Barbie and Oppenheimer themselves.

Both agencies and advertisers can learn a lot from this cinema phenomenon. Positioning your message with a big film is one thing, but creating a cohesive plan, where all media works together and aligns with a key focus, can allow you to stand out and become recognised as the main associate brand with a film. Social media and natural word of mouth also play key parts in the process and add further value.  Having the public talk about a blockbuster film, with which your brand is associated, extends your reach into conversations that cost you nothing more. We call that a win-win for everyone.

As mentioned, their mutual success was thanks in part to an idea, popularised on social media ahead of the films’ shared opening weekend in July. The suggestion of making an event of attending both films as a double feature caught the public’s imagination. Whether the two films, alongside big April performer The Super Mario Bros Movie, will be enough to continue to lift the cinema industry through the rest of the year is less certain.

We can thank three more films for the box office boost this Summer:

• Mission Impossible: Dead Reckoning Part One
• Meg 2: The Trench
• Teenage Mutant Ninja Turtles: Mutant Mayhem,

So far, numbers are a massive +65% ahead of August 2022 with one week still left to report.

In a world where AI is reshaping the landscape of content creation, the recent announcement by TikTok regarding their in-stream labels for AI-generated content brings forth a crucial question: How important is it for brands to be transparent with their audience about their content creation practices? This query resonates not only with brands but also with a society navigating the blurred lines between technology and authenticity.

AI’s Growing Role in Content Creation

From generative AI tools crafting social media copy to virtual influencers amassing legions of followers, evolving digital media is increasingly ingrained in both brand content creation and audience content consumption. With this rapid evolution comes a growing concern: How can users distinguish between content created by technology and that crafted by humans? The lines are blurring, and users fear that they might not be able to differentiate between the two.

A recent poll conducted by YouGov and NewsGuard found that 73% of 18-25-year-olds were concerned about misinformation, a figure that surged to 81% among UK adults aged 55 and above. This highlights the pressing need for brands to enhance transparency in their content creation to maintain audience trust. Across the board, social media users are yearning for more context about the content they consume, creating both a challenge and an opportunity for brands.

The Dark Side of Evolving Digital Media

While evolving digital media unlocks creative potential, it has also given rise to the proliferation of fake images and videos capable of manipulating public opinion. Consider the 2020 incident involving a deepfake video of Belgium’s then prime minister, Sophie Wilmès, discussing the COVID-19 pandemic. This video, which was shared widely, left many viewers unaware of its falseness, sparking a mix of outrage and admiration. Brands that provide context behind AI-generated content help preserve the trust painstakingly built with their audience. Offering transparency empowers the audience to make informed decisions about their engagement with AI-driven content, while also showcasing the brand’s innovation.

Maintaining Accountability to the Audience

Brands can harness evolving digital media and AI while remaining accountable to their audience through several strategies:

1. In-stream AI Labels: Embrace the latest developments on social platforms, such as TikTok and Instagram’s in-stream labels. These labels instantly convey to your audience that the content they’re consuming involves AI, fostering transparency and informed engagement.
2. Provide Context: Educate your audience on when and how AI is used in content creation. By demonstrating the collaborative effort between humans and AI in crafting innovative content, you enable those who seek AI-driven content to appreciate and engage while distinguishing your brand as forward-thinking.
3. Implement Feedback: Actively engage with your audience and integrate their feedback into your content. This approach demonstrates your brand’s commitment to tailoring content experiences that resonate with your audience’s preferences.

With nearly three-quarters of UK consumers advocating for brand transparency in their use of AI-generated content, it’s imperative for brands to embrace a transparent approach to evolving digital media. In embracing transparency, brands not only bridge the gap between technology and trust but also position themselves as ethical pioneers in the evolving world of digital media.

“Freely”

Britain’s major public-service broadcasters (PSBs) will launch a free, Internet-only TV service next year for broadband-only homes. The new service, called Freely, will be built into the next generation of smart TVs in the UK upon its launch in 2024 and will feature a lineup of PSB content and other free-to-air channels with the aim of building upon the Freeview TV viewing experience and platform. This marks the first time that British viewers will be able to browse and watch live TV channels together with on-demand content streamed to their smart TVs via the Internet for free. Their aim with Freely is to enable viewers to “seamlessly” browse channels through a “modern and intuitive” programme guide and use functions that are designed to make it easier to find and explore new shows directly from live TV.

The Big Merge

EveryoneTV rebranded from Digital UK in January, having merged with Freesat in 2021 to bring the UK’s two free-to-view TV services now under the leadership of one organisation. Freeview, which allows people to receive digital TV transmissions via analogue aerials, was launched in 2002 as a joint venture between the BBC, ITV, Channel 4, Channel 5, and Sky and expanded the platform for a wider selection of channels and, therefore, content for the viewer. Through this merger, it represents how viewing habits have evolved and the desire to consume a broad selection of content has increased with the times, coinciding with all the various platforms and offerings from providers.

The Evolution of Content Consumption

By first having the traditional 5 channels on terrestrial TV, then expanding the landscape via the Freeview merger up to 70, the choice in which viewers have had has been as big as it’s ever been (at a free cost standpoint), not to mention SVOD services add to this landscape with the likes of Netflix, Disney+, Prime, to name a few. With this on-demand viewing experience, able to watch content at any time away from live TV, viewing will shift from live to online and possibly offer more in-depth targeting capabilities as we already have on BVOD suppliers with ITVX, All4, and Sky Go. While details are still to follow, with the launch coming sometime in 2024, this represents how the landscape has evolved and will only continue to evolve.

It’s no secret that the last few years have been turbulent, increasing the level of discussion and divisiveness across a whole range of social, environmental, and political issues. At the same time, pressure is increasing on brands to publicly take a stance on key subjects.

Patagonia’s founder, Yvon Chouinard, believes that “if you are not upsetting 50% of the people, you are not trying hard enough.” It seems like some form of backlash to corporate activism is almost guaranteed these days, with many brands finding it a tough path to navigate. However, if done authentically – taking a stance can be a powerful way to build trust, brand equity, and drive change.

Activism vs Slacktivism and the Need to Follow Through

In this day and age, staying silent and steering clear of hot-button issues is no longer the default position of brands and their CMOs. Recent research from Sprout Social reveals that two-thirds of individuals surveyed feel that it’s important for brands to take a public stance on leading social and political issues. The benefits of purpose-driven efforts can also be twofold, as brands are able to promote positive and necessary social outcomes while also driving growth.

An annual study by Edelman found that 63% of consumers choose to switch, avoid, or boycott a brand based on its stand on societal issues. While this figure should be a powerful motivator for brands, failing to back up this marketing with any tangible actions can backfire significantly and hurt the brand more than if they never chose to engage in activism at all.

This fine balance can be seen in the recent shareholder criticism of Unilever – with major investors questioning management’s ‘obsession’ with publicly displaying sustainability credentials at the expense of focusing on the fundamentals of the business. With the company’s sales growth lagging, there is pressure for CEO Alan Jope to prove that Unilever’s activism and commitment to sustainability are a key driver of strong financial performance.

Wagamama’s Stance on Slow Fashion

With an aim to ‘tread more lightly on the earth,’ Wagamama’s latest eco-friendly uniform collaboration with PANGAIA is a natural progression in the company’s sustainability journey. The new collection provides Wagamama employees with slow-fashion workwear that aims to set new standards for the industry – with a focus on sustainable materials and a future recycling scheme.

Looking at this campaign in a vacuum, it might be easy for some people to label the initiative as just another example of inauthentic corporate ‘greenwashing.’ However, Wagamama has been working hard to commit to sustainable practices across the entire business – from pledging to make 50% of their menu plant-based, reducing the plastic in their packaging to tackling food waste in their restaurants.

There might be the temptation to look at some of the incredible work that brands are doing in the activism space and immediately jump on board. However, brands need to be truly committed to the issue to properly speak on it – having done the groundwork to represent this in their own policies rather than just their marketing campaigns.

Professor Gage from The School of Marketing at UNSW sums up the growing feeling perfectly – “So we are saying, ‘look, fine, you want my money? That’s perfectly okay. But I want to know who you are. What do you stand for?’ Because brands are expected to do more. And this is not a fad; this is not something that will go away.

Spain’s hard-fought victory over England in the FIFA Women’s World Cup Final marked a record-breaking tournament this year. Attendance records were shattered before the knockout phase had even begun. Globally, more than a billion people watched the tournament from home, with hospitality revenues up 534% from 2015.

This and other hallmarks – such as the 50th anniversary of the US Open offering equal pay to male and female players – illustrate the recent elevation of women’s sport. Until 2019, athletes were not compensated for taking part in the Women’s World Cup, whilst the FA Women’s Super League (WSL) lacked a competition prize pot. Most clubs relied on their men’s teams being willing to spare funds.

Brands have played a significant role in reducing pay inequality in women’s sport. The WSL was able to turn fully professional due largely to its multi-year, multi-million sponsorship with Barclays. The FA now lists 17 commercial partners in the women’s game, up from 6 in 2017, with women’s sport being described as a ‘sponsor’s dream’ in some circles.

The benefits for brands in backing women’s sport come to light in three main areas:

Community

In a survey by consultancy Revolt, 50% of fans said being a women’s football supporter was central to their identity. Fans of women’s sport are 24% more likely to think positively of a brand sponsoring their favourite team vs. fans of men’s sport. And, according to data from World Cup hosts Australia, these benefits are even more significant among Gen Zers.

Value

Since commercial rights to women’s football started to be sold separately from men’s partnerships – a process known as ‘unbundling’ – investment has more than doubled, according to Nielsen. Typically, such sponsorships are offered to brands at just 10-20% of an equivalent men’s sponsorship. As interest in women’s sport grows, price tags are set to rise but, for now, brands can forge connections to fans at a fraction of the price.

Social Purpose

Women’s football today is thriving. Yet years of under-investment have created long-term inequities, like sub-par facilities for players and fan frustrations with accessibility. Brands who invest in women’s sport can use their platform to push for further narrowing of the opportunity gap, as did Barclays when highlighting the poor condition of WSL pitches compared with those used by men’s Premier League teams.

Combining these three elements can foster brand legacy in women’s sport, and opportunities are not limited to periods when the women’s sport spotlight is at its brightest, such as the Women’s World Cup or International Women’s Day. During the Men’s World Cup in 2022, Adidas devoted its Equal Play campaign to highlighting gender inequality, resulting in an 11.7% increase in brand buzz and a 149% rise in online conversations. Likewise, Vodafone launched its ‘I Exist’ partnership with football club Besiktas on a platform of improving women’s social conditions in Türkiye, culminating in a 13% boost to its reputation in the country.

As these examples show, the recent World Cup has merely accelerated the unstoppable rise of women’s sport globally. As the dust settles on a memorable tournament, the onus is firmly on brands to forge long-term successful partnerships with fans and together drive lasting social change.

Conversation about AI and its applications is currently present in every area of our society, from Art to Medicine and more. If you open a newspaper or turn on a TV today, you will find yourself bombarded by headlines discussing the advancement of AI—some of which are positive, and some less so.

A slightly less discussed area of AI application, however, is how it’s being used in the realm of market research to understand how we can get closer to our participants, uncover deeper insights, and ultimately unlock value for brands. the7stars’ Insight team, in collaboration with Differentology, took it upon ourselves to explore these applications, helping us better understand AI’s place in the field and how it can be utilised to deliver the greatest impact.

Our methodology involved subjecting half of our sample to an AI-enhanced survey with conversational open-ended prompts for questioning. This AI-enhanced environment was found to increase levels of engagement and greatly impact the quality of data. We were able not only to collect higher ‘quality’ respondents, but their responses were much longer and more detailed compared to those from the standard survey. This was particularly true when we increased the sensitivity of the questions asked, which can sometimes hinder a survey’s ability to gather useful responses.

Our groundbreaking new study, entitled ‘Researching the Robot: A New Era for Market Research?’, found that over two-thirds (70%) of participants agreed that an AI-augmented survey approach was ‘more engaging than other surveys they had taken.’ Additionally, the majority of participants who took the AI survey agreed that it was ‘more fun’ (59%). This finding is a significant step forward for the field, as we know that happier participants generally provide more detailed and useful responses. An overwhelming majority (69%) also agreed that the AI-augmented survey allowed them to better express their opinions and feelings.

While our study uncovered significant benefits to adopting an AI-based research methodology, the jury is still out on whether AI will singlehandedly revolutionise the market research industry as we know it. Therefore, the role of the market researcher remains safe for now.

For a more in-depth understanding of how we conducted this experiment and the key learnings that we gathered, please download the whitepaper today.

Market research aims to understand people across all dimensions of their lives to help brands make decisions based on consumer needs. However, to make these decisions, it is critical that the research is representative, fair, and robust; otherwise, it risks discrediting the brand, demotivating consumers from taking part in research again, and, most importantly, making decisions based on inaccurate data.

At the7stars, putting people first lies at the heart of the agency, and as such, research is a fundamental part of our everyday work. Since the creation of the Insight team at the7stars in 2014, the team has recognised the importance of conducting research that is both accurate and actionable. Therefore, regardless of whether it is a qualitative or quantitative methodology, we ensure that we deliver on these two key components end to end to provide confidence in the research we conduct.

As a result, we continually strive to improve the research we conduct, from the methodologies we use, such as incorporating implicit testing into our brand and campaign evaluations, to reviewing our approach to recruiting participants. This is why we co-founded Voices4All, which places quotas on ethnicity, sexual orientation, and disability, in addition to social grade, gender, age, and region, when seeking to conduct nationally representative research.

To provide additional confidence to our clients in our research, we have become an MRS Company Partner. The Market Research Society was established in 1946 as a professional body for market research in the UK. It provides a Code of Conduct and guidance on how to accurately conduct research for individual researchers. However, in 2005, the MRS Company Partner Service was established, which, for the first time, applied the MRS Code of Conduct to research organisations. Therefore, as a team and as individuals in the Insight team, we comply with the Code of Conduct that all research agencies adhere to.

The key areas covered in the Code of Conduct include ensuring transparency throughout the research process, ensuring confidentiality for both clients and participants, protecting participants throughout the research process, ensuring that researchers exercise independent professional judgment in the design, conduct, and reporting of research, and ensuring that all researchers have the necessary training, qualifications, and experience.

The Insight team becoming an MRS Company Partner further underscores the importance of research at our agency and the level of rigour in the research we conduct.

Cannes Lions recently hosted three significant figures in effectiveness—Les Binet, Grace Kite, and Tom Roach—to deliver their ‘3rd age of effectiveness’ talks, subsequently reported by WARC, which co-curated the session. The work explores the evolution of ‘digital’ since its inception as a new media channel in the mid-noughties, highlighting that digital media can now finally build brands over time, rather than solely driving short-term sales.

Digital was hailed as a quantifiable and accountable marketing and media channel capable of measuring everything. The channel gained instant popularity, leading to a shift in spending towards digital channels that continues to the present day. However, as time passed, digital as a channel arguably became a victim of its own measurement capability, with marketers relying solely on attribution to assess digital brand campaigns—a risky game that leads to efficiency over effectiveness.

However, econometric analysis demonstrates that digital advertising now presents an opportunity for greater returns, partly because digital marketing and media practitioners better understand how to utilise it as a channel. The quantifiable capabilities may have driven a performance focus (e.g., efficiencies of PPC, the boom of programmatic advertising, etc.), but the advertising industry is now ‘relearning the benefits of long-term work and how digital channels can help build brands’ (WARC).

Video is of particular interest, as its longer attention span gives it a role in brand building, while many other digital ads fall below the 2.5s memory threshold required. The session observed that the channel shouldn’t be used simply to push out a full-length TV ad. Tailoring ads within a campaign to the platform that carries them offers further opportunities for creativity to maximise the value of video content.

The format of digital video advertising and the diverse ways people consume it pose exciting creative challenges. Viewers choosing to watch premium content (e.g., Broadcaster VOD, premium YouTube channels) accept having to watch full-length video ads to enjoy it, resulting in excellent completion rates for advertising, where traditional TV assets are typically utilised. Increasingly common are video ads that can entice viewers to want to watch more of them, particularly where skippable video requires creative strategies to encourage extended viewing time. Then there is produced branded content that is harder to perfect, but when executed well, can deliver excellent engagement with brands.

It is worthwhile for advertising to creatively align with this trend, as we see increasing evidence of video delivering both short and long-term ROI (alongside social, display, and search).

Our Takeaways:

• Instead of overused display banners, use video as ‘digital display’ when planning upper-funnel digital display campaigns.
• Drive greater effectiveness for digital activity in the upper and mid-funnel stages of the purchase journey, as it is not just a performance channel.
• Fresh thinking allows digital video advertising to flourish with more bespoke videos designed specifically for digital platforms (e.g., TikTok and other social platforms), generating meaningful ‘attention’ relative to the channel. Avoid using traditional creative assets across digital campaigns.
• There’s still a role for display banners but consider the wider impact of all digital channels across the stages of the purchase journey. Set appropriate roles, KPIs, and approaches to evaluating creative effectiveness.

On the 14th of July, the national board of the Screen Actors Guild of America (SAG-AFTRA) voted to join the Writers Guild of America (WGA) in strike action. This marks the first time that both unions have simultaneously downed tools in protest since 1960. As a result, nearly all scripted and dramatic productions have ground to a halt in the US and, in some cases, globally. This could have a significant impact on advertisers.

There are multiple reasons for the industrial action. However, two clear bones of contention prevail.

The primary reason for the strike has been actors’ and writers’ dissatisfaction with terms of payment of residuals, in particular by the streaming giants including Netflix, Disney+, and Amazon Prime. Residuals are payments made to the writers, actors, directors, and others involved in making TV shows and movies in cases of reruns, syndication, DVD release, streaming media, or generative AI.

Residuals have traditionally been paid to the cast and crew based partly on long-term success since a production was first aired. Streaming services do not report viewership figures in the same way as ‘traditional’ broadcasters, and they technically buy a licence to broadcast IP as opposed to paying for syndication. As a result, cast and crew are receiving vastly reduced residual payments. Actors have traditionally relied upon these payments to support them through lean times.

The second reason for the strike has been fears that generative AI technology is being used to replace humans in the creation and production of content. Both writers and actors are seeking to agree on a regulatory framework when it comes to how and when AI is used. Of particular concern to the writers’ union is that AI can be used to generate original and adapted screenplays, putting their jobs at risk. AI provokes similar fears in the acting community due to its ability to create digital likenesses of anyone from a megastar to extras, rendering humans similarly disposable in the production process. Concerns about the rise of AI are not new in society, let alone the entertainment industry. From the world of music to the world of sex work and pornography, AI is creating legal and regulatory headaches.

The strikes do not just affect writers and actors. Anyone connected to the production of content, including caterers, local businesses, major studios (in the US and globally), dry cleaners, and insurers, to name a few, will likely need to react should the strikes continue.

For brands, a long and drawn-out dispute will potentially compromise access to big talent represented by SAG-AFTRA for the creation of commercial assets. Additionally, the strikes could mean that big films slated for release this year are postponed, à la ‘Dune: Part Two,’ and that films and dramas scheduled for release in 2024 are delayed due to production being pushed back.