Ad market expands despite ‘existential crises’

Toys R Us unveils ad made with Sora AI video tool, prompting criticism [Insider Intelligence]( [Emarketer Daily]( Daily]( Charts. News. Analysis JUNE 27, 2024 For Topo Chico’s latest campaign, the seltzer company teamed up with Airstream to promote stay-cations where? A) The Stayman Islands B) The Domestican Republic C) Home-waii D) Key Rest [Get the answer]( Was this email forwarded to you? Sign up [here](. TOP STORY [After 14 months of consecutive growth, why does the US ad market still feel so bleak?]( The US ad market has now grown for 14 consecutive months, according to data from Guideline (previously Standard Media Index). Guideline’s latest update shows 1.9% growth YoY in May, a deceleration after several months of higher growth. Despite consistent growth, advertisers aren’t necessarily feeling optimistic. Budgets are tight, and advertisers are under pressure. So why do things feel bleak despite evidence to the contrary? “There are too many existential crises happening at once,” said our analyst Evelyn Mitchell-Wolf. “The industry knows winter is coming and is too busy preparing for assaults on multiple fronts to enjoy the summer while it's here.” [After 14 months of consecutive growth, why does the US ad market still feel so bleak?]( [Keep reading]( IN THE NEWS [Toys R Us unveils ad made with Sora AI video tool, prompting criticism]( Toys R Us debuted an ad at Cannes that was made almost entirely with OpenAI’s text-to-video tool Sora. The 66-second spot depicts the company’s founder as a child experiencing a dream that inspired the brand’s giraffe mascot. Our view: Companies that release AI-generated ad campaigns can boast of being ahead of the technological curve, but they tend to face negative feedback from both consumers and creatives. As AI-generated media’s fidelity increases, brands may choose not to reveal their usage of the relatively unpopular tech. [Toys R Us unveils ad made with Sora AI video tool, prompting criticism]( [Keep reading]( ANALYSIS [Total OOH ad spending in the US will surpass $10 billion for the first time in 2027, on moderate growth]( OOH ad spending has recovered from the pandemic and will continue to grow steadily. OOH ad spending hit a new high in 2023 for the first time since the pandemic. The channel doesn’t have the flashy double-digit growth rates of many digital media formats, but it will continue to grow at steady annual rates of between 3% and 5% through 2028, the end of our forecast period. TV, in contrast, will grow a mere 0.7% YoY this year thanks to an election-year boost, before dropping 13.3% in 2025. [Total OOH ad spending in the US will surpass $10 billion for the first time in 2027, on moderate growth]( [Keep reading]( THINGS TO KNOW 🎵 [YouTube is trying to make AI music deals with major record labels]( 🔎 [Google: Our Search rankings can improve at scale and system level]( 🧲 [Google Ads unveils major updates to search query matching]( 🍪 [Why marketers aren’t cookie-free yet]( 💸 [Amazon reaches $2T market cap for the first time]( PODCAST [Behind the Numbers: How digital is having an ever-increasing impact on elections]( In today’s episode, we discuss the pervasive nature of digital in political campaigning. How big is the disinformation problem? And are we in line for an existential AI crisis when it comes to political messaging? Tune in on [Apple Podcasts]( [Spotify]( or wherever you listen to podcasts.[Follow us on Instagram.]( “Behind the Numbers” is made possible by Roundel. [Listen in]( Email sent to: {EMAIL} If you cannot view the HTML newsletter, [please read it in your browser here](. [Become a Premium Subscriber]( | [Advertise with us]( [Manage your email preferences]( | [Unsubscribe]( | [Terms of Use]( | [Privacy Policy]( ©2024 EMARKETER, One Liberty Plaza 9th Floor, New York, NY 10006 [LiveIntent Logo]( [AdChoices Logo](