Lab Weekly - 03/22/2024
Decoding the AI hype cycle; Plus, the latest news about AI ad tools, MrBeast, Bluesky, and more
Want this newsletter in your inbox every week? Sign up for our mailing list here
The AI Hype Cycle: Are We on the Precipice of Disillusionment?
As market research firm Gartner puts it in its 2023 AI Hype Cycle published last summer, generative AI was already reaching the “peak of inflated expectations” and close to tumbling into the infamous “trough of disillusionment.” Now, seven months after, it would seem that the AI market is still going strong.
While it’s tempting to think of AI as an exception to the rules, a closer read of the market sentiment strongly suggests otherwise. Taking a deeper look at the AI market as it stands reveals at least two major issues that could trigger a reevaluation of the AI gold rush: the profitability issue and the regulatory issue.
In case you missed it…
The Rising Ozempic Economy & Its Wide-Ranging Impact
In an era where pharmaceutical innovations may dramatically alter economic landscapes, the emergence of the so-called "Ozempic economy" has captured quite a lot of eyeballs and mindshare lately. In this week’s original article, we take a close look at the behavioral changes that could be potentially unleashed by the new class of weight loss medications.
Dining as Therapy: The Rise of Wellness-Oriented Restaurants
Like many things in our wellness-obsessed society today, dining out is increasingly being positioned as a therapeutic experience that aims to enhance the wellness of diners through empathic and inclusive design. Moreover, it is also a part of the so-called “joyconomy,” boosting customers’ serotonin by bringing local communities together.
What Marketers Should Know About Apple Vision Pro At Launch
Nearly a week post-Vision Pro launch, much ink has been spilled over speculating on how Vision Pro might shift the paradigm of personal computing, entertainment, and digital interaction. Based on this initial wave of reactions and hot takes, some key aspects about this much-anticipated headset are becoming a bit more defined. By extension, its long-term impact on the media landscape is also starting to take shape.
Episode 155: Apple Vision Pro Deep Dive
In this latest episode of Floor 9, we are talking all things Vision Pro! Adam Simon, Ryan Miller, and Chelsea Freitas regrouped on the pod for an in-depth discussion of Apple’s groundbreaking “spatial computing” headset. From our team’s first impressions of trying it on, to unpacking its use cases and market implications, the Lab team is eager to share our hot takes on Vision Pro. Click here to listen now.
If you enjoyed the episode, please consider giving us a five-star review on Apple Podcast. Thanks for listening!
NBCUniversal Leans Into AI In Upfront Ad Sales Push [Deadline]
NBCUniversal's announcement at its One24 event marks a significant step in integrating generative AI into ad platforms, pointing to more highly personalized ads that can pinpoint consumer preferences and streamline the purchase process directly through ads. The integration of third-party technologies from partners like VideoAmp, EDO, and Kochava enhances campaign analytics and cross-platform optimization, underscoring the potential transformation of television from a brand-awareness tool to a performance marketing channel for marketers.
That said, advertisers should also be mindful of the current limits in deploying generative AI tools in advertising, especially when it comes to the creatives. Given the recent backlash against Under Armour’s AI-generated ad, which allegedly recycled footage made for previous commercials without giving full credit, the importance of transparency and ethical use of AI becomes paramount. Brands and platforms need to strike a balance between leveraging AI for targeted advertising and maintaining the trust of their audience by being transparent about their AI use practices.
Related: Advertising on Disney+ streaming gets simpler with Google & the Trade Desk [Ad Week]; NBCUniversal’s Peacock will let you watch 4 livestreams at once for 2024 Paris Olympics [TechCrunch]; Honda leverages AI for Dream Generator film experience with Amazon Ads [Marketing Dive]
MrBeast Strikes Amazon Deal For Biggest Competition Show In TV History [Washington Post]
Plenty of YouTube stars have made the jump into TV before to varying degrees of success. What makes this deal significant, beyond its record-high $5 million cash prize, is the implication that even a content creator as successful as MrBeast, with his over 245 million subscribers on YouTube, still isn’t above monetizing their content on a platform other than YouTube to help absorb the risks associated with content production.
By moving to a streaming platform, creators like MrBeast are also navigating the delicate creator-audience relationship. This poses questions about how creators can keep their authenticity and direct engagement with audiences intact as they scale up and diversify their content distribution channels. Overall, this deal highlights how creators are increasingly leveraging their personal brand to scale audiences across multiple platforms so as to ensure sustainable growth.
Related: Pinterest launches first-ever streaming TV show with Tastemade [Pinterest Newsroom]; YouTube adds new AI-generated content labeling tool [The Verge]
Bluesky To Let Users Create And Run Their Own Independent Moderation Services [TechCrunch]
The “fediverse” dream lives on, although in a much more subdued manner. Bluesky has not amassed a large enough user base to make a difference, despite finally opening to the public in early February after being in invite-only beta for over a year. While it did reportedly attract nearly 800,000 new users in its first day open to the public, at about 5 million users, it is still too niche to challenge the likes of Meta’s Threads or even X.
However, we can expect the drums of “decentralized social media” to beat once again as we head deeper into the election year, which could give Bluesky another shot at broader user acquisition. And this new Ozone tool, which essentially lets users pick their own moderation filters to determine what they see on their feeds, offers an interesting glimpse into what content moderation could look like, if social media truly moves towards a decentralized structure one day.
Related: Threads beta lets you share to Mastodon and other fediverse services [Engagdet]; Bluesky finally opens to the public [The Washington Post]
Situational Awareness:
DOJ Sues Apple Over iPhone Monopoly In Landmark Antitrust Case [CNBC]
While this lawsuit will likely take years to reach a conclusion, the fact that the Department of Justice brought it to court should continue to put significant pressure on Apple to reconsider its famous walled-garden model, and allow more ways for third-party developers to plug into its ecosystem. But if what Apple did in the EU in response to the new DMA legislation is any indication, it likely won’t fundamentally change how Apple’s ecosystem operates.
Cyndi Lauper inks deal with firm behind ABBA Voyage for new immersive performance project [Bloomberg]
Between this new Cyndi Lauper deal and the previously announced partnership with rock band Kiss, Stockholm-based Pophouse Entertainment is quickly emerging as a market leader in immersive entertainment with a fascinating blend of nostalgia and mixed-reality technology.
Hollywood actors are leaping into video games via voice acting and mo-cap performances [NYT]
This is a clear sign of the continuing ascendency of video games as a cultural force, as the existing entertainment establishment starts to assimilate to gaming. And it could potentially be turbo-charged by the licensed AI likeness — after all, AI-generated NPCs are already starting to catch on.
LinkedIn explores adding puzzle-based games to its feed [GeekWire]
The audience for mobile gaming is truly everywhere, and LinkedIn is certainly not above adding a popular medium to help boost user engagement.
Neuralink’s first human subject demonstrated playing chess via brain-computer interface [Wired[
It will be interesting to see if Neuralink would break out of these accessibility-oriented demos to show some real use cases any time soon. Also, its ability to scale this neuro-interface remains a question mark.
On average, American households that subscribe to streaming video entertainment services said they spend $61 per month for four services, according to Deloitte’s 18th annual Digital Media Trends report, Variety reports. That’s up 27% from $48 per month on last year’s survey. Furthermore, 36% of those surveyed said the content available on streaming video services is not worth the price. And nearly half (48%) of respondents say they would cancel their favorite subscription VOD services if prices went up by $5 per month.
Most teens think the benefits of smartphones outweigh the harms for their age group, according to a recent Pew Research Center survey of 13- to 17-year-olds and their parents. That said, 38% of teens surveyed admitted that they spend too much time on their smartphone — About 25% said they spend too much time on social media, while 39% said they should cut back on social media use.
It’s been six months since Paris Hilton partnered with Roblox to introduce Slivingland, an all-things-Hilton virtual environment. Now, according to a report commissioned by Hilton’s media company 11:11, Slivingland has generated the equivalent buzz of a $60 million ad campaign since its launch, with 3.4 million visitors as of February 2024, VentureBeat reports. Think of these stats the next time your client says “gaming does not align with our target audience.”
If you find our insights valuable and would like to have a deeper conversation on technology and media innovations, or need to sound smarter in a client meeting or a pitch, please feel free to reach out to Chelsea Freitas, our VP of Strategy, at chelsea@ipglab.com.
If you liked this edition of Lab Weekly by IPG Media Lab, why not share it?