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CMO TLDR: Your Weekly Marketing Brief

Weekly Digest - March 21, 2025

Author

Peter Brendan
March 21, 2025

CMO TLDR: Netflix Unveils Ad Tech, AI Transforms Media, Economic Shifts Impact Marketing

CTV & Streaming

Netflix Debuts Proprietary Ad Tech Stack

Netflix is launching its in-house advertising technology suite on April 1, dubbed "Netflix Ads Suite" (NAS), featuring proprietary ad server capabilities and Magnite as its SSP partner, according to the company's VP of Advertising Nicolle Pangis at a recent industry event. The streaming giant aims to leverage its member insights and viewing data to deliver more personalized advertising experiences while maintaining its low ad load, with Pangis emphasizing that Netflix's approach differs from traditional linear TV by focusing on audience targeting rather than specific programming slots.

Artificial Intelligence & Innovation

Media Agencies Embrace AI for Operations but Reject AI-Created Content

Media agencies are increasingly deploying artificial intelligence tools to automate routine campaign tasks and improve measurement efficiency while still finding AI-generated creative content inadequate for client needs, according to executives at Digiday's Media Buying Summit. Agency leaders from Wpromote and Media By Mother highlighted how AI is freeing senior team members for strategic thinking while eliminating traditional media planning roles, though many remain frustrated by the lack of transparency in AI-powered platforms like Google's Performance Max.

Adobe: Generative AI Driving Surge in U.S. Retail Website Traffic

In February retail websites experienced a staggering 1,200% increase in traffic from generative AI sources compared to July 2024, with Adobe Analytics data revealing AI visitors show 8% higher engagement, browse 12% more pages, and have 23% lower bounce rates than non-AI traffic. The trend extends beyond retail into travel and financial services, with AI-driven traffic up 1,700% and 1,200% respectively. The conversion gap, now at 9%, down from 43%, suggests AI is fundamentally changing consumer research and increasingly influencing purchase decisions.

Accenture Song Drives 70% Efficiency Boost for Uber's Ad Business

Uber Advertising has dramatically improved its operational efficiency through a partnership with Accenture Song, automating over 100 processes and reducing administrative workload for its sales team from 60% to under 50% of their time. The streamlined workflow has contributed to Uber's strongest quarter ever, with the company posting a 20% year-over-year revenue growth of $12 billion in Q4 2024, as its advertising business leverages data from nearly 33 million daily trips to deliver personalized, value-focused campaigns.

Economic Head Winds

Acxiom Cuts 3.5% of Staff as Omnicom-IPG Merger Advances

IPG's data unit Acxiom has laid off approximately 3.5% of its workforce across account management, client services, financial analysts, and strategic partnerships positions as part of an internal restructuring. The cuts come just one day after shareholders approved Omnicom's $13 billion acquisition of IPG on March 18, which promises $750 million in cost synergies but still awaits final regulatory clearance before major cost-saving actions can fully proceed.

Trump Tariffs Set to Trigger Marketing Budget Cuts in 2025

President Trump's expanding tariff agenda — including 10% charges on Chinese imports and 25% tariffs on goods from Mexico, and Canada, and on global aluminum and steel — is creating widespread supply chain volatility that experts predict will hit marketing budgets by mid-2025. Analysts from Forrester, Gartner, and Kantar warn that media spending will likely face significant cuts in the second half of the year as brands grapple with price increases and declining consumer confidence, potentially accelerating shifts toward digital channels, in-housing, and regional marketing approaches.

WPP's GroupM is leveraging AI solutions from Cognitiv to streamline the tedious process of curating private marketplaces, with the tech vendor's expanded OpenAI partnership promising to scale these efficiency gains across a wider range of advertisers.

The IAB Tech Lab is launching an open-source "trusted server" framework that shifts programmatic advertising operations from browsers to server-side processing. This framework will allow publishers to bypass browser-imposed data collection limitations and regain control over their monetization strategies while maintaining first-party relationships with users. 

Ad verification firm DoubleVerify has overhauled its keyword-blocking policies to limit restrictions to only "unclassified URLs" and introduced AI-powered tools to optimize blocklists, a move aimed at reducing financial impact on news publishers amid growing criticism of ad verification technologies and new competition from Scope3's entry into the market.

AI startup Perplexity AI, valued at $9 billion, is gradually expanding its advertising business beyond a small group of initial partners with a focus on relevancy-based sponsored queries rather than traditional keyword bidding, according to Head of Advertising Taz Patel who joined the company in December.

US ad spending growth projections for 2025 have been revised downward from 4.5% to 3.6% as economic uncertainty tied to Trump's tariff policies rattles marketers, with traditional media like TV expected to bear the brunt while digital and commerce media remain relatively resilient.

Publicis Groupe has captured Coca-Cola's U.S. and Canadian media and data business from WPP following a closed-door review, dealing a blow to the British holding company that won the beverage giant's $4 billion integrated global business just three and a half years ago. The French holding company adds another significant win to its growing media portfolio, while Coca-Cola maintains that WPP remains its only global marketing partner and is in "an advanced stage" of renewing this relationship.

Note: This story broke last week after our newsletter went out.

Key Article Takeaways - TLDR

  • Generative AI is driving notable increases in retail website traffic, as consumers leverage it for shopping research and assistance. The narrowing conversion gap presents a disruptive opportunity for marketers and advertisers who can capitalize on this trend.

  • Netflix is launching an ad tech suite focused on personalized advertising, aiming to maintain high viewer engagement. The platform offers innovative custom ad formats and targeting options, positioning Netflix as a crucial avenue for reaching engaged audiences with relevant ads.

  • In the current climate of uncertainty, CMOs are prioritizing clear returns on marketing investments. Marketers and platforms that deliver measurable results will thrive.

  • Media agencies are utilizing AI for enhanced automation and efficiency. While AI-generated creative still trails in quality, significant opportunities exist to streamline operations. However, AI optimizations should be carefully validated to ensure effectiveness.