Frozen Yogurt and AI Santa

‍M&A Signals? We’re So Back. News broke last week that Trellis has joined forces with Zaelab to “redefine B2B commerce,” focusing on enterprise digital transformation. Post-2021, M&A activity in the eCommerce integrator and agency ecosystem ground to a halt as interest rates rose. This merger may be a new signal that capital is flowing back into enterprises looking to uplevel their delivery and partnerships by consolidating resources.

‍In Defense of Merchification. OK it’s a pun. Yeah. And, ok, sure, Lockheed Martin beat them by over a year, but now that cool kids Anduril and Palantir have introduced branded merchandise stores, we’re starting to see signals that the merchification trend is a durable organic marketing and earned media strategy.

The trend also hints that a consumerization of B2B marketing is reshaping industries traditionally focused on functionality over lifestyle. Not to be outdone, Quilt, a heat pump manufacturer, launched its own line of merch.

You Can’t Spell ‘Diabetes’ without an A and an I. Yum Brands has employed AI-driven marketing to improve customer engagement and drive sales across franchises like Taco Bell and KFC. This data-centric approach has demonstrated measurable success, showing how precision-targeted campaigns reduce churn and enhance customer lifetime value; which results in spending more money on more food you probably shouldn’t be eating more of.

Department of Redundant Research Department. Modern tech consumption, from social media to binge-watching, has exacerbated feelings of isolation rather than enabling genuine connection. New research highlights what everyone already knew: social media platforms and algorithms prioritize constant interaction without the emotional depth needed to combat loneliness. The New York Times has done the brave job of analyzing the phenomenon everyone already is experiencing, exploring how technology offers a promise of connection but is really trying to get you to pay $22/month for Wordle.

‍Coca-Cola SantAI. Following in the footsteps of Toys ‘R Us earlier this year, Coca-Cola uses AI in this year’s Holiday ad campaign. This year’s “The World Needs More Santas” campaign integrates GenAI video utilizing its partnership with OpenAI; the partnership was formed in 2023 in collaboration with Bain. In addition, AI will power web experiences where fans can chat with the classic Sundblom Santa Claus from Coca-Cola’s 1930s ad campaigns. 

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Our Take: “This is just the beginning,” said Lesley Silverman, Head of New Tech at UTA, who spoke from VISIONS Summit: Los Angeles last month. “This tech allows humans to be more creative in less time.”

Early GenAI video tech had a recognizable aesthetic, as we saw in the Toys ‘R Us spot previewed at VISIONS. UTA repped the team that created that ad. Because new technology inherently leads to earned media, it’s natural to see public reaction to the use of the tech. Coca-Cola has a history of doing so; remember the iconic Polar Bears? Brands and artists alike co-opt new technology to generate buzz; even if it’s an aesthetic reference that doesn’t incorporate GenAI, as was the case with the “He Gets Us” ads from the Super Bowl.

But the new wave is more artistic, less identifiable, and is most certainly used more than we realize. This reminds me of the quote from The Good Place: “There's something so human about taking something great and ruining it slightly so you can have more of it.” Except video production isn’t the same as frozen yogurt; in theory, we can produce—and consume—an unlimited amount of video content.

In the hands of true creative visionaries—like the creatives that UTA often represents—we won’t have more content; we’ll have better content due to a creator's ability to experiment and produce waste faster. 

For more on wasteful creativity and how AI is changing advertising in commerce, check out our interviews from VISIONS Summit, exclusively available with a Future Commerce Plus membership.