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Algorithms and Blues

The pervasiveness of algorithms is creating a homogenous online experience, requiring brands to prioritize cultural relevance and agility.

Detailed Analysis

The report explores the dual challenge presented by algorithms: the need to cut through the sameness and the risk of exacerbating fragmentation. "In a world where every piece of content we see and every product we buy has been shaped and recommended by powerful algorithms, brands face a dual challenge," the report emphasizes. Brands must understand how to make algorithms work for them by prioritizing cultural relevance, engaging creators, and responding with agility. The rise of the creator economy and the increasing awareness of algorithmic influence among consumers are key factors shaping this trend. The report also highlights the potential for meme-ification and "vibes" to drive public opinion and consumer behavior in unpredictable ways.

Context Signals

75% of CMOs consider influencer marketing vital. The creator economy is projected to generate half a trillion dollars by 2027. Increasing use of AI-generated content.

Edge

Brands will need to prioritize cultural relevance and community engagement to win in the age of the algorithm. Agility and speed will become essential for content creation and marketing. The rise of "vibes" and meme-driven culture could create new opportunities for brands to connect with consumers in authentic and unexpected ways.
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TRENDS
As analysis from System 1, together with the IPA, Peter Field, and Adam Morgan demonstrates, dullness is extraordinarily expensive: dull brands must spend almost £10m as much on media to cut through.