• AI and sports were hot topics du jour at the ad industry's annual confab, Cannes Lions, this week.
• The bustling streets suggested AI isn't decimating the ad industry yet.
• Brand safety was the elephant in the room.

The scorching hot sun is setting on advertising's annual shindig in the south of France, Cannes Lions, for another year.

At the sprawling event, there was a level of thematic whiplash. In the span of an hour on the main stage in the Palais you go from hearing about the creation of the iconic Snickers "You're not you when you're hungry" campaign to hearing a speech from human-rights activist Sonita Alizadeh on the humanitarian crisis of child brides in Iran and Afghanistan.

There was also a whole lot of partying. Spotify's beach concert stage hosted rapper Cardi B and indie rockers Royel Otis. Diplo was spinning the decks for Yahoo. Talent agency UTA's annual VIP "dinner" at the luxury Hôtel du Cap-Eden-Roc had no sit-down meal but instead a punchy set from comedian Sebastian Maniscalco.

Business Insider was on the ground — and occasionally the yachts — to get the inside look on the big topics that are top of mind in an industry undergoing seismic changes. Here were the key themes.

The AI of it all

If the advertising industry is losing people to artificial intelligence, it certainly didn't look like it at Cannes this week. The streets were bursting with lanyard-wearing, hungover Lions attendees trying to figure out which opulent branded beach setup their next meeting was located. Still, AI was the talk of the town.

With AI spinning up thousands of ads cheaply and in seconds, the business model of billing clients for time is under threat. Meta CEO Mark Zuckerberg ruffled feathers ahead of Cannes when he said AI will essentially automate the ad business.

"You tell us what your objective is, you connect to your bank account, you don't need any creative, you don't need any targeting demographic, you don't need any measurement, except to be able to read the results that we spit out," he said in a May interview with the tech newsletter Stratechery. (Is that the sound of Don Draper dropping his glass of rosé, we hear in the distance?!)

In an interview with BI, Meta's chief marketing officer, Alex Schultz, said his boss was talking about small businesses, not Fortune 500 brands.

"I don't see myself fully automating my ad campaigns and not using my agency at any point," Schultz said.

(Donny D! Come back, you're safe!)

For all the promises of AI, advertising still appears to be a people business. Cannes showed people in the ad industry believe that relationships matter. It's how attendees convince the finance department back home that the $5,000 festival pass, flights, Airbnb, meals, and a 2 a.m. expense receipt for a Jéroboam of Rosé at the Carlton Hotel was all worth it.

Marketers are racing to sports

If you haven't got an F1 sponsorship deal, are you even a CMO in 2025?

Sports was a pervasive theme at Cannes Lions this year, and athletes were out in force. Take a stroll down the famous — and exceptionally hot — Croisette promenade, and you had a good chance of bumping into tennis champ Serena Williams, McLaren Racing driver Oscar Piastri, or Kansas City Chiefs tight end — and Taylor Swift beau — Travis Kelce. Advertising company Stagwell's "Sport Beach" had some of the longest lines in town, some for the star-studded panels, others for the bragging rights of trouncing a colleague at pickleball. (Disclosure: BI hosted an event on Sport Beach, too.)

With traditional, or linear, TV viewing in decline, sports is one of the last destinations where marketers can guarantee getting their brands in front of large audiences.

"It's a way of being involved right in the moment, live," Michael Lacorazza, CMO US Bank, told BI. US Bank is involved in numerous teams and recently announced its partnership with the Premier Lacrosse League.

It's not just about placing 30-second spots or slapping logos on jerseys. Marketers talked up how they're enhancing the live experience in stadiums while people are in a joyful mood. Uber Advertising was pitching clients using a case study from beauty brand La Mer, which sponsored rides to and from the Miami F1 Grand Prix, stuffed with skincare goodies.

F1 is having a moment. According to the research firm Ampere Analysis, sponsorship spending on F1 and its teams is expected to reach $2.9 billion this year, up 10% on 2024. With viewership boosted in part by the popular Netflix series "Drive to Survive," brands and media partnerships are helping extend its reach beyond the race track.

"Seeing the new fans come into the sport, we needed to show up in their worlds and be meaningful in their worlds," Louise McEwan, chief marketing officer of the McLaren Racing F1 team, told BI. "Only one percent of fans ever go to the track in their lifetime."

Putting consumers in charge

The power of the consumer is stronger than ever.

At the Tubi cabana at Cannes, we spoke with its chief marketing officer, Nicole Parlapiano, who shared how the streaming platform is super-flexible in how it's marketing its titles. Streamers like Tubi can't easily test shows and movies before they acquire them, so they relentlessly monitor social chatter to determine how much and where to market a show, Parlapiano said.

Daniel Lawrence Taylor's hit show "Boarders" got a billboard in New York City's Times Square. And that's down to Parlapiano's team being flexible, pouring extra marketing dollars into "Boarders" after seeing the social media reaction, she said.

Laurie Lam, chief brand officer of E.l.f Beauty, said at a BI event that its product pipeline is often driven by what consumers are saying on social media.

"They're telling us exactly what they want and we're then putting it into the market for them," Lam said.

"And they're not polite about it, by the way," she added. "It used to be like, 'Hey, I would really love it if you can make this primer.' Now it's like, 'Make that primer now. Where is my primer?'"

Brand safety becomes a brand risk

Amid all the talk of AI supercharging creativity, and humanity being the ad industry's "super power," there was a big topic execs on the Croisette went super out of their way to avoid.

People noticeably squirmed as we asked questions about the current debate around brand safety — a catch-all industry term to describe how advertisers avoid platforms and media that don't align with their brand. A few years ago, you couldn't move for panels on the topic at Cannes, with speakers calling on big platforms to do more to protect brands. This year, with the US government questioning the propriety of those decisions? Crickets.

Barely anyone at Cannes wanted to discuss this enormous elephant in the room. Even the term "brand safety" has become a kind of Voldemort, "He who should not be named" word. One exec told us that the industry is more comfortable talking about "brand assurance" instead, whatever that really means in practice.

Perhaps nobody wants a target on their back. The turnabout shows how Cannes Lions holds a telling mirror into the industry, where sometimes what's not being talked about can also speak volumes.

• WPP CEO Mark Read plans to step down after seven years leading the advertising giant.
• The company faces challenges as the ad industry shifts to AI and tech-driven models.
• WPP's restructuring under Read saw brand retirements, office closures, and debt reduction.

Will the last ad exec leaving Madison Avenue please turn out the lights?

WPP CEO Mark Read said Monday that he plans to step down after seven years leading the advertising giant and more than 30 years at the company. He will continue as CEO until the end of the year to see through the transition to his successor, who hasn't been named.

The announcement comes at a fraught crossroads for WPP and the broader advertising industry. Read's exit follows that of famed ad veteran David Droga, who said last month he plans to leave Accenture Song, the consulting giant's marketing services division, at the end of this year. Several longtime WPP execs have also parted ways with the company in recent months.

Madison Avenue is grappling with upheaval as its profit centers shift from creating TV ads with catchy taglines and big branding ideas to trading media, integrating IT systems, and helping clients make sense of their customer data. The rise of artificial intelligence and its associated productivity gains also rips a hole through the traditional agency business model, where ad companies are generally compensated on the number of full-time equivalent employees devoted to an account. Add to that the threat from Big Tech giants like Meta, who want to cut out the advertising middlemen altogether using the power of their huge audiences and sophisticated ad targeting systems.

Under Read, WPP has attempted to respond to these forces. In recent weeks, WPP rebranded GroupM, the division responsible for managing around $60 billion in clients' media investments, to WPP Media. The company said the streamlined media offering is powered by WPP Open, an AI-powered platform that helps its employees do market research, spin up media plans, and create assets for campaigns using generative AI.

But WPP isn't fighting from a position of strength. The company's annual revenue declined last year, and WPP recently forecast another revenue drop for 2025, which it said reflected a challenging macroeconomic environment.

Once the biggest advertising holding company by most measures, WPP was displaced by Publicis as the largest ad company by revenue last year. Publicis currently trades at a market capitalization of around $27 billion to WPP's $8 billion. The industry is also awaiting the creation of an even bigger ad behemoth later this year once the proposed merger of Omnicom and IPG passes regulatory approval.

"The fundamental challenge is that an enormous amount of what the traditional holding companies do is commodity, and commodity can now be done using technology," said David Jones, the former CEO of the ad agency holding company Havas. Jones now leads the 10-year-old marketing and technology company The Brandtech Group, a WPP competitor.

"AI is going to give the traditional holding companies their Kodak moment," Jones said.

Read laid the groundwork for WPP's next era and its new CEO

While Read is a WPP veteran, the 58-year-old wasn't an ad man in the traditional sense.

He took a graduate job at WPP after getting an economics degree from Cambridge University in the UK. He left and became a cofounder of WebRewards, a digital coupons business he sold to the German publishing giant Bertelsmann in 2001, after the dot-com bubble burst. He rejoined WPP a year later, rising to become CEO of Wunderman, one of its digital agencies.

Read took over the reins of the entire company in 2018, after the acrimonious exit of its longtime CEO Martin Sorrell, who had built the company from a seller of "wire and plastic products" — WPP — into what was the world's largest advertising group.

While a fellow Brit, the similarities between Read and Sorrell largely ended there. Sorrell was famed for building WPP through a series of acquisitions, and still now at his new ad company, S4 Capital, is an archetypal "Davos Man," often seen on stage and TV offering commentary about macroeconomic issues. Read has kept a lower profile and has sought to simplify WPP's many agencies into a more uniform structure.

Sorrell did "empire building," while "Read has been an empire dismantler," the independent media analyst Alex DeGroote said.

Some industry analysts and insiders say this is to Read's credit. According to DeGroote's calculations, Read retired around 300 different agency brands, closed more than 800 offices, and realized around $5.1 billion for the company from disposals. WPP reduced its net debt to around $2.3 billion as of December 31 last year, down from about $3.4 billion in 2023.

But the Read era of restructuring and layoffs has hit morale within the rank and file — a mood that was further soured among some WPP employees when he instituted a four-day-a-week return to office policy this year. WPP has lost key accounts from clients like Pfizer and the Coca-Cola North America media account, though it has also won business from major advertisers including Amazon and Unilever. Toward the latter part of his tenure, some industry insiders said Read would need to take a bigger swing — anything from taking the company private to making a landmark acquisition — in order to return the company to growth.

Attention now turns to who might succeed Read.

Industry insiders told BI that internal candidates for the role would likely include newly appointed WPP Media CEO Brian Lesser; the CEO of WPP's specialist communications agency division, Johnny Hornby; WPP's chief operating officer, Andrew Scott; WPP's chief marketing and growth officer, Laurent Ezekiel; VML CEO Jon Cook; and Ogilvy CEO Devika Bulchandani. These execs either declined to comment or didn't respond to requests for comment from BI.

The search, led by the former British Telecommunications boss Philip Jansen, who became WPP's chairman in January of this year, is also considering external candidates.

"I don't think it will be internal, but I don't think it will be a radical hire either — WPP does not need more restructuring," media analyst Ian Whittaker said. "I would look for executives at one of the other agency groups who are well regarded."

One WPP insider told BI they expected and hoped the appointment would be made relatively quickly.

"At the end of the day, we've just got to get our mojo and momentum back," this person said.