THENEWCREATIVEPARADIGM HOWAIISTRANSFORMINGVIDEOANDCONTENTPRODUCTION FEBRUARY2024 ACKNOWLEDGMENTS Thisreportwouldnothavebeenpossiblewithoutthesignificantcontributionsofthehundredsofmarketingindustryleaderswhocontributedtheirtimeandinsightsinsupportofthisresearch.Toallofthem,wesaythankyou. KNOWLEDGECENTERPARTNER PREMIERSPONSOR NOTICE Thisreportcontainsbrief,selectedinformationandanalysispertainingtotheadvertising,marketingandtechnologyindustriesandhasbeenpreparedbyVeristaPart-nersInc.d.b.a.WinterberryGroup.Itdoesnotpurporttobeall-inclusiveortocontainalloftheinformationthataprospectivemanager,investororlendermayrequire.Projectionsandopinionsinthisreporthavebeenpreparedbasedoninformationprovidedbythirdparties.NeitherWinterberryGroupnoritsrespectivesponsorsmakeanyrepresentationsorassurancesthatthisinformationiscompleteorcompletelyaccurate,asitreliesonself-reporteddatafromindustryleaders—includingadvertisers,marketingserviceproviders,technologydevelopersandagencies.Norshallanyoftheforgoing(ortheirrespectiveofficersorcontrollingpersons)haveanyliabilityresultingfromtheuseoftheinformationcontainedhereinorotherwisesupplied.Alltrademarksarethepropertyoftheirrespectiveowners. CopyrightWinterberryGroup2024©AllrightsReserved Thiswhitepaper’spurposeistobringclaritytoacomplexandevolvingtopic—thevideoandcontentproductionsupplychain—intheeraofAItransformation.Intheprocessofdevelopingthispaper,WinterberryGroupsurveyedmorethan250decision-makersatbrandsacrosstheUSandUKandconductedin-depthinterviewswithdozensofindustryexpertsandinfluencersinthecreativeproductionandcontentcreationmarket. Theresultisanevidence-basedexaminationofthecurrent-stateanddevelopingchangeswithinthecreativeproductionandcontentcreationlandscapegiventhecontinuedgrowthofmachinelearningandthenewlyaccessibleandpotentiallytransformativeimpactofgenerativeAI,howeachphaseofthecontentlifecycleisbeingimpactedandwherethemarketisheaded. WINTERBERRYGROUPAUTHORS BruceBiegel SeniorManagingPartner CharlesPing ManagingDirector,EMEA BrittanyMeeks EngagementDirector IsabelStack Consultant MadelineteRiele Associate TABLE OFCONTENTS 06ExecutiveSummary 08Introduction 11UnderstandingtheNewProductionParadigm 13ProductionIntheEraofArtificialIntelligence 16ContentLifecyclePhaseI:Planning 18ContentLifecyclePhaseII:ProcessManagementandGovernance 21ContentLifecyclePhaseIII:Measurement 23MarketOutlook 26Glossary 27Methodology TABLES ANDCHARTS 08TimeSpentPerDaywithDigitalVersusTraditionalMediaintheUnitedStates09USMediaSpendonDigitalVideovs.LinearTV 10GlobalVideoandDigitalContentProductionSpend 12CreativeProductionandContentCreationLifecycle 15AIUseCasesforCreativeProductionandContentCreation 21DataFeedbackLoopforCreativeProductionandContentCreationMeasurement EXECUTIVESUMMARY Creativeandcontentproductionisinthemidstofanevolution,drivenbychangingconsumptionpatterns,theproliferationofdigitalmediachannels,thegrowthofvideo-centricadvertising,elevatedconsumerexpectationsforrelevancyandthedemocratizationofcontentcreation.Thepaceofevolutionisacceleratingrapidlyas theusecasesforartificialintelligence(AI)—includingmachinelearningandgenerativeAI—continuetoexpandacrossthecreativeandcontentlifecycle. Therearesignificantobstaclestotheseadvancements,however,asorganizationsgrapplewithsiloedscopesofworkanddecision-making,afragmentedcontentcreationlandscape andtheinherentrisksinutilizinggenerativeAI,including: Regulatoryuncertainty Lackofclarityincostandresourceintensiveness Potentialbias LimitedtrustinAI-generatedcontent Variabilityinqualityandconsistency Thesechallengeswillbeovercomebybrandsandagenciesthroughacombinationoforganizationalchangemanagement,astructuredapproachtotestingandexpandingtheuseofAIandthroughleveragingtherightinternalandexternalresourceswhocanprovidecreativeproductionandcontentcreationstrategy,governance,dataandinsights. Brandsareshiftingbudgetstomeetcustomerswheretheyare,focusingonthevideo-centriccontenttheyincreasinglyengagewith.Accordingtomediaspendforecasts,spendingwillcontinuetofollowconsumersastheirattentionmigratesacrosslinearanddigitalmediachannels.Thedownstreamimpactisthatthedesign,executionandmanagementofcreativeandcontentproductionspendingmustevolve,supportingdemandacross anexpandingrangeofchannels,platformsandformats. Thenewproductionparadigmrequiresamoreholisticapproachtoplanninganddesign,challenginghistoricalmodelsandsilos.Brandsandagenciesmustnowconsiderwherethecontentwillrunandwhotheaudienceis,alongwiththecreativeconcepting,beforeincorporatingbrandstrategy,brandguidelines,anynecessarymandatesandoverallreturnoninvestment.Thisforwardlookingviewwillrequireintegrationacrosssilos,withinvolvementfrommediaplanning,(audience)analyticsanddataandproductiontocomplementcreative andstrategy. Whilemachinelearning(ML)hasbeenentrenchedinmarketingforyearsaspartofactivation,optimizationandmeasurement,generativeAI(GenAI)isthenextinnovationfrontier.Whileonlyrecentlywidelyaccessible,manybrandsandagenciesareutilizingsomeformofgenerativeAIintheircreativeandcontentprodu