Against the backdrop of apparent decline, a contrarian thesis is emerging. Morningstar’s Mark Giarelli articulates the core argument: “The industry is being disrupted, but it’s not being disintermediated — I think that’s the key.”
The Pivot Thesis: AI commoditizes production but increases strategic complexity. Orchestrators win.
Four Pillars of the Bull Case:
1. Cross-Platform Allocation
Google can’t help brands allocate ad budgets across platforms. A platform has structural incentives to recommend its own inventory.
2. Complexity Creates Demand
More platforms, more formats, more personalization options — this complexity creates demand for strategic guidance.
3. Data Moats Since 1980s
Consumer behavior data accumulated over 40 years isn’t replicated by AI tools alone. First-party data assets like Acxiom and Lotame represent defensible advantages.
4. Volume Economics
Lower AI production costs should allow more ads and more investments by the biggest brands. Premium brands need “unforgettable experiences.”
Proof Point: Analyst ratings for Publicis at multi-year highs — data + AI capabilities leading the sector.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
