Executive Briefing: Friday 25 September

Executive summary AI is fundamentally reshaping both consumer engagement and operational structures, with video authenticity now critical for brand trust. Agencies are adapting, evidenced by new business models and significant account movements in the market. Meanwhile, privacy regulations continue to evolve, demanding sophisticated, ongoing tag governance. Video authenticity becomes critical for brand validation In an era of easily faked digital content, authentic video has emerged as a crucial tool for establishing brand trust and validation with consumers. Research indicates that 63 percent of people prefer to watch a short video to learn about a product or service, compared to 12 percent who prefer text, with 85 percent of people having been convinced to buy by watching a video. Furthermore, 89 percent of consumers report that video quality impacts their trust in a brand. This underscores the need for a robust video marketing strategy that prioritises genuine content, as evidenced by the success of unpolished Instagram Reels that foster a sense of connection. Maintaining an official presence on platforms like YouTube serves as a public record that validates a business's existence and provides authentic engagement. AI transforms B2C buyer journeys and agency models Artificial intelligence is increasingly serving as the primary interface for consumer product discovery, comparison, and recommendations in the B2C journey. Journeys that integrate AI with traditional search mechanisms achieve 84 percent higher conversion rates than those relying solely on AI. Marketers must therefore engage in "Generative Engine Optimisation" to ensure their brands are cited within AI-driven answers, especially as Google's AI Overviews appeared on 24 percent of shopping queries by September 2026. Concurrently, the agency landscape is evolving with models like THE VIRTUAL AGENCY, which combines AI-powered creative systems with senior human judgement. This approach aims to provide small and medium-sized businesses with access to strategic and creative capabilities without the traditional overhead, leveraging technology for repeatable tasks and concentrating talent on strategy and ideas. Agency landscape sees major account shifts and recognition The media and creative agency market is undergoing significant shifts, highlighted by major account movements and industry awards. In New Zealand, Publicis Media and Together led new business in the first half of 2026, tracking an estimated $US180 million in media spend, with Publicis Media recording $US22.8 million in net new business and retentions, and Together at $US50.8 million. Domestically, social-first agency Kill Boring Dead expanded its portfolio with SavourLife and Toscano, while The Media Store retained the RMIT University media account after a competitive pitch. Further demonstrating market activity, My Kitchen Rules announced new advertisers for its returning season, where sponsors historically outperformed industry benchmarks. These movements, alongside the MFA Awards recognising outstanding media strategy, underscore an industry adapting and re-wiring for new challenges. Evolving privacy regulations demand continuous tag governance California's new Senate Bill 690 (SB 690) amends the state’s Invasion of Privacy Act (CIPA) by shifting enforcement for "pen-register" violations from private lawsuits to the Attorney General. However, this change does not eliminate private litigation risk under CIPA's Section 631 for wiretapping and eavesdropping claims, which represent approximately two-thirds of CIPA filings. Consequently, continuous tag auditing and maintaining a historical record of consent proof remain critical to mitigate legal exposure and prove compliance to regulators. Tools like Tag Inspector are enhancing capabilities for granular consent condition auditing and server-side Google Tag Manager support. Furthermore, Enhanced Conversions leverages consented first-party data to improve conversion tracking accuracy and media audiences, offering a practical solution to measurement gaps caused by evolving privacy measures, potentially yielding 23% more conversions and a 10% drop in cost per conversion.