WELCOME TOOUR ANNUALCMO REPORT At a time when growth is harder to come by, CMOs are turning to Innovation as never before to unlock newsources of sustainable growth. As the founder of Dentsu Lab Tokyo, Innovation is close to my heart. So I’mexcited to see that CMOs are planning significant investment in innovation, particularly as we expand ourDentsu Lab offering around the world to help our clients solve their most urgent problems. I’m also inspiredby how clients are embracing the coming together of humanity and AI. Despite exponential leaps forward inartificial intelligence, we see real power in experiences that connect technology and humanity through touch,haptics, voice, gesture and beyond.”“ Yasu Sasaki, Global Chief Creative Officerdentsu What we’re hearing from clients, and our survey confirms, is that they need and value creativity more than ever.But it’s a new kind of creativity; creativity that is business-driven, making an impact across every aspect oftheir organization from comms to commerce to sustainability. In parallel, we see new attitudes to AI emerging,where it’s not a threat to human creativity but a way of giving human creativity superpowers -- exponentiallyincreasing the pace and possibilities of personalization, real time responsiveness, and relevance.”“ Abbey Klaassen, Global Brand PresidentDentsu Creative Brands and businesses are now in the era of sudden change. Changes we’ve anticipated for years are nowaccelerating dramatically and reaching critical tipping points accelerated by new behaviors, new technologiesand new possibilities. We can’t reach new customers in old ways, or make new work with old tools. Brandstoday will be built at the intersection of culture, commerce and community; in a world where stories areshoppable and stores are stories. The challenge for brands will be to engage communities in thoughtful andcollaborative ways enabling scale, relevance and authenticity.”“ Pats McDonald, Global Chief Strategy OfficerDentsu Creative THE ERAOF SUDDENCHANGE INTRODUCTION So perhaps it’s not surprising to see that while CMOs around the worldare more committed to creativity than ever, it’s a new kind of creativity.Creativity that doesn’t stay in its box, but adds transformational valueacross every aspect of the business. Because suddenly, it is impossibleto over-estimate the pace and power of change. Change happens both faster, and slower, than we realize. As Bill Gatesonce said, “We overestimate the change that will occur in the next twoyears and underestimate the change that will occur in the next ten”. As an industry we are instinctively drawn to the new, the novel, thenext. Sometimes we do overestimate the pace of change. The deathof broadcast has been announced more times than most of us canremember, while most consumers continued happily to tune in. What we see in our annual survey is a cohort of CMOs under more pressurethan ever to provide foresight for their organizations; to anticipate fastchanging consumer demands and rapidly evolving technologies. We seea new understanding that marketing today is a collaboration; that brandsare built not through rigid control but through culture, communitiesand creators. Some truths endure: the organizing power of the idea, the transformationalpower of emotion.83% of CMOS believe powerful creative ideas cantransform businesses. 61% believe that we underestimate the powerof emotion to drive these transformations. 81% agree creativity ismore important to their business than ever. Versus just 12 months ago, we see a new coming to terms with the role ofAI as co-pilot; CMOs no longer see craft and AI as diametrically opposedand are much less likely than a year ago to believe that AI cannot createcontent that represents their brand or moves their audiences. But some things change, and suddenly. Suddenly it feels we are at avery real tipping point; living through a series of profound shifts in howour work is created, consumed and distributed that call for urgent andfundamental changes in how we engage: Perhaps most importantly, in a world where many agree growth is harderto come by, and product advantages easier to replicate we see a hungerfor creativity applied more widely across our clients’ business; acrossevery aspect of their organization and every complex challenge fromCX to Sustainability to Innovation. •A worldwide redistribution of attention means we can’t reachnew customers in old ways. Finally, broadcast media is facinga generational tipping point. •An exponential rise in the number of creators with a platformand the means to publish is upending old and exclusive contentmodels. •A dizzying acceleration in the ability of AI to automate thecreative process will challenge old ideas of where ourlimitations lie-enabling exponential leaps forward in our abilityto personalize at pace and scale. •An urgent need to reinvent the global economy for sustainablegrowth will force us all to collaborate in new ways with oldcom